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

APi Group (NYSE:APG) posted its earnings results on Thursday. The company reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.03, Zacks reports. APi Group had a return on equity of 37.59% and a net margin of 3.99%. The firm had revenue of $2.55 billion during the quarter, compared to analysts’ expectations of $2.40 billion. During the same quarter in the previous year, the business earned $0.41 earnings per share. The firm’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 Stock Up 8.4%

APi Group stock traded up $3.49 during midday trading on Thursday, reaching $44.83. The stock had a trading volume of 3,005,454 shares, compared to its average volume of 2,917,896. APi Group has a 1-year low of $34.02 and a 1-year high of $49.99. The stock has a market capitalization of $19.37 billion, a P/E ratio of -66.90, a price-to-earnings-growth ratio of 1.77 and a beta of 1.57. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.32 and a current ratio of 1.39. The firm’s fifty day simple moving average is $39.54 and its 200-day simple moving average is $41.90.

Insider Transactions at APi Group

In other APi Group news, Director James E. Lillie sold 285,000 shares of APi Group stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $39.84, for a total value of $11,354,400.00. Following the transaction, the director owned 8,952,350 shares in the company, valued at $356,661,624. The trade was a 3.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ian G. H. Ashken sold 85,072 shares of the company’s stock in a transaction on 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 transaction, the director owned 9,177,284 shares of the company’s stock, valued at $370,395,182.24. This trade represents a 0.92% decrease in their ownership of the stock. 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. In the last three months, insiders sold 660,000 shares of company stock valued at $26,353,682. 18.70% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of research firms recently issued reports on APG. Robert W. Baird set a $47.00 target price on shares of APi Group in a research report on Friday, July 31st. Weiss Ratings upgraded shares of APi Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, October 21st. Wells Fargo & Company initiated coverage on shares of APi Group in a research note on Tuesday, August 4th. They issued an “overweight” rating and a $53.00 price objective on the stock. Wall Street Zen lowered APi Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Finally, UBS Group set a $52.00 price objective on APi Group in a report on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $52.71.

Key Stories Impacting APi Group

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

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.