NYSE$APG

APi Group Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

APi Group reported record net revenues and solid free cash flow, revenue and adjusted EBITDA growth in a tough macro environment.

APi Group reported a strong third quarter with record net revenues of $1.7 billion, a 66% increase compared to the prior year. Organic net revenue growth was 16%. The company reported net income of $28 million and adjusted net income of $99 million. Adjusted EBITDA increased by 48.8% to $186 million.

  • Reported net revenues increased by 66% to $1.7 billion.
  • Net revenues increased on an organic basis by 16%.
  • Reported gross margin was 25.4%, a 129 basis point increase compared to the prior year.
  • Adjusted EBITDA increased by 48.8% to $186 million.

Headline financials

Total Revenue

$1.74B

Previous: $1.05B+65.7%
EPS (adj)

$0.37

Previous: $0.35+5.7%
Organic Revenue Growth

16.4%

Previous: 13.4%+22.4%
Adjusted EBITDA Margin

10.7%

Previous: 11.9%-10.1%
Capital Expenditures

-$60M

Previous: -$43M-39.5%
Free Cash Flow

-$32M

Previous: -$24M-33.3%
Net Income

$28M

Previous: $19M+47.4%
Operating Income

$61M

Previous: $41M+48.8%
Gross Profit

$440M

Previous: $252M+74.6%
Cash & Equivalents

$395M

Previous: $1.13B-65.0%
Total Assets

$7.94B

Previous: $4.78B+66.0%
Stock-Based Comp

$5M

Previous: $2M+150.0%

Revenue & EPS history

APi Group · Revenue · Quarterly

$1.74B

Q3 2022+65.7%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

APi Group · $1.74B total across 2 segments · Q3 2022

  • Safety Services
    $1.15B+116.5%
  • Specialty Services
    $590M+35.3%

Forward guidance

As we move through the balance of the year and into 2023, we are confident that our focus on growing statutorily-required, high margin, inspection, service and monitoring revenue, combined with our robust backlog and variable cost structure positions us well to prosper even if the macro environment continues to be volatile. We continue to benefit from the accretive acquisition of Chubb and believe that it will continue to enhance APi by strengthening our resiliency and the protective moat around our business.

Tailwinds

  • Focus on growing statutorily-required, high margin, inspection, service and monitoring revenue
  • Robust backlog
  • Variable cost structure positions us well to prosper even if the macro environment continues to be volatile
  • Accretive acquisition of Chubb
  • Strengthening our resiliency and the protective moat around our business

Headwinds

  • Macro environment continues to be volatile
  • COVID-19 pandemic
  • Inflationary pressures
  • Other macroeconomic factors on the Company’s business, markets, supply chain, customers and workforce
  • Supply chain constraints and interruptions

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 Q3 2022

Historical avgQ3 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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