Question · Q3 2025
Andy Wittman asked for an assessment of APi Group's margin performance, specifically the 10 basis point increase, in the context of its 2028 margin goals, considering factors like material costs, growth investments, and the growth-margin trade-off.
Answer
Russ Becker, President and CEO, affirmed the 2028 margin expansion goal is realistic and that margins will continue to expand non-linearly. David Jackola, EVP and CFO, added that strong margin expansion is seen in inspection, service, and monitoring (ISM) work, and project margins in Specialty Services are expected to expand sequentially in Q4 and into 2026 as projects move deeper into completion. Mr. Jackola also noted that increased corporate costs and variable compensation impacted Q3 margins. Mr. Becker clarified that investments are primarily in building out the sales team for ISM.