APi Group (APG) investor relations material

Business overview and strategy

• Revenue grew from $600 million to $7.9 billion with a 13.2% EBITDA margin, driven by leadership development and a strong culture.

• Operations are split into safety services (70% of revenue) and specialty services, with a focus on inspection, service, and monitoring.

• The 2028 targets are $10 billion in revenue, 16% EBITDA margin, and 60% of revenue from inspection, service, and monitoring.

• The company operates in over 20 countries and continues to expand through organic growth and M&A.

• An inspection-first mindset is central, aiming to build long-term client relationships and recurring revenue.

Inspection-first model and margin evolution

• The inspection-first approach began evolving around 2006 and accelerated after 2016, led by a successful sales leader.

• Branches become "bulletproof" when inspection and service gross margin covers SG&A, allowing selectivity and higher project margins.

• Service work typically delivers gross margins 10 percentage points higher than project work, driving overall margin accretion.

• Financial targets have risen from 5% to 10% and now 13%+ EBITDA, with a goal for all branches to reach 20%.

• Competitive culture and transparency in performance metrics foster continuous improvement.

Growth outlook and end markets

• High single-digit growth is expected in services, with low single-digit growth in projects, resulting in mid-single-digit overall growth.

• Data center work is a growing revenue stream, now approaching 10% of total revenue, benefiting both segments.

• Robust project pipeline in sectors like data centers, advanced manufacturing, and aviation supports growth despite tougher comps.

• Business development efforts coordinate opportunities across segments and geographies.