APi Group Corporation

and are in listen-only mode until the question-answer session begins. Please note, this call is being recorded. I'll be standing by should you need any assistance. I'll now turn the call over to Adam Fee, Vice President of Investor Relations at API Group. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining our third quarter 2025 earnings conference call. Joining me on the call today are Russ Becker, our president and CEO, David Giacola, our executive vice president and chief financial officer, and Sir Martin Franklin and Jim Lilly, our board co-chairs. Before we begin, I'd like to remind you that certain statements in the company's earnings press release announcement and on this call are forward-looking statements which are based on expectations, intentions, and projections regarding the company's future performance, anticipated events or trends, and other matters that are not historical facts. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. In our press release and filings with the SEC, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, October 30th, and we undertake no obligation to update any forward-looking statements we may make except as required by law. As a reminder, we have posted a presentation detailing our third quarter financial performance on the investor relations page of our website. Our comments today will also include non-GAAP financial measures and other key operating metrics. The reconciliation of and other information regarding these items can be found in our press release and our presentation. It is now my pleasure to turn the call over to Russ.

Thank you, Adam. Good morning, everyone. Thank you for taking the time to join our call this morning. Before we get into our record third quarter results, I would like to thank our approximately 29,000 leaders for their dedication to API. The safety, health, and well-being of each of our teammates is our number one value. Last month during September, we recognized Suicide Prevention Month and Construction Suicide Prevention Week. We use this as an opportunity to encourage all of our team members to engage in meaningful conversations about mental health. These conversations are a simple way to embrace the care factor and show our teammates we care about their well-being, including physical and mental health. In addition to the care factor, another one of our foundational beliefs is our central premise. which means that at API, we recognize that our success only happens when our branches and field leaders are successful. One way we are supporting our branches and field leaders as part of our central premise is through investments in market leading systems and technologies, including artificial intelligence. We see market-leading technology not as tools that will replace our field leaders, but rather as a way to empower our branches and field leaders to accelerate their speed of doing business, work more safely, and better serve our customers as we grow into a $10 billion company. A few examples of these investments include the following. API Echo. which allows our field leaders to record conversations and summarize keynotes without having to leave the field or remove their safety gloves. One code, which provides quick access to situation-relevant fire protection code detail to save time for our estimators, designers, and field leaders. Connected glasses, which allow our remote experts to guide field leaders in real time. resulting in quicker service to our customers with a higher first-time fixed rate, and an AI-enabled predictive tool which flags customers who have a high attrition risk. This tool allows our local teams to take proactive steps to engage customers and focus on strengthening specific customer relationships. Finally, last year, we launched our Global Steps Safety Platform, which allows our team members to document and manage safety activities in the field from a mobile device, establishes safety standards and strategies, and gives our leaders better data and visibility into safety metrics to better protect our teammates and help us continuously improve. We are still in the early innings piloting these technologies, but we believe our business-led approach to investing in technology will empower our 29,000 leaders. increase teammate satisfaction, and drive growth and margin expansion as we work towards our 10, 16, 60-plus financial targets. As a reminder, these targets are $10 billion in net revenues by 2028, supported by consistent mid-single-digit organic growth, 16%-plus adjusted EBITDA margin by 2028, 60% plus of our revenues from inspection, service, and monitoring over the long term, and $3 billion plus of cumulative adjusted free cash flow through 2028. Our leaders have clear plans for how we intend to deliver on our 10, 16, 60 plus targets with a continued focus on the main initiatives that are enabling us to achieve our 13, 60, 80 targets. Those initiatives are Consistent organic growth. Improved inspection, service, and monitoring revenue mix. Disciplined customer and project selection. Pricing. Branch and field optimization. Procurement systems and scale. Accretive M&A and selective business pruning. And as I like to say, we can always just be better. Now turning to our record third quarter results. The business continues to have strong momentum. delivering robust top-line growth while expanding margins. Some highlights include the following. Strong growth in inspection, service, and monitoring revenues, led by double-digit inspection growth in North America for the 21st straight quarter. Record backlog in both segments. And finally, a creative bolt-on M&A activity at attractive multiples. For the quarter, net revenues increased by 14%. approximately 10% organically, with strong growth across both segments. In our safety services segment, revenues grew organically by approximately 9%, led by North American Safety, while delivering 40 basis points of segment earning margin expansion. As expected, specialty services continued its strong growth in the third quarter, delivering approximately 12% organic growth with sequential margin expansion. Our continued focus on our margin improvement initiatives allowed API to deliver year-over-year improvements in adjusted EBITDA margin in the third quarter, with a 10 basis point increase versus last year. We continue to see great momentum in our business, particularly on the project side in North America, where we are being opportunistic but not overcommitting in the high-tech space. These project opportunities are in line with our discipline, customer, and project selection. are primarily sourced from our existing inspection and service relationships, are margin accretive to our overall project book of business due to their complexity and size, and provide a long-term recurring inspection and service revenue opportunity for our local branches. The third quarter was another strong quarter for free cash flow generation. Our consistent free cash flow generation and strong balance sheet provides us with the flexibility to pursue a range of value-enhancing capital deployment alternatives as we head into 2026. We continue to execute our M&A plan, completing four bolt-on acquisitions in the quarter, bringing our total for the year to 11 completed bolt-on acquisitions. We remain on track to deploy approximately $250 million in bolt-on M&A at attractive multiples this year. Our pipeline remains robust and continues to grow, now including fire protection, electronic security, and elevator services opportunities globally. Most importantly, our value proposition as a forever home for their team continues to resonate with sellers. In summary, we moved through the fourth quarter and into 2026 with great momentum. Our inspection, service, and monitoring business continues to expand. Our backlog is at a record high. Our balance sheet remains strong. And we are confident in our leaders' ability to execute our strategy and deliver against our 2025 targets and our 10, 16, 60-plus shareholder value creation framework. I would now like to hand the call over to David to discuss our financial results and guidance in more detail. David?