Slide 1: Q4 2024 Earnings Call
Q4 2024 Earnings Call February 26, 2025
Slide 2: Forward Looking Statements and Disclaimers
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
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This press release contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this press release and the additional fina
Slide 4: Non-GAAP Financial Measures (cont'd)
Non-GAAP Financial Measures (cont’d) • The Company presents free cash flow, adjusted free cash flow and adjusted free cash flow conversion, which are liquidity measures used by management as factors in determining the amount of cash that is available for working capital needs or other uses of cash,
Slide 5: APi's "13/60/80" Shareholder Value Creation Framework
APi’s “13/60/80” Shareholder Value Creation Framework We aspire to be the #1 People-First Company and #1 in Business Performance in our industry. Building Great Leaders Growing Revenue • The safety, health, and well-being of each of • Delivering long-term organic revenue growth our leaders is our #1
Slide 6: APi's Significant Improvement as a Public Company
APi’s Significant Improvement as a Public Company 2021 2024 Improvement Net Revenues $3.9B $7.0B + $3.1B Revenue Consecutive Quarters of Double-Digit U.S. Inspection 6 18 + 12 Growth % Inspection, Service, ~40% ~54% + 14% pts Monitoring % Adj. Gross Margin 24.0% 31.1% + 710 bps Profitability Adj. EB
Slide 7: Fourth Quarter 2024 Performance Highlights
Fourth Quarter 2024 Performance Highlights Fourth quarter net revenues of $1.9 billion, an increase of 5.8% vs. prior year Adjusted gross margin expansion of 100 basis points vs. prior year Fourth quarter adjusted EBITDA of $242 million, representing adjusted EBITDA margin expansion of 120 basis poi
Slide 8: Fiscal Year 2024 Performance Highlights
Fiscal Year 2024 Performance Highlights Record net revenues of $7.0 billion for the full year, an increase of 1.3% vs. prior year Adjusted gross margin expansion of 250 basis points vs. prior year Adjusted EBITDA of $893 million, representing adjusted EBITDA margin expansion of 140 basis points vs.
Slide 9: 2024 Financial Results Overview
2024 Financial Results Overview THREE MONTHS ENDED DECEMBER 31, 2024 NET REVENUES ADJUSTED GROSS PROFIT ADJUSTED EBITDA Total: $1.9 billion(1) Total: $579 million Total: $242 million(1) 14% 17% 25% 75% 86% 83% FISCAL YEAR ENDED DECEMBER 31, 2024 NET REVENUES ADJUSTED GROSS PROFIT ADJUSTED EBITDA Tot
Slide 10: Key Financial and Operating Metrics
Key Financial and Operating Metrics THREE MONTHS ENDED DECEMBER 31, FISCAL YEAR ENDED DECEMBER 31, ($ in millions, except per share figures) 2024 2023 YoY Change 2024 2023 YoY Change Net Revenues $ 1,861 $ 1,759 + 5.8% $ 7,018 $ 6,928 + 1.3% Organic Net Revenue Growth (1) + 1.3% (0.9)% Adjusted Gros
Slide 11: Key Segment Financial and Operating Metrics
Key Segment Financial and Operating Metrics THREE MONTHS ENDED DECEMBER 31, Safety Services Specialty Services YoY YoY ($ in millions) 2024 2023 Change 2024 2023 Change Net Revenues $ 1,399 $ 1,238 + 13.0% $ 463 $ 525 (11.8)% Organic Net Revenue Growth (1) + 4.7% (7.6)% Adjusted Gross Profit $ 499 $
Slide 12: 2025 Guidance
2025 Guidance NET REVENUES ADJUSTED EBITDA $7,300 - $7,500 million $970 - $1,020 million Notes: Based on current foreign exchange rates. APi GROUP | BUILDING GREAT LEADERS® 12
Slide 13: 2025 Guidance (cont'd)
2025 Guidance (cont’d) Q1 2025 FY 2025 Net Revenues $1,625 to $1,675 million $7,300 to $7,500 million Reported Net Revenues versus Last Year 2% - 5% 4% - 7% Net Revenue Organic Growth (3)% - Flat 2% - 5% Adjusted EBITDA $185 to $195 million $970 to $1,020 million Adjusted EBITDA versus Last Year 6%
Slide 14: Capitalization
Capitalization As of the end of the fourth quarter, our net leverage ratio as calculated pursuant to terms of existing debt agreements was approximately 2.2x, finishing below our 2.5x target, enhancing our flexibility for value-enhancing capital deployment Executed 12 bolt-on acquisitions during 202
Slide 15: Appendix
GROUP Appendix
Slide 16: What We Do
What We Do SAFETY SERVICES Life Safety & Security “So ook om rreventers Sie @ pa BER © cacrersey use 4B © veren esse soppresin syoteme G © rreerioguicter Wr © meccwcemyemernere WO @ same vetection unit BO soecisnezatsctean agen systems ZH © secwritycamerasicor B® scesscontateintosionoetection system
Slide 17: Realigned Safety Services Segment Overview
Realigned Safety Services Segment Overview Realignment sets up the Safety Services segment as more of a pure-play life safety business focused on fire protection, electronic security, and elevator and escalator services. Safety Services Overview Post Segment Realignment Financial Summary ($ in milli
Slide 18: Realigned Specialty Services Segment Overview
Realigned Specialty Services Segment Overview Realignment provides opportunities to enhance our shared services capabilities in the Specialty segment and allows the HVAC business to receive increased focus from the leadership team, putting it in the best position to win with its customers. Specialty
Slide 19: Key Segment Financial and Operating Metrics
Key Segment Financial and Operating Metrics FISCAL YEAR ENDED DECEMBER 31, Pre Segment Realignment Post Segment Realignment Safety Services Safety Services ($ in millions) 2022 2023 2024 2022 2023 2024 Net Revenues(1) $ 4,575 $ 4,871 $ 5,227 $ 4,123 $ 4,425 $ 4,797 Reported Net Revenue Growth + 120.
