APG

Interested in APi Group Corporation? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 13.3% year over year to $2.25 billion, while adjusted EBITDA increased 14.3% and the margin expanded to 13.8%. Record backlog surpassed $5 billion, supported by growth across Safety and Specialty Services. Data centers drove demand and backlog: Specialty Services revenue grew 22.9%, with data centers, semiconductors, advanced manufacturing and critical infrastructure contributing to project activity. Data centers accounted for an estimated 15%–20% of the quarterly backlog increase and could represent 10%–12% of 2026 revenue. APi raised its 2026 outlook: The company now expects revenue of $8.875 billion–$9.025 billion and adjusted EBITDA of $1.205 billion–$1.245 billion. APi also reported stronger free cash flow, maintained leverage below its target range and continued pursuing bolt-on acquisitions and share repurchases. APi Group (NYSE:APG) reported second-quarter revenue growth, margin expansion and record backlog, while raising its full-year revenue and adjusted EBITDA outlook following a strong first half of 2026. Reported net revenues rose 13.3% year over year to $2.25 billion for the quarter ended June 30, driven by 10.1% organic growth, inspection and service revenue growth, project activity and pricing improvements. Adjusted EBITDA increased 14.3% to produce a 13.8% adjusted EBITDA margin, up 10 basis points from a year earlier. Adjusted diluted earnings per share increased 12.8% to $0.44. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now President and CEO Russ Becker said the company’s business model and execution supported growth across both segments, with strength in service offerings and a robust project environment. The company ended the quarter with backlog exceeding $5 billion for the first time. Safety Services revenue increased 8.8% to $1.48 billion, with 4.7% organic growth. The segment’s adjusted gross margin rose 20 basis points to 37.4%, helped by customer and project selection as well as pricing improvements. Segment earnings increased 8.6%, while the segment earnings margin was unchanged at 17% as gross-margin gains were offset by increased selling, general and administrative expenses. → Microsoft Just Flipped the AI Spending Narrative Overnight Becker said North American Safety Services delivered high-single-digit organic growth, supported by growth in both project and service revenue. International Safety Services was flat for the quarter, although he said the business returned to organic growth in the latter portion of the period. The company is working to further develop its international “Inspection First” strategy, emphasizing recurring inspection, service and monitoring revenue. Becker said global-account investments are gaining traction internationally, with both pipeline and backlog increasing during the quarter. The company also received new data-center project awards outside the U.S. → Carrier Earnings Could Send the Stock to a New All-Time High Specialty Services revenue climbed 22.9% to $773 million, including 22% organic growth. Adjusted gross margin expanded 120 basis points to 19.3%, while segment earnings increased 29.6% and the segment earnings margin rose 60 basis points to 11.9%. Chief Financial Officer David Jackola attributed Specialty Services margin gains to disciplined customer and project selection, pricing and lower contract losses. Becker said the majority of the segment’s organic growth came from market share gains and volume rather than price. Data centers were a notable contributor to Specialty Services demand, according to Becker. APi provides HVAC and mechanical work, structured cabling, structural steel and insulated paneling, among other services, for data-center customers. The company also cited semiconductors, advanced manufacturing, healthcare and critical national infrastructure as targeted end markets. Becker said larger projects are contributing to growth, particularly in fire protection and life safety work for data centers. He said a large data-center fire project that may have been valued at $7 million to $8 million several years ago can now approach $20 million. While project work generally carries gross margins roughly 10 percentage points below inspection, service and monitoring work, Becker said certain larger and more complex projects can command better pricing and narrower margin differences. He said APi remains on track toward its long-term target of at least a 16% adjusted EBITDA margin by 2028. The company’s record backlog is diversified across its business lines and end markets. Becker said the quality of the current backlog should generate better gross margins than the backlog a year ago, though larger projects are extending average project durations to roughly nine to 12 months from a historical range of about six to nine months. Jackola estimated that data centers accounted for roughly 15% to 20% of the increase in backlog during the quarter, while cautioning that the figure was a rough estimate. He said data centers could represent about 10% to 12% of 2026 revenue. Adjusted free cash flow totaled $228 million for the first six months of the year, up $42 million from the prior-year period. The company reported adjusted free-cash-flow conversion of 68% on adjusted net income and said it remains on track for approximately 115% conversion for the full year. APi ended the quarter with a net leverage ratio of 2.2 times, below its long-term target range of 2.5 to 3 times. During the quarter, the company issued $500 million of 5.75% senior unsecured notes due 2034, expanded its revolving credit facility to $1 billion and extended the maturity of its Term Loan B to 2033. The company also repurchased about 1.6 million shares for $66 million under its existing $1 billion share repurchase authorization. On the acquisition front, APi closed the acquisition of Onyx-Fire in June and WTech in early July, while completing three additional bolt-on acquisitions during the quarter. Becker said the bolt-ons included the first acquisition in the company’s elevator and escalator services business and one in international safety services. APi continues to target $250 million in bolt-on acquisition spending this year and is building capabilities to scale annual deployment toward $350 million. Becker said the company’s priorities include fire and life safety, security, elevator and escalator services, and potentially HVAC services when suitable opportunities arise. APi raised its full-year 2026 outlook, now expecting net revenues of $8.875 billion to $9.025 billion, compared with prior guidance of $8.66 billion to $8.86 billion. The updated range implies organic revenue growth of 7% to 9%. The company raised its adjusted EBITDA forecast to $1.205 billion to $1.245 billion, from $1.177 billion to $1.237 billion previously. At the midpoint, the outlook implies a 13.7% adjusted EBITDA margin and annual adjusted EBITDA growth of 16% to 20%. For the third quarter, APi expects revenue of $2.375 billion to $2.425 billion, representing organic growth of about 8% to 10%, and adjusted EBITDA of $325 million to $335 million. The company said its outlook reflects continued strength in North American Safety Services, modest improvement in international safety operations and continued growth in Specialty Services. 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. 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 [email protected]. The article "APi Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Net Revenues: $2.25 billion for Q2 2026, a 13.3% increase year-over-year, with organic growth of 10.1%. Adjusted Gross Margin: 31.2%, unchanged compared to the prior year period. Adjusted EBITDA: Increased 14.3% year-over-year, with adjusted EBITDA margin of 13.8%, a 10 basis point increase. Adjusted Diluted EPS: $0.44, a 12.8% increase year-over-year. Safety Services Segment Revenue: $1.48 billion, an 8.8% increase, with organic growth of 4.7%. Safety Services Adjusted Gross Margin: 37.4%, a 20 basis point increase. Safety Services Segment Earnings Margin: 17%, unchanged year-over-year. Specialty Services Segment Revenue: $773 million, a 22.9% increase, with organic growth of 22%. Specialty Services Adjusted Gross Margin: 19.3%, a 120 basis point increase. Specialty Services Segment Earnings Margin: 11.9%, a 60 basis point increase. Adjusted Free Cash Flow: $228 million for the first half of 2026, up $42 million year-over-year. Net Leverage Ratio: 2.2 times at quarter end. Backlog: Record backlog surpassing $5 billion for the first time. Share Repurchases: Approximately 1.6 million shares repurchased for $66 million during the quarter. Full Year 2026 Net Revenue Guidance: Raised to $8.875 billion to $9.025 billion, representing 7% to 9% organic growth. Full Year 2026 Adjusted EBITDA Guidance: Raised to $1.205 billion to $1.245 billion, representing 16% to 20% growth. Warning! GuruFocus has detected 4 Warning Sign with APG. Is APG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. APi Group Corp (NYSE:APG) delivered strong financial results with net revenues increasing 13% and organic growth of 10.1%, driven by robust performance across both Safety Services and Specialty Services segments. The company achieved a record backlog surpassing $5 billion for the first time, with strong demand across key end markets