APi Group smashes 2025 targets with record EBITDA margins and 21.9% profit growth

APi Group Corporation has reported strong financial results for 2025, with significant growth in revenue and profitability. The company's full-year adjusted EBITDA margin reached 13.2%, exceeding its long-term target of 13%. This performance was driven by higher recurring revenue and disciplined pricing across key segments.

The Safety Services Segment saw around 7% organic revenue growth for the year. This increase came from stronger inspection, service, and monitoring revenues, along with better pricing strategies. The segment's quarterly margins also improved as a result.

Net revenue for the quarter climbed to $2.12 billion, up 13.8% year over year, with organic growth of 11.1%. The rise was supported by higher inspection, service, and monitoring income, as well as favourable project revenues. Adjusted EBITDA for the quarter grew by 21.9%, reaching a margin of 13.9%—a 90 basis point improvement from the previous year.

The Specialty Services Segment performed particularly well, with quarterly revenue jumping 20.7% to $695 million. Segment earnings surged by 40.7%, while margins expanded by 190 basis points. This growth was attributed to increased project volumes and better overhead management.

Recurring revenue now makes up 54% of the company's total, up from 40% in 2021. This shift has strengthened financial stability, with inspection, service, and monitoring activities leading the way. Data centres also contributed, accounting for about 8% of total revenue and expected to reach 10% by 2026.

Adjusted gross margin improved to 32.2%, rising by 110 basis points due to better customer selection and pricing. The company's backlog remains strong, exceeding $4 billion. Net debt to adjusted EBITDA stood at 1.6x, well below the long-term target, giving the company flexibility for future investments.

Adjusted diluted earnings per share (EPS) for the quarter rose to $0.44, a 29.4% increase from the previous year. This growth was driven by higher revenue, margin expansion, and lower interest costs, though partially offset by a higher share count. Full-year adjusted free cash flow reached $836 million, up $168 million from 2024, achieving an 80% conversion rate of adjusted EBITDA.

APi Group's 2025 results highlight strong revenue growth, improved margins, and a solid financial position. The company's focus on recurring revenue streams and disciplined pricing has boosted profitability. With a healthy backlog and low debt levels, the business is well-placed for continued expansion in key areas like data centres and specialty services.