Thu, May 1, 2:45 PM (18 days ago)
**APi Group Corporation (APG, Ticker: APG)** **Q1 2025 Financial Health and Performance:** **Revenue and Profit Margins:** - **Revenue:** $1,719 million, up 7.4% YoY. - **Gross Profit:** $542 million, up 10.2% YoY. - **Gross Margin:** 31.5%, up 80 basis points YoY. - **Operating Income:** $84 million, down 16% YoY. - **Net Income:** $35 million, down 22.2% YoY. - **Net Margin:** 2.0%, down from 2.8% YoY. **Cash Flow:** - **Operating Cash Flow:** $62 million, up from $7 million YoY. - **Investing Cash Flow:** -$14 million, improved from -$22 million YoY. - **Financing Cash Flow:** -$98 million, improved from -$213 million YoY. **Earnings Changes:** - **EPS (Basic):** $0.11, down from -$1.34 YoY. - **EPS (Diluted):** $0.11, down from -$1.34 YoY. **Segment Performance:** - **Safety Services:** Revenue up 13.4%, segment earnings up 20.6%. - **Specialty Services:** Revenue down 6.8%, segment earnings down 32.6%. **Trends and Uncertainties:** - **Acquisitions:** Completed one immaterial acquisition for $8 million. - **Restructuring:** No pre-tax restructuring costs in Q1 2025. - **Economic Factors:** Monitoring economic conditions and market volatility. - **Seasonality:** Lower revenues typically in Q1 due to weather conditions. **Future Operations Impact:** - **Liquidity:** $954 million in total liquidity, comprising $460 million in cash and $494 million in available borrowings. - **Debt:** Compliance with all debt covenants as of March 31, 2025. - **Share Repurchase:** $75 million spent on share repurchases in Q1 2025, $325 million remaining under the SRP. **Risk Factors:** - **Economic and Market Conditions:** Potential impacts on demand and pricing. - **Supply Chain Disruptions:** Potential impacts on material supply and costs. - **Foreign Currency Fluctuations:** Potential impacts on financial position and results. **Management's Outlook:** - Focus on growing recurring revenues and repeat business. - Continued monitoring of economic, industry, and market factors. - Expectation of stable cash flows and organic growth opportunities.