APi Group Q3 2024 Earnings Report
Key Takeaways
APi Group reported a 2.4% increase in net revenues to $1.8 billion, driven by growth in the Safety Services segment, with a record net income of $69 million, a 28% year-over-year increase. The company's adjusted EBITDA reached a record $245 million, representing a 9% increase year-over-year, and increased the 2024 conversion target to 75%+
Net revenues increased by 2.4% (0.2% organic decline) due to acquisitions and strong growth in inspection, service, and monitoring in the Safety Services segment.
Gross margin increased 250 basis points due to disciplined customer and project selection, improved business mix in higher margin services revenue as well as value capture initiatives in our Safety Services Segment.
Net income was $69 million and diluted EPS was $0.23, representing a 53.3% increase compared to prior year period.
Adjusted EBITDA margin increased 80 basis points to a third quarter record of 13.4%, primarily due to the increase in gross margins, partially offset by lower fixed cost absorption.
APi Group
APi Group
APi Group Revenue by Segment
Forward Guidance
APi Group announces revised full year net revenue, adjusted EBITDA, and free cash flow guidance
Positive Outlook
- Net Revenues of approximately $7,000 million, revised from $7,150 to $7,350 million
- Adjusted EBITDA of $890 to $900 million, revised from $885 to $915 million
- Adjusted Free Cash Flow Conversion at or above 75% of adjusted EBITDA, revised from approximately 70%
- The team’s work over the last few years executing our strategy has resulted in APi being the strongest it has ever been with 2024 shaping up to be a year of record net revenues, margins and free cash flow generation.
- We are well positioned to achieve our 13% plus adjusted EBITDA margin target in 2025 and set new meaningfully higher targets for the following three years which we will review during our 2025 investor day.
Revenue & Expenses
Visualization of income flow from segment revenue to net income