Slide 20: Track Record of Bolt-on M&A at Attractive Multiples
Track Record of Bolt-on M&A at Attractive Multiples APi has a consistent track record of supplementing organic growth with bolt-on M&A activity. Our target markets (Fire Protection, Electronic Security, Elevators) remain highly fragmented with a deep, growing pipeline of global opportunities. # of B
Slide 21: Supplemental Revenue Information
Supplemental Revenue Information FISCAL YEAR ENDED DECEMBER 31, 2024 Revenue by Local Currency Revenue by Offering Type Other 21% Non-Service Inspection, 46% Service, and USD Monitoring EUR 63% 54% 16% Note: Excludes Corporate and Eliminations. APi GROUP | BUILDING GREAT LEADERS® 21 21
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Organic Change in Net Revenues (non-GAAP) a) Represents the effect of foreign currency on reported net revenues, calculated as the difference between reported net revenues and net revenues at fixed currencies for both periods. Fixed currency amounts are
Slide 23: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Gross Profit (non-GAAP) $ IN MILLIONS Adjusted SG&A (non-GAAP) a) Adjustment to reflect the addback of amortization expense related to backlog intangible assets. b) Adjustment to reflect the elimination of expenses associated with restr
Slide 24: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted EBITDA (non-GAAP) $ IN MILLIONS a) Adjustment to reflect the elimination of the expense attributable to deferred consideration to prior owners of acquired businesses not expected to continue or recur. b) Adjustment to reflect the elimin
Slide 25: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted income before income tax, net income (loss) and EPS (non-GAAP) $ IN MILLIONS a) Adjustment to reflect the addback of pre-tax amortization expense related to intangible assets. b) Adjustment to reflect the elimination of the expense attr
Slide 26: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Segment Financial Information (non-GAAP) $ IN MILLIONS a) Information derived from non-GAAP reconciliations included elsewhere in this presentation. b) Calculated from results of the Company's operating segments shown above, excluding C
Slide 27: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Segment Financial Information (non-GAAP) $ IN MILLIONS a) Adjustment to reflect the addback of amortization expense related to backlog intangible assets. b) Adjustment to reflect the elimination of expenses associated with restructuring
Slide 28: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Segment Financial Information (non-GAAP) $ IN MILLIONS a) Adjustment to reflect the addback of amortization expense related to backlog intangible assets. b) Adjustment to reflect the elimination of expenses associated with restructuring
Slide 29: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Segment Financial Information (non-GAAP) $ IN MILLIONS a) Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to business pr
Slide 30: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Change in Segment Earnings (non-GAAP) a) Segment earnings derived from non-GAAP reconciliations included elsewhere in this presentation. b) Adjusted to eliminate the impact of foreign currency on segment earnings amounts, calculated as the diffe
Slide 31: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Free Cash Flow and Conversion (non-GAAP) $ IN MILLIONS a) Adjustment to reflect the elimination of deferred payments to prior owners of acquired businesses not expected to continue or recur. b) Adjustment to reflect the elimination of e
Slide 32: Investor Relations and Media Inquiries
Investor Relations and Media Inquiries: Adam Fee Vice President of Investor Relations +1 651-240-7252 email: investorrelations@apigroupinc.us APi GROUP | BUILDING GREAT LEADERS® 32
Slide 33: Q4 2024 Earnings Call
APi Q4 2024 GROUP Earnings Call