APi Group (APG) Company Report

APi Group, which went public in 2019 with $4 billion in sales, has grown to approximately $8 billion in revenue and focuses on fire and life safety, electronic security, and elevator/escalator systems.
The company is pursuing 10-16-60 2028 financial goals, aiming for a 16% adjusted EBITDA margin by 2028, driven by 300 basis points of margin expansion over a three-year period.
Its "inspection-first" strategy, where 54%-55% of current revenue comes from inspection, service, and monitoring (ISM), is expected to grow at a mid to upper single-digit rate and contribute to margin expansion due to its 10 percentage points higher gross margin compared to contract work.
The project business experienced a strong 2025 across diverse end markets like data centers, advanced manufacturing, and healthcare, with data center revenue expected to reach 7-8% of total revenue by year-end 2025, up from 5-6% in 2024.
APi Group targets $250 million in bolt-on M&A annually, with a focus on international expansion and building a $1 billion elevator services platform in 2026.

3 days ago

Transcript

APi Group Discusses Growth, Margin Expansion, and M&A Strategy

APG

M&A

Guidance Update

Revenue Acceleration/Inflection

APi Group has grown significantly, from $4 billion in revenue in 2019 to approximately $8 billion today, driven by an inspection-first strategy and around 200 bolt-on acquisitions since 2002.
The company targets a 16% adjusted EBITDA margin by 2028, up from a 13% goal for the end of 2025, with expected 25-30% incremental margins in 2026-2028. This will be achieved by emphasizing inspection, service, and monitoring (ISM) work, which has 10 percentage points higher gross margin, and leveraging procurement and SG&A.
APG's ISM segment, currently 54-55% of total revenue, is expected to grow at mid to upper single digits, with a long-term goal of 60% or more of revenue from this highly recurring segment. The project business is also strong in 2025, with data centers growing from 5-6% of revenue in 2024 to an estimated 7-8% in 2025 and yielding above-average gross margins.
The company plans to continue its bolt-on M&A strategy, targeting $250 million annually, with a focus on international and elevator services in 2026 to build a $1 billion elevator services platform.

3 days ago

Transcript

APG Reports Strong Q3 2025 Results and Reaffirms Full-Year Guidance

APG

Earnings

Guidance Update

Revenue Acceleration/Inflection

APG reported net revenues of $2.1 billion for Q3 2025, an increase of 14.2% year-over-year, with 9.7% organic growth.
Adjusted EBITDA for Q3 2025 was $281 million, up 14.7% compared to Q3 2024, resulting in an adjusted EBITDA margin of 13.5%. Adjusted diluted earnings per share increased 20.6% to $0.41.
For the full year 2025, APG expects net revenues between $7,825 million and $7,925 million and adjusted EBITDA between $1,015 million and $1,045 million.
The company maintains long-term financial targets of $10 billion+ revenue by 2028 and $3.0 billion+ cumulative adjusted free cash flow through 2028E.
As of the end of Q3 2025, the net leverage ratio was approximately 2.0x, which is below the target of 2.5x - 3.0x.

Oct 30, 2025, 12:30 PM

Presentation

APG Reports Strong Q3 2025 Results and Raises Full-Year Guidance

APG

Earnings

Guidance Update

M&A

APG reported Q3 2025 net revenues of $2.1 billion, marking a 14.2% increase compared to the prior year, with organic growth reaching approximately 10%.
Adjusted diluted earnings per share for the third quarter increased by 20.6% to $0.41.
The company achieved a 14.7% increase in Adjusted EBITDA, with the margin expanding by 10 basis points to 13.5%.
Adjusted free cash flow for Q3 2025 was $248 million, representing an 88% conversion rate. Year-to-date adjusted free cash flow reached $434 million.
APG updated its full-year 2025 guidance, projecting net revenues between $7.825 and $7.925 billion (12% to 13% reported growth and 7% to 8% organic growth) and Adjusted EBITDA between $1.015 and $1.045 billion, reflecting an increase in guidance. The company also completed four bolt-on acquisitions in Q3, bringing the year's total to 11, and is on track to deploy approximately $250 million in M&A for the year.

Oct 30, 2025, 12:30 PM

Transcript

APi Group Reports Strong Q3 2025 Results and M&A Progress

APG

Earnings

M&A

Guidance Update

APi Group reported strong Q3 2025 results, with net revenues increasing by 14.2% to $2.1 billion and organic growth of approximately 10%. Adjusted diluted earnings per share (EPS) rose by 20.6% to $0.41.
The company is on track to deploy approximately $250 million in bolt-on M&A for the year, having completed 11 acquisitions year-to-date, with a robust pipeline focused on North American fire protection, electronic security, and elevators.
APi Group is progressing towards its 10/16/60+ financial targets for 2028, which include $10 billion in net revenues and a 16%+ adjusted EBITDA margin.
Strategic investments in AI-enabled technologies and a focus on high-growth end markets like data centers and semiconductors are empowering field leaders and driving growth.

