NEW BRIGHTON, Minn.--(BUSINESS WIRE)--APi Group Corporation (NYSE: APG) ("APi†or the "Company†) has received notice of an unsolicited mini-tender offer by TRC Capital Investment Corporation of Ontario, Canada to purchase up to 3 million shares of APi common stock at an offer price of $33.40 per share. APi is not associated in any way with TRC Capital Investment or its mini-tender offer, does not endorse this unsolicited mini-tender offer, and recommends that shareholders reject the offer becau. ...

Investors in APi Group Corporation (APG) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct. 17, 2025 $40 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could al ...

Core Insights - Northrop Grumman Corp. has secured a $97.5 million contract for the F-35 APG-85 radar system, focusing on long-lead-time materials and components to support the U.S. military's delivery schedules [1][2][10] Northrop Grumman's Expertise - Northrop Grumman has over six decades of experience in Active Electronically Scanned Array (AESA) radar technology, enhancing air, land, and sea superiority for global armed forces [3][5] - The company has developed five generations of AESA radars, consistently improving designs while reducing costs and increasing mission capabilities [4][6] - Northrop's airborne AESA radars provide reliable surveillance in all weather conditions, offering critical intelligence for multi-domain operations [5][10] Product Line and Market Position - Northrop's radar product line includes various systems such as AN/APG-81, AN/APG-83, and AN/APG-77, which have driven significant demand and are expected to support stable revenue growth [6] - The company is the sole provider of AESA systems for the U.S. Air Force's fifth-generation fighters, including the F-22 Raptor and F-35 Lightning II [5][10] Competitors in Aerospace-Defense Sector - RTX Corporation offers the APG-82(V)1 AESA radar, known for its reliability and advanced tracking capabilities [7] - Lockheed Martin's APY-9 radar enhances command and control for the Navy's E-2D aircraft, designed for challenging detection scenarios [8] - L3Harris Technologies provides the AN/APY-11 multi-mode radar, capable of detecting various targets and offering high-resolution imaging [9]

Group 1 - APi Group (NYSE: APG) is transitioning from a roll-up of specialty contractors to a platform with a strong recurring revenue mix in the building services sector [1] - The company is focusing on creating a defensible business model that can withstand market fluctuations [1]

Demand Environment - The demand for inspection and monitoring services, particularly in the fire life safety sector, remains strong and unaffected by macroeconomic factors [2] - The statutory nature of fire life safety inspections ensures that commercial office buildings must comply with regulations regardless of external economic conditions [2]

Summary of API Group Conference Call Company Overview - **Company**: API Group - **Industry**: Fire Life Safety and Inspection Services Key Points Demand Environment - Demand for inspection services remains strong and unaffected by macroeconomic factors, particularly in the Fire Life Safety business [4][5] - Key end markets such as data centers, advanced manufacturing, and healthcare are driving robust opportunities [5] - API Group's backlog exceeded $4 billion for the first time, indicating strong demand [6] Inspection Services Growth - North American safety business has experienced double-digit inspection growth consistently since 2020 [8] - By 2024, inspection services and monitoring are expected to account for 54% of total revenue, reducing reliance on project-based work [10] - The average project size is 3-4 months, with a backlog coverage of approximately 12 months, providing good visibility into future revenue [11] Competitive Landscape - The inspection services industry remains highly fragmented, with API Group primarily taking market share from small family-owned businesses [16][20] - API Group's strategy focuses on building a robust inspection service, which requires significant resources and infrastructure [44] Culture and Leadership - API Group emphasizes the importance of culture in mergers and acquisitions, seeking companies that align with their values [22][24] - The company has a leadership development program aimed at fostering great leaders across its global branches [34][35] Margin Improvement - The company aims for branch-level EBITDA margins of over 20%, with 40% of branches already achieving this target [48][49] - Margins in the Specialty segment are expected to improve sequentially, with a focus on inspection service and monitoring revenue [56] M&A Strategy - API Group is not currently looking to add new business lines but is focused on expanding its existing elevator business, which has significant growth potential [60][61] - The company is open to larger acquisitions if they align with its long-term goals and culture [63][64] Economic Impact - Positive economic conditions are expected to benefit all aspects of the business, including inspection services, as clients may be more willing to address deficiencies identified during inspections [74] Additional Insights - API Group's focus on building long-term relationships and partnerships in high-demand sectors like semiconductors and data centers is crucial for future growth [12] - The company is committed to maintaining a culture that prioritizes leadership development and employee engagement, which is seen as essential for sustainable growth [38][39]

