NYSE$APG
APi Group Corporation · Q4 2021 earnings
Q4 2021 earnings · · Investor relations
Briefing
APi Group reported a net revenue increase of 26% and an organic net revenue increase of 27% in Q4 2021, excluding Industrial Services.
APi Group reported strong Q4 2021 financial results, with a 26% increase in net revenues and a 27% increase in organic net revenues, excluding Industrial Services. The company's gross margin also expanded by 219 basis points. Adjusted diluted EPS was $0.29.
- Reported net revenues increased by 26.1% to $1.1 billion.
- Net revenues increased on an organic basis by 27.4%, excluding Industrial Services.
- Reported gross margin was 24.6%, a 219 basis point increase.
- Adjusted EBITDA was $115 million with an adjusted EBITDA margin of 10.3%.
Headline financials
Revenue & EPS history
APi Group · Revenue · Quarterly
$1.11B
Revenue by segment
APi Group · $1.05B total across 2 segments · Q4 2021
- Safety Services$569M—54.2%
- Specialty Services$481M—45.8%
Forward guidance
APi Group is focused on delivering its three-year plan of continued healthy top-line growth and driving its adjusted EBITDA margin to 13%+ by 2025. The company expects to accomplish this while delivering on an average adjusted free cash flow conversion of approximately 80% over the coming three years and using the cash generated to reduce debt on average by one turn annually to return to its targeted long-term net debt to adjusted EBITDA ratio of 2.0x – 2.5x.
Tailwinds
- Record backlog continues to build and provides a solid foundation for organic growth.
- Underlying demand in key end markets such as data centers, fulfillment and distribution centers, healthcare and high-tech remains robust.
- The acquisition of Chubb has enhanced the overall competitive position.
- Average project size in Safety Services is approximately $5,000 and the average duration of projects is very short, allowing for control of inflationary variables.
- Focus on real-time pricing and operational efficiency to ensure true costs are reflected in the services provided.
Headwinds
- Business is not immune to macro marketplace disruptions related to supply chain disruptions.
- Business is not immune to macro marketplace disruptions related to inflationary cost pressures.
- Integration of Chubb will require investment in the growth of its platform and generating synergies across the combined platform.
- Net debt to adjusted EBITDA ratio was approximately 3.9x following the closing of the Chubb acquisition.
- The company will need to reduce debt on average by one turn annually to return to its targeted long-term net debt to adjusted EBITDA ratio of 2.0x – 2.5x.
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 Q4 2021
+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
| Quarter | Report date | Reaction (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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