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APi Group beats Q3 revenue estimates on inspection, service demand, raises FY outlook

By Reuters News


Overview

  • US safety and specialty services firm's Q3 revenue rose 22.5%, beating analyst expectations

  • Adjusted EPS for Q3 increased 22% to $0.50, beating analyst expectations

  • Company raised full-year 2026 revenue and adjusted EBITDA guidance


Outlook

  • APi raises 2026 net revenue guidance to $9.2-$9.25 bln from $8.88-$9.03 bln

  • Company lifts 2026 adjusted EBITDA outlook to $1.24-$1.26 bln from $1.21-$1.25 bln

  • APi expects 2026 adjusted free cash flow conversion of 110% based on adjusted net income


Result Drivers

  • INSPECTION, SERVICE, MONITORING DEMAND - Co said strong demand across inspection, service, and monitoring businesses drove Q3 revenue growth

  • PROJECT ACTIVITY - Robust growth in project revenues contributed to overall revenue increase, per CEO Russ Becker

  • PRICING IMPROVEMENTS - Co attributed part of revenue growth to pricing improvements in both segments


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$2.55 bln

$2.40 bln (12 Analysts)

Q3 Adjusted EPS

Beat

$0.50

$0.47 (12 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the construction & engineering peer group is "buy."

  • Wall Street's median 12-month price target for APi Group Corporation is $53.00, about 28.2% above its October 28 closing price of $41.34

  • The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago


Reuters Recommended Reads

  • Oct 29 - Quanta Services Q3 revenue beats on broadening demand; raises 2026 outlook

  • Oct 28 - MYR Group Q3 revenue rises on C&I segment strength

  • Oct 27 - Illinois Tool Works Inc beats Q3 EPS estimates, raises 2026 outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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