APi Group (APG) FY Conference June 05, 2025 12:20 PM ET Speaker0 We're good to go. Thanks everyone for joining. My name is Tim Mulrooney. I'm the research analyst here at William Blair that covers API Group, and I'm required to inform you that for a complete list of research disclosures or potential conflicts of interest, please visit our website at WilliamBlair.com. That's the last time I have to do that this this week. So API is a leader of fire and life safety solutions, and they've got a specialty infra ...

Economic strength, encouraging service activities and increased adoption and success of the work-from-home trend enable the Zacks Business - Services industry players to support the demand environment.Driven by these positives, investors interested in the industry would do well to focus on stocks like Cintas Corporation (CTAS) , APi Group Corporation (APG) , and Bright Horizons Family Solutions Inc. (BFAM) .About the Industry The Zacks Business-Services industry comprises companies that offer a range of ser ...

Company Overview - APi (APG) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [4] Price Performance - Over the past week, APG shares have increased by 13.03%, outperforming the Zacks Business - Services industry, which rose by 1.76% [6] - In a longer time frame, APG's monthly price change is 31.96%, significantly higher than the industry's 8.68% [6] - Over the past quarter, APG shares have risen by 10.91%, and over the last year, they are up 12.35%, while the S&P 500 has moved -7.56% and 9.65%, respectively [7] Trading Volume - APG's average 20-day trading volume is 1,799,804 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Estimates - In the past two months, 4 earnings estimates for APG have been revised upwards, while none have been revised downwards, increasing the consensus estimate from $1.99 to $2.05 [10] - For the next fiscal year, 3 estimates have moved upwards, with 1 downward revision during the same period [10] Conclusion - Considering the strong price performance, positive earnings revisions, and high momentum score, APG is positioned as a promising investment opportunity [12]

Financial Performance - Net revenues for Q1 2025 were $1,719 million, an increase of $118 million or 7.4% compared to $1,601 million in Q1 2024[175] - Gross profit for Q1 2025 was $542 million, up $50 million or 10.2% from $492 million in Q1 2024, with a gross margin of 31.5%[177] - Operating income decreased by $16 million or 16.0% to $84 million in Q1 2025 from $100 million in Q1 2024[175] - Income before income taxes decreased by $17 million or 27.0% to $46 million in Q1 2025 from $63 million in Q1 2024[175] - Net income for Q1 2025 was $35 million, a decrease of $10 million or 22.2% compared to $45 million in Q1 2024[175] - Adjusted EBITDA for Q1 2025 was $193 million, an increase of $18 million or 10.3% from $175 million in Q1 2024, with adjusted EBITDA as a percentage of net revenues rising to 11.2% from 10.9%[184] Expenses and Costs - Selling, general, and administrative expenses increased by $66 million or 16.8% to $458 million in Q1 2025 compared to $392 million in Q1 2024[175] - SG&A expenses for Q1 2025 were $458 million, up $66 million or 16.8% from $392 million in Q1 2024, with SG&A as a percentage of net revenues increasing to 26.6% from 24.5%[179] - Interest expense, net increased by $4 million or 11.8% to $38 million in Q1 2025 compared to $34 million in Q1 2024[175] - The Chubb restructuring program is expected to incur approximately $125 million in restructuring and other costs by the end of fiscal year 2025[159] Segment Performance - Safety Services net revenues increased by $150 million or 13.4% to $1,267 million in Q1 2025, driven by acquisitions, pricing improvements, and growth in inspection and service revenues[187] - Specialty Services net revenues decreased by $33 million or 6.8% to $453 million in Q1 2025, attributed to lower project and service revenues and adverse weather impacts[189] - Safety Services segment earnings as a percentage of net revenues improved to 15.7% in Q1 2025 from 14.8% in Q1 2024, driven by disciplined customer selection and pricing improvements[188] - Specialty Services segment earnings as a percentage of net revenues decreased to 6.4% in Q1 2025 from 8.8% in Q1 2024, due to lower fixed cost absorption from decreased revenues[190] Liquidity and Capital Structure - Total liquidity as of March 31, 2025, was $954 million, consisting of $460 million in cash and cash equivalents and $494 million available under the Revolving Credit Facility[199] - The company had a first lien net leverage ratio of 1.7:1.0 as of March 31, 2025, in compliance with its credit agreement covenants[218] - As of March 31, 2025, the remaining principal amount outstanding on the 2021 Term Loan was $2,157 million, with no amounts outstanding under the Revolving Credit Facility[219] - The company issued 12,650,000 shares of common stock in a public offering, raising approximately $458 million net of expenses, to be used for general corporate purposes[203] Share Repurchase and Capital Expenditures - The company repurchased 16,260,160 shares of common stock for approximately $600 million during 2024, and an additional 2,063,715 shares for approximately $75 million in the first quarter of 2025[206][211] - The company authorized a new share repurchase program in April 2025 to purchase up to $1,000 million of common stock, replacing the previous program announced in 2024[207] - The company’s capital expenditures are typically less than 1.5% of annual net revenues, indicating a focus on maintaining efficient operations[227] Foreign Operations and Currency Exposure - Revenues from foreign operations accounted for approximately 37% of consolidated net revenues for the three months ended March 31, 2025[229] - Foreign currency translation gains totaled approximately $59 million for the three months ended March 31, 2025, compared to a loss of $(42) million for the same period in 2024[230] - The company has entered into cross-currency swaps and foreign currency forward contracts to manage foreign currency exposure related to intercompany loans[230] Risk Factors and Internal Controls - The company is exposed to supply chain risks, including price fluctuations of materials such as copper and steel, which could impact profitability on fixed-price contracts[233] - Significant declines in market prices for oil and gas may lead to project delays or cancellations, affecting overall profitability[234] - Management has concluded that internal controls over financial reporting were effective as of March 31, 2025[238] - There have been no changes in internal control over financial reporting that materially affected the company during the quarter ended March 31, 2025[239] - The company has not experienced material changes in risk factors since the last report[240]

