APi Group (APG) said data center construction is generating unprecedented demand for its inspection and specialty services, buoying the company well above the rest of the industrials sector, which has been flat to declining.
Speaking at the Jefferies Global Industrials Conference on Sept. 9, 2026, CEO Russ Becker called the data center market "unprecedented" and unlike anything he has seen in his career. The company reported a record backlog exceeding $5 billion across only signed contracts, and trailing-twelve-month revenue reached $8.44 billion, up 14% year over year. Market capitalization stood at $16.64 billion; APG shares closed at $37.38, down 1.66%.
The firm set 2028 long-term targets of $10 billion in revenue, 10% organic growth, 16% EBITDA margins, and more than 60% EBITDA conversion. Gross profit margin in the most recent period was 31.4%, and management said every branch should aim for 20% margins.
Specialty-segment demand was described as broad-based. Beyond data centers, APi cited critical national infrastructure projects funded through BEAD programs—including water treatment plants and fiber optic cabling—as well as advanced manufacturing buildouts such as Eli Lilly's GLP-1 investments in Indiana and Milwaukee.
The elevator and escalator services business currently generates about $275 million in revenue, with a long-term goal of building that into a $1 billion platform. The company completed its first pure-play bolt-on acquisition in the elevator space in 2024 and pursued acquisitions in a disciplined, "walk before you run" integration approach.
In inspection services, the average ticket size is roughly $1,000, though larger engagements such as those with Meta can reach $200,000. Service revenue typically runs $3 to $4 for every dollar of inspection work over a 12-month period, with annual pricing growth of 3% to 5%. The inspection sales model relies on dedicated Inspection Market Leaders and technicians who are not diverted to project work. Fully ramped inspection sales leaders require approximately four inspectors and 12 to 16 total staff, including three to four service technicians per inspector.
APi operates in markets where no single firm holds more than 10% share in any given U.S. market, according to the company. The firm employs roughly 32,000 to 33,000 people worldwide and opened a global capability center in Bangalore to improve scale and procurement. In Western Europe, the Wtech acquisition added fire suppression capabilities. An international business experienced a flat backlog in late 2025 during a customer and project selection reset.
Management emphasized a strict internal hiring and M&A culture policy referred to as the "no asshole rule." Wall Street analysts maintain a strong buy consensus on APG, with price targets implying roughly 32% upside from current levels.
