APi Group Corporation · Q2 2023 earnings

Briefing

APi Group delivered record financial results, driven by strong organic growth and solid operational performance.

APi Group reported record second quarter 2023 financial results with net revenues of $1.8 billion, representing growth of 7.4% and organic net revenue growth of 7.6%. Net income was $48 million and adjusted EBITDA was $203 million, representing year-over-year adjusted EBITDA margin expansion of 80 basis points. The company is raising full year guidance for both net revenues and adjusted EBITDA.

• Reported net revenue growth of 7.4% and organic net revenue growth of 7.6% compared to the prior year period driven by strong growth in both Safety and Specialty Services, led by double-digit service revenue growth.
• Reported and adjusted gross margin both increased 160 basis points compared to prior year period due to pricing initiatives, outsized growth in services revenue as well as project margin expansion across both segments. These factors were partially offset by inflation, which caused downward pressure on margins.
• Reported net income was $48 million and diluted EPS was $0.12. Adjusted net income was $111 million and adjusted diluted EPS was $0.41, representing a $0.04 increase from prior year period driven by organic growth in Safety and Specialty Services and an increase in adjusted gross margin and adjusted EBITDA margin, partially offset by increased interest expense.
• Adjusted EBITDA increased by 15.3% (16.7% on a fixed currency basis) compared to the prior year period and adjusted EBITDA margin increased 80 basis points to 11.5%, primarily due to the factors impacting gross margin, partially offset by investments to support revenue growth and the continued build-out of our global capabilities and infrastructure.

Headline financials

Revenue & EPS history

APi Group is raising its full year net revenue and adjusted EBITDA guidance.