Summary of APi Group (APG) FY Conference Call - June 05, 2025 Company Overview - APi Group is a leader in fire and life safety solutions and has a specialty infrastructure business [2][5] - The company has a market capitalization exceeding $7 billion [5] Financial Performance and Strategy - Approximately 70% of net revenues are derived from safety services, including fire life safety and security, with the remaining 30% from specialty services [6][7] - The company has shifted its revenue mix from 80% project work and 20% inspection service in 2011 to 54% inspection service and monitoring by 2025 [13] - Organic growth from 2011 to 2019 was 7%, with expectations of mid-single-digit growth moving forward [14] - The long-term target is to achieve $10 billion in net revenue by 2028, with a goal of 16% adjusted EBITDA margin [33][24] - The company aims to generate over $3 billion in adjusted free cash flow by 2028 [34][40] Growth Drivers - The strategy includes a focus on inspection-first sales, which has shown to generate $3 to $4 in service work for every dollar of inspection work [55] - The company plans to continue making acquisitions, targeting $250 million to $300 million annually in bolt-on M&A [42] - Leadership development is a core focus, with a culture centered on building great leaders [8][59] Market Position and Competitive Advantage - The company operates in a highly fragmented industry, presenting significant opportunities for value creation [10] - Regulatory requirements for inspections create a stable demand for services [6] - The company has a commitment to maintaining a net leverage ratio of 2.5 to 3 times adjusted EBITDA [41] Future Outlook - The company is on track to achieve a 13.4% adjusted EBITDA margin in 2025, with a long-term goal of 16% [14][33] - Continued focus on improving cash flow conversion and maintaining a strong balance sheet [39] - The leadership strategy is expected to drive performance, with a goal for branches to achieve median margins of 20% [68][70] Additional Insights - The company emphasizes the importance of leadership at all levels, stating that everyone is a leader [9][59] - The inspection-first strategy has been a significant driver of growth, with inspections growing at a double-digit rate for 19 consecutive quarters [58] - The company has a commitment to employee well-being and development, which is seen as critical to its success [25][65]

Economic strength, encouraging service activities and increased adoption and success of the work-from-home trend enable the Zacks Business - Services industry players to support the demand environment.Driven by these positives, investors interested in the industry would do well to focus on stocks like Cintas Corporation (CTAS) , APi Group Corporation (APG) , and Bright Horizons Family Solutions Inc. (BFAM) .About the Industry The Zacks Business-Services industry comprises companies that offer a range of ser ...

Company Overview - APi (APG) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [4] Price Performance - Over the past week, APG shares have increased by 13.03%, outperforming the Zacks Business - Services industry, which rose by 1.76% [6] - In a longer time frame, APG's monthly price change is 31.96%, significantly higher than the industry's 8.68% [6] - Over the past quarter, APG shares have risen by 10.91%, and over the last year, they are up 12.35%, while the S&P 500 has moved -7.56% and 9.65%, respectively [7] Trading Volume - APG's average 20-day trading volume is 1,799,804 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Estimates - In the past two months, 4 earnings estimates for APG have been revised upwards, while none have been revised downwards, increasing the consensus estimate from $1.99 to $2.05 [10] - For the next fiscal year, 3 estimates have moved upwards, with 1 downward revision during the same period [10] Conclusion - Considering the strong price performance, positive earnings revisions, and high momentum score, APG is positioned as a promising investment opportunity [12]

