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Mar 31, 2022

APi Group Q1 2022 Earnings Report

APi Group reported strong first-quarter results with significant revenue growth and margin expansion.

Key Takeaways

APi Group reported an 83% increase in net revenues to $1.5 billion, driven by acquisitions in Safety Services and strong organic growth. Adjusted EBITDA increased by 109.8% to $128 million, with an adjusted EBITDA margin of 8.7%. The company's backlog reached a record high, providing a solid foundation for continued growth.

Net revenues increased by 83% due to Safety Services acquisitions and organic growth in Safety and Specialty Services.

Organic net revenue growth was 15.9% compared to the prior year period.

Adjusted EBITDA increased by 109.8% to $128 million.

Adjusted diluted EPS was $0.23, an increase of $0.13 from the prior year period.

Total Revenue
$1.47B
Previous year: $803M
+83.2%
EPS
$0.23
Previous year: $0.12
+91.7%
Adjusted EBITDA Margin
8.7%
Previous year: 7.6%
+14.5%
Organic Net Revenue Growth
15.9%
Previous year: 2.4%
+562.5%
Gross Profit
$376M
Previous year: $181M
+107.7%
Cash and Equivalents
$315M
Previous year: $745M
-57.7%
Free Cash Flow
-$130M
Previous year: $14M
-1028.6%
Total Assets
$8.14B
Previous year: $4.22B
+93.0%

APi Group

APi Group

APi Group Revenue by Segment

Forward Guidance

APi Group is confident in its momentum and outlook for the balance of the year and the years ahead. The integration of Chubb is on track, and the business is performing in line with expectations. The company believes the combined business will offer customers more customized and proprietary offerings and drive synergies and savings.

Positive Outlook

  • The company had a strong start to 2022 with positive momentum across the entire business.
  • Net revenues increased on an organic basis by 16% in the first quarter.
  • There was robust demand across key end markets.
  • The consolidated backlog continues to build and was at a record high level as of the end of March.
  • The integration at Chubb is off to a good start.

Revenue & Expenses

Visualization of income flow from segment revenue to net income