Loading...
•
Dec 31, 2022
APi Group Q4 2022 Earnings Report
APi Group reported strong Q4 2022 results driven by acquisitions and organic growth.
Key Takeaways
APi Group reported a strong fourth quarter with net revenues increasing by 53.1% to $1.7 billion, driven by acquisitions and organic growth in Safety Services. Net income was $22 million, and adjusted EBITDA increased by 59.1% to $183 million.
Net revenues increased by 53.1% to $1.7 billion compared to the prior year period.
Organic net revenues increased by 5.8% compared to the prior year period.
Reported gross margin was 27.2%, a 255 basis point increase compared to the prior year period.
Adjusted EBITDA increased by 59.1% to $183 million compared to the prior year period.
APi Group
APi Group
APi Group Revenue by Segment
Revenue by Segment
Safety Services Revenue
CapyFin.comSpecialty Services Revenue
CapyFin.com Forward Guidance
APi Group entered 2023 with positive momentum and a strong backlog, expecting to grow statutorily-required, higher margin, inspection, service and monitoring revenue.
Positive Outlook
- Backlog remains strong and was up approximately 9% as of December 2022 compared to the end of December 2021.
- Focus on growing statutorily-required, higher margin, inspection, service and monitoring revenue.
- Robust backlog and variable cost structure positions the company well to prosper even if the macro environment continues to be volatile.
- Disciplined on project and customer selection.
- Focus efforts on growing the acyclical, recurring service revenue aspects of our portfolio.
Challenges Ahead
- Economic conditions, competition and other risks may affect the Company’s future performance.
- Inflationary pressures and other macroeconomic factors on the Company’s business, markets, supply chain, customers and workforce.
- Supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the materials commodities and labor the Company uses in its business.
- Failure to realize the anticipated benefits of the acquisition of the Chubb fire and security business.
- The possibility that the Company may be adversely affected by other economic, business, and/or competitive factors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income