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying stocks that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - APi (APG) is currently recommended as a cutting-edge growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - APi's historical EPS growth rate is 14.6%, with projected EPS growth of 16.1% this year, surpassing the industry average of 10.9% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [6] - APi's year-over-year cash flow growth is 120.9%, significantly higher than the industry average of 1.7% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 76.5%, compared to the industry average of 7.1% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [8] - Current-year earnings estimates for APi have been revised upward, with the Zacks Consensus Estimate increasing by 1.1% over the past month [9] Group 5: Conclusion - APi has achieved a Zacks Rank of 2 and a Growth Score of B, indicating it is a potential outperformer and a solid choice for growth investors [11]

Core Viewpoint - APi (APG) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for APi suggest an improvement in the company's underlying business, likely leading to increased stock prices due to investor interest [5][10]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10]. Recent Earnings Estimate Revisions for APi - For the fiscal year ending December 2025, APi is expected to earn $1.42 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 4.4% over the past three months [8].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - APi (APG) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 14.4%, with projected EPS growth of 14.8% this year, surpassing the industry average of 11.9% [4] Group 2: Financial Metrics - APi's year-over-year cash flow growth stands at 120.9%, significantly higher than the industry average of 1.4% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 76.5%, compared to the industry average of 7.1% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for APi, with the Zacks Consensus Estimate for the current year increasing by 2.8% over the past month [8] - The combination of upward earnings estimate revisions and a Growth Score of B positions APi as a potential outperformer for growth investors [10]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) APi Group's H1 2025 financial statements show total assets at **$8.54 billion**, net revenues of **$3.71 billion**, and operating cash flow of **$145 million**, with a slight net income decrease Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,798 | $2,658 | | Goodwill | $3,126 | $2,894 | | **Total Assets** | **$8,539** | **$8,152** | | Total Current Liabilities | $1,933 | $1,885 | | Long-term Debt | $2,751 | $2,749 | | **Total Liabilities** | **$5,368** | **$5,199** | | **Total Shareholders' Equity** | **$3,171** | **$2,953** | Condensed Consolidated Statement of Operations Highlights (in millions, except EPS) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $1,990 | $1,730 | $3,709 | $3,331 | | Gross Profit | $615 | $544 | $1,157 | $1,036 | | Operating Income | $143 | $126 | $227 | $226 | | Net Income | $77 | $69 | $112 | $114 | | Diluted EPS | $0.16 | $0.15 | $0.24 | $(0.68) | Condensed Consolidated Statement of Cash Flows Highlights (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $145 | $117 | | Net cash used in investing activities | $(140) | $(623) | | Net cash (used in) provided by financing activities | $(101) | $357 | | Net decrease in cash | $(68) | $(154) | - On June 30, 2025, the Company executed a **three-for-two stock split** via a stock dividend, with all share and per-share amounts restated to reflect this split[19](index=19&type=chunk)[120](index=120&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights strong revenue growth to **$1.99 billion** in Q2 and **$3.71 billion** in H1 2025, driven by acquisitions and pricing, alongside a **$1.18 billion** liquidity position [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Q2 2025 net revenues rose **15.0%** to **$1.99 billion**, with H1 revenues up **11.3%** to **$3.71 billion**, though H1 net income slightly declined due to higher SG&A Q2 2025 vs Q2 2024 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenues | $1,990 | $1,730 | 15.0% | | Gross Profit | $615 | $544 | 13.1% | | Gross Margin | 30.9% | 31.4% | -50 bps | | Operating Income | $143 | $126 | 13.5% | | Net Income | $77 | $69 | 11.6% | | Adjusted EBITDA | $272 | $231 | 17.7% | H1 2025 vs H1 2024 Performance (in millions) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenues | $3,709 | $3,331 | 11.3% | | Gross Profit | $1,157 | $1,036 | 11.7% | | Gross Margin | 31.2% | 31.1% | +10 bps | | Operating