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API Group: 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.

APG

USD 44.76

-0.51%

A-Score: 5.0/10

Publication date: February 25, 2026

Full Report

Author: Analystock.ai

📋 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.

API Group's A-Score