APi Group (NYSE:APG) Announces Earnings Results

APi Group (NYSE:APG) announced its earnings results on Thursday. The company reported $0.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.47 by $0.03, Zacks reports. APi Group had a net margin of 4.12% and a return on equity of 38.31%. The firm had revenue of $2.55 billion for the quarter, compared to analyst estimates of $2.40 billion. During the same quarter in the prior year, the business posted $0.41 EPS. The business’s revenue was up 22.5% compared to the same quarter last year.

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 Price Performance

Shares of NYSE APG traded down $0.78 during trading hours on Friday, hitting $44.24. 3,998,811 shares of the stock were exchanged, compared to its average volume of 2,890,433. The company’s fifty day simple moving average is $39.63 and its two-hundred day simple moving average is $41.92. The company has a market cap of $19.12 billion, a PE ratio of -70.22, a price-to-earnings-growth ratio of 2.01 and a beta of 1.57. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.32 and a current ratio of 1.18. APi Group has a 1-year low of $34.87 and a 1-year high of $49.99.

Insider Activity at APi Group

In other APi Group news, Director James Lillie sold 285,000 shares of the company’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $39.84, for a total transaction of $11,354,400.00. Following the completion of the sale, the director directly owned 8,952,350 shares in the company, valued at $356,661,624. This represents a 3.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ian Ashken sold 214,928 shares of the firm’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $39.91, for a total value of $8,577,776.48. Following the completion of the sale, the director directly owned 9,262,356 shares in the company, valued at approximately $369,660,627.96. This represents a 2.27% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 660,000 shares of company stock valued at $26,353,682. Company insiders own 18.70% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. UBS Group set a $52.00 price objective on APi Group in a research note on Monday, July 20th. Wells Fargo & Company upped their target price on APi Group from $53.00 to $60.00 and gave the company an “overweight” rating in a research report on Friday. Robert W. Baird set a $47.00 target price on APi Group in a report on Friday, July 31st. Weiss Ratings upgraded APi Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, October 21st. Finally, Citigroup raised their price target on APi Group from $55.00 to $57.00 and gave the stock a “buy” rating in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $54.67.

APi Group News Summary

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

• Positive Sentiment: Record Q3 results: APi reported revenue of approximately $2.55 billion, up 22.5% year over year and ahead of the $2.40 billion consensus estimate. Adjusted EBITDA increased 24.6% to $350 million, while adjusted EPS of $0.50 exceeded expectations of $0.47 and rose from $0.41 a year earlier. APi Group Reports Record Third Quarter 2026 Financial Results and Raises Full-Year 2026 Outlook
• Positive Sentiment: Higher 2026 outlook: Management raised its full-year revenue forecast to $9.20 billion-$9.25 billion and adjusted EBITDA guidance to $1.235 billion-$1.255 billion, marking the third guidance increase this year. Management also cited double-digit organic growth, strong demand and a goal of reaching a 16% adjusted EBITDA margin by 2028. APi raises 2026 outlook
• Positive Sentiment: Analyst targets increased: Truist raised its APG price target to $58 from $55 while maintaining a Buy rating. Wells Fargo lifted its target to $60 from $53 and kept an Overweight rating, implying substantial upside from the referenced trading level. Truist Securities adjusts APi Group price target
• Neutral Sentiment: Institutional positioning was mixed: Several large investors added APG shares during the latest reporting quarter, while others—including Viking Global Investors—reduced or exited positions. This suggests continued institutional interest but not a uniform bullish view.
• Negative Sentiment: Insider selling may weigh on sentiment: Reported insider activity over the past six months consisted of sales rather than purchases, including sizable transactions by Martin Franklin, Ian Ashken and James Lillie. These sales do not necessarily reflect operating concerns, but they can create an overhang for investors.

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.