like data centers, semiconductors, and advanced manufacturing. APi Group Corp (NYSE:APG) raised its full-year 2026 guidance for revenue and adjusted EBITDA, reflecting strong first-half performance and an improved outlook for the remainder of the year. The company generated strong cash flow with $228 million in adjusted free cash flow year-to-date and ended the quarter with a net leverage ratio of 2.2 times, below its long-term target. APi Group Corp (NYSE:APG) completed strategic acquisitions, including Onyx-Fire and WTech, which are expected to enhance capabilities in key geographies and align with the company's culture and growth strategy. The Specialty Services segment outperformed expectations with 22% organic growth and a 60 basis point increase in segment earnings margin, driven by disciplined project selection and strong execution. The company initiated share repurchases under its $1 billion program, buying back approximately 1.6 million shares for $66 million during the quarter. International Safety segment was flat for the quarter, with organic growth only returning in the back half of the quarter, indicating ongoing challenges in that market. Adjusted EBITDA margin expansion was modest at only 10 basis points, impacted by the mix of robust project work, which typically carries lower gross margins than service work. The company faces foreign exchange headwinds, with approximately $30 million in net revenue and $5 million in adjusted EBITDA negatively impacted relative to prior guidance. Interest expense is expected to increase to $150 million for the full year, reflecting the incremental cost of the $500 million senior unsecured note issuance. The company noted that project durations are lengthening to 9-12 months on average, which could slow the conversion of backlog to revenue and impact near-term cash flow timing. APi Group Corp (NYSE:APG) acknowledged that the International Safety business still requires work to fully transition to a recurring revenue and inspection-first mindset, which may limit near-term growth potential. Q: Can you comment on the average size of projects, how it relates to available margins, and whether the mix of project work is an inhibitor to achieving long-term margin goals? A: Russ Becker, CEO: Project sizes are significantly larger, with fire protection jobs for data centers now consistently pushing $20 million versus $7-$8 million four or five years ago. We can price this complex work accordingly and achieve better gross margins, closing the typical 10-percentage-point gap between project and service margins. We remain on track to achieve our 16% long-term 2028 margin expansion objective. Q: What is the breakdown of growth between Safety Services and Specialty Services in the raised guidance? A: David Jackola, CFO: We continue to see solid strength in our North America Safety segment and a modest improvement in our International Safety segment. This is reflected in the guide, along with a continuation of the robust project and service growth in our Specialty Services segment into the back half of the year. Q: Backlog has surpassed $5 billion for the first time. Is 25% growth year-over-year the right way to think about it, and how should we think about conversion to revenue? A: Russ Becker, CEO: Yes, that math is correct, and the backlog growth is across every aspect of the business. The quality of the backlog is positive, and we should generate better gross margins from it than a year ago. However, average project duration has extended from 6-9 months to more like 9-12 months, so conversion will take longer. Q: Can you provide more detail on the strategic and cultural fit of the Onyx-Fire and WTech acquisitions, and how future acquisitions might fit this criteria? A: Russ Becker, CEO: Onyx-Fire's CEO, Bryan Chew, has been focused on inspection service first, similar to us, and increases our presence in the Canadian market. WTech, led by Ted Wright, is a strong fire suppression business in Western Europe that is complementary to our existing capabilities. We look for geography, services offered, financial profile, and most importantly, culture, values, and fit when evaluating acquisitions. Q: How much of Specialty Services' growth is price versus volume, and how meaningful is the ongoing maintenance piece for new builds in markets like data centers? A: Russ Becker, CEO: The lion's share of organic growth is coming from share and volume. Pricing is typically 4-5% escalation on MSA work. David Jackola, CFO: It's difficult to quantify service attachment, but much of the project work comes from existing customer relationships where we already do inspection work. The average inspection size of a large data center facility will far exceed our typical $1,000-$2,000 estimate. Q: What drove the 120 basis point gross margin expansion in Specialty Services, and will this momentum carry into the second half? A: David Jackola, CFO: The business will continue to expand gross margins year-over-year. The drivers include being highly disciplined about customers and projects, pointing field leaders at the highest dollar, highest margin activity, and significant improvement in the contract loss rate. Russ Becker, CEO: Project selection, customer selection, better execution, and pruning lower-performing MSAs have all contributed. Q: What percentage of data center contributed to growth in revenue and backlog, and how do you see this evolving given local opposition and CapEx concerns? A: David Jackola, CFO: Data centers were a contributor to growth, and maybe 15-20% of the increase in backlog came from data centers. We think data centers will be 10-12% of revenue in 2026. Russ Becker, CEO: The demand curve will far outweigh the capacity curve through 2030. We will remain disciplined in pursuing projects with high confidence, focusing on strategic regions like Central Iowa, Texas, and Wyoming. Q: What led to the flat growth in International Safety, and what would be a successful outcome as we exit 2026? A: Russ Becker, CEO: We expect to see organic growth on a year-over-year basis. Contributing factors include the macro environment, the conflict in the Middle East, project work slipping to the right, and intentional pruning of lower-performing customers. However, we're seeing positive momentum with new orders, a building project backlog, and our global account strategy taking root, pointing to a positive second half. Q: Given current trends are punching above the mid-single-digit organic growth target, how are you thinking about staying above this rate over the next 12-24 months? A: Russ Becker, CEO: We continue to guide our businesses toward high-single-digit growth in inspection, service, and monitoring and low-single-digit growth in projects. However, the robust project environment allows us to take advantage of better project organic growth, which is additive. We must remain super focused on project and customer selection, as we are a services-first business that does project work. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

-Record second quarter net revenues of $2.3 billion, representing year-over-year growth of 13.3%, 10.1% on an organic basis--Record second quarter reported net income of $99 million with year-over-year growth of 28.6%--Record second quarter adjusted EBITDA of $311 million with year-over-year growth of 14.3% and adjusted EBITDA margin expansion of 10 basis points to 13.8%--Raising full-year guidance for net revenues and adjusted EBITDA- NEW BRIGHTON, Minn., July 30, 2026--(BUSINESS WIRE)--APi Group Corporation (NYSE: APG) ("APi" or the "Company") today reported its financial results for the three and six months ended June 30, 2026. Russ Becker, APi’s President and Chief Executive Officer stated: "We continued building on our strong start to the year in the second quarter, delivering over 10% organic revenue growth and adjusted EBITDA margin expansion year over year. Our results reflect continued strength in inspection, service, and monitoring revenues, as well as robust project activity across both segments. Following a strong first half, we enter the second half with great momentum, supported by record backlog exceeding $5 billion and disciplined execution of our M&A strategy. We are confident in our leaders’ abilities to execute our strategic priorities and drive continued progress toward our 10/16/60+ financial targets." Second Quarter 2026 Consolidated Results: Reported net revenues increased by 13.3% (10.1% organic) driven by solid growth in inspection, service, and monitoring revenues, robust growth in project revenues, acquisitions, and pricing improvements. Reported gross margin increased by 30 basis points while adjusted gross margin was unchanged compared to the prior year period. Margins increased in both project and service revenues, driven by disciplined customer and project selection and pricing improvements, offset by project and business mix. Reported net income was $99 million and diluted EPS was $0.20. Adjusted net income was $195 million and adjusted diluted EPS was $0.44, representing a 12.8% increase compared to the prior year period. The increase in adjusted diluted EPS was driven by strong revenue growth and adjusted EBITDA margin expansion, partially offset by an increase in the adjusted diluted weighted average shares outstanding. Adjusted EBITDA increased by 14.3% (13.1% on