APi Group (APG) BofA Securities 2026 Information & Business Services Conference summary

Strategic direction and operational model

• Inspection First strategy, rooted in company culture, has matured in North America and is being expanded internationally, driving recurring revenue and sustainable growth.

• Competitors rarely emulate the model due to high investment and cultural alignment required; most market players remain project-focused.

• Strong alignment and leadership development underpin execution, creating a competitive moat.

Market trends and revenue drivers

• Inspection, service, and monitoring business remains consistent, while project business outperformed growth expectations in 2025.

• End markets such as data centers, advanced manufacturing, warehouse/distribution, pharma, and healthcare show resilience and margin strength.

• Backlog is healthier with improved expected margins compared to previous years.

Recurring revenue and growth hurdles

• Recurring revenue from inspections, service, and monitoring reached 54%, with a target of 60%; robust project growth and M&A can slow progress toward this goal.

• Acquired businesses are often project-heavy, requiring cultural and strategic alignment to shift toward recurring revenue.

• For every $1 of inspection work, $3-$4 of service revenue is typically generated.