APi Group (APG) investor relations material

Demand environment and business performance

• Inspection and monitoring services remain resilient to macroeconomic fluctuations due to statutory requirements, with robust demand and a growing backlog exceeding $4 billion for the first time in 2024.

• Key end markets such as data centers, advanced manufacturing, and healthcare continue to provide strong opportunities, with proposal activity and backlog growth supporting positive outlook.

• North American safety business has achieved consistent double-digit inspection growth since 2020, with 54% of 2024 revenue from inspection service and monitoring, reducing reliance on project-based revenue.

• Project backlog provides approximately 12 months of coverage, offering strong visibility into 2026, with a focus on backlog quality and strategic partnerships for large projects.

Growth drivers and competitive landscape

• Inspection services growth is driven by a mix of new business, existing customer expansion, and pricing, with sales leaders incentivized for longer-term contracts.

• Market share gains are primarily from small, family-owned businesses in a highly fragmented industry, with a focus on local presence and robust service infrastructure.

• Despite industry consolidation and private equity interest, significant market share opportunities remain, with less than 5% share in most major markets.

Culture, leadership, and operational strategy

• Culture, values, and fit are prioritized in acquisitions, with a focus on long-term ownership and alignment with organizational values.

• Leadership development is central, with a three-pillar approach: leading self, leading others, and leading teams/businesses, aiming for every employee to be a leader.

• Maintaining and building culture is seen as the key challenge, with ongoing investment in people and leadership development.