APi (APG) reported $1.72 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 7.4%. EPS of $0.37 for the same period compares to $0.34 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.65 billion, representing a surprise of +4.18%. The company delivered an EPS surprise of +5.71%, with the consensus EPS estimate being $0.35.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expecta ...

APi (APG) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.71%. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.51, delivering a surprise of 6.25%.Over the last four quarters, the company has surpassed c ...

APi Group (APG) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Company Participants Adam Fee - VP - Investor RelationsRuss Becker - President & Chief Executive OfficerDavid Jackola - EVP & CFOAndrew Kaplowitz - Managing DirectorTim Mulrooney - Group Head–Global ServicesJasper Bibb - Equity Research AssociateKathryn Thompson - Founding Partner & CEOStephanie Moore - SVP - Equity ResearchSteve Tusa - Managing DirectorJack Cauchi - AVP - Equity Research Conference Call Participants Andrew Wittmann - Senior Res ...

APi Group (APG) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to API Group's First Quarter twenty twenty five Financial Results Conference Call. Please note this call is being recorded. I will be standing by should you need any assistance. I will now turn the call over to Adam Phi, Vice President of Investor Relations at ATI Group. Please go ahead. Speaker1 Thank you. Good morning, everyone, and thank you for joining our first quarter twenty twenty f ...

Exhibit 99.1 APi Group Reports First Quarter 2025 Financial Results -Record first quarter net revenues of $1.7 billion, representing accelerating year-over-year growth of 7.4% with continued double-digit inspection revenue growth in North American Safety Services- -First quarter reported net income of $35 million and record first quarter adjusted EBITDA of $193 million with year-over-year adjusted EBITDA margin expansion of 30 basis points- -Repurchased $75 million of common stock and authorized new $1 bill ...

Q1 2025 Earnings Call May 1, 2025 1 © 2025 APi Group, Inc. All rights reserved. Forward Looking Statements and Disclaimers Please note that in this presentation the Company may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of APi Group Corporation ("APi" or the "Company"). Such discussion and statements ma ...