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APG is a global business services provider specializing in safety and specialty services. The company designs, installs, inspects, and maintains integrated systems for fire protection, HVAC, and entry systems, as well as infrastructure services for utilities and industrial plants. APG serves a diverse range of industries, including commercial, healthcare, education, and industrial sectors, with a focus on recurring revenue and long-standing customer relationships.
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Safety Services - Provides integrated occupancy systems, including fire protection, HVAC, and entry systems, with services spanning design, installation, inspection, monitoring, and maintenance.
- Life Safety - Offers fire protection systems and services tailored for various industries.
- HVAC - Delivers heating, ventilation, and air conditioning solutions for diverse facilities.
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Specialty Services - Delivers infrastructure and industrial plant services, including maintenance and repair of underground utilities, fabrication, and specialized contracting.
- Infrastructure/Utility - Focuses on maintaining and repairing electric, gas, water, sewer, and telecommunications systems.
- Fabrication - Provides engineering, design, and installation of custom solutions for industrial needs.
- Specialty Contracting - Offers retrofitting, upgrading, and integrity management for critical infrastructure.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Russell A. Becker ExecutiveBoard | Chief Executive Officer and President | Director at Marvin Companies ; Advisory Board Member for Construction Management Program at Michigan Technical University | Russell A. Becker has served as the Chief Executive Officer and President of APi Group Corporation since 2004 and has been a director since October 2019. Previously, he held the role of President and Chief Operating Officer at APi Group from 2002 to 2004. | View Report → |
Glenn David Jackola Executive | Interim Chief Financial Officer | Interim CFO of APG since December 13, 2024 , previously served as CFO and Vice President of Transformation at APi International starting in November 2022. | ||
Kristina M. Morton Executive | Senior Vice President and Chief People Officer | Kristina M. Morton has served as Senior Vice President and Chief People Officer at APi Group Corporation since February 14, 2022. She was appointed an executive officer on March 1, 2022 and leads human resources operations, including talent and leadership development. | ||
Louis B. Lambert Executive | Senior Vice President, General Counsel, and Secretary | Louis B. Lambert has been serving as Senior Vice President, General Counsel, and Secretary at APi Group Corporation since July 2022. Previously, he held senior legal roles at Polaris Inc., General Mills, and 3M, where he developed expertise in corporate governance, legal affairs, and M&A. | ||
Anthony E. Malkin Board | Director | Chairman and CEO at Empire State Realty Trust, Inc.; Chair of Malkin Holdings L.L.C.; Member of the Real Estate Roundtable and Chair of its Sustainability Policy Advisory Committee | Anthony E. Malkin has served as a director at APi Group Corporation since October 2019 as a member of the Nominating and Corporate Governance Committee. He is widely recognized for his real estate investment leadership, notably serving as Chairman and CEO at Empire State Realty Trust, Inc. since October 2013. | |
Carrie A. Wheeler Board | Director at APi Group Corporation | CEO of Opendoor Technologies Inc.; Board Member at TKO Group Holdings, Inc. | Carrie A. Wheeler has served as a Director at APi Group Corporation since October 2019. She is also the CEO of Opendoor Technologies Inc. since December 2022 and previously served as CFO there from September 2020 to December 2022. | |
Cyrus D. Walker Board | Director | Managing Director of Consello Group (since 2025) ; Strategic Advisor at Fifth Down Capital (2023–2025) ; Director at Starwood Credit Income Real Estate Trust (since November 2023) ; Principal at Discovery Land Company (since February 2022) ; Operating Partner at Vistria Group (since January 2022) ; Director at The Mather Group (since January 2022) ; Director at Flores & Associates LLC (since August 2022) ; Director at Kendra Scott (since May 2021) ; Director at Houlihan Lokey, Inc. (since November 2020) ; Director at Arbor Rapha Capital Bioholdings Corp. I (since March 2021) | Cyrus D. Walker has served as a director of APG since October 2019. He brings extensive board expertise from leadership roles in companies such as Consello Group and Fifth Down Capital. | |
Ian G.H. Ashken Board | Director | Director at Nomad Foods Limited ; Director at Element Solutions Inc | Ian G.H. Ashken has served as a director at APi Group Corporation since October 2019 and leads as Chair of the Audit Committee while also serving on the Nominating and Corporate Governance Committee. | |
James E. Lillie Board | Co-Chair of the Board | Board Member of Nomad Foods Limited | James E. Lillie has served as a Director since September 2017 and as Co-Chair of the Board since October 2019. He has extensive leadership experience, having served as CEO and COO at Jarden Corporation and held senior management positions at other companies. | |
Paula D. Loop Board | Director | Director at Robinhood Markets, Inc.; Director at Fastly, Inc. | Paula D. Loop is a seasoned independent director with extensive expertise in governance, accounting, and financial reporting, having retired as an Assurance Partner at PwC in June 2021. She has been serving as a director at APi Group Corporation since March 2022 and holds board roles at Robinhood Markets, Inc. (since June 2021) and Fastly, Inc. (since July 2021). | |
