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1. Company Snapshot

1.a. Company Description

APi Group Corporation provides safety, specialty, and industrial services in North America, Europe, Australia, and the Asian-Pacific.It operates through three segments: Safety Services, Specialty Services, and Industrial Services.The Safety Services segment offers safety solutions focusing on end-to-end integrated occupancy systems, such as fire protection solutions; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, monitoring, and service of these integrated systems.


The Specialty Services segment provides infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure.This segment also offers engineering and design, fabrication, installation, and retrofitting and upgrading services.The Industrial Services segment provides various services and solutions comprising pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry focused on transmission and distribution.


It serves customers in the public and private sectors, including commercial, industrial, fulfillment centers, distribution, manufacturing, education, healthcare, telecom, transmission, utilities, high tech, entertainment, retail, financial services, and governmental markets.The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019.APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.

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1.b. Last Insights on APG

APi Group Corporation's recent performance was driven by strong Q2 earnings and revenue growth, with a 15% revenue jump and a beat on both earnings and revenue estimates. The company's solid growth attributes, including above-average financial growth, have positioned it to outperform the market. Additionally, APi's upgrade to a Zacks Rank #1 (Strong Buy) and #2 (Buy) reflects growing optimism about its earnings prospects, which could drive the stock higher.

1.c. Company Highlights

2. APi Group's 2025 Earnings: A Strong Year with Promising Outlook

APi Group Corporation reported a robust financial performance for 2025, with revenues reaching $7.9 billion, a significant increase from $3.9 billion in 2021. The company's adjusted EBITDA margins stood at 13.2%, above its target of 13%, while adjusted free cash flow conversion was at 80%, in line with its target. However, the company's EPS came out at -$1.1851, missing estimates of $0.4. The strong revenue growth was driven by a significant increase in inspection, service, and monitoring revenues, as well as the company's expanding presence in the elevator and escalator service market through the acquisition of Elevated.

Publication Date: Feb -26

📋 Highlights
  • Revenue Growth: Revenues increased from $3.9 billion in 2021 to $7.9 billion in 2025, driven by expansion in inspection, service, and monitoring sectors.
  • Adjusted EBITDA Performance: Achieved 13.2% EBITDA margin in 2025, exceeding the 13% target, with 80% free cash flow conversion aligned with goals.
  • 2026 Guidance: Projects $8.66 billion net revenue (5% organic growth midpoint) and $1.14–$1.20 billion adjusted EBITDA, reflecting strong backlog and market tailwinds.
  • Data Center Revenue Contribution: Data centers account for 10% of revenue, expected to drive 2026 growth amid high-margin project-to-service conversions.

Revenue Growth Drivers

The company's revenue growth was driven by a combination of organic growth and strategic acquisitions, with 33 bolt-on acquisitions completed from 2023 to 2025, deploying approximately $580 million. As Russell A. Becker, President and CEO, noted, "We've made significant progress since introducing our 13-60-80 shareholder value creation framework in 2021." The company's inspection, service, and monitoring revenues are expected to continue growing, driven by tailwinds in certain end markets, such as data centers, advanced manufacturing, and healthcare.

Outlook and Guidance

For 2026, APi Group expects net revenues of $8.66 billion, representing organic growth of 5% at the midpoint, and adjusted EBITDA of $1.14 billion to $1.20 billion. Analysts estimate next year's revenue growth at 5.1%, aligning with the company's guidance. The company's backlog remains strong, with a robust project environment, and is expected to drive growth across both segments and various end markets.

Valuation and Metrics

With a P/S Ratio of 2.44 and EV/EBITDA of 21.21, the market is pricing in a certain level of growth for APi Group. The company's ROIC stands at 5.97%, while its ROE is negative at -9.25%. The Net Debt / EBITDA ratio is -1.05, indicating a healthy debt position. As the company continues to focus on M&A and expanding its presence in key end markets, investors will be watching to see if the company can deliver on its growth promises.

