Api Group at 45th Annual William Blair Growth Stock Conference: Strategic Vision Unveiled

On Thursday, 05 June 2025, Api Group (NYSE:APG) presented its strategic roadmap at the 45th Annual William Blair Growth Stock Conference. CEO Russ Becker and CFO David Jacola outlined ambitious growth targets, aiming for $10.4 billion in revenue by 2028 with 16% EBITDA margins. The discussion highlighted the company’s "inspection first" strategy and leadership development focus, alongside financial strategies and potential challenges.

Key Takeaways

• Api Group aims to reach $10.4 billion in revenue by 2028, focusing on inspection services.
• The company plans to maintain a net leverage ratio of 2.5 to 3 times adjusted EBITDA.
• Free cash flow generation is expected to exceed $3 billion by 2028.
• M&A activity will include both bolt-on and larger acquisitions.
• Leadership development is a core component of the company culture.

Financial Results

• Revenue Goals:

- Targeting $10.4 billion in revenue by 2028.

- Current base revenue is $7 billion, with an organic growth target of 5% annually.

- Plans include $1 billion from larger acquisitions and $1 billion from bolt-on acquisitions.

• Organic Growth:

- Historical organic growth rate of 7% from 2011 to 2019.

- Service side expected to grow in the mid to upper single digits until 2028.

• Revenue Mix:

- Currently, 54% of revenue comes from inspection services and monitoring.

- Aim to increase this to 60% by 2025 and maintain it beyond.

• EBITDA Margin:

- Targeting 13% adjusted EBITDA margin by 2025, with a goal of 16% by 2028.

- Achieved a margin expansion of about 80 basis points annually over the past three years.

• Free Cash Flow:

- Expected to generate over $3 billion in free cash flow by 2028.

- Free cash flow conversion targeted at 75% of adjusted EBITDA.

Operational Updates

• Inspection First Strategy:

- Focus on acquiring inspection contracts to drive additional service and project work.

- Inspection sales have increased at a double-digit rate for 19 consecutive quarters.

• Leadership Development:

- Core purpose is "building great leaders" with initiatives like the IME leader learning module and a leadership podcast.

• Branch Performance:

- Median margin performance in North American branches is 17%.

- Goal to achieve 20% margins across all branches.

Future Outlook

• 2028 Targets:

- $10 billion in revenue, 16% EBITDA margins, and $3 billion in free cash flow.

• Growth Drivers:

- 5% organic growth annually.

- $250-$300 million in bolt-on acquisitions per year.

- One to two larger, transformative acquisitions.

• Margin Improvement:

- Investments in systems and technology to improve SG&A leverage.

- Focus on inspection service and monitoring for higher gross margins.

• Capital Allocation:

- Investments in organic growth, M&A, and opportunistic share buybacks.

Conclusion

For a detailed understanding of Api Group’s strategic plans, readers are encouraged to refer to the full transcript provided below.

Full transcript - 45th Annual William Blair Growth Stock Conference:

Tim Mulrooney, Research Analyst, William Blair: We’re good to go. Thanks everyone for joining. My name is Tim Mulrooney. I’m the research analyst here at William Blair that covers API Group, and I’m required to inform you that for a complete list of research disclosures or potential conflicts of interest, please visit our website at WilliamBlair.com. That’s the last time I have to do that this this week.

So API is a leader of fire and life safety solutions, and they’ve got a specialty infrastructure business as well. We picked up coverage last year. So this is the first time that we’re hosting them at at our conference. And I’m I’m really excited here to have CEO, Russ Becker, and CFO, David Jacola joining us today, also head of IR, Adam. And I I just wanna start out by laying the groundwork here.

I think this is an interesting time for the company. We’re coming off the heels of their investor day where they laid out some ambitious but achievable medium term targets. And, what I like about these targets is that there’s a clear connection between the financials and and the overall strategy, which I’m sure we’re gonna dig into. So, I think we’ll start out with some prepared remarks, and then we’re gonna jump into more of a fireside. And we’ve got a a breakout after that, but because this is the last presentation of the day, I think the breakout will just stay in here, and I can kick some questions to to to you all, if there’s interest.

But at this point, I’ll turn it over to Russ. Thanks thanks for being here.

Russ Becker, CEO, API Group: Thanks, Tim. Thanks for having us, and thank you, everybody for joining us. And for those of you that are shareholders, thank you for your support. And for those of you that are new to this story, hopefully, can pique your interest in what I’m obviously biased and think is a absolutely great company. So just really quickly, API is, you know, north of a $7,000,000,000 firm today.

