APi Group (APG) UBS Global Industrials and Transportation Conference summary

Company overview and recent developments

• Revenue has grown from $600 million to nearly $7 billion over 20 years, with a focus on Safety Services and Specialty Services.

• 54% of revenue comes from inspection service and monitoring, with a medium-term goal of 60%.

• Recent acquisition of Elevated expanded into the elevator and escalator market, aligning with the service-oriented growth strategy.

• Emphasis on leadership development and investing in people as a core growth driver.

• Confident in returning to normalized organic growth and margin improvement in 2025.

Inspection-first strategy and competitive advantages

• Prioritizing inspection contracts in the built environment generates $3–4 in service work for every $1 of inspection revenue.

• Dedicated teams for inspections, service, and projects ensure high coordination and customer satisfaction.

• Infrastructure and scalability differentiate from smaller, family-owned competitors.

• Timely delivery of deficiency reports and service proposals is key to winning and retaining business.

• Customer retention rates exceed 90%, with double-digit inspection growth for 17 consecutive quarters.

Growth, sustainability, and business mix

• High single-digit growth in life safety is considered sustainable, led by inspection and service segments.

• Targeting a revenue mix of 60% inspection/service/monitoring and 40% project work, with ongoing goalpost adjustments.

• Robust inspection/service business allows for selective, higher-margin project work.

• Project work remains essential for customer retention and SG&A absorption.

• Recent project delays attributed to timing and external factors, but backlog is up 5% year-over-year, supporting 2025 outlook.