NYSE$APG

APi Group Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

APi Group reported strong Q4 2022 results driven by acquisitions and organic growth.

APi Group reported a strong fourth quarter with net revenues increasing by 53.1% to $1.7 billion, driven by acquisitions and organic growth in Safety Services. Net income was $22 million, and adjusted EBITDA increased by 59.1% to $183 million.

  • Net revenues increased by 53.1% to $1.7 billion compared to the prior year period.
  • Organic net revenues increased by 5.8% compared to the prior year period.
  • Reported gross margin was 27.2%, a 255 basis point increase compared to the prior year period.
  • Adjusted EBITDA increased by 59.1% to $183 million compared to the prior year period.

Headline financials

Total Revenue

$1.7B

Previous: $1.11B+53.1%
EPS (adj)

$0.36

Previous: $0.29+24.1%
Organic Revenue Growth

5.8%

Previous: 27.4%-78.8%
Adjusted EBITDA Margin

10.7%

Previous: 10.3%+3.9%
Capital Expenditures

$19M

Previous: $12M+58.3%
Free Cash Flow

$169M

Previous: $102M+65.7%
Net Income

$22M

Previous: $15M+46.7%
Operating Income

$49M

Previous: $50M-2.0%
Gross Profit

$463M

Previous: $274M+69.0%
Cash & Equivalents

$605M

Previous: $1.19B-49.1%
Total Assets

$8.09B

Previous: $5.16B+56.8%
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

APi Group · Revenue · Quarterly

$1.7B

Q4 2022+53.1%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

APi Group · $1.71B total across 2 segments · Q4 2022

  • Safety Services
    $1.2B+111.1%
  • Specialty Services
    $510M+6.0%

Forward guidance

APi Group entered 2023 with positive momentum and a strong backlog, expecting to grow statutorily-required, higher margin, inspection, service and monitoring revenue.

Tailwinds

  • Backlog remains strong and was up approximately 9% as of December 2022 compared to the end of December 2021.
  • Focus on growing statutorily-required, higher margin, inspection, service and monitoring revenue.
  • Robust backlog and variable cost structure positions the company well to prosper even if the macro environment continues to be volatile.
  • Disciplined on project and customer selection.
  • Focus efforts on growing the acyclical, recurring service revenue aspects of our portfolio.

Headwinds

  • Economic conditions, competition and other risks may affect the Company’s future performance.
  • Inflationary pressures and other macroeconomic factors on the Company’s business, markets, supply chain, customers and workforce.
  • Supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the materials commodities and labor the Company uses in its business.
  • Failure to realize the anticipated benefits of the acquisition of the Chubb fire and security business.
  • The possibility that the Company may be adversely affected by other economic, business, and/or competitive factors.

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 2022

Historical avgQ4 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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