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Yahoo
6 days ago
- Business
- Yahoo
Construction and Maintenance Services Stocks Q1 In Review: APi (NYSE:APG) Vs Peers
As the Q1 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the construction and maintenance services industry, including APi (NYSE:APG) and its peers. Construction and maintenance services companies not only boast technical know-how in specialized areas but also may hold special licenses and permits. Those who work in more regulated areas can enjoy more predictable revenue streams - for example, fire escapes need to be inspected every five years. More recently, services to address energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and maintenance services companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives incremental demand for these companies' offerings. The 12 construction and maintenance services stocks we track reported a very strong Q1. As a group, revenues beat analysts' consensus estimates by 5.9%. Luckily, construction and maintenance services stocks have performed well with share prices up 21.3% on average since the latest earnings results. Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure. APi reported revenues of $1.72 billion, up 7.4% year on year. This print exceeded analysts' expectations by 4.7%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' organic revenue estimates and full-year EBITDA guidance exceeding analysts' expectations. Russ Becker, APi's President and Chief Executive Officer stated: 'We are off to a strong start in 2025, with a return to traditional levels of organic growth after our thoughtful and selective pruning of certain customer accounts in 2024. We've also continued to expand margins and deploy capital on M&A and share repurchases to drive shareholder value. Our robust backlog, variable cost structure, the statutorily-driven demand for our services, and the diversity of the global end markets we serve combine to provide a protective moat around the business. We believe this positions us well to navigate the dynamic tariff variables in the marketplace. The stock is up 24.5% since reporting and currently trades at $47.04. Is now the time to buy APi? Access our full analysis of the earnings results here, it's free. Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally. Great Lakes Dredge & Dock reported revenues of $242.9 million, up 22.3% year on year, outperforming analysts' expectations by 17.5%. The business had an incredible quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Great Lakes Dredge & Dock scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 19.4% since reporting. It currently trades at $11.40. Is now the time to buy Great Lakes Dredge & Dock? Access our full analysis of the earnings results here, it's free. Founded in Oklahoma, Matrix Service (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets. Matrix Service reported revenues of $200.2 million, up 20.6% year on year, falling short of analysts' expectations by 6.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts' expectations and a significant miss of analysts' EBITDA estimates. Matrix Service delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is flat since the results and currently trades at $12.19. Read our full analysis of Matrix Service's results here. Established in 1994, Orion (NYSE:ORN) provides construction services for marine infrastructure and industrial projects. Orion reported revenues of $188.7 million, up 17.4% year on year. This number topped analysts' expectations by 8.8%. It was an exceptional quarter as it also put up a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. The stock is up 30% since reporting and currently trades at $8.23. Read our full, actionable report on Orion here, it's free. Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services. Limbach reported revenues of $133.1 million, up 11.9% year on year. This result surpassed analysts' expectations by 10%. Overall, it was an exceptional quarter as it also recorded an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. The stock is up 28.5% since reporting and currently trades at $132.51. Read our full, actionable report on Limbach here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
21-05-2025
- Business
- Yahoo
APi Group Announces New Long-Term Financial Targets
-Significant progress towards 13/60/80 targets; expected to achieve 13% or more adjusted EBITDA margin in 2025--Introduces new 10/16/60+ shareholder value creation framework, highlighted by $10B+ of net revenues and adjusted EBITDA margin of 16%+ by 2028E--Expects $3.0B+ of cumulative adjusted free cash flow through 2028--Reaffirms Second Quarter and 2025 Financial Guidance--Announces Three-for-Two Stock Split- NEW BRIGHTON, Minn., May 21, 2025--(BUSINESS WIRE)--APi Group Corporation (NYSE: APG) ("APi" or the "Company") will host its 2025 Investor Day today at the New York Stock Exchange, beginning at 9:00 am ET. At today's event, APi plans to provide updates to its strategic plan and introduce the following long-term 10/16/60+ financial targets: $10+ billion in net revenues by 2028, with mid-single-digit organic growth, 16%+ adjusted EBITDA margin by 2028, 60%+ of net revenues from inspection, service and monitoring, and $3.0+ billion in cumulative adjusted free cash flow through 2028. Russ Becker, APi's President and Chief Executive Officer stated: "We are excited to share our new 10/16/60+ shareholder value creation framework and detail our next phase of profitable growth. All 29,000 of our leaders rallied behind our 13/60/80 targets, and I can't wait to see our businesses embrace our new framework and goals. We