Financial Performance - Net revenues for Q1 2025 were $1,719 million, an increase of $118 million or 7.4% compared to $1,601 million in Q1 2024[175] - Gross profit for Q1 2025 was $542 million, up $50 million or 10.2% from $492 million in Q1 2024, with a gross margin of 31.5%[177] - Operating income decreased by $16 million or 16.0% to $84 million in Q1 2025 from $100 million in Q1 2024[175] - Income before income taxes decreased by $17 million or 27.0% to $46 million in Q1 2025 from $63 million in Q1 2024[175] - Net income for Q1 2025 was $35 million, a decrease of $10 million or 22.2% compared to $45 million in Q1 2024[175] - Adjusted EBITDA for Q1 2025 was $193 million, an increase of $18 million or 10.3% from $175 million in Q1 2024, with adjusted EBITDA as a percentage of net revenues rising to 11.2% from 10.9%[184] Expenses and Costs - Selling, general, and administrative expenses increased by $66 million or 16.8% to $458 million in Q1 2025 compared to $392 million in Q1 2024[175] - SG&A expenses for Q1 2025 were $458 million, up $66 million or 16.8% from $392 million in Q1 2024, with SG&A as a percentage of net revenues increasing to 26.6% from 24.5%[179] - Interest expense, net increased by $4 million or 11.8% to $38 million in Q1 2025 compared to $34 million in Q1 2024[175] - The Chubb restructuring program is expected to incur approximately $125 million in restructuring and other costs by the end of fiscal year 2025[159] Segment Performance - Safety Services net revenues increased by $150 million or 13.4% to $1,267 million in Q1 2025, driven by acquisitions, pricing improvements, and growth in inspection and service revenues[187] - Specialty Services net revenues decreased by $33 million or 6.8% to $453 million in Q1 2025, attributed to lower project and service revenues and adverse weather impacts[189] - Safety Services segment earnings as a percentage of net revenues improved to 15.7% in Q1 2025 from 14.8% in Q1 2024, driven by disciplined customer selection and pricing improvements[188] - Specialty Services segment earnings as a percentage of net revenues decreased to 6.4% in Q1 2025 from 8.8% in Q1 2024, due to lower fixed cost absorption from decreased revenues[190] Liquidity and Capital Structure - Total liquidity as of March 31, 2025, was $954 million, consisting of $460 million in cash and cash equivalents and $494 million available under the Revolving Credit Facility[199] - The company had a first lien net leverage ratio of 1.7:1.0 as of March 31, 2025, in compliance with its credit agreement covenants[218] - As of March 31, 2025, the remaining principal amount outstanding on the 2021 Term Loan was $2,157 million, with no amounts outstanding under the Revolving Credit Facility[219] - The company issued 12,650,000 shares of common stock in a public offering, raising approximately $458 million net of expenses, to be used for general corporate purposes[203] Share Repurchase and Capital Expenditures - The company repurchased 16,260,160 shares of common stock for approximately $600 million during 2024, and an additional 2,063,715 shares for approximately $75 million in the first quarter of 2025[206][211] - The company authorized a new share repurchase program in April 2025 to purchase up to $1,000 million of common stock, replacing the previous program announced in 2024[207] - The company’s capital expenditures are typically less than 1.5% of annual net revenues, indicating a focus on maintaining efficient operations[227] Foreign Operations and Currency Exposure - Revenues from foreign operations accounted for approximately 37% of consolidated net revenues for the three months ended March 31, 2025[229] - Foreign currency translation gains totaled approximately $59 million for the three months ended March 31, 2025, compared to a loss of $(42) million for the same period in 2024[230] - The company has entered into cross-currency swaps and foreign currency forward contracts to manage foreign currency exposure related to intercompany loans[230] Risk Factors and Internal Controls - The company is exposed to supply chain risks, including price fluctuations of materials such as copper and steel, which could impact profitability on fixed-price contracts[233] - Significant declines in market prices for oil and gas may lead to project delays or cancellations, affecting overall profitability[234] - Management has concluded that internal controls over financial reporting were effective as of March 31, 2025[238] - There have been no changes in internal control over financial reporting that materially affected the company during the quarter ended March 31, 2025[239] - The company has not experienced material changes in risk factors since the last report[240]

Core Insights - APi reported $1.72 billion in revenue for Q1 2025, a year-over-year increase of 7.4% [1] - The EPS for the same period was $0.37, up from $0.34 a year ago, exceeding the consensus estimate of $0.35 [1] - The revenue surpassed the Zacks Consensus Estimate of $1.65 billion, resulting in a surprise of +4.18% [1] Financial Performance Metrics - Safety Services net revenues were $1.27 billion, slightly below the average estimate of $1.32 billion, reflecting a year-over-year change of +4.4% [4] - Specialty Services net revenues reached $453 million, significantly above the average estimate of $333.02 million, with a year-over-year increase of +16.5% [4] - Corporate and Eliminations reported net revenues of -$1 million, better than the average estimate of -$2.50 million, but showing a year-over-year decline of -50% [4] Stock Performance - APi shares returned +4.1% over the past month, outperforming the Zacks S&P 500 composite, which declined by -0.7% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

APi (APG) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.71%. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.51, delivering a surprise of 6.25%.Over the last four quarters, the company has surpassed c ...

