APi Group Provides Update on Chubb Value Capture Progress

APi Group Corporation (NYSE: APG) (“APi” or the “Company”), a global, market-leading business services provider of life safety, security and specialty services, today provided an update on the strategic initiatives relating to the Chubb business announced one year ago at the Company’s Investor Day meeting in New York City.

Russ Becker, APi’s President and Chief Executive Officer, stated, “The leaders in our international business continue to deliver organic growth and margin expansion while executing on our Chubb value capture plan. I’m pleased that we are now in a position to increase the Chubb value capture target by 25% to $125 million. We expect that we will continue our 1:1, or better, cost-benefit ratio and spend up to $125 million in total to capture these savings. We expect to conclude these value capture efforts by year-end 2025. The team has also driven a substantial reduction in our loss-making branches in the international business through operational improvements—supported by footprint optimization—and a continued focus on addressing low-value contracts through increased pricing and pruning. It is gratifying to know that the evolution in our international business is inclusive of our culture as well, with over 7,500 leaders participating in our online introductory “I am a Leader” development program.

As I look across our global operation, I am confident in our leaders’ ability to continue to deliver double-digit core inspection organic growth and continued margin expansion across the business as we drive towards our 2025 target of 13% (or more) Adjusted EBITDA margin. As we look to 2024 and beyond, we have great confidence in the business, our ability to deliver consistent organic growth globally, while simultaneously increasing our discipline on project selection and pruning low margin revenue opportunities.

Our backlog is strong and our balance sheet is in an advantageous position. We expect to end 2023 below our targeted 2.5x debt to Adjusted EBITDA ratio, which gives us many strategic options for capital deployment in the coming years. We expect to continue to evolve APi into an even lower capex, asset light business focused on high-margin, statutorily mandated services. I look forward to updating you early in the new year on our continued progress, our year end 2023 results, and our 2024 guidance.”