believe our proven operating model, built on an inspection and service-first strategy, purpose-driven leadership, and a disciplined approach to capital allocation, positions APi for sustained organic growth, margin expansion and value-accretive M&A. We are off to a strong start in 2025 with positive momentum across the business, allowing us to reaffirm our second quarter and full year 2025 financial guidance. We are confident in our leaders' ability to execute our strategy and deliver against our new 10/16/60+ long-term financial targets, creating value for all of our stakeholders." Announces Three-for-Two Stock Split APi announced that its Board of Directors approved a three-for-two stock split of its outstanding shares of common stock to be effected by the payment of a dividend of one-half of one share of common stock payable on June 30, 2025, for each share of common stock held of record as of the close of business on June 16, 2025. After giving effect to the stock split, the Company will have approximately 415 million shares of common stock outstanding, and will continue to have 4,000,000 shares of Series A preferred stock outstanding. No shares of common stock will be issued to Series A preferred holders in connection with this stock split. However, a conversion of the Series A preferred stock to common stock pursuant to the Company's certificate of incorporation would be adjusted to reflect the stock split. Investor Presentation Webcast Details APi will hold a webcast of its Investor Day presentation beginning at 9:00 a.m. (Eastern Time) on Wednesday, May 21, 2025. You may access the presentation (live or by replay) via webcast by accessing the following URL: A replay of the presentation will be available shortly after completion of the live webcast via the webcast link above. About APi: APi is a global, market-leading business services provider of fire and life safety, security, elevator and escalator, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. We have a winning leadership culture driven by entrepreneurial business leaders to deliver innovative solutions for our customers. More information can be found at View source version on Contacts Investor Relations and Media Inquiries: Adam FeeVice President of Investor RelationsTel: +1 651-240-7252Email: investorrelations@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
21-05-2025
- Business
- Business Wire
APi Group Announces New Long-Term Financial Targets
NEW BRIGHTON, Minn.--(BUSINESS WIRE)--APi Group Corporation (NYSE: APG) ('APi' or the 'Company') will host its 2025 Investor Day today at the New York Stock Exchange, beginning at 9:00 am ET. At today's event, APi plans to provide updates to its strategic plan and introduce the following long-term 10/16/60+ financial targets: $10+ billion in net revenues by 2028, with mid-single-digit organic growth, 16%+ adjusted EBITDA margin by 2028, 60%+ of net revenues from inspection, service and monitoring, and $3.0+ billion in cumulative adjusted free cash flow through 2028. Russ Becker, APi's President and Chief Executive Officer stated: 'We are excited to share our new 10/16/60+ shareholder value creation framework and detail our next phase of profitable growth. All 29,000 of our leaders rallied behind our 13/60/80 targets, and I can't wait to see our businesses embrace our new framework and goals. We believe our proven operating model, built on an inspection and service-first strategy, purpose-driven leadership, and a disciplined approach to capital allocation, positions APi for sustained organic growth, margin expansion and value-accretive M&A. We are off to a strong start in 2025 with positive momentum across the business, allowing us to reaffirm our second quarter and full year 2025 financial guidance. We are confident in our leaders' ability to execute our strategy and deliver against our new 10/16/60+ long-term financial targets, creating value for all of our stakeholders.' Announces Three-for-Two Stock Split APi announced that its Board of Directors approved a three-for-two stock split of its outstanding shares of common stock to be effected by the payment of a dividend of one-half of one share of common stock payable on June 30, 2025, for each share of common stock held of record as of the close of business on June 16, 2025. After giving effect to the stock split, the Company will have approximately 415 million shares of common stock outstanding, and will continue to have 4,000,000 shares of Series A preferred stock outstanding. No shares of common stock will be issued to Series A preferred holders in connection with this stock split. However, a conversion of the Series A preferred stock to common stock pursuant to the Company's certificate of incorporation would be adjusted to reflect the stock split. Investor Presentation Webcast Details APi will hold a webcast of its Investor Day presentation beginning at 9:00 a.m. (Eastern Time) on Wednesday, May 21, 2025. You may access the presentation (live or by replay) via webcast by accessing the following URL: A replay of the presentation will be available shortly after completion of the live webcast via the webcast link above. About APi: APi is a global, market-leading business services provider of fire and life safety, security, elevator and escalator, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. We have a winning leadership culture driven by entrepreneurial business leaders to deliver innovative solutions for our customers. More information can be found at
Yahoo
09-05-2025
- Business
- Yahoo
APG Q1 Earnings Call: Revenue and Profitability Guidance Raised Amid Tariff and Market Uncertainty
