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.

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]