APi Group Corporation · Q2 2022 earnings

Briefing

APi Group reported record net revenues, adjusted EBITDA, and adjusted diluted earnings per share for the second quarter of 2022.

APi Group reported strong results for the second quarter of 2022, including record net revenues of $1.6 billion, a 69% increase compared to the prior year period. Net revenues increased on an organic basis by 12%. The company also reported record adjusted EBITDA of $176 million and record adjusted diluted earnings per share of $0.37.

• Reported net revenues increased by 68.6% to $1.6 billion compared to the prior year period, driven by revenue from acquisitions in Safety Services and strong organic growth in Safety and Specialty Services.
• Net revenues increased on an organic basis by 12.3% compared to the prior year period, driven by continued growth in inspection and service revenue in Safety Services.
• Reported gross margin was 26.4%, representing a 270 basis point increase compared to prior year period reported gross margin of 23.7%, driven by an improved mix of inspection and service revenue supplemented by acquisitions in Safety Services and organic growth as well as improved productivity in Specialty Services, partially offset by supply chain disruptions and inflation causing downward pressure on margins.
• Adjusted EBITDA increased by 66.0% to $176 million compared to $106 million in the prior year period, driven by acquisitions in Safety Services and strong organic growth in Safety and Specialty Services.

Headline financials

Revenue & EPS history

APi Group expects the macro environment to remain volatile for the remainder of 2022. The company will remain focused on pricing, growing inspection, service and monitoring revenue, strong spend controls, and disciplined project and customer selection.