APi Group (NYSE:APG) Releases Earnings Results

Key Points

• APi Group beat third-quarter expectations: EPS reached $0.50 versus the $0.47 consensus, while revenue rose 22.5% year over year to $2.55 billion. Adjusted EBITDA increased 24.6%, with margins expanding to 13.7%.
• Strong demand supported an improved outlook: Backlog exceeded $5 billion across data centers, semiconductors, healthcare and infrastructure, with management reporting no meaningful project delays or cancellations. APi raised 2026 revenue guidance to $9.20–$9.25 billion and adjusted EBITDA guidance to $1.235–$1.255 billion.
• Shares rallied, while growth investments continued: APi stock gained 8.5% to $44.86, and the company remains active in acquisitions and share repurchases. Near-term gross margins declined because of project mix and higher costs, though management expects improvement as higher-priced backlog is completed.

APi Group (NYSE:APG - Get Free Report) posted its earnings results on Thursday. The company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.47 by $0.03, Zacks reports. The company had revenue of $2.55 billion for the quarter, compared to analysts' expectations of $2.40 billion. APi Group had a return on equity of 37.59% and a net margin of 3.99%. APi Group's quarterly revenue was up 22.5% on a year-over-year basis. During the same period last year, the firm earned $0.41 earnings per share.

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

• Record Q3 performance: Revenue rose 22.5% to $2.55 billion, including 15.7% organic growth, while adjusted EBITDA increased 24.6% and margin expanded 20 basis points to 13.7%. Adjusted EPS grew 22% to $0.50.
• Strong demand and backlog: Backlog surpassed $5 billion and continues to grow across data centers, semiconductors, advanced manufacturing, healthcare, and critical infrastructure. Management said project activity remains robust, with no meaningful delays or cancellations and improving pricing on new work.
• Guidance raised again: APi increased 2026 revenue guidance to $9.20–$9.25 billion and adjusted EBITDA guidance to $1.235–$1.255 billion, implying approximately 11% organic revenue growth and 20% adjusted EBITDA growth at the midpoint.
• M&A and capital returns remain active: The company closed 13 transactions year to date, including several larger acquisitions, and remains on track for $250 million of bolt-on spending in 2026. APi repurchased $252 million of shares through Q3 and an additional $143 million in Q4, with about $607 million remaining under authorization.
• Near-term margins face mix and cost pressure: Adjusted gross margin declined 120 basis points due to heavier project mix and higher material, fuel, and other costs, although operating leverage still drove EBITDA margin expansion. Management expects margins to improve as higher-priced backlog converts and acquired businesses become integrated, while clarifying that it has not yet issued formal 2027 guidance.

APi Group Stock Up 8.5%

APi Group stock traded up $3.52 on Thursday, hitting $44.86. 2,824,300 shares of the stock traded hands, compared to its average volume of 2,916,618. The company has a current ratio of 1.39, a quick ratio of 1.32 and a debt-to-equity ratio of 0.91. The firm has a market cap of $19.39 billion, a P/E ratio of -66.95, a price-to-earnings-growth ratio of 1.77 and a beta of 1.57. The business's fifty day simple moving average is $39.54 and its 200 day simple moving average is $41.90. APi Group has a 1 year low of $34.02 and a 1 year high of $49.99.

More APi Group News

Here are the key news stories impacting APi Group this week:

• Positive Sentiment: Third-quarter results exceeded expectations: APi reported adjusted earnings of $0.50 per share, above the $0.47 analyst consensus and up from $0.41 a year earlier. Revenue reached $2.55 billion, beating the $2.40 billion estimate and rising 22.5% year over year. APi Group third-quarter earnings results
• Positive Sentiment: Record quarter and improved profitability: Management highlighted double-digit organic growth and adjusted EBITDA margin expansion, suggesting that APi is growing while converting more revenue into operating profit. APi Group reports record third-quarter results
• Positive Sentiment: Full-year outlook raised: APi increased its 2026 guidance, providing investors with greater confidence that strong demand and recent operating momentum can continue through the remainder of the year. APi Group raises full-year guidance
• Positive Sentiment: Broadly positive investor read-through: Earnings coverage confirmed that both adjusted earnings and revenue surpassed Wall Street estimates, reinforcing the view that APi’s growth trajectory is stronger than previously expected. APi tops third-quarter estimates

Analyst Upgrades and Downgrades

A number of brokerages recently commented on APG. Citigroup restated a "buy" rating and set a $55.00 target price (up from $54.00) on shares of APi Group in a report on Monday, October 12th. UBS Group set a $52.00 price target on shares of APi Group in a report on Monday, July 20th. Wall Street Zen lowered shares of APi Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Weiss Ratings raised shares of APi Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, October 21st. Finally, Wells Fargo & Company assumed coverage on shares of APi Group in a research note on Tuesday, August 4th. They set an "overweight" rating and a $53.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, APi Group has an average rating of "Buy" and a consensus price target of $52.71.

Insider Transactions at APi Group

In related news, Director James Lillie sold 285,000 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $39.84, for a total value of $11,354,400.00. Following the completion of the transaction, the director directly owned 8,952,350 shares in the company, valued at $356,661,624. This trade represents a 3.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ian Ashken sold 85,072 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $40.36, for a total transaction of $3,433,505.92. Following the sale, the director directly owned 9,177,284 shares in the company, valued at $370,395,182.24. The trade was a 0.92% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 660,000 shares of company stock worth $26,353,682 over the last ninety days. Insiders own 18.70% of the company's stock.

APi Group Company Profile

APi Group Corporation NYSE: APG is a global provider of safety, specialty and industrial services. The company serves commercial, industrial and infrastructure customers through a network of operating businesses that provide services designed to protect people, property and critical assets.

APi Group's offerings include fire protection and life-safety systems, security services, heating, ventilation and air-conditioning services, industrial maintenance, specialty contracting and infrastructure services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.