APi Group Reports Record-Breaking Q4 Performance, Sets Sights on Continued Growth
On February 26, APi Group held its Fourth Quarter and Full Year 2024 Financial Results Conference Call, providing a detailed overview of the company's outstanding performance in the final quarter of last year. As reported by the company's President and CEO, Russell Becker, APi achieved record-breaking net revenues, adjusted EBITDA, adjusted earnings per share, and adjusted free cash flow in 2024.
The company's leadership team, led by Becker, credited their success to the execution of their 13/60/80 shareholder value creation framework. This framework has enabled APi to emerge as its strongest self from a revenue, profitability, and cash flow generation standpoint. The team delivered progress against each of the financial targets outlined in the framework.
Specifically, adjusted EBITDA margins expanded by 140 basis points to 12.7%, putting the company on track to surpass its target of 13% or more adjusted EBITDA margin for 2025. APi also increased its inspection service and monitoring revenue mix from 52% in 2023 to 54% in 2024, with plans to reach its long-term goal of 60%. Adjusted free cash flow conversion improved from 69% in 2023 to 75% in 2024.
The company's net revenues grew by 1.3% in 2024, reaching a record $7 billion. This growth was driven by acquisitions, strong organic growth in inspection service and monitoring revenues in Life Safety, and pricing improvements. However, divestitures and an organic decline in project revenues due to disciplined customer and project selection, as well as higher-than-expected delays in certain customer projects in HVAC and specialty businesses, partially offset this growth.
Despite the challenges faced by the company's team members involved in a Toronto plane crash last week, APi remains committed to the safety, health, and well-being of each of its 29,000 leaders. The company has been recognized as a military-friendly employer for 2025, further emphasizing its dedication to providing opportunities for veterans and their spouses.
Becker expressed pride in the team's work, stating that APi is "the strongest it has ever been from a revenue, profitability, and cash flow generation standpoint." He highlighted the company's progress towards achieving its long-term targets, including reaching 60% of total net revenues coming from inspection service and monitoring. With continued focus on improving adjusted gross margins, disciplined customer selection, Chubb value capture, pricing improvements, procurement, systems, and scale accretive M&A, APi is well-positioned for further growth and success.
