APi Group (NYSE:APG) Conference December 02, 2025 11:20 AM ET Company ParticipantsDavid Jackola - CFOAdam Fee - Head of Investor RelationsConference Call ParticipantsJosh Chen - Business Services AnalystOperatorReady to go.Josh ChenAll right. I think we're live. Good morning, everybody. I'm Josh Chen, Business Services Analyst here at UBS. We're pleased today to have the APi Group join us. They inspect, service, and install building systems such as fire, security, elevators, and HVAC. They also provide infr ...

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]