3. NewsRoom

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Bright Horizons Family Solutions (NYSE:BFAM) and APi Group (NYSE:APG) Head to Head Survey

Mar -04

Source: defenseworld.net

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HighTower Advisors LLC Raises Stock Holdings in APi Group Corporation $APG

Mar -02

Source: defenseworld.net

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Choreo LLC Has $3.78 Million Stake in APi Group Corporation $APG

Mar -01

Source: defenseworld.net

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Are Business Services Stocks Lagging APi Group (APG) This Year?

Feb -27

Source: zacks.com

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APi Group Announces Participation in Upcoming Investor Conferences

Feb -27

Source: businesswire.com

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APi Group Corporation $APG Shares Bought by Artisan Partners Limited Partnership

Feb -27

Source: defenseworld.net

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APi Group Corporation $APG Shares Purchased by Bradley Foster & Sargent Inc. CT

Feb -26

Source: defenseworld.net

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APi Group Corporation (APG) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.80%)

6. Segments

Safety Services

Expected Growth: 8.97%

APi Group Corporation's Safety Services segment growth of 8.97% is driven by increasing demand for safety protocols in industries such as construction, oil and gas, and manufacturing. Additionally, government regulations and standards for workplace safety, coupled with the company's strategic acquisitions and expansion into new markets, contribute to this growth.

Specialty Services

Expected Growth: 8.4%

APi Group Corporation's Specialty Services segment growth of 8.4% is driven by increasing demand for critical infrastructure projects, expansion into new geographies, and strategic acquisitions. Additionally, the company's focus on innovation, operational efficiency, and customer relationships has enabled it to capitalize on market opportunities and drive organic growth.

Corporate and Eliminations

Expected Growth: 7.9%

API Group Corporation's Corporate and Eliminations segment growth of 7.9% is driven by strategic acquisitions, cost synergies, and operational efficiencies. The company's focus on diversification, expansion into new markets, and investments in digital transformation have also contributed to this growth. Additionally, effective working capital management and a strong balance sheet have enabled the company to capitalize on growth opportunities.

7. Detailed Products

Perimeter Fire Protection

API Group Corporation provides perimeter fire protection systems that prevent fire spread and protect people and property.

Fire-Resistant Materials

API Group Corporation offers fire-resistant materials for various applications, including construction, aerospace, and industrial manufacturing.

Specialty Chemicals

API Group Corporation provides specialty chemicals for various industries, including aerospace, defense, and industrial manufacturing.

Composites

API Group Corporation offers advanced composite materials for various applications, including aerospace, defense, and industrial manufacturing.

Adhesives and Sealants

API Group Corporation provides adhesives and sealants for various industries, including aerospace, defense, and industrial manufacturing.

Coatings

API Group Corporation offers coatings for various applications, including aerospace, defense, and industrial manufacturing.

8. APi Group Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

API Group Corporation operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

API Group Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

API Group Corporation relies on a few key suppliers for critical components, giving them some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

Threat Of New Entrants

The aerospace and defense industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants to API Group Corporation's market.

Intensity Of Rivalry

The aerospace and defense industry is highly competitive, with several established players competing for market share. API Group Corporation must continually innovate and improve its products to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.58%
Debt Cost 8.54%
Equity Weight 54.42%
Equity Cost 12.79%
WACC 10.85%
Leverage 83.75%

11. Quality Control: APi Group Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TopBuild

A-Score: 5.4/10

Value: 4.0

Growth: 8.9

Quality: 6.2

Yield: 0.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

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AECOM

A-Score: 5.2/10

Value: 4.8

Growth: 6.4

Quality: 4.9

Yield: 1.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
API Group

A-Score: 5.0/10

Value: 2.3

Growth: 6.4

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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MYR Group

A-Score: 4.6/10

Value: 3.3

Growth: 4.9

Quality: 6.0

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Construction Partners

A-Score: 4.4/10

Value: 1.8

Growth: 9.1

Quality: 3.9

Yield: 0.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

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Fluor

A-Score: 4.3/10

Value: 7.7

Growth: 6.0

Quality: 5.5

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.13$

Current Price

43.13$

Potential

-0.00%

Expected Cash-Flows