Q2 2024 APi Group Corp Earnings Call Transcript
Key Points
- APi Group Corp (APG) achieved record second quarter adjusted EBITDA and free cash flow, demonstrating strong financial performance.
- The company reported a 340 basis point increase in adjusted gross margin and a 190 basis point increase in adjusted EBITDA margin.
- APi Group Corp (APG) successfully closed six bolt-on acquisitions with an average EBITDA multiple of approximately five times, enhancing its growth strategy.
- The company remains confident in achieving its long-term target of 13% adjusted EBITDA margin by 2025.
- APi Group Corp (APG) has a robust M&A pipeline and continues to focus on identifying attractive opportunities, particularly in the elevator and escalator service market.
- Net revenues declined by approximately 2% in the quarter compared to 7% plus growth in the prior year period.
- The company experienced project delays due to federal funding, permitting, and customer delays, impacting revenue.
- Specialty Services segment reported an 18.4% decrease in revenues, driven by disciplined project selection and customer delays.
- Service revenues in the Specialty Services segment were down 10% due to an exited customer relationship.
- APi Group Corp (APG) expects full-year revenue to be closer to the low end of its guidance due to project delays.
Good morning, ladies and gentlemen, and welcome to the APA Group's Second Quarter 2024 financial results conference call. All participants are now in a listen only mode until the question and answer session. Please note that this call is being recorded. I will be standing by should you need any assistance. I will now turn the call over to Adam. He, Vice President of Investor Relations at APi Group. Please go ahead.
Thank you. Good morning, everyone, and thank you for joining our second quarter 2024 earnings conference call. Joining me on the call today are Russ Becker, our President and CEO, Kevin Crum, our Executive Vice President and Chief Financial Officer, and Sir Martin Franklin and Jim Lillie, our Board co-chairs.
Before we begin, I would like to remind you that certain statements in the company's earnings press release announcement and on this call are forward-looking statements, which are based on expectations, intentions and projections regarding the Company's future performance,
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