Sir Martin E. Franklin Board | Board Co-Chair | CEO of Mariposa Capital, LLC; Founder and Executive Chairman of Element Solutions Inc; Co-Founder and Co-Chairman of Nomad Foods Limited; Chair and Controlling Shareholder of Sweet Oak Parent, LLC; Co-Founder and Co-Chairman of Acuren Corporation | Sir Martin E. Franklin has served as Board Co-Chair since October 2019 and as a Director since September 2017 at APG. He brings extensive leadership experience from roles at companies including Element Solutions Inc, Nomad Foods Limited, and Mariposa Capital, LLC. | |
Thomas V. Milroy Board | Lead Independent Director | Director at Interfor Corporation; Director at Admiral Acquisition Limited; Director at Generation Capital Limited | Thomas V. Milroy has served as the Lead Independent Director and Chair of the Compensation Committee at APG since September 2017. He previously served as CEO of BMO Capital Markets from March 2008 to October 2014 and as Senior Advisor at BMO Financial Group until January 2015. |
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Given the project delays you experienced in 2024 that resulted in a $150 million headwind, can you provide an update on these specific projects and discuss any risk of further delays in 2025, and whether you're seeing additional unexpected delays on other large specialty projects?
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With high market valuations for pure-play fire life safety companies, are you reconsidering your strategic approach to the composition of your business, particularly regarding the specialty services segment, and how do these market conditions influence your M&A strategy?
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Your guidance indicates that interest expense will remain flat at $145 million in 2025 despite expectations of reduced leverage and increased free cash flow; can you explain why interest expense isn't expected to decline and how this aligns with your capital allocation plans?
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Given delays in semiconductor projects and potential issues with CHIPS Act funding, do you see risks related to your exposure to large customers in the semiconductor industry, and how might this impact your revenue and growth outlook?
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What are the key variables driving your expectation of EBITDA margin expansion to over 13% in 2025, and how are you addressing potential challenges such as economic slowdowns, competitive pressures, and execution risks to ensure these targets are achieved?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Elevated Facility Services Group | 2024 | Acquired on June 3, 2024, this deal involved a total consideration of $579 million (comprising $573 million cash at closing and $6 million into escrow), with the transaction including $222 million in intangible assets and $392 million in goodwill (with $19 million tax-deductible), plus assumed deferred tax liabilities of $55 million; the acquisition is strategically aimed at expanding APi’s Safety Services footprint and enabling cross‐selling opportunities. |
Acquisition A24 | 2024 | This Safety Services deal was completed for a total consideration of $33 million (with $24 million cash and $9 million accrued), acquiring $8 million in intangible assets and $9 million in goodwill, alongside assumed contract liabilities of $5 million, thereby reinforcing the segment’s revenue base. |
Seven Individually Immaterial Acquisitions | 2024 | Aggregated over the nine months ended September 30, 2024, these acquisitions had a total consideration of $68 million, which included $29 million in intangible assets and $37 million in goodwill (with $44 million of total goodwill expected to be tax-deductible when combined with related deals); they were integrated into the Safety Services segment with results considered immaterial and subject to further purchase price allocation adjustments. |
Subsequent Acquisition | 2024 | Executed on October 1, 2024, this deal in the Safety Services segment was completed for a total consideration of $104 million, further underpinning the segment’s revenue growth. |
Six Individually Immaterial Acquisitions | 2024 | Completed during the six months ended June 30, 2024, these acquisitions transferred an aggregate of $49 million (including $41 million in cash and $8 million accrued), acquiring assets such as $20 million in intangible assets, $25 million in goodwill, along with minor balances in accounts receivable and property, and a $1 million contract liability. |
Acquisition A23 | 2023 | Finalized on June 30, 2023 in the Safety Services segment, this deal had a net consideration of $38 million (comprising $30 million cash, $5 million escrow, and $3 million accrued), with the acquired assets including $13 million in intangible assets and $20 million in goodwill; final purchase price allocation adjustments are pending. |
Four Additional Immaterial Acquisitions | 2023 | These deals, completed during the nine months ended September 30, 2023, had an aggregate consideration of $24 million (with $22 million cash and $2 million accrued), and delivered $5 million in intangible assets along with $19 million in goodwill, with their operational impact deemed immaterial to the overall financials. |
Chubb Fire and Security Business Acquisition | 2022 | Acquired on January 3, 2022, for an enterprise value of $3.1 billion (including $2.9 billion in cash and approximately $200 million in assumed liabilities), this strategic acquisition expanded APi’s Safety Services segment by adding a globally recognized fire and security business with substantial recurring revenue, including sizable intangible assets and goodwill, and was funded through a mix of cash on hand, a private placement, a term loan, and senior notes. |
Recent press releases and 8-K filings for APG.
