Q3 2024 APi Group Corp Earnings Call Transcript
Key Points
- APi Group Corp (APG) achieved a record third quarter with adjusted EBITDA margins of 13.4%, marking an 80 basis point increase from the previous year.
- The company has maintained 17 consecutive quarters of double-digit organic growth in inspection revenues, contributing significantly to its long-term revenue goals.
- APi Group Corp (APG) has successfully executed its margin expansion initiatives, resulting in a 150 basis point increase in expected adjusted EBITDA margins.
- The company's backlog is growing and healthy, with higher expected margins and lower risk, providing confidence for re-accelerated growth in 2025.
- APi Group Corp (APG) has a robust M&A pipeline, completing 10 bolt-on acquisitions in 2024, which supports future organic growth and margin expansion.
- APi Group Corp (APG) faced temporary revenue headwinds in 2024 due to unexpected delays in certain customer projects, impacting net revenues by approximately $150 million.
- The specialty services segment experienced a 13.4% decline in revenues, driven by divestitures and delays in telecom and utility customer projects.
- The company revised its full-year 2024 revenue guidance to approximately $7 billion, down from the low end of the prior guide of $7.15 billion.
- APi Group Corp (APG) reported a 7.7% organic decline in its specialty services segment, affecting overall company revenue growth.
- The telecom space faced challenges due to administrative issues with the federal government's rural broadband program, impacting project timelines.
Good morning, Ladies and gentlemen and welcome to API Group's third quarter, 2024 financial results conference call. All participants are now in a listen-only mode until the question and answer session. Please note this call is being recorded. I will be standing by. Should you need any assistance? I will now turn the call over to Adam Fee Vice President of Investor Relations at API Group. Please go ahead.
Thank you. Good morning everyone and thank you for joining our third 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 Lilley, our board cochair 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, anticipated events or trends
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