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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 Q3 2025 Earnings: Strong Revenue Growth and Margin Expansion

APi Group reported robust third-quarter 2025 financial results, with revenues increasing by 14.2% to $2.1 billion, driven by strong organic growth of approximately 10%. The company's adjusted EBITDA margin expanded, and adjusted free cash flow conversion improved to 88%. Earnings per share (EPS) came in at $0.41, beating estimates of $0.39. The company's Safety Services segment delivered 9% organic revenue growth, with 40 basis points of segment earnings margin expansion.

Publication Date: Nov -09

📋 Highlights
  • 14.2% Revenue Growth: Reported revenues reached $2.1 billion, up from $1.83 billion in Q3 2024.
  • 9% Organic Growth in Safety Services: Driven by North America, with 40 bps segment earnings margin expansion.
  • 88% Free Cash Flow Conversion: Adjusted free cash flow of $248M, up $21M YoY, reflecting strong cash flow generation.
  • Record Backlog: Both Safety Services and Specialty segments reported all-time high backlogs, fueling 2026 growth confidence.

Revenue Growth Drivers

The company's inspection service and monitoring revenues led the growth, with double-digit inspection growth in North America for the 21st straight quarter. Russ Becker, CEO, highlighted strong activity in the data center space, semiconductor, and advanced manufacturing, as well as critical infrastructure. The company's record backlog in both segments and accretive bolt-on M&A activity at attractive multiples also contributed to the growth.

Margin Performance and Outlook

The company's inspection service and monitoring business has seen good margin expansion, and management expects this to continue. David Jackola, CFO, noted that the company is on track to achieve its 2028 margin goals. The company's adjusted EBITDA margin is expected to expand, driven by the inspection service and monitoring business, as well as the benefits of its operating model and disciplined capital allocation.

Valuation and Growth Expectations

APi Group's current valuation metrics indicate a P/E Ratio of 57.34, P/S Ratio of 1.97, and EV/EBITDA of 21.54. Analysts estimate next year's revenue growth at 6.3%. The company's strong growth prospects, margin expansion, and accretive M&A activity position it for sustained organic growth and value creation. The current valuation multiples suggest that the market has priced in a significant portion of the company's growth expectations.

Cash Flow Generation and Capital Allocation

The company's adjusted free cash flow conversion improved to 88%, demonstrating its ability to generate strong cash flows. Management's disciplined approach to capital allocation, including accretive M&A activity, is expected to continue driving value creation. The company's Free Cash Flow Yield is 3.79%, indicating a reasonable return for investors.

3. NewsRoom

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APi Group Corporation (APG) Presents at UBS Global Industrials and Transportation Conference Transcript

Dec -02

Source: seekingalpha.com

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Advantage Alpha Capital Partners LP Trims Holdings in APi Group Corporation $APG

Nov -28

Source: defenseworld.net

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Creative Planning Raises Holdings in APi Group Corporation $APG

Nov -26

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Purchases Shares of APi Group Corporation (NYSE:APG)

Nov -21

Source: defenseworld.net

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Apogee Therapeutics Provides Pipeline Progress and Reports Third Quarter 2025 Financial Results

Nov -10

Source: globenewswire.com

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Apogee Therapeutics Announces Positive Interim Phase 1 Results from Healthy Volunteer Trial of APG333, its Novel Half-Life Extended TSLP Antibody

Nov -10

Source: globenewswire.com

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APi Group Corporation $APG Shares Sold by Envestnet Asset Management Inc.

Nov -05

Source: defenseworld.net

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APi Group: Regulation-Backed Recurring Revenue With Long AI/Data Center Upside

Nov -03

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

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AECOM

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Value: 3.5

Growth: 5.7

Quality: 5.2

Yield: 1.0

Momentum: 8.0

Volatility: 9.7

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API Group

A-Score: 5.4/10

Value: 2.5

Growth: 6.4

Quality: 6.4

Yield: 0.0

Momentum: 8.5

Volatility: 8.3

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A-Score: 4.8/10

Value: 3.5

Growth: 9.0

Quality: 6.4

Yield: 0.0

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MYR Group

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Value: 3.2

Growth: 4.9

Quality: 5.8

Yield: 0.0

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Volatility: 4.7

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Construction Partners

A-Score: 4.5/10

Value: 1.5

Growth: 8.6

Quality: 3.4

Yield: 0.0

Momentum: 9.0

Volatility: 4.7

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Fluor

A-Score: 4.2/10

Value: 6.0

Growth: 6.0

Quality: 6.7

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

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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

39.06$

Current Price

39.06$

Potential

-0.00%

Expected Cash-Flows