Oct 30, 2025, 12:30 PM

Transcript

APi Group Reports Strong Q3 2025 Results and Updates Full-Year Guidance

APG

Earnings

Guidance Update

M&A

APi Group reported strong Q3 2025 financial results, with net revenues increasing 14.2% to $2.1 billion and organic growth of approximately 10%. Adjusted diluted EPS rose 20.6% to $0.41, and adjusted EBITDA margin increased 10 basis points to 13.5%.
The company updated its full-year 2025 guidance, raising net revenue expectations to $7.825 billion to $7.925 billion. Full-year adjusted EBITDA guidance is now $1.015 billion to $1.045 billion, representing approximately 15% growth at the midpoint.
APi Group completed four bolt-on acquisitions in Q3, bringing the year-to-date total to 11, and remains on track to deploy approximately $250 million in M&A for the year. The net debt to adjusted EBITDA ratio was approximately 2.0 times at quarter-end.
The company is progressing towards its 2028 financial targets, which include $10 billion in net revenues, 16%+ adjusted EBITDA margin, and $3 billion+ of cumulative adjusted free cash flow.

Oct 30, 2025, 12:30 PM

Transcript

APi Group Reports Record Q3 2025 Results and Raises Full-Year Outlook

APG

Earnings

Guidance Update

Revenue Acceleration/Inflection

APi Group reported record third quarter 2025 net revenues of $2.1 billion, representing a 14.2% year-over-year increase and 9.7% organic growth.
The company achieved record third quarter reported net income of $93 million, a 34.8% year-over-year increase, and record adjusted EBITDA of $281 million, up 14.7% year-over-year, with adjusted EBITDA margin expanding to 13.5%.
Diluted EPS for Q3 2025 was $0.20, and adjusted diluted EPS was $0.41.
APi Group raised its full-year 2025 guidance for net revenues to between $7,825 and $7,925 million and for adjusted EBITDA to between $1,015 and $1,045 million.

Oct 30, 2025, 11:42 AM

8-K

APi Group Reports Record Third Quarter 2025 Results and Raises Full-Year Outlook

APG

Earnings

Guidance Update

Revenue Acceleration/Inflection

APi Group reported record third quarter 2025 net revenues of $2.1 billion, representing 14.2% year-over-year growth and 9.7% organic growth.
The company achieved record third quarter 2025 reported net income of $93 million, a 34.8% year-over-year increase.
Adjusted EBITDA reached a record $281 million in Q3 2025, growing 14.7% year-over-year with an adjusted EBITDA margin expansion of 10 basis points to 13.5%.
APi Group raised its full-year 2025 guidance for net revenues to $7,825 to $7,925 million (up from $7,650 to $7,850 million) and adjusted EBITDA to $1,015 to $1,045 million (up from $1,005 to $1,045 million).

Oct 30, 2025, 11:30 AM

Press Release

APG Affiliate's Portfolio Company Coterie to be Acquired by Mammoth Brands

APG

M&A

Revenue Acceleration/Inflection

Coterie, a portfolio company of an American Pacific Group (APG) affiliate, is being acquired by Mammoth Brands.
Coterie has achieved significant growth, surpassing $200 million in net revenue over the past twelve months.
The acquisition is expected to close by year-end, subject to customary closing conditions.

Oct 21, 2025, 12:00 PM

Press Release

APi Group Discusses Strong Demand, Backlog, and Margin Expansion

APG

M&A

New Projects/Investments

Revenue Acceleration/Inflection

APi Group reports strong and robust demand for its inspection and monitoring services, particularly in end markets like data centers, advanced manufacturing, and healthcare, with its North America safety business consistently achieving double-digit inspection growth since 2020.
The company's backlog has grown to over $4 billion, providing approximately 12 months of coverage and good visibility into 2026.
APi Group continues to focus on its inspection-first strategy, with 54% of 2024 revenue derived from inspection, service, and monitoring, a segment known for its sticky pricing and market share gains from smaller competitors.
The company is making progress towards its margin targets, with the percentage of North America branches achieving over 20% EBITDA margin increasing from 9-10% in 2019 to nearly 40% in 2024. Specialty segment margins are expected to improve sequentially in the latter half of the year and be year-over-year accretive in 2026.
APi Group's M&A strategy is focused on building out its existing Elevator business to a billion-dollar-plus platform through bolt-on acquisitions, rather than entering new service areas.

Sep 3, 2025, 1:22 PM

Earnings Transcripts

Quarterly earnings call transcripts for APi Group.

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