Roughly 70% of our net revenues come from safety services, which is fire life safety, security, and newly entered into the escalator and elevator space. And one of the reasons that we really like the like this space is the regulatory requirements for, you know, your typical commercial office building. Hotels like this are not great examples because they’re super complicated, but the life fire life safety system in facilities like this are required by law to be inspected at least annually, both on the fire sprinkler and the fire alarm side. Some a facility like this because of the complexities associated with it and it’s got fire pumps, it’s gonna be more often than that, But we’re not gonna spend any time on with that. The other 30% of our business comes from specialty services.

And as Tim said, that’s primarily infrastructure type work, replacing, you know, existing potable water systems, natural gas distribution systems. We do some telecommunication, broadband, fiber optic work, a lot of industrial maintenance work. And at the first of the year this year, we resegmented and moved our HVAC businesses into our specialty services business. One of the things that makes our business a little bit unique is our core purpose. And our core purpose is building great leaders.

Our culture as an organization, as a company, is centered on our purpose of of building great leaders. And I’ve been with API since, well, I started off when one of our operating companies in 1995, and some of you people, I’m not that old. But and came to the parent company in 02/2002. And, literally, I was promoted from company president, so to speak, to operating group leader, from a Friday till Monday. And my initial you know, when I started in 02/2002, the company was, you know, not performing very well.

And my immediate, reaction was I need to help my peers, you know, fix their businesses. And until I realized that I needed to make sure that we had great leaders at the con company level, I really wasn’t, able to be effective, you know, in my role. And, in 02/2003, we started a journey centered on leaders building great leaders and leadership development in our company that focused at first on the company president level, and then it went to the branch level, and then it went to the department level to a place where we are today where we say at API that everyone everywhere is a leader. You know, why invest in API? And I think there’s a lot of good reasons to invest in API.

Number one, we feel that our stock is, you know, still today undervalued, and we think that there’s a tremendous opportunity for value creation there. You know, highly fragmented industry. We have a long track record of organic growth. We continue to shift our business mix to higher higher margin recurring revenue inspection service and monitoring as we describe it. We think that there’s a, significant margin accretion opportunity still within the business that we’ll share with you in just a few minutes.

And, asset light, low CapEx, generates a ton of cash, and we feel like we’re a good capital deploy capital wisely. We’ve always said that our long term targets are to, you know, keep our net leverage in that two and a half times range, and, we’ve obviously done that. M and a is a big part of our story, which we’ll share with you in a few few more minutes. And if our stock’s undervalued, we’re not afraid to, to buy back shares, and we were in the market in the first quarter of this this year. So this slide, just a couple of quick points.

If you look at that period of time from 2011 to 02/2019, there’s two two important things to share. At, going all the way back to 02/2011, our revenue mix, was more like eighty twenty, and that would be 80% project work and 20% inspection service and monitoring. Today, we sit at 54 inspection service and monitoring, and 40% of our revenue comes from project work. And we want the project work that we do execute each year to come from, the relationships that we build, by doing a great job with our inspection service and monitoring accounts. Next point I would make is that, our business in that period from 2011 to 2019 grew organically at 7%.

And, we believe that this business, even though as we continue to get bigger, has opportunity to grow organically in that mid single digit, range. So three years ago, we laid out what we called our thirteen sixty eighty shareholder value creation, model. And, our goal was, you know, to be a 13% adjusted EBITDA margin by 2025. If you look at the midpoint of our guide, we’re on track to deliver 13.4% this year. The 60% long term goal of of our revenue mix coming from inspection service and monitoring, we continue to gain on it.

It’s grown from, you know, 40% in 2021 to 55% in ’20, forecast and 55% in 2025. A big component of that came from the acquisition of Chubb, and we continue to, improve our, adjusted free cash flow conversion. I think the most important thing for you to take note of on this slide is the top, and it’s the word commitment. And at API, when we make a commitment, we take that commitment very, very seriously, and it’s something that, you can rest assured that we’re gonna tip over, to deliver on our commitments. So what’s next for API?

And this this started in December of twenty twenty three, at our board meeting in Miami. And for those of you who don’t know, API went public via a SPAC. The founder of the vehicle that acquired us is a gentleman by the name of Martin Franklin. And Martin actually doesn’t like the term SPAC. He views that, his view vehicles are slightly different.

