APi Group Q2 revenue beats estimates; raises 2026 outlook

Overview

• US business services firm's Q2 revenue rose 13%, beating analyst expectations

• Adjusted EPS for Q2 increased 13% and beat analyst expectations

• Company raised full-year 2026 guidance for net revenues and adjusted EBITDA

Outlook

• APi raises full-year 2026 net revenue guidance to $8.875-$9.025 bln

• Company lifts full-year 2026 adjusted EBITDA forecast to $1.205-$1.245 bln

• APi expects Q3 net revenues of $2.375-$2.425 bln and adjusted EBITDA of $325-$335 mln

Result Drivers

• INSPECTION, SERVICE MONITORING GROWTH - Co said Q2 revenue growth was driven by continued strength in inspection, service, and monitoring revenues

• PROJECT ACTIVITY - Robust project activity contributed to revenue growth in both Safety Services and Specialty Services segments

• PRICING DISCIPLINED SELECTION - Margin expansion was attributed to pricing improvements and disciplined customer and project selection

Company press release: ID:nBw4MVvtma

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 10 "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 Corp is $53.00, about 37.8% above its July 29 closing price of $38.45

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

• July 30 - ADT Q2 revenue beats on higher security installations

• July 29 - France's Bureau Veritas H1 profit rises, lifts FY organic revenue growth forecast

• July 30 - Quanta Services Q2 revenue jumps 41%, beats estimates

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(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.)