APi Group (NYSE:APG) Posts Earnings Results

Key Points

• APi Group exceeded second-quarter expectations, reporting $0.44 in EPS versus the $0.43 consensus and $2.25 billion in revenue versus $2.20 billion expected. Revenue increased 13.3% year over year, while organic growth reached 10.1%.
• Management raised full-year 2026 guidance to $8.875–$9.025 billion in revenue and $1.205–$1.245 billion in adjusted EBITDA. Specialty Services posted 22% organic growth, and backlog surpassed $5 billion, supported by strong data-center demand.
• Cash generation and leverage remained solid, but International Safety Services was flat because of Middle East-related pressure, project delays and customer pruning. Analysts remain broadly positive, with a “Moderate Buy” consensus and a $53.17 average price target.

APi Group (NYSE:APG - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.43 by $0.01, FiscalAI reports. The company had revenue of $2.25 billion for the quarter, compared to the consensus estimate of $2.20 billion. APi Group had a net margin of 3.85% and a return on equity of 37.63%. APi Group's revenue was up 13.3% on a year-over-year basis. During the same period in the previous year, the firm earned $0.39 EPS.

Here are the key takeaways from APi Group's conference call:

• Q2 results exceeded expectations, with revenue up 13.3% to $2.25 billion, organic growth of 10.1%, adjusted EBITDA up 14.3%, and adjusted EPS rising 12.8% to $0.44.
• Management raised full-year 2026 guidance to $8.875–$9.025 billion of revenue and $1.205–$1.245 billion of adjusted EBITDA, reflecting confidence in continued demand and a strong second-half outlook.
• Specialty Services delivered 22% organic growth and a 60-basis-point increase in segment earnings margin, while companywide backlog surpassed $5 billion for the first time; data centers remained a major growth driver.
• Cash generation and the balance sheet remain strong, with $228 million of adjusted free cash flow year to date, 2.2x net leverage, a $66 million share repurchase, and continued capacity for acquisitions and reinvestment.
• International Safety Services was flat for the quarter, affected by Middle East-related macro pressure, project delays, and pruning of lower-performing customers; management expects improvement but acknowledged that further work is needed to shift the business toward recurring service revenue.

APi Group Price Performance

Shares of NYSE APG traded up $0.67 during mid-day trading on Thursday, reaching $39.12. The company had a trading volume of 6,365,526 shares, compared to its average volume of 2,883,286. The company has a current ratio of 1.44, a quick ratio of 1.36 and a debt-to-equity ratio of 0.79. The stock has a market cap of $16.95 billion, a PE ratio of -55.09, a P/E/G ratio of 2.30 and a beta of 1.60. The company has a 50-day moving average price of $41.40 and a two-hundred day moving average price of $42.74. APi Group has a 1-year low of $33.40 and a 1-year high of $49.99.

Analyst Ratings Changes

A number of research analysts recently commented on APG shares. Wall Street Zen upgraded shares of APi Group from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Barclays reaffirmed an "overweight" rating and set a $54.00 price target (up from $52.00) on shares of APi Group in a research note on Thursday, May 7th. UBS Group set a $52.00 price objective on APi Group in a research note on Monday, July 20th. Truist Financial set a $55.00 target price on APi Group and gave the stock a "buy" rating in a report on Friday, May 1st. Finally, Weiss Ratings downgraded shares of APi Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, June 11th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, APi Group has an average rating of "Moderate Buy" and a consensus price target of $53.17.

Insider Buying and Selling

In related news, Director James E. Lillie sold 59,461 shares of APi Group stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $45.50, for a total value of $2,705,475.50. Following the transaction, the director owned 9,237,350 shares of the company's stock, valued at approximately $420,299,425. This trade represents a 0.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ian G. H. Ashken sold 65,534 shares of the business's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $45.49, for a total value of $2,981,141.66. Following the sale, the director owned 9,477,284 shares in the company, valued at approximately $431,121,649.16. The trade was a 0.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 3,451,000 shares of company stock valued at $149,194,935 over the last ninety days. 18.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Rafferty Asset Management LLC acquired a new stake in APi Group during the 2nd quarter valued at $217,000. Inspire Advisors LLC acquired a new stake in shares of APi Group in the fourth quarter worth $206,000. Family Management Corp boosted its position in shares of APi Group by 50.0% in the third quarter. Family Management Corp now owns 6,000 shares of the company's stock worth $206,000 after buying an additional 2,000 shares during the period. Vise Technologies Inc. purchased a new position in shares of APi Group during the fourth quarter valued at $205,000. Finally, UMB Bank n.a. grew its holdings in shares of APi Group by 35.4% during the fourth quarter. UMB Bank n.a. now owns 2,964 shares of the company's stock valued at $113,000 after buying an additional 775 shares in the last quarter. 86.62% of the stock is owned by hedge funds and other institutional investors.

About APi Group

APi Group Corp. is a global specialty contractor that provides fire protection, security, mechanical insulation and energy services to commercial, industrial and institutional clients. Headquartered in New Brighton, Minnesota, the company designs, installs, inspects, tests, maintains and repairs a wide range of safety and infrastructure systems. Through its network of operating subsidiaries, APi Group delivers end-to-end solutions for new construction, facility renovations and ongoing maintenance requirements.

Its service portfolio spans life safety and industrial services—such as fire suppression systems, fire alarms and emergency lighting—and specialized offerings including technical insulation, access solutions, passive fire protection and energy efficiency upgrades.

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