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Sep 30, 2023

APi Group Q3 2023 Earnings Report

APi Group reported record first nine months net revenues and increased net income and adjusted EBITDA for the third quarter, with adjusted EBITDA margin expansion.

Key Takeaways

APi Group reported a 2.8% increase in net revenues, a 93% increase in net income, and an adjusted EBITDA of $224 million for Q3 2023. The company is raising the bottom end of its full year adjusted EBITDA guidance.

Net revenue growth of 2.8% was driven by strong service growth across both segments, modest benefits from favorable foreign currency exchange rates and M&A.

Gross margin increased due to continued price increases and outsized growth in higher margin service revenue.

Net income was $54 million and diluted EPS was $0.15; adjusted net income was $130 million and adjusted diluted EPS was $0.48.

Adjusted EBITDA increased by 20.4% and adjusted EBITDA margin increased 190 basis points to 12.6%.

Total Revenue
$1.78B
Previous year: $1.74B
+2.8%
EPS
$0.48
Previous year: $0.37
+29.7%
Adjusted EBITDA Margin
12.6%
Previous year: 10.7%
+17.8%
Organic Net Revenue Growth
1.3%
Previous year: 16.4%
-92.1%
Gross Profit
$462M
Previous year: $440M
+5.0%
Cash and Equivalents
$461M
Previous year: $395M
+16.7%
Free Cash Flow
$126M
Previous year: $120M
+5.0%
Total Assets
$7.95B
Previous year: $7.94B
+0.1%

APi Group

APi Group

APi Group Revenue by Segment

Forward Guidance

APi Group announces revised full year net revenue and adjusted EBITDA guidance. Net Revenues of $6,900 to $6,950 million, down from $7,015 to $7,075 million. Adjusted EBITDA of $775 to $785 million, up from $765 to $785 million. Adjusted Free Cash Flow Conversion at or above 65% remains unchanged. APi Group announces guidance for the fourth quarter of 2023. Net Revenues of $1,730 to $1,780 million. Adjusted EBITDA of $200 to $210 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income