APi Group Reports $1.719 Billion Revenue in Q1 2025, Net Income Declines to $35 Million

APi Group Corporation reported a net revenue of $1.719 billion for the first quarter of 2025, marking a 7.4% increase from $1.601 billion in the same period of 2024. The growth was primarily driven by revenue from acquisitions, pricing improvements, and increased inspection, service, and monitoring revenues within the Safety Services segment. However, net income decreased to $35 million, down from $45 million year-over-year, reflecting a 22.2% decline. The company's gross profit rose to $542 million, a 10.2% increase from $492 million, resulting in a gross margin of 31.5%, up from 30.7% in the prior year.

In terms of operational changes, APi Group completed one immaterial acquisition in the Safety Services segment during the first quarter of 2025, with a total consideration of approximately $8 million. The company has also been actively restructuring its operations, particularly through its Chubb restructuring program, which aims to enhance efficiencies and optimize operating margins. As of March 31, 2025, the company had incurred no pre-tax restructuring costs in connection with this program for the quarter, but it anticipates recognizing approximately $125 million in restructuring costs by the end of fiscal year 2025.

The company’s Safety Services segment reported net revenues of $1.267 billion, a 13.4% increase from the previous year, while the Specialty Services segment saw a decline of 6.8%, with revenues of $453 million. The decrease in the Specialty Services segment was attributed to anticipated reductions in project and service revenues, exacerbated by adverse weather conditions. Segment earnings for Safety Services improved to $199 million, while Specialty Services earnings fell to $29 million, reflecting a decrease in profitability due to lower fixed cost absorption.

APi Group's balance sheet as of March 31, 2025, showed total assets of $8.098 billion, a slight decrease from $8.152 billion at the end of 2024. The company’s total liabilities also decreased to $5.116 billion from $5.199 billion. The company maintained a strong liquidity position with $460 million in cash and cash equivalents and $494 million available under its revolving credit facility. Looking ahead, APi Group remains focused on organic growth and strategic acquisitions, while navigating challenges such as supply chain disruptions and fluctuating market conditions. The company has authorized a new share repurchase program of up to $1 billion, reflecting its commitment to returning value to shareholders.