And, but, Martin and two of his partners are on our board, and one of those partners is a gentleman by the name of Ian Ashken. And Ian asked me to go for a walk with him on the boardwalk in Miami, while we’re in town for the board meeting. And as we were on our stroll, he started to push me about what’s next for the company. And the way I’m wired, my response to him was, let’s deliver on our commitments, which is $13.60 80 before we start talking about what’s next. And his response was, well, I know you’re gonna hit your numbers.

So what’s next? And, nothing really came from that. Nothing more came from that. About three weeks later, was, like, January 4, and it was a Saturday, and I was on my way to Singapore to attend one of our leader labs. And I was sitting in the Delta club, in Minneapolis, Saturday night, and, my brain started thinking about this conversation that I had with Ian.

And, those of you that know me, know that I my drink of choice is Macallan 12 single malt. And so I decided that I deserved to have one because it was Saturday, and I was traveling for business. So I got myself a Macallan. I also got out a cocktail napkin, and I started to do some math. And I said, alright.

If our base is 7,000,000,000 and we grow organically 5% a year, what does that look like? And you can see that it adds about 350,000,000 a year. And all you MBAs, I didn’t compound it. So, you know, I’m just I’m an engineer, so I just did simple math here. And and that gets you to, you know, roughly 8,400,000,000.0.

Then I said, alright. If we can continue on our streak of doing 250,000,000 of bolt on m and a a year, what does that what does that mean? And when you buy small businesses and bolt them on to your existing business, our average multiple is about six times. And at six times, you get about a dollar per, revenue per dollar purchase price. So if you do $2.50 a year for the next four years, it gets you another billion.

And then I said, alright. What about what about larger, more transformational acquisitions? And that could be two transactions. It could be one. It could be something bigger.

It could be something smaller. So I just took a swing in wild ass guests, and I just said a billion. And you can see how this business can very, very easily get to 10,400,000,000.0, and I set a timeline of 2028. I’m not one of these people that likes to be out five, six, seven years. And I wanna want to be something that’s realistic that we can actually point the business, towards.

And just so you know, not all of our modeling and math comes from Russ having couple of scotches in the Delta Club, at MSP. So I went back to got back from my trip, and that’s when all the real work started. And we started to build a model. We built those models from from the bottom up, in the businesses, in the segments, leading up to ultimately, the framework that we’re going to lay out, which is to be 10,000,000,000 with 16% EBITDA margins with 60% plus of our revenue coming from inspection service and monitoring. The 16% margin target, we’ve grown on the business from a margin expansion perspective roughly, 80 basis points a year over the last three years, so we feel like we can continue on that track.

This business will generate over $3,000,000,000, you know, if we continue to, deliver on this commitment, and we think that this is something that’s important. And at the bottom of that slide, you’ll see in that black box is our aspirational goal to be the number one people first company that’s number one in business performance. This will be API’s north star. This is not something we’re doing for folks like yourselves. We do we do this work, and we will point the entire business and the entire organization, towards these goals and objectives.

This slide is I’m not gonna take hardly any time on it because I’m probably going running running past some of the time that, folks wanted me to. There’s two things. Our purpose is building great leaders in our values. And, the safety, health, and well-being of each of our leaders remains and always will remain our number number one value. If you look in the left bottom left hand corner of the, of the slide, Tim can share this stuff with you as well, or you can go to our, investor relations, page on our website.

But the bottom left hand corner is a QR code that would take you to our IME leader learning opportunity. And if you’re gonna make a statement that everyone everywhere is a leader, you have to provide every single person on your team the opportunity to grow and develop it as a leader. It API leadership kinda sits and falls in three pillars. First pillar is leading self. Second pillar is leading others.

Third pillar is leading teams and businesses. And the I am a leader learning, module is all about leading self. It’ll take you thirty minutes to go through it. We’ve translated it into, seven languages, so we could spread it across the breadth of our of our business. And, we’ve had over 15,000 people opt in and part participate in it.

Next to it is another QR code that is our building great leaders podcast. And we have a woman on our team by the name of Laura Seitz who this is her brainchild, and she’s done, I think, close to a hundred podcasts with our different leaders from around the entire business and globe that people can listen to, learn about others’ journey and their stories, and hopefully glean and learn from other people’s, experiences. On the right hand side, the reason we share this is that this is our journey of leader development. When I started at API in 02/2002, we were a $600,000,000 business, 3% margins. And, you know, if we deliver on our commitments this year, we’ll be 7 and a half billion at 13.4%.

And I attribute a big part of this to our efforts around leadership development. David, you wanna give them a quick

David Jacola, CFO, API Group: overview? Absolutely.

