APi Group Provides Update on 2023 Performance and Initial 2024 Guidance

APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today provided an update on year-end 2023 results and net revenue and adjusted EBITDA guidance for 2024. The Company is participating in two upcoming investor conferences and may discuss these items while at the conferences.

Financial Update

Russ Becker, APi’s President and Chief Executive Officer stated: “2023 was another year of record financial results for APi, with continued improvements in adjusted EBITDA margin and free cash flow generation. We expect net revenues and adjusted EBITDA for 2023 will be above the midpoint of the guidance range provided on November 2, 2023 of $6,925 million and $780 million, respectively. In addition, we expect to end the year with a net leverage ratio of approximately 2.3x, following through on our commitment to end the year below 2.5x, driven by adjusted free cash flow conversion for the year that came in above our target of 65%. We believe that the strength of our balance sheet provides APi significant flexibility to pursue value enhancing capital allocation alternatives including, but not limited to, an acceleration of our bolt-on M&A strategy.

"As we look ahead to 2024, we expect that our momentum in the services business will continue and that our projects business in Specialty and HVAC will continue to have its organic growth moderated in the first half of 2024, driven by disciplined customer and project selection as well as deflation in certain material costs. Our backlog remains strong and we believe that net revenues for 2024 will range between $7,050 to $7,250 million, representing mid-single-digit organic growth (adjusted for certain acquisitions and divestitures) in net revenues, led by expected double-digit core inspection organic growth.

"For 2024 adjusted EBITDA, we expect to deliver between $855 to $905 million as margins are expected to continue to expand this year. We remain confident in achieving our goal of 13%+ adjusted EBITDA margin in 2025 through an improved mix of inspection, service and monitoring revenue, procurement savings, value capture opportunities from recent acquisitions and leveraging our global scale. We look forward to providing more detail on our 2023 performance as well as our outlook for 2024 on our earnings call on February 28, 2024.”