APi Group Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, showcasing a mixed performance across its segments. The company generated net revenues of $1,826 million in Q3 2024, reflecting a 2.4% increase from $1,784 million in Q3 2023. For the nine months, net revenues slightly decreased to $5,157 million from $5,169 million in the same period last year.
The Safety Services segment was a key driver of growth, with revenues rising to $1,335 million in Q3 2024, up 9.7% from $1,217 million in Q3 2023. This increase was attributed to acquisitions and a rise in inspection, service, and monitoring revenues. Conversely, the Specialty Services segment saw a decline, with revenues falling to $493 million from $569 million, primarily due to project delays and the divestiture of an operating company in 2023.
Gross profit for Q3 2024 was $567 million, an 11.0% increase from $511 million in Q3 2023, leading to a gross margin improvement of 250 basis points to 31.1%. Operating income also rose significantly to $142 million, up 36.5% from $104 million in the prior year. Net income for the quarter was $69 million, a 27.8% increase from $54 million in Q3 2023.
For the nine-month period, gross profit increased to $1,603 million from $1,432 million, while operating income rose to $368 million from $284 million. Net income for the nine months ended September 30, 2024, was $183 million, compared to $128 million in the same period of 2023.
APi Group's total assets increased to $8,245 million as of September 30, 2024, up from $7,590 million at the end of 2023. The company reported total current assets of $2,691 million, an increase from $2,582 million. However, long-term debt rose to $2,847 million from $2,322 million, reflecting increased borrowing to finance acquisitions, including the Elevated Facility Services Group, acquired for $579 million in June 2024.
The company also faced challenges, including increased pricing pressure on materials and competition for skilled labor, which could impact profitability. Additionally, APi Group incurred pre-tax restructuring costs of $5 million related to the Chubb restructuring program, with total estimated costs expected to reach approximately $125 million by the end of fiscal year 2025.
Overall, while APi Group demonstrated growth in certain areas, particularly in its Safety Services segment, it also navigated challenges that affected its Specialty Services segment and overall profitability.
About APi Group Corp
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