Tim Mulrooney, Research Analyst, William Blair: Sorry.

Russ Becker, CEO, API Group: Jim. Yeah.

David Jacola, CFO, API Group: Alright. Thanks, Russ, and thanks, everybody, for being here. I’ll take you through a couple of things related to the financials. And the first is is our path to our 2028, long term strategic goals. And the first is $10,000,000,000 of of of net revenue.

And and you can see how that builds out to the, the napkin math that that Russ showed, 5% organic growth, which is consistent with what our business has delivered between 2021 and our 2025 forecast. And you roll in 250,000,000 to $300,000,000 of bolt on m and a, in each of those years, which is consistent with our performance in 2024 and where we see 2025 coming in. And you add a couple of platform m and a deals, one to two, maybe something that looks like Chubb, and you can get to $10,000,000,000 or more in revenue, growing more than 9% from a compound annual growth basis. If we continue to grow our adjusted EBITDA margins by 80 basis points a year, which is the performance of the business from 2021 through our 2025 forecasted results, you get to 16% or more adjusted EBITDA, and that $10,000,000,000 or more looks like $1,600,000,000 of adjusted EBITDA a year by 2028. And if we continue to convert cash at that 75% of adjusted EBITDA or a 20% of our adjusted net income, this business is gonna kick off more than $3,000,000,000 of adjusted free cash flow between now and the end of twenty twenty eight.

So I’ll take you through a little bit more detail on the organic growth algorithm. And so we’re expecting our service side of our business to grow mid to upper single digit growth between now and 2028, and that’s gonna come from pricing. And we’ve been really disciplined and focused on driving pricing over the last three years, both through annual increases as well in allowing ourselves to pass on inflationary cost increases to our customers. We also anticipate being able to take share through our inspection first Salesforce initiatives. We’ll win the customer through the inspection.

We’ll prove our value through doing a great job on service, and that’ll open up great project opportunities as well. And Russ talks all the time about how end markets matter, and we’ll continue to focus at end markets that have regulatory requirements or insurance requirements that have a tailwind behind them, and that’ll help drive the business as well. We’ll continue to to grow the project business. That is and will always be an important part of API Group, and we’ll target mid or low to mid single digit growth in projects. So mid to upper single digit in service revenue, low to mid single digit revenue in projects is getting to that mid single digit 5% organic revenue growth year over year over year in a sustainable way.

So the levers that’ll get us to 16 adjusted EBITDA are largely the same levers that got us to 13% adjusted EBITDA. We talked at our Investor Day about a series of system and technology investments that we believe will provide the foundation for $10,000,000,000 plus, but will also allow us to grow our s g and a at a more cadence scale relative to our revenue growth. We’ll continue to push inspection service and monitoring, which comes at approximately 10 basis points higher gross margin than our project work. We’ll continue to be disciplined in the customers, the projects, and the end markets in which we do work. We’ll continue to drive price not just as a revenue growth lever, but as as a margin accretive lever as well.

And we’ve got ample opportunity across our network to improve the median EBITDA margin of our branches, but also to take our lower performing branches up each and every year. Procurement is an area where we’re still in early stages, and the system and technology investments that we’re deploying are gonna allow us to capture more value in that very important area. And acquisitions and divestitures, will be through an end a lens of, are these businesses accretive to our mid to long term adjusted EBITDA margin goals? The thing that I’m most excited about about our 2028 goals and ambitions is the opportunity that this business has to deliver significant free cash flow over the next three years. And and we’ve we’ve been on a a a really impressive journey of improving our free cash flow conversion.

We’ve more than tripled our adjusted free cash flow delivery between 2021 and the end of twenty twenty four. And each year, we we’ve converted a higher percentage of our adjusted EBITDA to cash. And we’ve done it while maintaining a strong balance sheet. We’ve proven that we can pretty quickly lever up as we did at the end of twenty twenty one, ’20 ’20 ’2 for the Chubb transaction and then delever very, very quickly from the cash flow that our businesses generate through operations. And the levers that get us to $3,000,000,000 or more are are are there on the bottom.

We’ll we’ll grow earnings. We’ll continue to focus on inspection service and monitoring, which has a free cash flow conversion profile that’s accretive to the base. We’ve got opportunities to improve our working capital rate, and we’ll continue to deploy our capital into the life safety segment, which generally is accretive to our adjusted free cash flow conversion rates as well. So the exciting thing about all the cash that the business will generate over the next three years is the opportunities and the avenues that we have to deploy it. First and foremost, we’ll be committed to maintaining our long term net leverage ratio target of 2.5 to three times adjusted EBITDA.

