APi Group at Jefferies conference: data centers drive growth plan

On September 9, 2026, APi Group presented its growth strategy at the Jefferies Global Industrials Conference. The company emphasized data centers, inspection, service work, and selective acquisitions as key growth drivers. Management expressed optimism about demand but also highlighted the importance of discipline in avoiding low-quality projects and preserving margins while expanding.

The company's backlog reached a record $5 billion, consisting only of signed contracts, emphasizing a disciplined approach to selecting projects rather than aggressive bookings.

APi Group's 2028 targets include 10% organic growth, 16% EBITDA margins, and more than 60% EBITDA conversion. Data centers remain the primary near-term opportunity, but the firm is also exploring power infrastructure, elevators, security, and international expansion. North American inspection and service segments continue to outperform the market, driven by dedicated sales leaders and technicians.

The company's financial trajectory aligns with its long-term plan, as evidenced by a record backlog and strong revenue growth of 14% over the past year, while its market capitalization stands at $16.64 billion.

Analysts maintain a strong buy consensus on the stock, suggesting a potential 32% upside from current levels. Backlog reached a record above $5 billion, reflecting a disciplined project selection process. 2028 targets include 10% organic growth, 16% EBITDA margins, and over 60% EBITDA conversion. The company's focus on elevator and escalator services, with about $275 million in revenue today and a goal of reaching $1 billion, further highlights its strategic expansion.

North American inspection and service business is growing in the mid-to-upper single digits, ahead of the broader market, with an average ticket size of about $1,000 and service revenue typically running $3 to $4 for every $1 of inspection work over 12 months.