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APi Group sees 2023 revenue $6.8B-$6.95B, consensus $6.7B
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APi Group sees 2023 revenue $6.8B-$6.95B, consensus $6.7B

CEO Russ Becker said, "As we look ahead to 2023, we are excited to continue our efforts to build a global and coordinated inspection sales force to drive our go-to-market strategy of selling inspection work first which we believe will lead to further service revenue growth and ultimately drive margin expansion. While we do not know if we are headed into a recession, we believe that the statutorily-driven demand for our services and the diversity of the end markets we serve provide predictable, recurring revenue opportunities and help to build a protective moat around the business. Our backlog remains strong. We believe that net revenues for 2023 will range between $6,800 to $6,950 million, representing growth in net revenues on an organic basis in line with our historical performance. For 2023 adjusted EBITDA, we expect to deliver between $735 to $775 million as margins are expected to expand again this year. We remain confident in achieving our goal of 13%+ adjusted EBITDA margin by 2025 through an improved mix of inspection, service and monitoring revenue, procurement savings, value capture opportunities and leveraging our global scale. In addition, we remain laser focused on cash generation and deleveraging at approximately one turn annually as we move towards our stated target net leverage ratio of 2.0 to 2.5x, which we expect to achieve near year-end 2023."

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