Importantly, we will continue to invest in organic growth, and that’s our our CapEx, which will continue to be about 1% of sales, but also the technology program that I touched on earlier, but most importantly, investing in the learning development of of all of our leaders at API. M and A will continue to be a primary focus, our number one preferred growth for deploying capital, and we really view M and A through two lenses. One is the larger platform type opportunities that that put, that are accretive to our ten sixty and sixty goals and enhance our offerings, but also through bolt ons, and we expect to do between 250 and $300,000,000 of bolt ons between per year between now and 2028. And with all the cash that generates, it will also give us the flexibility to be able to return cash to shareholders, when we believe that our API shares are are undervalued. So that’s at a high level the financial aspects of our 2028 goals, and maybe I’ll hand it over to Tim.

Tim Mulrooney, Research Analyst, William Blair: Yeah. That was great. Thank you guys for the overview. I think that was very clear on the what, on on the numbers, where you are, where you were, where you are, where you’re going. I’d love to now take a minute, on the on the how, and dig in a little bit more on what makes the company special, make the story come alive a little bit more, on what it is that you’re doing to drive such, impressive numbers over the last ten years.

Maybe we could start because, you know, a lot of people here are probably familiar with your story, but maybe there’s some some that aren’t. Talk about what it is that you’re doing and your fire and life safety on the services side with the inspection first strategy. What what is that? What has the journey there been like? And, you know, how is that different relative to what, a a lot of your competitors are doing?

Well, I

Russ Becker, CEO, API Group: mean so that’s a lot yes. A lot of stuff there. And and You got

Tim Mulrooney, Research Analyst, William Blair: six whole minutes.

Russ Becker, CEO, API Group: I thought we had more time. Thought we do. We have

Tim Mulrooney, Research Analyst, William Blair: as much time as you need.

Russ Becker, CEO, API Group: Yeah. Well, I’m more about not spending as much time up here as I can.

Tim Mulrooney, Research Analyst, William Blair: So, yeah, for those of you that don’t know, this is Russ’s favorite part of the job, investor related obligations. He’d much rather be doing this than catching walleye in in Canada.

Russ Becker, CEO, API Group: Oh, I don’t actually don’t I actually enjoy investor meetings. I just don’t enjoy them when I have them stacked up like cordwood. Yeah. I’m sure. O’clock in the morning until 04:00 in the afternoon, and I get asked the same questions 27 different times.

Tim Mulrooney, Research Analyst, William Blair: Inspection for a strategy?

Russ Becker, CEO, API Group: Yeah. So, so, anyways, I’m gonna I’m gonna talk about inspections first, and then I’m gonna come back to what makes us unique.

Tim Mulrooney, Research Analyst, William Blair: Okay.

Russ Becker, CEO, API Group: Okay? Sounds good. And, inspection first. We have a woman who leads, our she’s our vice president of national, inspection sales. And it this is her brainchild.

And she was hired into one of our, branches, in one of our operating companies, and she started selling inspections. So for those of you, who are newer to the story, if you just, again, try to take a building like this out of out of your brain and think about, like, a 40,000 square foot medical office building where you go into if you tweak your ankle or your knee or something like that, that building is required by law to have its fire life safety system inspected for functionality and operability. And the way the industry has always operated is like, you know, a health care system is building that new medical office building. Let’s go chase the installation work on that new building. And when that project is 95% complete, I’m gonna try to find my way to the customer, and I’m gonna try to sell them a service package that might include the inspection.

So they’re gonna try to convert the new construction. And what Courtney helped us do is change our mindset that we’re gonna start calling on the already built environment. So that building that’s existing, we’re gonna gonna call on that property manager, and we’re going to try to take and unseat the incumbent. We’re gonna take that inspection away from them. And the reason that we wanna do that is that we have data that shows that for every dollar of inspection work that we generate, we generate 3 to $4 worth of pull through service work.

And we also know that if we do a kick ass job on the inspections and a kick ass job on the service work, that we’re gonna build a stickier relationship with that customer so that when they have expansion needs, we’re gonna be in a position to to pursue that work not based on price, but based on value. And for us, that’s that’s something that’s very important. And the individual that was running that business saw the work that she was doing and very quickly said, hey. Can you take that that idea to this branch and this branch? And that’s what she did.

Then he’s like, well, you need to take it to this branch, this branch, and this branch. And it slowly spread its way across, you know, this this business and this this this operating company. Well, we took the guy that was running Las Vegas, and we promoted him to run a business for us in, the Northeast. And, and he first thing he did is he called Courtney. And he said, Court, would you come out here, and would you help us?

