APi Group (APG) Barclays 43rd Annual Industrial Select Conference summary

Business performance and outlook

• Exceeded 13% Adjusted EBITDA margin goal in 2025, ending the year with strong momentum and margin improvement.

• Revenue guidance for 2026 is $8.4–$8.6 billion, with Adjusted EBITDA of $1.14–$1.2 billion and a 13.8% margin midpoint.

• Backlog reached all-time highs, with improved margins and sequential growth entering 2026.

• High single-digit growth expected in inspection, service, and monitoring; low single-digit in projects, with potential for higher organic project growth due to sector tailwinds.

• Data center and power markets combined are expected to represent low to mid-teens percentage of revenue by year-end 2025.

Market trends and sector insights

• Data center activity is robust, with larger project sizes and increased demand, creating significant opportunities.

• Advanced manufacturing, pharma, and semiconductors remain strong verticals, while commercial office project work is minimal due to market conditions.

• HVAC business performance improved after resegmentation, with growth in service and a focus on inspection-first sales.

• Elevator and escalator segment reached $240–$250 million in revenue, with ambitions to build a billion-dollar platform and a strong M&A pipeline.

Operational strategies and challenges

• Labor market remains tight but manageable through internal training, apprenticeships, and military transition programs.

• Retention and positive work environment are prioritized, with a focus on developing leaders at all levels.

• Cost management is supported by strong visibility into union labor costs and proactive commodity price monitoring.

• Escalation clauses and disciplined project selection help mitigate inflation and material cost risks.