APi Group (NYSE:APG) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

APi Group (NYSE:APG) posted its quarterly earnings results on Thursday. The company reported $0.50 EPS for the quarter, topping analysts’ consensus estimates 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%. The firm’s revenue was up 22.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.41 EPS.

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 Down 1.2%

NYSE:APG traded down $0.56 during trading hours on Friday, hitting $44.46. The company’s stock had a trading volume of 1,877,874 shares, compared to its average volume of 2,922,289. The stock has a market capitalization of $19.21 billion, a P/E ratio of -66.40, a price-to-earnings-growth ratio of 1.86 and a beta of 1.57. The company has a current ratio of 1.39, a quick ratio of 1.32 and a debt-to-equity ratio of 0.91. APi Group has a 52-week low of $34.87 and a 52-week high of $49.99. The stock has a fifty day moving average of $39.59 and a 200-day moving average of $41.91.

More APi Group News

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

• Positive Sentiment: Quarterly results exceeded expectations. Third-quarter revenue rose 22.5% year over year to approximately $2.55 billion, topping the $2.40 billion analyst estimate. Adjusted earnings reached $0.50 per share versus the $0.47 consensus and $0.41 a year earlier. APi Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and organic growth strengthened. Adjusted EBITDA increased 24.6% to $350 million, while the margin expanded to 13.7%. Organic revenue growth was 15.7%, and net income rose to $114 million, supporting management’s comments about resilient demand. APi Group Reports Record Third Quarter Results
• Positive Sentiment: Full-year guidance was raised again. APi now expects 2026 revenue of $9.20 billion-$9.25 billion and adjusted EBITDA of $1.235 billion-$1.255 billion, its third guidance increase this year. Management also targets a 16% adjusted EBITDA margin by 2028 and cited a roughly $5 billion backlog and solid demand entering 2027. APi Raises 2026 Outlook
• Neutral Sentiment: Institutional ownership was mixed. Several large investors increased positions, although others—including Viking Global Investors—reduced or exited holdings. This provides no clear near-term signal.
• Negative Sentiment: Reported insider activity was entirely selling. The cited data showed 22 insider sales and no purchases over the past six months, which could temper enthusiasm despite the strong operating results.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Wells Fargo & Company assumed coverage on APi Group in a report on Tuesday, August 4th. They set an “overweight” rating and a $53.00 price objective for the company. Citigroup restated a “buy” rating and issued a $55.00 target price (up from $54.00) on shares of APi Group in a research note on Monday, October 12th. Jefferies Financial Group restated a “buy” rating and set a $56.00 price objective on shares of APi Group in a research note on Friday. Truist Financial set a $58.00 price objective on APi Group and gave the stock a “buy” rating in a research report on Friday. Finally, Robert W. Baird set a $47.00 price target on APi Group in a report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, APi Group currently has a consensus rating of “Buy” and an average price target of $53.50.

Insider Activity at APi Group

In other news, Director James Lillie sold 285,000 shares of the firm’s stock in a transaction on 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 sale, the director owned 8,952,350 shares in the company, valued at approximately $356,661,624. This trade represents a 3.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ian Ashken sold 214,928 shares of APi Group stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $39.91, for a total value of $8,577,776.48. Following the transaction, the director directly owned 9,262,356 shares of the company’s stock, valued at approximately $369,660,627.96. This represents a 2.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 quarter. Company 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.