API Group (APG) Expects Mid-Single-Digit Organic Growth for 2024

By Tamara Parker • Tuesday, February 20 10:42 • Permanent Link

API Group Corporation (NYSE: APG) has released its 2023 year-end results and provided initial guidance for 2024. The company reported that it expects its net revenues and adjusted EBITDA for 2023 to surpass the previously guided midpoint of $6,925 million and $780 million, respectively. Russ Becker, API's President and CEO, expressed confidence in the company's performance, highlighting the record financial results, improved adjusted EBITDA margin, and strong free cash flow generation in 2023.

Becker stated, "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."

The company anticipates a mid-single-digit organic growth in net revenues for 2024, ranging between $7,050 to $7,250 million. API Group also expects to deliver adjusted EBITDA between $855 to $905 million for 2024, with a focus on expanding margins. Becker expressed confidence in achieving the company's goal of a 13%+ adjusted EBITDA margin in 2025 through various strategic initiatives.

API Group Corporation will be participating in investor conferences in February 2024, including the Citi 2024 Global Industrial Tech and Mobility Conference and the Barclays 2024 Industrial Select Conference, where the company's leadership will provide further details on its 2023 performance and outlook for 2024.

The company's shares have recently experienced a -1.1% movement and are currently trading at a price of $34.55.

API Group Corporation is a global business services provider with a significant recurring revenue base and over 500 locations worldwide, offering life safety, security, and specialty services to a diverse customer base across industries.

The company's full 8-K submission is available here.

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