Safety and specialty services provider APi (NYSE:APG) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 7.4% year on year to $1.72 billion. The company's full-year revenue guidance of $7.5 billion at the midpoint came in 1.5% above analysts' estimates. Its non-GAAP profit of $0.37 per share was 2.9% above analysts' consensus estimates. Is now the time to buy APG? Find out in our full research report (it's free). Revenue: $1.72 billion vs analyst estimates of $1.64 billion (7.4% year-on-year growth, 4.7% beat) Adjusted EPS: $0.37 vs analyst estimates of $0.36 (2.9% beat) Adjusted EBITDA: $193 million vs analyst estimates of $190.5 million (11.2% margin, 1.3% beat) The company lifted its revenue guidance for the full year to $7.5 billion at the midpoint from $7.4 billion, a 1.4% increase EBITDA guidance for the full year is $1.01 billion at the midpoint, above analyst estimates of $987.7 million Operating Margin: 4.9%, down from 6.2% in the same quarter last year Free Cash Flow was $50 million, up from -$15 million in the same quarter last year Organic Revenue rose 1.9% year on year (-1.4% in the same quarter last year) Market Capitalization: $12.16 billion APi's first quarter results were driven by a return to organic revenue growth, particularly within its Safety Services segment, and continued margin expansion initiatives. CEO Russ Becker highlighted that inspection, service, and monitoring revenues in North America grew at a double-digit pace for the 19th consecutive quarter, reflecting the company's ongoing focus on recurring, statutorily mandated services. The company also benefited from proactive measures to mitigate tariff-related cost increases and disciplined customer selection, which offset softness in its Specialty Services segment caused by adverse weather and project delays. Looking ahead, management lifted its full-year revenue and EBITDA guidance, citing backlog growth and a resilient end-market mix as key drivers. Becker stated that APi's backlog stands at approximately $3.5 billion, providing visibility into future growth. The company's updated guidance incorporates expectations for continued organic revenue gains, further progress in margin expansion, and the ability to pass on cost increases from tariffs. Management remains focused on strategic capital allocation, balancing bolt-on M&A opportunities with share repurchases, and investing in systems and technology upgrades to support long-term scale. APi's leadership attributed first quarter performance to recurring revenue mix improvements, effective margin initiatives, and proactive tariff management. Management also outlined capital allocation priorities and expansion strategies poised to influence future results. Recurring Revenue Focus: Inspection, service, and monitoring in the Safety Services segment drove organic growth, with North America seeing double-digit inspection revenue increases for the 19th quarter in a row. Management reiterated its goal to have 60% of total net revenues from these recurring sources, which are less sensitive to economic cycles. Margin Expansion Initiatives: The company continued to prioritize disciplined customer and project selection, pricing improvements, and integration value capture (notably from the Chubb acquisition). These efforts supported adjusted gross margin gains despite wage inflation and material cost pressures. Tariff Mitigation Measures: Management described how contractual provisions and real-time sourcing allow the business to pass through most tariff-driven material cost increases, particularly in project work. Only about 15% of revenues are directly exposed to tariffs, and leaders have not seen significant project delays as a result. Specialty Services Recovery: Adverse weather weighed on Specialty Services revenues, but the segment's backlog grew 7% organically. Management expects organic growth to resume in the second quarter, supported by new project wins and backlog execution. Capital Allocation Strategy: Free cash flow improvements enabled $75 million of share repurchases in the quarter and the authorization of a new $1 billion buyback program. Management emphasized a continued preference for bolt-on M&A, with targeted expansion into the elevator service market and ongoing integration of recent acquisitions. APi's outlook for the year centers on backlog visibility, recurring revenue growth, and disciplined execution as the main themes shaping guidance for revenue and margins. Backlog-Driven Growth: Management cited a $3.5 billion backlog and expanding project pipeline as underpinning organic revenue growth, particularly in Safety Services and international markets. Recurring Revenue Resilience: The company's emphasis on statutorily mandated inspection and monitoring services is expected to provide stability, helping to offset any volatility in discretionary project work. Tariff and Cost Management Risks: While most tariff-driven cost increases can be passed to customers, management acknowledged ongoing risks from material price fluctuations and macroeconomic uncertainty that could affect project timing and margins. Andy Kaplowitz (Citigroup): Asked about backlog growth and the impact of tariffs; management confirmed backlog rose to $3.5 billion and stated most tariff costs are passed to customers, with minimal volume impact seen so far. Tim Mulrooney (William Blair): Inquired about the drivers behind stronger-than-expected organic growth; CFO David Jackola explained that pulling forward materials ahead of tariff increases was the main factor for the upside. Jasper Bibb (Truist Securities): Queried about tariff exposure and cost trends; management estimated 15% of revenues are exposed and