https://assets.capyfin.com/instruments/678fdc13234e27009c5d5fef.png avatar
APi Group
🇺🇸 NYSE:APG
View Company
OverviewEarningsDividends
•
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.

Total Revenue
$1.7B
Previous year: $1.11B
+53.1%
EPS
$0.36
Previous year: $0.29
+24.1%
Adjusted EBITDA Margin
10.7%
Previous year: 10.3%
+3.9%
Organic Net Revenue Growth
5.8%
Previous year: 27.4%
-78.8%
Gross Profit
$463M
Previous year: $274M
+69.0%
Cash and Equivalents
$605M
Previous year: $1.19B
-49.1%
Free Cash Flow
$169M
Previous year: $102M
+65.7%
Total Assets
$8.09B
Previous year: $5.16B
+56.8%

APi Group

APi Group

APi Group Revenue by Segment

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

Company Overview

Full financial data and analysis

View APi Group