And it started to spread across that business. And this was all pre us, you know, really going public. We we sold the company in 2019 and went public. Well, about that same time, that first operating company, we promoted that business leader to be the leader of our North American safety services segment. And not too shortly after that, he brought Courtney to the corporate level, and she started to bring the that sales strategy to to the corporation.

And that’s really the the evolution in how we have driven, you know, the growth in, you know, our our inspection sales. We’ve grown inspections at a double digit clip for 19 straight quarters, I believe. And and I attribute a lot of that to the work that Courtney’s doing. She’s building out sales teams inside each business so that those businesses can function, you know, on on their own. She’s got it down.

She’s got the metrics. She’s got the all the stuff that goes with it. All that being said, huge part of our strategy. There’s no question about it, but that works hand in hand, you know, with, you know, how a branch operates. And a branch and a branch and this is gonna take me into what differentiates us.

Mhmm. A branch can’t operate at its highest level if it doesn’t have the right leader. And, and, like, at API, we have this maniacal focus on leadership and leader development.

Tim Mulrooney, Research Analyst, William Blair: Yep.

Russ Becker, CEO, API Group: And it’s a differentiator for us. It makes it makes us different. And, you know, I talked a little bit about it in my remarks about how our culture is centered on our purpose, and our purpose is building great leaders. You know, we’ve actually have eight foundational beliefs. I didn’t go through that.

We didn’t have that slide in in this presentation, but we have eight foundational beliefs centered on, you know, what we believe leadership looks like in in our in our company. But, like, if we’re gonna win and we’re gonna grow to 10,000,000,000, you know, leadership is a huge component of it. And the example I’ve been giving folks in in our individual one on one meetings is is, like, we could have the best playbook of all time, and I could give it to you and you’re the quarterback. And if you’re just an average quarterback, what results are we gonna get? Average.

You know? Yep. And so, like, for us, we have the playbook. We know what it takes to to win, and we need to make sure we have the best quarterbacks and the best branch leaders. And so, you know, you look at our company, leader development and talking about leadership, talking about caring about people is something that we take really, really seriously.

And, it is like, if you came to see us and if you came to you know, we host field trips, where we take people out to our customer sites so they can see what is an inspection really look like, you can actually interact with our field leaders, you’ll you will see that this company is different, and how we treat our people is different. Like, the men and the women that do the work in the field, like, I know that my job does not exist if those men and women don’t go service our customers, you know, every every single day. And, so every decision, every choice that I make, I have to have the men and the women that work in the field at the front of my brain. We actually call that our central premise at at API, and it’s very, very important. The men and women in the field, they drive revenue.

They drive gross margin, and they’re the heart and soul of this this company.

Tim Mulrooney, Research Analyst, William Blair: Yep. Yep. That makes sense. And I think people here that appreciate good service businesses understand how important that is. Now what do you see at a branch?

Let’s say you got a branch that’s further along inspection first strategy versus one that’s just starting out or maybe a competitive branch that’s not doing that. What does the growth look like? What do the margins look like at a branch that’s further along in that journey versus not so folks can get an appreciation for what it is that you’re really trying to do here?

Russ Becker, CEO, API Group: Well, I mean, if you go back to the to the slides and from our investor deck, you’ll see that the the median margin performance in North America is 17%. Right. And which means we’ve got branches that are performing at 23%, twenty four %. I mean, we have branches that are performing at six or seven. Yep.

And so the chances are that the business that the businesses that are higher performing have further progressed on their journey. I mean, there’s the chances are. But I would also tell you we have a business that does primarily project related work that’s a 30% performer every single year. They just have a really unique niche that they that they operate in, and they’re just they’re just very, very good. So it doesn’t paint a % picture.

You can’t paint everybody with the same brush exactly Okay. But, in general. So and we’ve established a goal, that we want every one of our branches in North America to be 20%. Our goal in in our international business is 18%, and but the expectation is that they’ll get to 20% as well. They’re just further, you know, further behind because we’ve only owned them for three and a half years.

Tim Mulrooney, Research Analyst, William Blair: Right. Okay. That’s helpful. I think, you know, are are we I guess we should transition now from the formal presentation that’s recorded. We can cut that off, and we’ll move into a breakout, which will just stay in this room.

But, you know, you you’ve heard enough from me. I’ll open it up to you all for anyone. This presentation has now finished. Please check back shortly for the archive.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.