- APi Group Corporation announced that David Jackola has been appointed as Executive Vice President and Chief Financial Officer, effective March 28, 2025.
- Mr. Jackola, who served as Interim CFO since December 2024, brings over 20 years of global finance experience and will report directly to CEO Russ Becker.
- His appointment includes a comprehensive compensation package, featuring a base salary of $725,000, eligibility for short-term incentives, and long-term equity awards.
- APi Group Corp reported a strong recurring revenue mix with 54% coming from inspection, service, and monitoring, and noted an all-time high in its backlog, driving organic growth in the mid-single digits.
- The company highlighted its disciplined M&A strategy, having spent approximately $250 million last year on bolt-on acquisitions, with plans to continue similar investments and expanded international opportunities.
- A new focus on the elevator maintenance segment was discussed, with an estimated $200 million market and a potential platform opportunity of about $1 billion.
- APi Group is actively engaging in share buybacks, reflecting confidence in its undervalued share price and commitment to optimizing capital allocation.
- Record 2024 performance: APi achieved record net revenues of $7 billion, record adjusted EBITDA, and record adjusted free cash flow of $668 million with an improved free cash flow conversion of 75% and an adjusted EBITDA margin of 12.7%.
- Operating improvements: The results were driven by solid organic growth in inspection and service revenues—with double-digit gains in U.S. Life Safety—and pricing improvements.
- Targeted capital deployment: APi executed approximately $250 million in bolt-on M&A and maintains a share repurchase program with about $400 million remaining, underscoring a disciplined capital strategy.
- 2025 guidance outlook: The company provided guidance for 2025 with expected net revenues of $7.3–$7.5 billion, noting continued strong performance in safety services and acknowledging minor Q1 weather-related impacts.
- Q4 2024 highlights include net revenues of $1.9 billion (up 5.8% year-over-year), adjusted EBITDA of $242 million with margin expansion to 13.0%, and adjusted diluted EPS of $0.51 (up 15.9%).
- For the full year, APi Group reported record net revenues of $7.0 billion and adjusted EBITDA of $893 million, underscoring strong operational performance.
- The discussion also emphasized the company’s strategic focus on long-term free cash flow conversion (targeting 80%) and an asset-light, services-focused business model aimed at sustainable growth.
- Record Q4 performance: APi Group reported Q4 net revenues of $1.86 billion with a 5.8% YoY increase, and full-year net revenues of $7.02 billion.
- Earnings highlights: Q4 net income reached $67 million (up 168% YoY) and adjusted EBITDA climbed to $242 million (up 16.3% YoY), underlining strong profitability.
- The results were driven by robust growth in inspection, service, and monitoring revenues alongside effective cost management, supporting a recurring revenue model.
- APi Group surpassed its 2024 revenue guidance despite FX headwinds and set a target for normalized organic growth in 2025.
- The company reported a strong project backlog with 9% organic growth year-over-year as it enters 2025.
- Focusing on Specialty Services, APi Group aims for mid-single digit organic growth and margin expansion towards a 13% EBITDA margin in 2025.
- The ongoing Chubb integration has achieved $90 million in synergies out of a $125 million target, with further improvements expected despite prior compliance challenges.
- APi Group is leveraging an inspection-first approach to generate significant service revenue, achieving approximately $3 to $4 of annual service pull-through for every dollar from inspections.
- For 2025, the company guided revenue of $7.3B to $7.5B with EBITDA targets between $970M and $1.02B, expecting mid to high single-digit organic growth domestically and internationally.
- The management emphasized a disciplined M&A strategy, including executing a bolt-on acquisition in the Elevated segment and pursuing further value through international expansion, alongside efforts to enhance free cash flow conversion toward an 80% target.
- 2024 Performance: APi Group reported record financial results for 2024 with net revenues exceeding $7,000 million and adjusted EBITDA in the guided range of $890 to $900 million.
- 2025 Guidance: The company expects 2025 net revenues between $7,300 to $7,500 million and adjusted EBITDA between $970 to $1,020 million, targeting a 13.4% adjusted EBITDA margin at the midpoint.
- Debt Repricing: APi Group announced the successful repricing of its Term Loan due 2029, achieving approximately $5 million in annual cash savings, and repaid $100 million of the term loan, leaving $2,157 million outstanding as of December 31, 2024.
- The Board of Directors approved a stock dividend on December 31, 2024 to settle the annual dividend for the 4,000,000 Series A Preferred Stock based on the share price exceeding the previous calculation threshold.
- The settlement was executed by issuing 2,543,662 shares of Common Stock on January 2, 2025, bringing the total common shares outstanding to 277,321,989.