a fixed currency basis) compared to the prior year period and adjusted EBITDA margin increased 10 basis points to 13.8%. Growth in adjusted EBITDA margin was driven by strong revenue growth resulting in favorable SG&A leverage. Second Quarter 2026 Safety Services Segment Results: Reported net revenues increased by 8.8% (4.7% organic) driven by solid growth in inspection, service, and monitoring revenues, growth in project revenues, acquisitions, pricing improvements, and impacts of foreign exchange translation. Reported and adjusted gross margin increased by 60 and 20 basis points, respectively, compared to the prior year period. This was driven by disciplined customer and project selection and pricing improvements, resulting in margin expansion in inspection, service, and monitoring revenues and project revenues, partially offset by mix. Reported segment earnings increased by 8.6% (7.7% on a fixed currency basis) compared to the prior year period. Segment earnings margin was unchanged compared to the prior year period, primarily driven by adjusted gross margin expansion, offset by increased SG&A expenses. Second Quarter 2026 Specialty Services Segment Results: Reported net revenues increased by 22.9% (22.0% organic) driven by robust growth in both project and service revenues. Reported and adjusted gross margin increased by 120 basis points compared to the prior year period driven by disciplined customer and project selection and pricing improvements, resulting in margin expansion in service and project revenues. Reported segment earnings increased by 29.6% compared to the prior year period. Segment earnings margin was 11.9%, representing a 60 basis point increase compared to the prior year period, driven by adjusted gross margin expansion, partially offset by SG&A expenses, including variable compensation expense. Guidance: APi increases its full-year 2026 guidance for net revenues and adjusted EBITDA. Net Revenues of $8,875 to $9,025 million, up from the guidance provided on July 2, 2026 of $8,660 to $8,860 million Adjusted EBITDA of $1,205 to $1,245 million, up from the guidance provided on July 2, 2026 of $1,177 to $1,237 million Adjusted Free Cash Flow Conversion of 115%, based on adjusted net income APi announces its guidance for the third quarter of 2026. Net Revenues of $2,375 to $2,425 million Adjusted EBITDA of $325 to $335 million Conference Call: APi will host a webcast and conference call to discuss its financial results at 8:30 a.m. ET on Thursday, July 30, 2026. Participants on the call will include Russell A. Becker, President and Chief Executive Officer, and David Jackola, EVP and Chief Financial Officer. The conference call can be accessed by registering online using the links below. Analysts will receive dial-in information as well as a conference ID once registered. Webcast Link: https://events.q4inc.com/attendee/781429281 Analysts Link: https://events.q4inc.com/analyst/781429281?pwd=2Kq4r26b A replay of the webcast will be available shortly after the live event via the webcast link above. About APi: APi Group is a global, market-leading business services company providing statutorily mandated and contracted services across its Safety Services and Specialty Services segments, including fire and life safety, electronic security, elevator and escalator, and infrastructure services. With more than 600 locations in over 20 countries, APi is built on a century of expertise, a people-first culture, and its purpose of Building Great Leaders®. In 2026, APi is celebrating its 100-year anniversary and its debut on the Fortune 500. More information is available at www.apigroup.com. Forward-Looking Statements and Disclaimers Please note that in this document the Company may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of APi Group Corporation ("APi" or the "Company"). Such discussion and statements may contain words such as "expect," "anticipate," "will," "believe," "intend," "plan," "estimate," "predict," "seek," "continue," "pro forma," "outlook," "may," "might," "should," "can have," "have," "likely," "potential," "target," "indicative," "illustrative," and variations of such words and similar expressions, and relate in this document, without limitation, to statements, beliefs, projections and expectations about future events. Such statements are based on the Company’s expectations, intentions, and projections regarding the Company’s future performance, anticipated events or trends and other matters that are not historical facts. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including: (i) economic conditions, competition, political risks, and other risks that may affect the Company’s future performance, including the impacts of inflationary pressures and other macroeconomic factors on the Company’s business, markets, supply chain, customers and workforce, on the credit and financial markets, on the alignment of expenses and revenues and on the global economy generally; (ii) supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the supplies and materials the Company uses in its business and for which the Company bears the risk of such increases; (iii) risks associated with the Company’s international operations, including changes in tariff and trade policies, import and export restrictions, retaliatory trade measures, sanctions, and other governmental actions that may affect the cost, timing, or viability of the Company's cross-border operations and supply chains; (iv) failure to realize the anticipated benefits of our acquisitions and our ability to successfully execute the Company’s bolt-on acquisition strategy to acquire other businesses and successfully integrate them into its operations; (v) failure to fully execute the Company’s inspection-first strategy or to realize the expected service revenue from such inspections; (vi) failure to realize expected benefits from the Company’s other business strategies, including the Company’s disciplined approach to customer and project selection and the Company’s asset-light, services-focused business model and its expected impact on future capital expenditures; (vii) risks associated with the Company’s decentralized business model and participation in joint ventures; (viii) improperly managed projects or project delays; (ix) risks associated with the implementation and maintenance of the Company's enterprise resource planning systems and cloud-based platforms, including potential disruptions to operations, cost overruns, delays, and impacts on internal controls over financial reporting; (x) adverse developments in the credit markets which could impact the Company’s ability to secure financing in the future; (xi) the Company’s level of indebtedness; (xii) risks associated with the Company’s contract portfolio; and (xiii) other risks and uncertainties, including those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 under the heading "Risk Factors." Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning these risks, uncertainties and other factors that could cause actual results to vary is, or will be, included in the periodic and other reports filed by the Company with the Securities and Exchange Commission. Forward-looking statements included in this document speak only as of the date hereof and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this document. Non-GAAP Financial Measures This document contains non-U.S. GAAP financial measures within the meaning of Regulation G. Management uses these measures to evaluate the Company's performance and believes they are useful to investors because they (a) reflect the same tools management uses to assess performance and prospects, (b) facilitate peer comparison, (c) provide consistent period-to-period comparisons, and (d) in the case of adjusted EBITDA, determine certain elements of executive incentive compensation. Adjusted gross profit, adjusted SG&A, adjusted net income, and adjusted diluted EPS exclude amortization of intangible assets, restructuring costs, contingent consideration and compensation, acquisition and divestiture related expenses, systems and business enablement expenses, business process transformation expenses, and other miscellaneous items, as further described in the reconciliation tables. These adjustments remove items management does not consider indicative of the Company's core ongoing operational performance. Adjusted EBITDA is net income before interest, taxes, depreciation, and amortization, further adjusted to exclude the same items listed above plus non-service pension cost. Adjusted EBITDA margin is adjusted EBITDA divided by net revenues. Organic net revenue growth excludes the impacts of material acquisitions, material divestitures, and foreign currency translation from year-over-year revenue comparisons. Fixed currency measures translate results at exchange rates established by management at the beginning of 2026. An acquisition or divestiture is considered material based on management's assessment of its significance to comparability; this threshold is applied consistently across periods. Adjusted free cash flow is cash provided by operating activities, adjusted for the cash impact of the same items excluded from adjusted EBITDA, less capital expenditures. Adjusted free cash flow conversion is adjusted free cash flow as a percentage of adjusted net income. Net leverage ratio is calculated in accordance with the Company’s debt agreements and includes pro forma adjustments for acquisitions and cost savings not reflected in adjusted EBITDA; see the Company’s SEC filings for the covenant EBITDA definition. These measures are supplemental and should not be considered a substitute for, or superior to, GAAP financial measures, and may differ from similarly titled measures used by other companies. Reconciliations to the most directly comparable GAAP measures are included in this document. The Company is unable to provide a quantitative reconciliation of forward-looking adjusted EBITDA, organic net revenue growth, and adjusted free cash flow conversion to GAAP without unreasonable effort, as the amounts and timing of reconciling items – including acquisition-related costs, systems and business enablement expenses, restructuring costs, and other charges – are inherently uncertain and could be significant. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730768372/en/ Contacts Investor Relations and Media Inquiries: Adam WaltersSenior Director of Investor RelationsTel: +1 920-419-5432Email: [email protected]

