NYSE:APG
APi Group Corp
A leading provider of aviation maintenance, repair, and overhaul services with a robust global footprint.
Key Metrics
Investment Thesis
Bull Case
Strong revenue growth of nearly 13% year-over-year demonstrates successful market expansion and pricing power within the aviation services niche. The substantial cash balance of $912M provides a solid defensive moat, allowing for strategic acquisitions that drive long-term organic growth without immediate liquidity concerns.
Bear Case
High levels of goodwill at $3.17B represent a significant intangible asset that could be impaired if acquisition synergies fail to materialize or integration costs escalate. The company's reliance on the cyclical aviation industry means economic downturns in air travel could rapidly reduce demand for expensive maintenance and overhaul services.
About APi Group Corp
APi Group Corp provides industrial services including maintenance, repair, and overhaul (MRO) solutions primarily for the aviation sector. The company leverages its extensive global network to deliver specialized engineering services, aftermarket parts, and supply chain management to airlines and MRO providers worldwide.
Analysis
Management Discussion
Operating profit of $554M reflects strong execution against a backdrop of rising revenue that grew to $7.91B, outpacing inflation in the industrial services sector. While cash flow from operations remains robust at $759M, the company continues to invest heavily in acquisitions totaling $186M to expand its service capabilities and geographic presence.
Industry Overview
The global aerospace services market is characterized by high barriers to entry due to stringent safety regulations and the need for specialized technical certifications. As aircraft fleets age, the demand for MRO services is expected to remain resilient, favoring established players with proven track records and global reach.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.56B | $6.93B | $7.02B | $7.91B |
| Cost of Revenue | $4.84B | $4.99B | $4.84B | $5.42B |
| Gross Profit | $1.71B | $1.94B | $2.18B | $2.49B |
| Operating Expenses | $1.55B | $1.58B | $1.69B | $1.93B |
| Operating Income | $162.0M | $359.0M | $484.0M | $554.0M |
| G&A | $1.55B | $1.58B | $1.69B | $1.93B |
| Stock-Based Comp | $18.0M | $29.0M | $32.0M | $44.0M |
| Depreciation | $77.0M | $79.0M | $80.0M | $85.0M |
| Amortization | $227.0M | $224.0M | $222.0M | $242.0M |
| Other OpEx | $0 | $0 | $0 | $0 |
| Non-Operating Income | $-69.0M | $-127.0M | $-154.0M | $-141.0M |
| Interest Expense | $125.0M | $145.0M | — | — |
| Pre-Tax Income | $93.0M | $232.0M | $330.0M | $413.0M |
| Income Tax | $20.0M | $79.0M | $80.0M | $111.0M |
| Continuing Ops | $73.0M | $153.0M | $250.0M | $302.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $73.0M | $153.0M | $250.0M | $302.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $73.0M | $153.0M | $250.0M | $302.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.65B | $2.58B | $2.66B | $3.23B |
| Cash & Equivalents | $605.0M | $479.0M | $499.0M | $912.0M |
| Accounts Receivable | $1.31B | $1.40B | $1.44B | $1.56B |
| Inventory | $163.0M | $150.0M | $143.0M | $145.0M |
| Prepaid Expenses | $110.0M | $122.0M | $119.0M | $125.0M |
| Other Current Assets | $461.0M | $436.0M | $453.0M | $484.0M |
| Long-Term Assets | $5.44B | $5.01B | $5.49B | $5.71B |
| PP&E (Net) | $407.0M | — | — | — |
| Intangibles | $1.78B | $1.62B | $1.66B | $1.58B |
| Goodwill | $2.38B | $2.47B | $2.89B | $3.17B |
| Operating Leases | $222.0M | $233.0M | $268.0M | $301.0M |
| Other LT Assets | $644.0M | $684.0M | $672.0M | $655.0M |
| Total Assets | $8.09B | $7.59B | $8.15B | $8.94B |
| Current Liabilities | $1.92B | $1.81B | $1.89B | $2.15B |
| Accounts Payable | $490.0M | $472.0M | $497.0M | $526.0M |
| Current Debt | — | $5.0M | $4.0M | $5.0M |
| Current Leases | $67.0M | $69.0M | $84.0M | $93.0M |
| Deferred Revenue | $463.0M | $526.0M | $590.0M | $694.0M |
| Other Current Liab | $901.0M | $735.0M | $710.0M | $832.0M |
| Long-Term Liabilities | $3.25B | $2.92B | $3.31B | $3.38B |
| Long-Term Debt | — | $2.32B | $2.75B | $2.75B |
| LT Operating Leases | $154.0M | $164.0M | $187.0M | $211.0M |
| Other LT Liab | $3.09B | $429.0M | $378.0M | $413.0M |
| Total Liabilities | $5.17B | $4.72B | $5.20B | $5.53B |
| Shareholders' Equity | $2.92B | $2.87B | $2.95B | $3.41B |
| Paid-In Capital | $2.56B | $2.57B | $3.31B | $3.30B |
| Retained Earnings | $-164.0M | $-11.0M | $215.0M | $517.0M |
| AOCI | $-267.0M | $-490.0M | $-567.0M | $-405.0M |
| Total L&E | $8.09B | $7.59B | $8.15B | $8.94B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $73.0M | $153.0M | $250.0M | $302.0M |
| Non-Cash Adjustments | $-339.0M | $121.0M | $181.0M | $119.0M |
| Working Capital Changes | $536.0M | $240.0M | $189.0M | $338.0M |
| Cash from Operations | $270.0M | $514.0M | $620.0M | $759.0M |
| Capital Expenditures | $79.0M | $86.0M | $84.0M | $96.0M |
| Cash from Investing | $-2.90B | $-115.0M | $-829.0M | $-254.0M |
| Debt Issuances | $1.10B | $0 | $850.0M | $0 |
| Debt Repayments | $34.0M | $484.0M | $437.0M | $7.0M |
| Share Buybacks | $44.0M | $41.0M | $0 | $75.0M |
| Cash from Financing | $1.76B | $-532.0M | $245.0M | $-121.0M |
| FX Effect | $-9.0M | $6.0M | $-15.0M | $28.0M |
| Net Change in Cash | $-884.0M | $-127.0M | $21.0M | $412.0M |
| Beginning Cash | $1.49B | $607.0M | $480.0M | $501.0M |
| Ending Cash | $607.0M | $480.0M | $501.0M | $913.0M |
Frequently Asked Questions
How does APi Group Corp make money?
The company operates through core segments focused on aircraft engine overhaul and maintenance, airframe repair services, and specialized supply chain solutions. Revenue streams include direct service contracts with major airlines, parts sales for aftermarket components, and strategic partnerships within the aerospace ecosystem.
What are the main risks for APG?
Fluctuations in raw material costs and commodity prices could impact gross margins significantly. Regulatory changes in aviation safety standards may increase compliance costs or restrict operational scope. Dependence on a concentrated client base of major airlines exposes the company to contract renewal risks.
What is APG's competitive advantage?
APi Group benefits from a highly specialized workforce with deep technical expertise in complex aviation systems. The company's global reach allows it to serve clients across multiple time zones, while its proprietary supply chain logistics provide critical uptime solutions for airline fleets.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.