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Jun 30, 2021
APi Group Q2 2021 Earnings Report
APi Group's financial performance was reported for Q2 2021, showing revenue increase and strategic progress.
Key Takeaways
APi Group reported a 10% increase in net revenues to $978 million in Q2 2021, driven by market recoveries in Safety and Specialty Services. Adjusted EPS was $0.31. The company is set to acquire Chubb fire and security business around year-end 2021, anticipating significant future value creation.
Net revenues increased by 10.0% to $978 million compared to the prior year period.
Adjusted net revenues increased by 15.2% to $978 million compared to the prior year period.
Net revenues, excluding Industrial Services, increased on an organic basis by 21.1% compared to the prior year period.
Adjusted diluted EPS was $0.31.
APi Group
APi Group
Forward Guidance
APi Group anticipates closing the Chubb fire and security business acquisition around year end, which is expected to elevate APi to the world’s leading life safety services provider and create growth opportunities. The company expects that 50%+ of revenue will be service-based, statutorily-required, recurring revenue.
Positive Outlook
- The acquisition of Chubb fire and security business is expected to close around year end.
- The acquisition will elevate APi to the world’s leading life safety services provider.
- The acquisition will create growth opportunities for leaders.
- The acquisition will lead to accelerated earnings growth for shareholders.
- 50%+ of revenue will be service-based, statutorily-required, recurring revenue.
Challenges Ahead
- COVID-19 continues to impact the business.
- Supply chain disruptions are causing downward pressure on margins.
- Inflation is causing downward pressure on margins.
- Supply chain issues impact work and efficiency on certain projects.
- Negative variables are expected to persist through the balance of the year.