APi (APG) came out with quarterly earnings of $0.44 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.3 per share when it actually produced earnings of $0.32, delivering a surprise of +6.67%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. APi, which belongs to the Zacks Business - Services industry, posted revenues of $2.25 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.49%. This compares to year-ago revenues of $1.99 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. APi shares have added about 0.5% since the beginning of the year versus the S&P 500's gain of 6.9%. While APi has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for APi was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $2.25 billion in revenues for the coming quarter and $1.71 on $8.68 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Business - Services is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. AMN Healthcare Services (AMN), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This health care staffing company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -26.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. AMN Healthcare Services' revenues are expected to be $626.01 million, down 4.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report APi Group Corporation (APG) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, April 30, 2026 at 8:30 a.m. ET Chief Executive Officer — Russell Becker Chief Financial Officer — Glenn Jackola Need a quote from a Motley Fool analyst? Email [email protected] Russell Becker: Thank you, Adam. Good morning, everyone. Thank you for taking the time to join our call this morning. I want to start by thanking our 29,000 teammates for their dedication to APi. The safety, health and well-being of each of our leaders is our #1 value. We remain deeply committed to investing in their growth and development. This is at the heart of our purpose, building great leaders. Our people are what set this company apart and I'm truly grateful for everything they do. In 2026, APi is celebrating its 100-year anniversary by embracing the theme of gratitude. APi was founded in 1926 as a small plumbing business in St. Paul, Minnesota. Today, we are a global market-leading business services company with more than 500 locations around the world. When I think about that journey, where we started and where we are today, I am truly humbled. We have so much to be grateful for. We are honoring this milestone by giving back to the communities that we serve and by celebrating with our teammates, customers and communities that helped us along this journey. We are off to a strong start in 2026. Before we get into the financial results, I wanted to touch on a few first quarter highlights. From an M&A perspective, we closed the acquisition of CertaSite in February, an inspection-first provider of comprehensive fire and life safety services across the Midwest. Earlier this month, we announced an agreement to acquire Ireland-based Wtech Fire Group, which adds to our fire sprinkler and suppression capabilities across Europe, a key strategic growth area for our international business. And just last week, we announced an agreement to acquire Onyx-Fire Protection Services, a leading provider of fire and life safety services in Canada with an inspection-first mindset and a strong recurring revenue base. This acquisition positions us well in Canada, which we view as an attractive fire and life safety and electronic security market. We expect Onyx-Fire to close in the second quarter and Wtech Fire to close in the third quarter of this year. We will update our full year guidance on future earnings calls after these transactions close. In total, these 3 acquisitions represent an investment of more than $1 billion to further build out our Safety Services segment across the U.S., Europe and Canada. Each of these acquisitions is accretive to our 10/16/60+ financial targets. And equally important, these businesses are all excellent cultural fits and we are excited to welcome our new teammates to the APi family. We also completed 4 bolt-on acquisitions during the quarter and we remain on track to deploy approximately $250 million in bolt-on M&A at attractive multiples this year, including opportunities within the international business and the elevator and escalator services businesses. Our systems and business enablement program continues to advance well. Earlier this month, our first pilot company went live on our new business systems. Our teams have done a tremendous amount of work to get to this point. And while there is still work ahead of us, we are tracking in line with our expectations. Now turning to our strong first quarter results. The business continues to build momentum, delivering robust top line growth while expanding margins. We continue to deliver solid growth in inspection, service and monitoring revenues while capitalizing on the robust project environment. We expanded our adjusted EBITDA margins and as I mentioned earlier, we continue to drive our M&A strategy to further strengthen and expand our global platform. For the quarter, net revenues increased by 15%, and approximately 10% organically, with strong growth across both segments. In our Safety Services segment, revenues grew organically by approximately 5%, while expanding segment earnings margins by 60 basis points. Our Specialty Services segment continued its momentum, delivering approximately 25% organic growth while expanding segment earnings margins by 50 basis points. Importantly, we continue to see solid growth in inspection revenues, and we remain confident in our ability to sustain that momentum. Our team continued to focus on margin expansion with adjusted EBITDA margins expanding 70 basis points year-over-year. We expect to see continued margin expansion for the year, largely driven by the same initiatives that we have been executing. These include the following: first, consistent organic growth; improved inspection, service and monitoring revenue mix, disciplined customer and project selection, pricing, branch and field optimization, procurement, systems and scale, accretive M&A and selective business pruning. And as I always like to say, we can always just be better. The first quarter was another strong quarter for cash flow as the business generated $125 million in adjusted free cash flow. In addition, we ended the quarter with a net leverage ratio of approximately 1.8x, well below our long-term target. Our consistent free cash flow generation and strong balance sheet continue to provide us flexibility to pursue a range of value-enhancing capital deployment opportunities to support our 10/16/60+ financial targets. As a reminder, these targets are the following: $10 billion in net revenues by 2028, supported by consistent mid-single-digit organic growth and accretive M&A. 16% plus adjusted EBITDA margin by 2028. 