Slide 1: Q1 2025 Earnings Call
Q1 2025 Earnings Call May 1, 2025 1 © 2025 APi Group, Inc. All rights reserved.
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 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
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,
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: First Quarter 2025 Performance Highlights
First Quarter 2025 Performance Highlights First quarter net revenues of $1.7 billion, an increase of 7.4% vs. Q1 2024 Organic net revenue increase of ~2% vs. Q1 2024 Adjusted gross margin expansion of 100 basis points vs. Q1 2024 First quarter adjusted EBITDA of $193 million, representing adjusted E
Slide 7: First Quarter 2025 Financial Results Overview
First Quarter 2025 Financial Results Overview T H R E E M O N T H S E N D E D M A RC H 3 1 , 2 0 2 5 NET REVENUES ADJ U ST ED GRO SS P RO F IT ADJ U ST ED EBIT DA Total: $1.7 billion Total: $545 million Total: $193 million Safety Services Specialty Services Note: Refer to Appendix for a reconciliati
Slide 8: Key Financial and Operating Metrics
Key Financial and Operating Metrics Three Months Ended March 31, ($ in millions, except per share figures) 2025 2024 Y/Y Net Revenues $1,719 $1,601 7.4 % Organic Net Revenue Growth (a) 1.9 % Adjusted Gross Profit $545 $492 10.8 % Adjusted Gross Margin 31.7 % 30.7 % +100 bps Adjusted EBITDA $193 $175
Slide 9: Key Segment Financial and Operating Metrics
Key Segment Financial and Operating Metrics Three Months Ended March 31, Safety Services Specialty Services ($ in millions) 2025 2024 Y/Y 2025 2024 Y/Y Net Revenues $1,267 $1,117 13.4 % $453 $486 (6.8)% Organic Net Revenue Growth (a) 5.6 % (6.6)% Adjusted Gross Profit $469 $403 16.4 % $76 $89 (14.6)
Slide 10: 2025 Guidance as of May 1, 2025
2025 Guidance as of May 1, 2025 Net Revenues Range Adjusted EBITDA Range February 2025 Initial Guide $7,300 to $7,500 million $970 to $1,020 million (February 26) (+) Impact of Change in Foreign (+) ~$100 million (+) ~$15 million Currency Exchange Rates(a) Q1 2025 Release(b) $7,400 to $7,600 million
Slide 11: 2025 Guidance as of May 1, 2025 (cont'd)
2025 Guidance as of May 1, 2025 (cont’d) Q2 2025 FY 2025 Net Revenues $1,875 to $1,925 million $7,400 to $7,600 million Reported Net Revenues versus Last Year 8% - 11% 5% - 8% Net Revenue Organic Growth 3% - 6% 2% - 5% Adjusted EBITDA $260 to $270 million $985 to $1,035 million Adjusted EBITDA versu
Slide 12: Capitalization
Capitalization As of the end of the first quarter, our net leverage ratio as calculated pursuant to terms of existing debt agreements was approximately 2.3x, enhancing our flexibility for value-enhancing capital deployment No debt maturities until 2029 In February, successfully completed the reprici
Slide 13: 2025 Investor Day
APi Group 2025 Investor Day Wednesday, May 21, 2025 • New York Stock Exchange • 8am - 9am: Breakfast and Service Showcase • 9am -12pm: Presentations and Q&A *For Professional Investors Only **RSVP Required - Contact investorrelations@apigroupinc.us with interest 13
Slide 14: Appendix
Appendix 14
Slide 15: What We Do
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Slide 16: Segment Realignment Summary Financials
Segment Realignment Summary Financials Recast to reflect the move of the HVAC business to the Specialty Services segment in 2025. Safety Services 2023 2024 ($ in millions) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Revenues $1,065 $1,095 $1,096 $1,134 $1,117 $1,177 $1,216 $1,287 Reported Net Revenue Growth 10.9% 7
Slide 17: Reconciliation of Organic Change in Net Revenues
Reconciliation of Non-GAAP Financial Measures Organic Change in Net Revenues (non-GAAP) Three Months Ended March 31, 2025 (a) Net revenues Foreign Net revenues Acquisitions and Organic change currency change divestitures, net (d) change in (as reported) translation (b) (fixed currency) (c) net reven
Slide 18: Reconciliation of Adjusted Gross Profit and Adjusted SG&A
Reconciliation of Non-GAAP Financial Measures Adjusted Gross Profit (non-GAAP) Three Months Ended March 31, 2025 2024 Gross profit (as reported) $ 542 $ 492 Adjustments to reconcile gross profit to adjusted gross profit: Backlog amortization (a) $ 3 $ — Adjusted gross profit $ 545 $ 492 Net revenues
Slide 19: Reconciliation of Adjusted EBITDA
Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA (non-GAAP) Three Months Ended March 31, 2025 2024 Net income (as reported) $ 35 $ 45 Adjustments to reconcile net income to EBITDA: Interest expense, net 38 34 Income tax provision 11 18 Depreciation and amortization $ 80 $ 69 EBITDA $ 16
Slide 20: Reconciliation of Adjusted Income, Net Income, and EPS
Reconciliation of Non-GAAP Financial Measures Adjusted income before income tax, net income (loss), and EPS (non-GAAP) Three Months Ended March 31, 2025 2024 Income before income tax provision (as reported) $ 46 $ 63 Adjustments to reconcile income before income tax provision to adjusted income befo
Slide 21: Reconciliation of Adjusted Segment Financial Information
Reconciliation of Non-GAAP Financial Measures Adjusted Segment Financial Information (non-GAAP) Three Months Ended March 31, 2025 2024 (a) Safety Services Net revenues $ 1,267 $ 1,117 Adjusted gross profit 469 403 Segment earnings 199 165 Adjusted gross margin 37.0% 36.1% Segment earnings margin 15.
Slide 22: Reconciliation of Adjusted Segment Financial Information
Reconciliation of Non-GAAP Financial Measures Adjusted Segment Financial Information (non-GAAP) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 (a) As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Safety Services Net revenues $ 1,267 $ — $ 1,267 $ 1,117 $ —
Slide 23: Reconciliation of Adjusted Segment Financial Information
Reconciliation of Non-GAAP Financial Measures Adjusted Segment Financial Information (non-GAAP) Three Months Ended March 31, 2025 2024 Corporate and Eliminations Income before income taxes $ (83) $ (56) Interest expense, net 29 24 Depreciation 1 1 Amortization 1 1 Systems and business enablement (a)
Slide 24: Reconciliation of Change in Segment Earnings
Reconciliation of Non-GAAP Financial Measures Change in Segment Earnings (non-GAAP) Three Months Ended March 31, 2025 (a) Change in Foreign Change in Segment earnings currency Segment earnings (public rates) (b) translation (c) (fixed currency) (d) Safety Services 20.6% (1.0)% 21.6% Specialty Servic
Slide 25: Reconciliation of Adjusted Free Cash Flow and Conversion
Reconciliation of Non-GAAP Financial Measures Adjusted Free Cash Flow and Conversion (non-GAAP) Three Months Ended March 31, 2025 2024 Net cash provided by operating activities (as reported) $ 62 $ 7 Less: Purchases of property and equipment $ (12) $ (22) Free cash flow $ 50 $ (15) Add: Cash payment
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
Slide 27: Q1 2025 Earnings Call
Q1 2025 Earnings Call 27 © 2025 APi Group, Inc. All rights reserved.