Api Group Corporation · NYSE:APG

Api — Q2 2025 Earnings Presentation

27 slides from Api's earnings presentation, Jul 31, 2025

  1. Slide 1: Q2 2025 Earnings Call

    Q2 2025 Earnings Call July 31, 2025 1 © 2025 APi Group, Inc. All rights reserved.

  2. 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

  3. Slide 3: Non-GAAP Financial Measures

    Non-GAAP Financial Measures This presentation 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 presentation and the additional financ

  4. Slide 4: Non-GAAP Financial Measures

    Non-GAAP Financial Measures • 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, however,

  5. Slide 5: APi's "10/16/60+" Long-term Financial Targets

    APi’s “10/16/60+” Long-term Financial Targets (1) 1. Through 2028E. 5

  6. Slide 6: What We Believe – Culture Drives Results

    What We Believe – Culture Drives Results OUR PURPOSE OUR VALUES OUR RESULTS Net Revenues ($B) • Safety, health, and well- being of all our leaders • Caring and enduring relationships with others • Honesty and integrity • Excellence, nothing less • Joy in our work and in Adjusted EBITDA Margin (%) ea

  7. Slide 7: Second Quarter 2025 Performance Highlights

    Second Quarter 2025 Performance Highlights Second quarter net revenues of $2.0 billion, an increase of 15.0% vs. Q2 2024, 8.3% on an organic basis Second quarter adjusted EBITDA of $272 million, up 17.7% vs. Q2 2024, and adjusted EBITDA margin increase of 30 basis points vs. Q2 2024 to 13.7% adjuste

  8. Slide 8: Second Quarter 2025 Financial Results Overview

    Second Quarter 2025 Financial Results Overview Three Months Ended June 30, 2025 NET REVENUES ADJ U ST ED GRO SS P RO F IT ADJ U ST ED EBIT DA Total: $1,990 billion Total: $620 million Total: $272 million Safety Services Specialty Services Note: Refer to Appendix for a reconciliation of non-GAAP meas

  9. Slide 9: Key Financial and Operating Metrics

    Key Financial and Operating Metrics Three Months Ended June 30, ($ in millions, except per share figures) 2025 2024 Y/Y Net revenues $1,990 $1,730 15.0 % Organic net revenue growth (a) 8.3 % Adjusted gross profit $620 $549 12.9 % Adjusted gross margin 31.2 % 31.7 % (50) bps Adjusted EBITDA $272 $231

  10. Slide 10: Key Segment Financial and Operating Metrics

    Key Segment Financial and Operating Metrics Three Months Ended June 30, Safety Services Specialty Services ($ in millions) 2025 2024 Y/Y 2025 2024 Y/Y Net revenues $1,362 $1,176 15.8 % $629 $555 13.3 % Organic net revenue growth (a) 5.6 % 13.3 % Adjusted gross profit $506 $429 17.9 % $114 $120 (5.0)

  11. Slide 11: 2025 Guidance as of July 31, 2025

    2025 Guidance as of July 31, 2025 NET REVENUES A DJ U ST E D E B I T DA $7,650 to $7,850 million $1,005 to $1,045 million Note: Based on current foreign exchange rates. 11

  12. Slide 12: Q3 and Full Year 2025 Guidance

    Q3 and Full Year 2025 Guidance Q3 2025 FY 2025 Net Revenues $1,985 to $2,035 million $7,650 to $7,850 million Reported Net Revenues versus Last Year 9% - 11% 9% - 12% Net Revenue Organic Growth 5% - 7% 4% - 7% Adjusted EBITDA $270 to $280 million $1,005 to $1,045 million Adjusted EBITDA versus Last

  13. Slide 13: Capitalization Highlights

    Capitalization Highlights As of the end of the second quarter, our net leverage ratio(1) was approximately 2.2x, enhancing our flexibility for value-enhancing capital deployment Increased revolving credit facility from $500 million to $750 million and extended maturity to 2030 Term loan and senior u

  14. Slide 14: Appendix

    Appendix 14

  15. Slide 15: What We Do

    SAFETY SERVICES Life Safety & Security © pscisiow Preventers Eg wie 4 © ‘verenticcd rire suppression syeteme {on Do wroneticwer 2 orysprinitersysteme e @ Fame Detection unit © svecitnazarisccanazent systems HB © security cameras cor @ IE © Access conte intrusion Detection systema By © re atarmranet

  16. Slide 16: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Organic Change in Net Revenues (non-GAAP) Three Months Ended June 30, 2025 Net revenues Foreign Net revenues Acquisitions and Organic change currency change divestitures, net (c) change in (as reported) translation (a) (fixed currency) (b) net revenues (

  17. Slide 17: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Adjusted Gross Profit (non-GAAP) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Gross profit (as reported) $ 615 $ 544 $ 1,157 $ 1,036 Adjustments to reconcile gross profit to adjusted gross profit: Backlog amortization (a) 4 3

  18. Slide 18: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA (non-GAAP) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (as reported) $ 77 $ 69 $ 112 $ 114 Adjustments to reconcile net income to EBITDA: Interest expense, net 37 35 75 69 Income tax provision 31 2

  19. Slide 19: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Adjusted income before income tax, net income (loss), and EPS (non-GAAP) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income before income tax provision (as reported) $ 108 $ 89 $ 154 $ 152 Adjustments to reconcile income bef

  20. Slide 20: Adjusted Segment Financial Information (non-GAAP)

    Reconciliation of Non-GAAP Financial Measures Adjusted Segment Financial Information (non-GAAP) Three Months Ended June 30, Six Months Ended June 30, 2025 (a) 2024 (a) 2025 (a) 2024 (a) Safety Services Net revenues $ 1,362 $ 1,176 $ 2,629 $ 2,293 Adjusted gross profit 506 429 975 832 Segment earning

  21. Slide 21: Adjusted Segment Financial Information (non-GAAP)

    Reconciliation of Non-GAAP Financial Measures Adjusted Segment Financial Information (non-GAAP) Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Safety Services Net revenues $ 1,362 $ — $ 1,362 $ 1,176 $ — $ 1,1

  22. Slide 22: Adjusted Segment Financial Information (non-GAAP)

    Reconciliation of Non-GAAP Financial Measures Adjusted Segment Financial Information (non-GAAP) Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Safety Services Net revenues $ 2,629 $ — $ 2,629 $ 2,293 $ — $ 2,293 C

  23. Slide 23: Adjusted Segment Financial Information (non-GAAP)

    Reconciliation of Non-GAAP Financial Measures Adjusted Segment Financial Information (non-GAAP) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Corporate and Eliminations Income before income taxes $ (77) $ (74) $ (160) $ (130) Interest expense, net 29 26 58 50 Depreciation

  24. Slide 24: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Change in Segment Earnings (non-GAAP) Three Months Ended June 30, 2025 Change in Foreign Change in Segment earnings currency Segment earnings (public rates) (a) translation (b) (fixed currency) (c) Safety Services 22.1% 0.6% 21.5% Specialty Services (2.7

  25. Slide 25: Adjusted Free Cash Flow and Conversion (non-GAAP)

    Reconciliation of Non-GAAP Financial Measures Adjusted Free Cash Flow and Conversion (non-GAAP) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net cash provided by operating activities (as reported) $ 83 $ 110 $ 145 $ 117 Less: Purchases of property and equipment (27) (22)

  26. Slide 26: 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 26

  27. Slide 27: Q2 2025 Earnings Call

    Q2 2025 Earnings Call 27 © 2025 APi Group, Inc. All rights reserved.

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