APi Group Conference Call Summary Company Overview - **Company Name**: APi Group (NYSE: APG) - **Industry**: Building systems services (fire, security, elevators, HVAC) and infrastructure services for utility and telecom markets - **Revenue Growth**: Increased from approximately $4 billion in 2019 to about $8 billion currently [6][7] - **Acquisition Strategy**: Completed around 200 acquisitions since 2002, focusing on organic growth and bolt-on M&A [6][7] Core Business Strategies - **Inspection-First Strategy**: Focus on inspections as a primary revenue driver, leading to follow-on service work [12][13] - **Revenue Composition**: Approximately 54%-55% of revenue comes from inspection services, with a goal to increase this to 60% or more [13][25] - **Gross Margin**: Inspection services yield gross margins that are 10 percentage points higher than contract work [13][25] Financial Goals and Performance - **2028 Financial Goals**: Targeting a 13% adjusted EBITDA margin by the end of 2025, with a long-term goal of 16% [9][53] - **Organic Revenue Growth**: Expected mid to upper single-digit growth in inspection services, with a mix of price increases and market share gains [25][52] - **Project Growth**: Strong project growth in 2025 driven by diverse end markets including data centers, healthcare, and advanced manufacturing [32][33] Market Dynamics - **Competitive Landscape**: The inspection market is highly fragmented with many small, family-owned businesses, providing APi a competitive edge through scale and dedicated sales efforts [14][15] - **Private Equity Presence**: Private equity firms are active in the market, driving up multiples for larger platforms, but APi differentiates itself by offering a supportive environment for acquired businesses [23][24] Operational Insights - **Sales Organization**: A dedicated inspection sales team has been established to drive revenue from existing buildings, achieving double-digit organic growth for over 20 quarters [17][18] - **Technology Investments**: APi is layering technology over its workforce to enhance efficiency and service delivery [20][21] M&A Strategy - **Bolt-On Acquisitions**: Targeting around $250 million in bolt-on M&A annually, focusing on small fire and life safety companies [23][68] - **Platform Deals**: Disciplined approach to larger acquisitions, ensuring geographic, strategic, and cultural fit [72][73] Portfolio Management - **Business Evaluation**: Ongoing assessment of business units against the 10-16-60 framework to ensure they contribute positively to overall goals [75] Conclusion - APi Group is positioned for continued growth through its inspection-first strategy, robust project pipeline, and disciplined M&A approach, with a strong focus on maintaining high margins and operational efficiency. The company aims to leverage its scale and culture to achieve its long-term financial objectives.

Financial Performance & Strategy - APi Group's net revenues for 2024 were $7018 million, with Safety Services contributing 68% and Specialty Services 32%[9, 10] - Adjusted EBITDA for 2024 reached $893 million, with Safety Services accounting for 75% and Specialty Services 25%[11, 12] - The company aims for a long-term target of 60% of net revenues from inspection, service, and monitoring activities[21] - APi Group targets an Adjusted EBITDA margin of 16%+ and $3 billion+ cumulative adjusted free cash flow through 2028[158] - The company anticipates approximately 5% organic growth and $250 million annual spending on bolt-on M&A, targeting 7%+ reported CAGR through 2028[146] Safety Services - Safety Services: North America holds the 1 market share in North American fire protection[45] - Safety Services: North America has achieved 19 consecutive quarters of double-digit organic growth in inspection revenues[48] - Safety Services: International is on track to deliver $100+ million in value capture opportunities and achieve a 15%+ adjusted segment earnings margin by 2025[70, 72] Specialty Services - Specialty Services reported a gross margin increase from 15.9% in 2022 to 19.7% in 2024[109] - Specialty Services backlog shows organic growth, reaching 7% in Q1 2025[112] M&A Strategy - APi Group has a proven acquisition strategy with nearly 150 transactions in the last 20 years[121] - Bolt-on acquisitions have been completed at an average adjusted EBITDA multiple of less than 6x each year[121]