noted recent moderation in hot-rolled coil prices, with risk mitigation steps in place. Andy Wittmann (Baird): Sought insight on international organic growth and weather impacts; leadership reported international growth met expectations and estimated weather cost the Specialty segment about five days of lost work. Stephanie Moore (Jefferies): Asked about margin expansion drivers and sensitivities; management highlighted mix shift toward recurring revenue, pricing discipline, and ongoing Chubb integration as key factors, with margin improvement expected to continue barring major demand shifts. In the coming quarters, StockStory analysts will monitor (1) the pace of backlog conversion into revenue, especially within Specialty Services as organic growth is forecasted to return; (2) the effectiveness of tariff mitigation strategies and the company's ability to maintain or expand margins despite material cost volatility; and (3) the contribution of recent and future bolt-on acquisitions, particularly the initial results from the elevator service platform. The rollout of new systems and technology investments will also be a focus, as management views these as important for long-term scalability. APi currently trades at a forward P/E ratio of 20.8×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-05-2025
- Business
- Yahoo
APi (NYSE:APG) Reports Upbeat Q1, Stock Soars
Safety and specialty services provider APi (NYSE:APG) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 7.4% year on year to $1.72 billion. The company's full-year revenue guidance of $7.5 billion at the midpoint came in 1.5% above analysts' estimates. Its non-GAAP profit of $0.37 per share was in line with analysts' consensus estimates. Is now the time to buy APi? Find out in our full research report. Revenue: $1.72 billion vs analyst estimates of $1.64 billion (7.4% year-on-year growth, 4.7% beat) Adjusted EPS: $0.37 vs analyst estimates of $0.36 (in line) Adjusted EBITDA: $193 million vs analyst estimates of $190.5 million (11.2% margin, 1.3% beat) The company lifted its revenue guidance for the full year to $7.5 billion at the midpoint from $7.4 billion, a 1.4% increase EBITDA guidance for the full year is $1.01 billion at the midpoint, above analyst estimates of $988 million Operating Margin: 4.9%, down from 6.2% in the same quarter last year Free Cash Flow was $50 million, up from -$15 million in the same quarter last year Organic Revenue rose 1.9% year on year (-1.4% in the same quarter last year) Market Capitalization: $10.45 billion Russ Becker, APi's President and Chief Executive Officer stated: 'We are off to a strong start in 2025, with a return to traditional levels of organic growth after our thoughtful and selective pruning of certain customer accounts in 2024. We've also continued to expand margins and deploy capital on M&A and share repurchases to drive shareholder value. Our robust backlog, variable cost structure, the statutorily-driven demand for our services, and the diversity of the global end markets we serve combine to provide a protective moat around the business. We believe this positions us well to navigate the dynamic tariff variables in the marketplace. Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, APi grew its sales at an exceptional 13.5% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. APi's recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.2% over the last two years was well below its five-year trend. We can dig further into the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, APi's organic revenue averaged 1.1% year-on-year growth. Because this number is lower than its normal revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. This quarter, APi reported year-on-year revenue growth of 7.4%, and its $1.72 billion of revenue exceeded Wall Street's estimates by 4.7%. Looking ahead, sell-side analysts expect revenue to grow 4.8% over the next 12 months. Although this projection implies its newer products and services will spur better top-line performance, it is still below the sector average. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. APi was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.5% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. On the plus side, APi's operating margin rose by 4.7 percentage points over the last five years, as its sales growth gave it operating leverage. In Q1, APi generated an operating profit margin of 4.9%, down 1.4 percentage points year on year. Since APi's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. APi's EPS grew at a decent 8.9% compounded annual growth rate over the last five years. Despite its operating margin expansion during that time, this performance was lower than its 13.5% annualized revenue growth, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings. Diving into the nuances of APi's earnings can give us a better understanding of its performance. A five-year view shows APi has diluted its shareholders, growing its share count by 63.7%. This dilution overshadowed its increased operating efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For APi, its two-year annual EPS growth of 18% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history. In Q1, APi reported EPS at $0.37, up from $0.34 in the same quarter last year. This print beat analysts' estimates by 2.6%. Over the next 12 months, Wall Street expects APi's full-year EPS of $1.88 to grow 12.5%. We were impressed by how significantly APi blew past analysts' organic revenue expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 5.7% to $39.95 immediately after reporting. APi had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
