APi Group (NYSE:APG) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• APi beat expectations with $0.32 EPS vs $0.30 and revenue of $1.98B (up 15.3% YoY); Adjusted EBITDA rose 21.8% with margin expansion to 11.9% and management raised full‑year guidance implying ~5–7% organic growth and a ~13.8% midpoint adjusted EBITDA margin.
• Strong liquidity and cash flow — Adjusted Free Cash Flow $125M (88% conversion) and net leverage ~1.8x — underpin accelerated M&A, including closed CertaSite and agreed deals for WTech (Europe) and Onyx (Canada) totaling >$1B and labeled accretive to targets.
• Despite the results the stock traded down ~5.9% on heavy volume, and investor sentiment may be pressured by insider selling, including Director Martin E. Franklin’s sale of 3,000,000 shares.

APi Group (NYSE:APG - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.02, Briefing.com reports. The business had revenue of $1.98 billion during the quarter, compared to the consensus estimate of $1.92 billion. APi Group had a net margin of 3.70% and a return on equity of 37.92%. APi Group's quarterly revenue was up 15.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.37 EPS.

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

• APi reported a strong Q1 — net revenues +15% (≈10% organic) and Adjusted EBITDA +21.8% with margin expansion of ~70 bps to 11.9%.
• Cash and leverage provide flexibility — Q1 Adjusted Free Cash Flow $125M, 88% conversion, and net leverage ~1.8x, well below long‑term targets, supporting M&A and capital deployment.
• Accelerated M&A to build Safety Services — closed CertaSite and agreed to acquire WTech (Europe) and Onyx (Canada) (>$1B total); Onyx expected to close in 2Q and WTech in 3Q, and management says these deals are accretive to long‑term targets.
• Management raised full‑year guidance — FY revenue range and Adjusted EBITDA were increased, implying organic growth of ~5%–7% and a midpoint adjusted EBITDA margin of ~13.8%.
• Strong end‑market momentum (Specialty Services organic ≈25%) and inspection/service growth (mid‑ to upper‑single digits) drove results, but mix toward projects and Specialty weighed on adjusted gross margin this quarter.

APi Group Trading Down 5.9%

NYSE:APG traded down $2.86 on Thursday, hitting $45.80. 7,041,471 shares of the stock were exchanged, compared to its average volume of 2,674,686. The stock has a market capitalization of $19.81 billion, a price-to-earnings ratio of -60.53, a P/E/G ratio of 2.91 and a beta of 1.68. APi Group has a 52 week low of $26.05 and a 52 week high of $49.99. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.43 and a current ratio of 1.50. The company's 50-day moving average price is $43.69 and its 200 day moving average price is $40.85.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on APG shares. UBS Group increased their target price on APi Group from $49.00 to $54.00 and gave the company a "buy" rating in a research note on Thursday, February 26th. Wall Street Zen downgraded APi Group from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. Barclays increased their price target on shares of APi Group from $44.00 to $52.00 and gave the company an "overweight" rating in a report on Thursday, February 26th. Citigroup increased their price target on shares of APi Group from $49.00 to $52.00 and gave the company a "buy" rating in a report on Thursday, February 26th. Finally, Royal Bank Of Canada increased their price target on shares of APi Group from $45.00 to $53.00 and gave the company an "outperform" rating in a report on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $48.57.

Insiders Place Their Bets

In other news, Director Martin E. Franklin sold 3,000,000 shares of APi Group stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $40.88, for a total transaction of $122,640,000.00. Following the completion of the sale, the director owned 21,240,426 shares in the company, valued at $868,308,614.88. The trade was a 12.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Ian G. H. Ashken sold 72,546 shares of APi Group stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $42.94, for a total transaction of $3,115,125.24. Following the sale, the director owned 10,561,284 shares of the company's stock, valued at approximately $453,501,534.96. This represents a 0.68% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 3,682,000 shares of company stock valued at $152,333,385. 18.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On APi Group

Institutional investors have recently modified their holdings of the business. Pacer Advisors Inc. lifted its stake in APi Group by 12.7% in the fourth quarter. Pacer Advisors Inc. now owns 55,578 shares of the company's stock valued at $2,126,000 after buying an additional 6,283 shares during the period. Invesco Ltd. boosted its holdings in APi Group by 14.5% during the fourth quarter. Invesco Ltd. now owns 5,852,516 shares of the company's stock worth $223,917,000 after buying an additional 742,614 shares during the last quarter. Corient Private Wealth LLC grew its position in shares of APi Group by 77.6% during the 4th quarter. Corient Private Wealth LLC now owns 108,030 shares of the company's stock worth $4,133,000 after buying an additional 47,189 shares during the period. Mercer Global Advisors Inc. ADV increased its stake in shares of APi Group by 26.9% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 21,341 shares of the company's stock valued at $817,000 after acquiring an additional 4,520 shares during the last quarter. Finally, State of Tennessee Department of Treasury increased its stake in shares of APi Group by 0.3% in the 4th quarter. State of Tennessee Department of Treasury now owns 160,291 shares of the company's stock valued at $6,663,000 after acquiring an additional 475 shares during the last quarter. Institutional investors and hedge funds own 86.62% of the company's stock.

APi Group Company Profile

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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