APi (US:APG)2025-10-30 11:42Financial Performance - Record third quarter net revenues of $2.1 billion, representing year-over-year growth of 14.2% and organic growth of 9.7%[1][4] - Reported net income of $93 million, a year-over-year increase of 34.8%, with diluted EPS of $0.20, up 33.3%[1][4][7] - Adjusted EBITDA reached $281 million, reflecting a 14.7% year-over-year growth and an adjusted EBITDA margin of 13.5%, up 10 basis points[1][4][7] - Adjusted net income was $174 million, representing a 23.4% increase year-over-year, with adjusted diluted EPS of $0.41, up 20.6%[4][7] - Net revenues for Q3 2025 reached $2,085 million, a 14.2% increase from $1,826 million in Q3 2024[27] - Gross profit for Q3 2025 was $652 million, up 15% from $567 million in Q3 2024[27] - Adjusted net income for the nine months ended September 30, 2025, was $205 million, compared to $183 million for the same period in 2024, reflecting an increase of 12%[31] - Consolidated net revenues for the nine months ended September 30, 2025, rose by 12.4%, with organic growth of 6.8%[33] - The company reported a net income of $93 million for the three months ended September 30, 2025, compared to $69 million in the same period of 2024[44] - Adjusted gross profit for Q3 2025 was $656 million, compared to $566 million in Q3 2024, reflecting a 15.9% year-over-year growth[60] Segment Performance - Safety Services segment net revenues increased by 15.4% to $1.4 billion, with organic growth of 8.7%[6][8] - Specialty Services segment net revenues grew by 11.6% to $683 million, with organic growth also at 11.6%[9][15] - Safety Services net revenues increased to $1,403 million in Q3 2025, a 15.4% rise from $1,216 million in Q3 2024[57] - Specialty Services segment net revenues grew to $683 million in Q3 2025, up from $612 million in Q3 2024, marking an 11.6% increase[60] - Safety Services segment earnings increased by 18.6% for the three months ended September 30, 2025, and 20.4% for the nine months ended September 30, 2025[72] - Specialty Services segment earnings decreased by 6.7% for the nine months ended September 30, 2025[72] - Total segment earnings before corporate and eliminations for Q3 2025 were $317 million, compared to $277 million in Q3 2024, representing a 14.5% increase[57] - Consolidated segment earnings rose by 14.7% for the three months and 14.6% for the nine months ended September 30, 2025[72] Cash Flow and Assets - Free cash flow for the nine months ended September 30, 2025, was $377 million, compared to $337 million in 2024, showing a 11.9% increase[31] - Free cash flow for the three months ended September 30, 2025, was $201 million, compared to $198 million for the same period in 2024[76] - Adjusted free cash flow for the nine months ended September 30, 2025, was $434 million, up from $361 million in 2024[76] - The company reported net cash provided by operating activities of $232 million for the three months ended September 30, 2025[76] - Total assets as of September 30, 2025, were $8,721 million, an increase from $8,152 million at the end of 2024[29] - Total liabilities increased to $5,445 million as of September 30, 2025, compared to $5,199 million at the end of 2024[29] - The company’s cash and cash equivalents increased to $555 million as of September 30, 2025, from $499 million at the end of 2024[29] Guidance and Future Outlook - Full-year 2025 guidance for net revenues raised to between $7.825 billion and $7.925 billion, and adjusted EBITDA to between $1.015 billion and $1.045 billion[11][15] - Company emphasizes a disciplined approach to capital allocation and a focus on organic growth and margin expansion[3][4] - Future outlook includes continued investment in growth and potential value-accretive M&A opportunities[3][11] Other Financial Metrics - Selling, general, and administrative expenses (SG&A) as reported for the three months ended September 30, 2025, were $489 million, up from $425 million in 2024[38] - Adjusted SG&A as a percentage of net revenues was 19.3% for the three months ended September 30, 2025, compared to 19.1% in 2024[38] - The adjusted effective tax rate for the company is estimated at 23% for its adjusted non-GAAP earnings[55] - The company reported a dilutive impact of 6 million shares associated with the deemed conversion of Series A Preferred Stock[55] - The impact of foreign currency translation on segment earnings was 1.1% for Safety Services in the three months ended September 30, 2025[72] - The company incurred $37 million in cash payments related to systems and business enablement for the three months ended September 30, 2025[76]