60% plus of our revenues from inspection, service and monitoring over the long term and $3 billion of cumulative adjusted free cash flow through 2028. I am proud of our team for the strong momentum we have built to start the year. Our inspection, service and monitoring business continues to expand. Our backlog is robust and healthy, and our balance sheet provides us with the flexibility to continue executing on our capital deployment priorities. I would now like to hand the call over to David to discuss our first quarter financial results and guidance in more detail. David? Glenn Jackola: Thanks, Russ, and good morning, everyone. Reported net revenues for the 3 months ended March 31 were $1.98 billion, a 15.3% increase compared to $1.72 billion in the prior year period. Organic revenue growth of 10.4% was driven by solid growth in inspection, service and monitoring revenues, growth in project revenues and pricing improvements. Adjusted gross margin for the 3 months ended March 31 was 31.3%, representing a 40 basis point decrease compared to the prior year period, primarily driven by business mix partially offset by disciplined customer and project selection and pricing improvements. Adjusted EBITDA increased by 21.8% for the 3 months ended March 31, 18.1% on a fixed currency basis with adjusted EBITDA margin coming in at 11.9%, representing a 70 basis point increase compared to the prior year period. Growth in adjusted EBITDA was driven by strong revenue growth and favorable SG&A leverage. Adjusted diluted earnings per share for the 3 months ended March 31 was $0.32, representing a $0.07 or 28% increase compared to the prior year period. The increase was driven by strong revenue growth, adjusted EBITDA margin expansion, and a decrease in interest expense partially offset by an increase in the share count. I will now discuss our results in more detail for the Safety Services segment. Safety Services reported net revenues for the 3 months ended March 31 were $1.42 billion, an 11.7% increase compared to $1.27 billion in the prior year period. Organic growth of 5.4% was driven by solid growth in inspection, service and monitoring revenues, growth in project revenues and pricing improvements. Adjusted gross margin for the 3 months ended March 31 was 37.2%, representing a 20 basis point increase compared to the prior year period driven by disciplined customer and project selection and pricing improvements, resulting in margin expansion in inspection, services and monitoring revenues and project revenues, partially offset by mix. Segment earnings increased by 15.6% for the 3 months ended March 31, or 11.7% on a fixed currency basis. Segment earnings margin was 16.3%, representing a 60 basis point increase compared to the prior year period, primarily driven by adjusted gross margin expansion and favorable SG&A leverage. I will now discuss our results in more detail for the Specialty Services segment. Specialty Services reported net revenues for the 3 months ended March 31 were $569 million, an increase of 25.6%, or 24.8% organically, compared to $453 million in the prior year period, driven by growth in both projects and service revenues. Adjusted gross margin for the 3 months ended March 31 was 16.3%, representing a 50 basis point decrease compared to the prior year period, primarily driven by mix. Segment earnings increased 34.5% for the 3 months ended March 31, and segment earnings margin was 6.9%, representing a 50 basis point increase compared to the prior year period primarily due to favorable fixed cost absorption, partially offset by mix. As Russ mentioned in his remarks, Q1 was another strong quarter for adjusted free cash flow. For the 3 months ended March 31, adjusted free cash flow was $125 million, up $39 million versus last year, representing an adjusted free cash flow conversion of 88% on adjusted net income. Free cash flow generation has been and continues to be a priority across APi. We are pleased with our first quarter adjusted free cash flow while continuing to drive strong, consistent revenue growth. We remain on track to achieve our adjusted free cash flow conversion target of approximately 115% for the year, in line with prior guidance. At the end of the first quarter, our net debt to adjusted EBITDA ratio was approximately 1.8x, significantly below our long-term target of 2.5 to 3x. Our consistent free cash flow generation and strong balance sheet position us well as we evaluate financing options for the previously announced Wtech and Onyx acquisitions, which we plan to fund with a combination of cash on hand, cash flow from operations and incremental debt. As a reminder, our long-term capital deployment priorities remain unchanged, maintaining net leverage at stated long-term goals, strategic M&A at attractive multiples and opportunistic share repurchase. I will now discuss our guidance for the second quarter and full year 2026, which, as a reminder, is based on current foreign currency exchange rates and acquisitions closed to date. We expect increased full year net revenues of $8.475 billion to $8.675 billion, up from $8.4 billion to $8.6 billion, representing organic growth in net revenues of 5% to 7% for the year. Moving down to the P&L. We expect increased full year adjusted EBITDA of $1.15 billion to $1.21 billion, up from $1.14 billion to $1.2 billion, representing an adjusted EBITDA margin of 13.8% at the midpoint and adjusted EBITDA growth of 11% to 16% for the year. As a reminder, the impact of the CertaSite acquisition, which closed on February 2 was fully reflected in our prior guidance and we will update our guidance for the Wtech and Onyx acquisitions after those transactions have closed. Our increased full year revenue and EBITDA guidance is due to the strong business performance to start the year offset by the headwind of the strengthening U.S. dollar since our February guidance. More information on our revised guide can be found on our earnings presentation that is posted on our Investor Relations website. In terms of the second quarter, we expect reported net revenues of $2.175 billion to $2.225 billion, representing organic net revenue growth of approximately 7% to 9%. We expect adjusted EBITDA of $300 million to $310 million, representing an adjusted EBITDA margin of 13.9% at the midpoint and adjusted EBITDA growth of 10% to 14%. For 2026, we continue to anticipate interest expense to be $130 million, depreciation to be $90 million, capital expenditures to be $105 million, and our adjusted effective tax rate to be 23%. We expect corporate expenses to be approximately $35 million per quarter with some timing variability throughout the year, and our adjusted diluted weighted average share count to be 441 million for the year. With that, I will now turn the call back over to Russ. Russell Becker: Thanks, David. We began the second quarter with positive momentum and strong demand for our services. We continue to deliver robust organic growth, expand adjusted EBITDA margins and build on the strength of our backlog, that and the continued strength of our M&A execution and pipeline position us well for the remainder of the year. We remain focused on creating sustainable shareholder value by delivering on our 10/16/60+ targets. With that, I'd like to turn the call over to the operator and open the call for Q&A. Operator: [Operator Instructions] Your first question comes from the line of Andrew Kaplowitz with Citi. Andrew Kaplowitz: Russ, could you give us a little more color on what you're seeing in Specialty Services? Obviously, it continues to be very strong, a different level of strength, I think, over the last few quarters. I know you've got tougher comps moving forward, but do you see the momentum continuing as the majority of the uptick coming from data centers? Or is it more broad-based, would you say? Russell Becker: Thanks, Andy, and I hope you're well. I would say that their backlog is super strong. And they are seeing some benefits from data centers, but I would classify the work in their portfolio to be more broad-based than just data centers. As a reminder, we're doing industrial maintenance and service work in our Specialty Services segment. We're doing infrastructure work. We do potable water replacement work, and so the telecom work. And so they're definitely benefiting from data center and the opportunities that are presented with the data center expansions in North America. But I would also just classify their backlog as being really diverse just with their service offerings as well as from a geographic standpoint. Andrew Kaplowitz: Very helpful. And then it seems like you've accelerated acquisitions quite a bit this year with the $1 billion you mentioned and continued optimism to get to the $250 million per year bolt-on M&A activity. Is there any reason for the uptick maybe valuation is better, just more companies willing to sell, just more color on what you're seeing, do you expect this uptick of modestly bigger deals to continue? Russell Becker: Well, you broke the rule already, but with multiple questions. But I expected that from you, Andy. And so you know what, to be honest with you, Andy, I would just say it's -- the opportunities presented themselves at the right time. So I don't know that it was anything that was necessarily purposeful. It's just that sometimes things have to present themselves at the right time. As an example, Onyx presented itself 18 months to 2 years ago, we've known the business for a long time. I've known their CEO for probably 10 years plus. But when it presented itself the first time around, we were in the middle of an integration, a lot of integration work with our existing business in Canada alongside the Chubb Canada business, and we didn't feel like we had the bandwidth to do it. And so we remain disciplined and basically stayed on the sideline and this opportunity presented itself. And so we were able to capture it and take advantage of it. Wtech is another example. I think I first met Ted Wright, their CEO, who's a great leader, just like the Onyx CEO is a great leader. I think I met Ted, a couple of years ago, and we've just stayed in touch and got to know his business. And I think our culture and everything, the investment we make in people really lined up with what he was looking for as it relates to the people on his team. And the opportunity presented itself. And so again, we took advantage of it. And so the CertaSite acquisition came along, that was more of a process-driven transaction. But I think it's more just the opportunities came right time, great fit for us. We have a great team here that was able to jump in and execute. And I'm super excited about these businesses. I mean they -- not only are