Financial Data and Key Metrics Changes - Reported revenues for Q1 2025 increased by 7.4% to $1.72 billion compared to $1.6 billion in the prior year period [20] - Organic growth of approximately 2% was driven by pricing improvements and strong growth in safety services [20] - Adjusted gross margin for Q1 2025 grew to 31.7%, a 100 basis point increase year-over-year [20] - Adjusted EBITDA increased by 10.3%, with an adjusted EBITDA margin of 11.2%, a 30 basis point increase compared to the prior year [21] - Adjusted diluted earnings per share for Q1 was $0.37, an increase of 8.8% compared to the prior year [21] Business Line Data and Key Metrics Changes - Safety services reported revenues increased by 13.4% to $1.27 billion, with organic growth of 5.6% driven by double-digit inspection revenue growth in North America [21] - Specialty services reported revenues decreased by 6.8% to CAD 453 million, with organic revenue declining 6.6% due to anticipated decreases in project and service revenues [22][23] - Backlog for specialty services grew 7% organically, with expectations for positive organic growth in Q2 [11][36] Market Data and Key Metrics Changes - The company expects to achieve full-year net revenues of $7.4 billion to $7.6 billion, representing organic growth of 2% to 5% [25] - Adjusted EBITDA guidance for the full year is increased to $985 million to $1.035 billion, reflecting an adjusted EBITDA margin of 13.4% at the midpoint [25] Company Strategy and Development Direction - The company is focused on building a robust line of businesses around statutorily mandated recurring life safety services [18] - The strategic plan includes achieving an adjusted EBITDA margin of 13% or more in 2025 and targeting long-term revenues of 60% from inspection, service, and monitoring [15][18] - The company is committed to disciplined M&A and opportunistic share repurchases, with a new $1 billion share repurchase program authorized [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving macro environment, including tariff impacts, and noted that 54% of net revenues come from recurring inspection services [12][14] - The company anticipates increased investment in U.S. infrastructure and onshoring of advanced manufacturing to benefit target end markets [13] - Management highlighted a strong backlog and the ability to pass on material cost increases due to tariffs, indicating a proactive approach to cost management [12][39] Other Important Information - The company has launched a three-year investment in systems and technology to enhance operational efficiency and customer service [27] - The total recordable incident rate (TRIR) for safety was below 1.0, significantly below the industry average, reflecting the company's commitment to safety [9] Q&A Session Summary Question: Can you provide more color on the backlog and visibility toward growth in both segments? - Management confirmed the backlog is around $3.5 billion, up year-over-year, and expects continued momentum in the second quarter [35][36] Question: Can you elaborate on the tariff-related impacts on the business? - Management indicated proactive measures were taken to mitigate tariff impacts, including contractual provisions to recapture costs [38][39] Question: What drove the variance in organic growth relative to expectations? - The primary driver was the pre-purchasing of materials to avoid potential price increases due to tariffs [46] Question: How is demand in the projects business amid macro uncertainty? - Management reported no significant delays or pullbacks in project demand, with backlog continuing to build [50] Question: Can you discuss the impact of weather on specialty services? - Management noted approximately five weather days lost in Q1, which had a mid-single-digit impact on organic revenue growth [66] Question: What are the margin expansion opportunities for the year? - Management highlighted improving revenue mix, disciplined customer selection, and pricing as key drivers for margin expansion [91]

