APi Group 2025 Q2 Earnings Beats Expectations with Net Income Up 11.6%

APi Group (APG) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. APi Group exceeded expectations with a notable increase in net income, rising 11.6% year-over-year to $77 million. The company's revenue growth was robust, with a 15.0% increase to $1.99 billion compared to the same period last year. APi Group also raised its full-year guidance, projecting net revenues between $7.65 billion and $7.85 billion, reflecting 4% to 7% organic growth. This positive performance underscores the company's strong operational execution and strategic focus.

Revenue

The total revenue of APi Group increased by 15.0% to $1.99 billion in 2025 Q2, up from $1.73 billion in 2024 Q2. In the Safety Services segment, revenue reached $1.36 billion, while the Specialty Services sector brought in $629 million. The Corporate and Eliminations segment reported a slight revenue change of $-1 million, contributing to the consolidated total of $1.99 billion.

Earnings/Net Income

APi Group's EPS rose 13.3% to $0.17 in 2025 Q2 from $0.15 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $77 million in 2025 Q2, marking 11.6% growth from $69 million in 2024 Q2. This reflects a solid financial performance and a positive growth trend.

Post-Earnings Price Action Review

The strategy of buying APi Group (APG) shares after a revenue raise quarter-over-quarter upon the financial report release date and holding for 30 days has delivered exceptional returns over the past three years. It achieved a remarkable 93.91% return, significantly outperforming the benchmark return of 50.19%. The excess return of 43.72% indicates the strategy's proficiency in capitalizing on positive earnings surprises. The Sharpe ratio of 0.66 suggests a commendable risk-adjusted return. Despite the strategy's volatility of 37.72%, which indicates periods of significant market fluctuation, the maximum drawdown remained at 0%, showcasing its resilience. This strategy underscores the potential benefits of tactical investment decisions based on earnings reports and revenue growth.

CEO Commentary

Russell Becker, President and CEO of APi Group, expressed gratitude to the company's 29,000 leaders and emphasized that safety is the organization's top value, extending beyond physical safety to mental and emotional well-being. He highlighted the achievement of record second-quarter results, driven by a 15% increase in net revenues and consistent margin expansion across segments. Becker reaffirmed the company's focus on its long-term financial targets, including a 13% adjusted EBITDA margin in 2025 and a new 10/16/60+ framework. He remains optimistic about executing the strategy and delivering value for stakeholders, driven by strong backlog and ongoing growth in inspection, service, and monitoring businesses.

Guidance

The company expects full-year net revenues to range from $7.65 billion to $7.85 billion, reflecting a 4% to 7% organic growth. Adjusted EBITDA is projected between $1.005 billion and $1.045 billion, indicating approximately 15% growth at the midpoint. For the third quarter, APi Group anticipates reported net revenues of $1.985 billion to $2.035 billion, with organic growth of 5% to 7%, and adjusted EBITDA of $270 million to $280 million, resulting in growth of approximately 9% to 13%.

Additional News

In recent developments, APi Group announced a significant strategic move with the execution of a three-for-two stock split on June 30, 2025. This decision was made to enhance the liquidity of its shares and provide greater accessibility to investors. Additionally, the company reaffirmed its new long-term financial targets, including $10 billion of net revenues and a 16% adjusted EBITDA margin by 2028. APi also plans to host an Investor Day to provide updates on its strategic plan. These initiatives reflect APi Group's commitment to delivering value to its stakeholders and focusing on sustained growth and expansion.