Income | $227 | $226 | 0.4% | | Net Income | $112 | $114 | (1.8%) | | Adjusted EBITDA | $465 | $406 | 14.5% | - The Safety Services segment's net revenues grew **15.8%** in Q2 and **14.7%** in H1 2025, with segment earnings margin expanding to **17.0%** in Q2 and **16.4%** in H1, driven by acquisitions, pricing, and disciplined project selection[197](index=197&type=chunk)[198](index=198&type=chunk)[213](index=213&type=chunk) - The Specialty Services segment's net revenues increased **13.3%** in Q2 and **3.9%** in H1 2025, but its segment earnings margin decreased to **11.3%** in Q2 and **9.2%** in H1, attributed to project mix, rising material costs, and weather[199](index=199&type=chunk)[200](index=200&type=chunk)[215](index=215&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company reported total liquidity of **$1.18 billion**, comprising **$432 million** in cash and **$744 million** available under its revolving credit facility - Total liquidity as of June 30, 2025, was **$1,176 million**, comprising **$432 million** in cash and **$744 million** in available borrowings under the Revolving Credit Facility[223](index=223&type=chunk) Cash Flow Summary - H1 2025 vs H1 2024 (in millions) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $145 | $117 | | Net cash used in investing activities | $(140) | $(623) | | Net cash (used in) provided by financing activities | $(101) | $357 | - During H1 2025, the company repurchased **3,095,573 shares** of common stock for approximately **$75 million**, with a new **$1 billion** share repurchase program authorized in April 2025[229](index=229&type=chunk) - In Q2 2025, the company increased its Revolving Credit Facility by **$250 million** to **$750 million** and extended its maturity, while also reducing the applicable margin by **75 basis points**[227](index=227&type=chunk)[235](index=235&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk on its variable-rate debt through swaps and mitigates foreign currency risk from its 35% foreign revenues by transacting in local currencies and using derivatives - The company mitigates interest rate risk on its **$2,157 million** variable-rate 2021 Term Loan using interest rate swaps totaling **$1,120 million** and a forward-starting swap of **$720 million**[250](index=250&type=chunk) - Foreign operations account for approximately **35%** of consolidated net revenues, with currency risk managed by primarily invoicing and paying expenses in local currencies and utilizing derivative instruments like cross-currency swaps and forward contracts[252](index=252&type=chunk)[253](index=253&type=chunk) - The company faces supply chain risks related to price fluctuations and availability of key materials such as copper and steel, as well as increases in energy prices for its vehicle fleet, which could impact profitability on fixed-price contracts[255](index=255&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures, as well as internal control over financial reporting, were effective as of June 30, 2025, with no material changes during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[259](index=259&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of June 30, 2025, based on the COSO 2013 framework[261](index=261&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[262](index=262&type=chunk) PART II. OTHER INFORMATION [Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Form 10-K for the year ended December 31, 2024 - The company reports no material changes to its risk factors from those detailed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024[263](index=263&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company reported no purchases of its equity securities during the three months ended June 30, 2025 - During the three months ended June 30, 2025, the Company did not make any purchases of its own equity securities[264](index=264&type=chunk) [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) During Q2 2025, three company directors adopted Rule 10b5-1 trading plans for the pre-arranged sale of common stock, with no other officers or directors adopting or terminating such plans - In May 2025, three directors adopted Rule 10b5-1 trading plans for selling shares of the company's common stock: **Ian Ashken** (up to 759,000 shares until June 12, 2026), **Sir Martin Franklin** (up to 2,700,000 shares until March 13, 2026), and **Jim Lillie** (up to 1,500,000 shares until September 11, 2026)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk) [Exhibits](index=63&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including amendments to corporate documents, officer certifications, and Inline XBRL data files