APi Group Q2 2023 Earnings Report

Reported net revenue growth of 7.4% and organic net revenue growth of 7.6% compared to the prior year period driven by strong growth in both Safety and Specialty Services, led by double-digit service revenue growth.

Reported and adjusted gross margin both increased 160 basis points compared to prior year period due to pricing initiatives, outsized growth in services revenue as well as project margin expansion across both segments. These factors were partially offset by inflation, which caused downward pressure on margins.

Reported net income was $48 million and diluted EPS was $0.12. Adjusted net income was $111 million and adjusted diluted EPS was $0.41, representing a $0.04 increase from prior year period driven by organic growth in Safety and Specialty Services and an increase in adjusted gross margin and adjusted EBITDA margin, partially offset by increased interest expense.

Adjusted EBITDA increased by 15.3% (16.7% on a fixed currency basis) compared to the prior year period and adjusted EBITDA margin increased 80 basis points to 11.5%, primarily due to the factors impacting gross margin, partially offset by investments to support revenue growth and the continued build-out of our global capabilities and infrastructure.