they center of the fairway for us as it relates to like the services that we want to offer our customers, but very strategic for us, but great leadership, great people in those businesses and just can't be more excited to have them joining the APi family. And I was -- you didn't ask me this, but I actually got a chance to be in Portugal last week with the Wtech team and as they kind of did their annual planning process. And like I came out of that just like even more excited about the fit. So just right opportunities, right time, probably the best way to put it. Operator: Your next question comes from the line of Jon Tanwanteng with CJS Securities. Jonathan Tanwanteng: I was wondering if you could talk a little bit -- if you could talk about input cost inflation, what you're seeing there, number one. And if you're seeing any pushback from customers or any sensitivity to pricing as you put those price increases through to them? Glenn Jackola: Yes. Good question. Thanks, John. So on the pricing side, we continue to be able to get pricing on the inspection service and monitoring streams in our business. That hasn't changed over the last couple of quarters. In terms of input costs, so we've seen the impact of rising fuel costs and some material inflation in our business as a result of tariffs and the conflict in Iran. Our teammates and our leaders have done a really great job of protecting themselves at the time of proposal, which means that we're able to capture the dollar impact of rising fuel costs and material costs as they come through. As a reminder, about 53% of our revenue comes from inspection service and monitoring and we're able to price that revenue on nearly in real time. So if material cost increase we're able to price for that almost in real time. We've done a great job of being able to protect ourselves and capture the dollar value. It may have had a slight nick on the margin, but we've been able to protect ourselves from a dollar basis. Jonathan Tanwanteng: And are you seeing any sensitivity from customers? Glenn Jackola: No, we've been able to continue to capture price. Operator: Your next question comes from the line of Tim Mulrooney with William Blair. Timothy Mulrooney: Back to the acquisitions. Curious how far along are your recent acquisitions of Wtech and Onyx down this inspection-first journey. We think of APi as being very forward leaning on focusing on inspections and service versus the installed jobs, but I'm unclear how many other companies out there have a similar go-to-market strategy or at least how well developed their systems and protocols are, I guess, as it relates to being aligned with your strategy? Russell Becker: Yes. Tim, thank you. And what I would tell you is like I'm going to include CertaSite into the mix here. I would tell you, CertaSite was like way down the line. And like 95% of their revenue came from inspection and service work. And so I would put them like even ahead of APi, and that goes back to when Jeff Wyatt founded the business, he founded the business with this inspection-first mindset. I would say Onyx is kind of in a similar spot that APi is at currently today. And so they are super focused on building a really robust inspection, service and monitoring business, but I put them in a similar spot that we are. And I would say that Wtech is probably what I would consider the more traditional where they're probably a little bit heavier on the project side today, and there's opportunity for us to really build a robust inspection and services business inside that current business. So they're all 3 in kind of different phases of their evolution. But -- so they're in a good spot, and I think they're all going to be really accretive to what we're trying to accomplish as a company. Timothy Mulrooney: That's really good color. And then if I just stick in kind of along those lines, if I'm looking at Wtech in particular, just curious how you think about the margin potential of that European business in totality. So you take Chubb, adding Wtech, I think what you had originally SK Fire, you put all this together, you streamline the operations. But obviously, the mix is a little bit different. The markets are a little bit different than the U.S., but you take all of this into account, what does that look like 3 to 5 years down the line relative to your U.S. Fire and Life Safety business? Russell Becker: Well, I got to give you a little bit of hard time to -- everybody is breaking the rules. So I gave Andy Kaplowitz a little bit of a hard time. So I got to make sure I give Jon from CJS and now I'm going to give you, Tim, a hard time about it, but -- anyways, Yes. No, it's all good. You got to have a little bit of fun with this stuff, too. And the expectation is that it will be in line with our North American Safety business, and there's no reason that from a margin perspective, that they won't be. And it's just -- a big part of it is setting expectations and creating the right belief that it's achievable, but that's the expectation. We believe that every one of our branches has the opportunity to be a 20% EBITDA branch. And that's the goal, and that's the target. And we feel the same way about Wtech. We feel the same way about Chubb that's integrated with SK as we do about our business in Paducah, Kentucky. Operator: Your next question comes from the line of Kathryn Thompson with TRG. Kathryn Thompson: Good to see that guidance was raised, seeing good underlying business performance. But if you could just give a little bit more color on that in terms of what you're seeing? Is it -- just to clarify, is it increased demand or pricing or just timing? And has there been any change in the variety of work? You noted earlier in your -- in the Q&A that it's not just data centers, but it's other projects, too. So just maybe sussing out a little bit more the color on that improved performance. Russell Becker: Well, I would say yes. And what I mean by that is that it's a combination of everything. There's demand. And obviously, the conversation everybody is talking about is around data centers, right? And data centers is really the primary pusher of demand. So there's demand opportunity, but there's other end markets that continue to create robust opportunities as well like advanced manufacturing. We're seeing some really great opportunities in the health care space, even higher education, there's opportunity there. Critical infrastructure continues to create opportunities for us. So there's demand, there's playing in the right end markets contributes to it. Price contributes to it. So it's a combination of everything. And we've been very consistent in our messaging that we are not over-indexing on the data center space. We want to make sure that we're taking advantage of the opportunities that are presented. But we're not pushing all the chips onto the come line as it relates to data centers. And we'll take advantage of it, but we need to continue to keep our customers that we have in the health care space and advanced manufacturing, et cetera. So it's a combination of everything that you mentioned. Kathryn Thompson: Great. And the follow-up question relates to the inspection-first businesses that you acquired. Does the integration time line differ between kind of your two boards of inspection or inspection and servicing businesses. And just is it easier ramp? Just any other color on the ramp-up of this type of business. Russell Becker: Yes. I mean all three of them are like slightly different, if you will, like CertaSite is kind of its own business that will continue to operate as an independent business inside our North American safety business. Their service offerings are a little bit different. It's a business that has -- does a lot of extinguisher work. And so the integration will look different for that business than it would, say, look for like a more traditional bolt-on. Our Canadian, the Onyx acquisition, we're going to operate that business as an independent portfolio business for the time being until we can figure out the exact -- we know where their strengths are, where their weaknesses are, and how that's complementary to our existing footprint in the Canadian operations, and we'll kind of address that market by market as we continue to go forward after we get through the different regulatory filings and everything that we need to get done to close on the acquisition. And then Wtech will be a stand-alone business inside our international business. And I think most folks have heard me talk about the difference between, say, North America and our international business. And what Wtech brings to our international business is strong strength and capability in the suppression side of the Fire, Life Safety space, which hasn't been a significant strength for us. And so we plan to operate that as an independent business inside our international operations. And so the integration will look different there as well. So they all will have their own variation and levels of like integration as you would potentially define it. Operator: Your next question comes from the line of Julian Mitchell with Barclays. Unknown Analyst: This is [indiscernible] from the Barclays team on for Julian. I understand that growth is quite broad-based across your markets, but specifically on data centers, could you provide a bit more color on the