Financial Data and Key Metrics Changes - Reported revenues for Q1 2025 increased by 7.4% to $1.72 billion compared to $1.6 billion in the prior year period [18] - Organic growth of approximately 2% was driven by pricing improvements and strong growth in safety services, partially offset by a decrease in specialty services revenue [18] - Adjusted gross margin grew to 31.7%, representing a 100 basis point increase compared to the prior year [18] - Adjusted EBITDA increased by 10.3%, with an adjusted EBITDA margin of 11.2%, a 30 basis point increase from the prior year [19] - Adjusted diluted earnings per share for Q1 was $0.37, an increase of 8.8% compared to the prior year [19] Business Line Data and Key Metrics Changes - Safety services reported revenues increased by 13.4% to $1.27 billion, with organic growth of 5.6% driven by double-digit inspection revenue growth in North America [19][20] - Specialty services reported revenues decreased by 6.8% to CAD 453 million, with organic revenue declining 6.6% due to anticipated decreases in project and service revenues [20][21] - Backlog for specialty services grew 7% organically, with expectations for positive organic growth in the second quarter [10][36] Market Data and Key Metrics Changes - The company expects to achieve full-year net revenues of $7.4 billion to $7.6 billion, representing organic growth of 2% to 5% [24] - The adjusted EBITDA guidance for the full year is increased to $985 million to $1.035 billion, reflecting an adjusted EBITDA margin of 13.4% at the midpoint [24] Company Strategy and Development Direction - The company is focused on building a robust line of businesses around statutorily mandated recurring life safety services, with a long-term goal of achieving 60% of total net revenues from inspection, service, and monitoring [6][14] - The company is committed to margin expansion initiatives, targeting an adjusted EBITDA margin of 13% or more in 2025 [14][27] - A new $1 billion share repurchase program has been authorized to enhance shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving macro environment, including the impact of tariffs, and noted that 54% of net revenues come from recurring inspection services that are less affected by tariffs [11][12] - The company anticipates increased investment in U.S. infrastructure and onshoring of advanced manufacturing to benefit target end markets [12] - Management highlighted a strong backlog and a commitment to safety, with a total recordable incident rate significantly below the industry average [7][8] Other Important Information - The company has made significant progress since becoming public, completing over 50 acquisitions and focusing on margin expansion strategies [6] - A three-year investment in systems and technology has been launched to improve efficiency and customer service [26] Q&A Session Summary Question: Can you provide more color on the backlog and visibility toward growth in both segments? - The backlog is approximately $3.5 billion, up year-over-year, with expectations for continued growth in the second quarter [34][36] Question: Can you elaborate on the tariff-related impacts on the business? - The company has proactively included language in contracts to recapture costs due to tariffs, primarily affecting project work [37][38] Question: What was the primary driver of the variance in organic growth? - The main driver was pulling forward materials into the first quarter ahead of projected price increases due to tariffs [46][47] Question: How is the international business performing? - The international business has shown organic growth in line with expectations, with a focus on high single-digit growth in inspection services [65] Question: What are the margin expansion opportunities for the year? - Margin expansion will be driven by improving the revenue mix, disciplined customer selection, and ongoing integration efforts [95][96]

Exhibit 99.1 APi Group Reports First Quarter 2025 Financial Results -Record first quarter net revenues of $1.7 billion, representing accelerating year-over-year growth of 7.4% with continued double-digit inspection revenue growth in North American Safety Services- -First quarter reported net income of $35 million and record first quarter adjusted EBITDA of $193 million with year-over-year adjusted EBITDA margin expansion of 30 basis points- -Repurchased $75 million of common stock and authorized new $1 bill ...

Financial Performance Highlights - Net revenues for Q1 2025 reached $1.7 billion, a 7.4% increase compared to $1.601 billion in Q1 2024[17, 21] - Organic net revenue increased by approximately 2% compared to Q1 2024[17] - Adjusted gross profit totaled $545 million, compared to $492 million in Q1 2024, representing a 10.8% increase[19, 21] - Adjusted gross margin expanded by 100 basis points to 31.7% in Q1 2025 from 30.7% in Q1 2024[17, 21] - Adjusted EBITDA for Q1 2025 was $193 million, up from $175 million in Q1 2024, a 10.3% increase[17, 19, 21] - Adjusted EBITDA margin increased by 30 basis points to 11.2% in Q1 2025 from 10.9% in Q1 2024[17, 21] - Adjusted diluted earnings per share (EPS) for Q1 2025 was $0.37, an 8.8% increase compared to $0.34 in Q1 2024[17, 21] - Adjusted free cash flow for Q1 2025 was $86 million, a significant increase from $12 million in Q1 2024[17, 21] - Adjusted free cash flow conversion was 44.6% in Q1 2025, a substantial increase from 6.9% in Q1 2024[17, 21] Segment Performance - Safety Services net revenues increased by 13.4% to $1.267 billion in Q1 2025 from $1.117 billion in Q1 2024[23]