NYSE$APG

APi Group Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

APi Group reported strong first-quarter results with significant revenue growth and margin expansion.

APi Group reported an 83% increase in net revenues to $1.5 billion, driven by acquisitions in Safety Services and strong organic growth. Adjusted EBITDA increased by 109.8% to $128 million, with an adjusted EBITDA margin of 8.7%. The company's backlog reached a record high, providing a solid foundation for continued growth.

  • Net revenues increased by 83% due to Safety Services acquisitions and organic growth in Safety and Specialty Services.
  • Organic net revenue growth was 15.9% compared to the prior year period.
  • Adjusted EBITDA increased by 109.8% to $128 million.
  • Adjusted diluted EPS was $0.23, an increase of $0.13 from the prior year period.

Headline financials

Total Revenue

$1.47B

Previous: $803M+83.2%
EPS (adj)

$0.23

Previous: $0.12+91.7%
Organic Revenue Growth

15.9%

Previous: 2.4%+562.5%
Adjusted EBITDA Margin

8.7%

Previous: 7.6%+14.5%
Capital Expenditures

-$12M

Previous: -$18M+33.3%
Free Cash Flow

-$19M

Previous: -$26M+26.9%
Net Income

-$7M

Previous: -$8M+12.5%
Operating Income

-$7M

Previous: -$2M-250.0%
Gross Profit

$376M

Previous: $181M+107.7%
Cash & Equivalents

$315M

Previous: $745M-57.7%
Total Assets

$8.14B

Previous: $4.22B+93.0%
Stock-Based Comp

$3M

Previous: $3M+0.0%

Revenue & EPS history

APi Group · Revenue · Quarterly

$1.47B

Q1 2022+83.2%vs Q1 2021
Beat estimate in 7 of 9 quarters(78%)
ActualEstimate

Revenue by segment

APi Group · $1.49B total across 2 segments · Q1 2022

  • Safety Services
    $1.07B+130.5%
  • Specialty Services
    $412M+28.3%

Forward guidance

APi Group is confident in its momentum and outlook for the balance of the year and the years ahead. The integration of Chubb is on track, and the business is performing in line with expectations. The company believes the combined business will offer customers more customized and proprietary offerings and drive synergies and savings.

Tailwinds

  • The company had a strong start to 2022 with positive momentum across the entire business.
  • Net revenues increased on an organic basis by 16% in the first quarter.
  • There was robust demand across key end markets.
  • The consolidated backlog continues to build and was at a record high level as of the end of March.
  • The integration at Chubb is off to a good start.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.4%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+3.9%

Avg return

30 days after

44%

11 / 25 earnings

Positive

+10.7%

Q3 2022

Best reaction

-9.4%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.0%-6.3%-15.7%
Q4 2025-0.4%+0.5%-7.3%
Q3 2025+1.9%+2.8%+14.8%
Q1 2025+6.6%+12.3%+23.4%
Q4 2024-0.3%+4.7%-0.9%
Q3 2024+6.4%+5.7%+13.8%
Q2 2024-9.4%-12.4%-6.2%
Q1 2024-2.3%-0.0%-5.8%
Q4 2023-1.9%+7.5%+9.9%
Q3 2023+7.2%+4.2%+20.5%
Q2 2023-2.7%-1.6%-1.7%
Q1 2023+1.1%-0.8%+5.4%
Q4 2022+1.0%+7.0%-5.1%
Q3 2022+10.7%+12.7%+23.0%
Q2 2022-5.4%-8.5%-16.9%
Q1 2022-8.6%-14.6%-5.7%
Q4 2021-4.1%+6.0%+5.0%
Q3 2021+9.3%+10.6%+6.2%
Q2 2021-2.7%-0.2%-4.0%
Q1 2021-6.7%-6.9%+7.2%
Q4 2020-2.9%+1.5%+11.5%
Q3 2020+2.5%+1.2%+15.9%
Q2 2020-1.7%+3.3%-3.7%
Q1 2020+9.1%+7.6%+7.1%
Q4 2019+9.1%+7.6%+7.1%
Q3 2019
Q2 2019
Q1 2019

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