funnel and pipeline over the next few quarters? And if the company is still on track to reach around 10% of sales from data centers this year? Russell Becker: Well, you're choppy. And so I think I heard your question, and it was around data centers and above -- around the funnel and around the opportunities that we're seeing, and if we think that approximately 10% of our revenue will come from the data center space at the end of the, so to speak, year. And I would say, yes. And I would say that the funnel of opportunities continues to be robust, and we're being selective about which opportunities that we pursue and that we want to deploy our teammates to. I tell our business leaders that like the men and the women that do the work in the field, we need to treat them like they're like precious gems and making sure that we put them on the right opportunities where we can maximize the opportunity that's in front of us. And so we're trying to be really selective. There's a lot of partnering opportunities that have presented themselves because of the demand in the data center space. So we're being very selective with who we work with and the clients that we choose to align ourselves with. We also want to make sure that we're super focused on the project side with companies and businesses that we have the opportunity to do the inspection, service and monitoring after that project opportunity is completed. And we do believe that approximately 10% to 11% of our revenue will come from data centers by the end of the year. I think that's fair isn't it, David? Glenn Jackola: Absolutely. Absolutely. And that was the result in the first quarter and the evolution of the backlog as we went through the quarter as well. Unknown Analyst: Perfect. And a quick one on Safety Services. Is the 5.4% organic sales growth rate, relatively good run rate for the year? Glenn Jackola: Yes. So a little choppy again. But I think the question was, was the mid-single-digit organic revenue growth a pretty good run rate for the year in the Safety segment? And the answer is yes. Operator: Your next question comes from the line of Ashish Sabadra with RBC. David Paige Papadogonas: This is David Paige on for Ashish. Just following up on the last question, Specialty Services seems to be also tracking above your midterm organic growth target. So I was wondering how should we think about that in the back half of the year or even just given demand and project strength, does that organic growth target need to be revisited? And then as a follow-up, within Specialty, some of the subsegments, infrastructure, fab and specialty contracting, can you just give some color on how those performed in the quarter? Glenn Jackola: Yes. I'll take the first half of the question, which is around the progression of the Specialty segment. So really strong first quarter. I expect that business to perform at a strong level throughout the year. As we get deeper into the year, as you know, we'll be coming up against more difficult comps, so I would expect that there will be strength in that business. But as you start comping against more difficult comparisons, the revenue growth rate will slow in the back half, but still be a really strong performance. And then a little bit of color around fab and infrastructure. Is that the second part of your question? David Paige Papadogonas: Yes. Yes. And just some of those -- yes, fab infrastructure and then Specialty contract with, I think, grew around 45% in 4Q. So I was curious what was the -- how those businesses performed in the quarter? Glenn Jackola: Yes. I mean really pleased with the performance of all 3 of those. Our growth in the Specialty segment was really diverse and well spread across all of the reportable segments with strength in a variety of end markets, including data centers, and as Russ mentioned, critical national infrastructure and others. So really pleased with the performance of all 3 of those and the backlog of all 3 of those reporting segments is strong and robust as well. Operator: Your next question comes from the line of Tomo Sano with JPMorgan. Tomohiko Sano: Regarding your international business, I think you mentioned that backlog remains strong overall. But in today's volatile market, competitive dynamics can present both risks and opportunities. Given ongoing geopolitical and supply chain challenges, how have you adapted your international operations over the past couple of months? And do you see any new opportunities emerging globally? Russell Becker: Well, I think that when I look at the international business, like our backlog is basically on par with where it was the previous year. So like we feel good about the opportunities that we see. Our presence in the Middle East is pretty small. And I think that they're definitely seeing more impacts from the conflict in the Middle East, just I think just general temperature and proximity is going to have some level of impact on that. But we feel good about our international business and the leadership inside the international business and the opportunities that are coming forward. And from an M&A perspective, we've said that we have opened up the aperture, and we think there's opportunities for us to continue to expand our business internationally, and we're seeing the opportunities come forward. So it's a good -- we're in a good place there. But they definitely feel the impacts of the conflict more so than we do here. There's no question about that. Operator: Your next question comes from the line of Andrew Wittmann with Baird. Andrew J. Wittmann: Most of my questions have been asked and answered, but just a couple here. Maybe one for David, would just be with these larger acquisitions still yet to close, could you just give us a view of where the net leverage stands kind of pro forma for those after those close, just so we can kind of gauge where the balance sheet is and how much more dry powder you have? And then, Russ, just kind of a question for you just on the safety, inspection, service and monitoring environment right now. There's been -- I don't think it's just APi that's been more focused on the inspection, service and monitoring portion of this market. I'm just wondering, obviously, you're still getting pricing. I feel like the industry is getting pricing. But is the competitive environment both for customers in that segment of the market as well as for acquisitions noticeably different than what you would have seen 2 or 3 years ago? Or would you say it's unchanged? Russell Becker: I'll go first and just because I can remember the second half of your question, and David is younger than me, and hopefully, he can remember the first half of your question, even though I do remember the first half of your question, Andy. So anyways, good morning and thank you. I would say it's really unchanged. And I go back to even like for the most part, like our -- we continue to see organic growth in our inspection business on par with previous quarters. And you're really taking share there. And I think that, that's really primarily driven by the highly fragmented market that we operate in. And like I've commented to this in the past that if you really go in and analyze the major metropolitan markets across the United States, there's not one firm that has 10% market share in that market. And even -- I don't think most companies don't have more than 5% like the largest players, and that includes us. And so to me, like the highly fragmented nature of the markets that we serve continues to create opportunities for us to take share as it relates to growing our inspection and service business. From an M&A perspective, Andy, we continue to see really -- our funnel and our pipeline are really robust, even including these -- the bolt-on M&As opportunities that we're seeing. And I would just tell you that we're looking for sellers who are really interested in finding the forever home for their people. And if all they're interested in is finding the highest price, then they should sell their business to a private equity-backed firm. And what we can offer these companies is a forever home for their people. We can respect the legacy that they've created. Most of these businesses are family-owned, family-run businesses, and we have something different that we can offer these people, and that creates a unique opportunity for us. And even Wtech, which was a private equity-backed business, number one, it is probably one of the best private equity firms that I've been associated with, like just they actually care a lot about their people. But in a conversation that I had with Ted, their CEO in front of his key business leaders, the conversation was around people and finding the right spot and he actually turned and looked at his group and he said, "We found our forever home." And I think that, that's something that's unique and a unique -- provides us with a unique opportunity as we continue to look to build out our portfolio and to build out our business. And so I would say it's really the same, Andy. That's maybe a little bit more than what you're looking for. But I would just tell you it's the same, and I think it just creates opportunity and the more momentum we get, the more opportunity that it will create for us. And we've got a lot of really good things happening in that front. And we'll have -- as we work our way