APis Profit Jumps But Shares Sink on Wider Losses

APi Group (APG) reported mixed results for Q4 2025, with net income rising sharply but per-share losses widening. The company’s $97 million net income exceeded expectations, while management reiterated confidence in long-term growth targets.

Revenue

The total revenue of APi Group increased by 13.8% to $2.12 billion in 2025 Q4, up from $1.86 billion in 2024 Q4.

Earnings/Net Income

APi Group's losses deepened to $1.13 per share in 2025 Q4 from a loss of $0.10 per share in 2024 Q4 (1013.7% wider loss). Meanwhile, the company's profitability strengthened with net income of $97 million in 2025 Q4, marking 44.8% growth from $67 million in 2024 Q4. Despite the widened EPS loss, the company’s net income growth indicates improved profitability.

Price Action

The stock price of APi Group has edged down 1.63% during the latest trading day, has edged up 1.36% during the most recent full trading week, and has climbed 7.00% month-to-date.

Post-Earnings Price Action Review

The strategy of buying APG shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days delivered strong returns over the past three years. The strategy achieved an overall return of 163.12%, surpassing the benchmark return of 56.69% by 106.43%. With a CAGR of 27.61% and a maximum drawdown of 37.30%, the strategy indicated a relatively high Sharpe ratio of 0.98, suggesting good risk-adjusted returns. The volatility of the strategy was 28.14%, which may be considered high, but the overall performance highlights the effectiveness of the strategy in capturing gains following earnings drops.

CEO Commentary

Russell Becker, CEO of APi Group, highlighted 2025’s record performance, with $7.9 billion in revenue growth from $3.9 billion in 2021, driven by inspection, service, and monitoring (ISM) expansion from 40% to 54% of revenue. He emphasized margin improvements, including 13.2% adjusted EBITDA margins and 80% free cash flow conversion, exceeding 2021 targets. Strategic priorities included disciplined M&A ($580 million deployed across 33 acquisitions since 2023) and cultural alignment in acquisitions. Becker expressed optimism about 2026, citing strong backlog ($4 billion), robust project demand in data centers and advanced manufacturing, and AI adoption to enhance field operations. He reiterated confidence in achieving 10/16/60+ targets ($10 billion revenue, 16% EBITDA margins, 60% ISM revenue by 2028) through organic growth, margin expansion, and strategic M&A.

Guidance

APi Group guided to 2026 full-year revenue of $8.4–8.6 billion (organic growth of 5% at midpoint), adjusted EBITDA of $1.14–1.20 billion (13.8% margin at midpoint, +60 bps vs. 2025), and adjusted free cash flow conversion of 75% of EBITDA. First-quarter revenue is expected at $1.875–1.975 billion (organic growth of 4–10%), with adjusted EBITDA of $225–235 million (11.9% margin at midpoint, +70 bps vs. 2025). Capital allocation priorities include maintaining net leverage below 2.5–3x, pursuing accretive M&A, and opportunistic share repurchases. 2026 interest expense is projected at $130 million, depreciation at $90 million, CAPEX at $105 million, and an effective tax rate of 23%.

Additional News

APi Group executed $580 million in M&A activity since 2023, acquiring 33 businesses to bolster its inspection, service, and monitoring (ISM) segment. CEO Russell Becker announced leadership changes, transitioning Adam Fee from Investor Relations to finance leadership within the elevator business while appointing Adam Walters to lead IR. The company reiterated capital allocation priorities, including maintaining net leverage below 2.5–3x and pursuing opportunistic share repurchases. These moves underscore APi Group’s focus on disciplined growth and operational integration to meet its 2028 targets.