through this year, we're going to have a lot more to share, and that will take you into -- David can answer your question about our balance sheet and the dry powder we have because we have a lot of flexibility. Glenn Jackola: Yes, I appreciate you reminding me of the question, too, Russ. So as we mentioned in the script, we ended the first quarter with a net leverage ratio of about 1.8x. By the time we finance and close on the 2 announced acquisitions, we will be at or below the low end of our target net leverage ratio, and I expect that we'll work that down to kind of the ballpark of where we are today by the end of the year. Does that help? Andrew J. Wittmann: Yes, we can do the math on that. Good enough. Operator: Your next question comes from the line of Jasper Bibb with Truist Securities. Jasper Bibb: I'll keep it to one. Really nice organic growth this quarter, obviously, you mentioned a mix impact on gross margins for both segments. Could you just provide a bit more detail on the mix factor this quarter and clear up if there was any like material purchase pull forward due to uncertainty from the war or maybe the support the upcoming project in the next 3 quarters that could have, I guess, boosted revenue a bit and diluted margins. Glenn Jackola: Yes, I can cover that one. I think about mix as kind of 2 factors, and they're both really math-driven First is the growth in project revenue in the quarter, which on average, comes at about 10 percentage points lower gross margin than our inspection, service and monitoring work. And then second is the growth in the Specialty Services segment vis-a-vis the Safety segment and the impact that had on margin in the quarter as well. So those are really the two mix factors, just the ratio of service and project work in the quarter and the segment mix. And to answer your other question, no real material pull-forward impact in the quarter. Operator: Your next question comes from Curtis Nagle with Bank of America. Curtis Nagle: Great. Just wanted to go back to that point you made on that 5.4% run rate for that being a good run rate for the year. Just wanted to confirm that given the 2H compares are obviously higher. So if that's the case, I mean, that's obviously a pretty positive statement. So just yes, I wanted to confirm that's what you said. Glenn Jackola: Yes. I think I'm following your question. This is around the anticipated growth rates in the Safety segment for the full year in the back half. I continue to refer back to our long-term organic revenue growth algorithm in that segment. We expect our service revenue to grow mid- to upper single digits, each and every quarter, each and every year, and we expect our project work to grow low to mid-single digits, which gets to a mid-single-digit organic revenue growth. That was really the playbook that we saw in the first quarter, a little heavier maybe on the project revenue, but we expect that to play out through the course of the year. Curtis Nagle: Okay. And then just one quick one on gross margins, should mix continue to be a headwind? How should we think about gross margins for the back half of the year? Glenn Jackola: I continue to expect to see our gross margins and our adjusted EBITDA margins expanding year-over-year as we target 60 to 70 basis points of margin improvement in the year. Operator: Your next question comes from the line of Josh Chan with UBS. Joshua Chan: Russ and David, on that Safety Services growth point, I guess you grew 5.5% in Q1, and it was a little heavier on project. Could you just talk about the trajectory on the inspection, service and monitoring and whether there's any change there or more of a timing in the quarter? Glenn Jackola: No, I mean there really hasn't been any change in the trajectory of our inspection, service and monitoring revenue growth, Josh. That business consistently grows mid- to upper single digits across the business, and there might be quarters where it ends up a little closer to mid. There might be quarters where it ends up a little closer to upper. But that has been a consistent mid- to upper single-digit revenue growth stream for the Safety segment. It was in the first quarter, and we expect that it will continue to be in the back half of the year. Operator: There are no further questions at this time. I would now like to turn the call back to Russ Becker, President and CEO, for closing remarks. Russell Becker: Thank you. In closing, I'd like to thank all our teammates for their continued support and dedication to our business. We believe our people are the foundation on which everything else is built. Without them, we do not exist. I would also like to thank our long-term shareholders as well as those that have recently joined us for their support. We appreciate your ownership of APi and look forward to updating you on our progress throughout the remainder of the year. Thank you again, everybody, for joining the call. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in APi Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and APi Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $462,983!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,447!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of June 2, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends APi Group. The Motley Fool has a disclosure policy. APi Group (APG) Q1 2026 Earnings Transcript was originally published by The Motley Fool

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at construction and maintenance services stocks, starting with APi (NYSE:APG). Construction and maintenance services companies not only boast technical know-how in specialized areas but also may hold special licenses and permits. Those who work in more regulated areas can enjoy more predictable revenue streams - for example, fire escapes need to be inspected every five years. More recently, services to address energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and maintenance services companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives incremental demand for these companies’ offerings. The 10 construction and maintenance services stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 4.7% while next quarter’s revenue guidance was in line. While some construction and maintenance services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.4% since the latest earnings results. Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure. APi reported revenues of $1.98 billion, up 15.3% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ organic revenue estimates. Russ Becker, APi’s President and Chief Executive Officer, stated: "We are off to a strong start in 2026, delivering 10% organic net revenue growth and expanding adjusted EBITDA margins by 70 basis points year over year, with strength across both our Safety Services and Specialty Services segments. At the same time, we continued to advance our M&A strategy. We closed the CertaSite acquisition and signed transactions for Wtech and Onyx, representing an investment of more than $1 billion across these three acquisitions to further build out our Safety Services segment across the U.S., Europe, and Canada. In a year that marks APi's 100th anniversary, I am proud of our team's execution, and we remain confident in our path toward our "10/16/60+" targets. APi delivered the weakest full-year guidance update of the whole group. The stock is down 14.6% since reporting and currently trades at $41.53. We think APi is a good business, but is it a buy today? Read our full report here, it’s free. Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry. MYR Group reported revenues of $1 billion, up 20% year on year, outperforming analysts’ expectations by 7.5%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates. The market seems happy with the results as the stock is up 47.1% since reporting. It currently trades at $496.94. Is now the time to buy MYR Group? Access our full analysis of the earnings results here, it’s free. Listed on the NASDAQ in 2008, Primoris (NYSE:PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries. Primoris reported revenues of $1.56 billion, down 5.4% year on year, falling short of analysts’ expectations by 10.3%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates. Primoris delivered the slowest revenue growth in the group. As expected, the stock is down 38.2% since the results and currently trades at $125.50. Read our full analysis of Primoris’s results here. Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects. Construction Partners reported revenues of $769.2 million, up 34.6% year on year. This result topped analysts’ expectations by 12.6%. Overall, it was an incredible quarter as it also logged a beat of analysts’ EPS and EBITDA estimates. The stock is down 8.5% since reporting and currently trades at $120.23. Read our full, actionable report on Construction Partners here, it’s free. Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services. Limbach reported revenues of $138.9 million, up 4.3% year on year. This print surpassed analysts’ expectations by 3.5%. It was an exceptional quarter as it also produced a beat of analysts’ EPS and adjusted operating income estimates. The stock is down 30.3% since reporting and currently trades at $79.50. Read our full, actionable report on Limbach here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.