US Market News
1 week ago
APi Group Completes the Acquisition of WTech Fire Group and Updates 2026 GuidanceJuly 2, 2026 7:30 AM
Business Wire APi Group Corporation (NYSE: APG) ("APi" or the "Company") announced that on July 1, 2026, it closed the acquisition of WTech Fire Group ("WTech"), a leading provider of fire sprinkler, suppression and detection solutions across Europe. The acquisition, previously announced on April 17, 2026, adds highly complementary fire sprinkler and suppression capabilities to APi’s international business. WTech is expected to contribute approximately $175 million in annual revenue and to have a margin profile consistent with APi’s international business. Russ Becker, APi's President and Chief Executive Officer, stated: “We are pleased to officially welcome the WTech team to the APi family. WTech is a strong business with talented leaders, a great reputation, and capabilities that complement our international fire and life safety business. We are excited about the entrepreneurial spirit that Ted and his team bring to our business, which we believe will be quickly embraced across APi. We look forward to partnering with the team, supporting their continued growth, and building on the strong foundation they have created across Europe.” The Company is raising its full year 2026 outlook to reflect the expected contribution from WTech for the remainder of 2026. The Company now expects net revenues in the range of $8,660 million to $8,860 million, up from $8,575 million to $8,775 million, and adjusted EBITDA in the range of $1,177 million to $1,237 million, up from $1,165 million to $1,225 million. About APi: APi Group is a global, market-leading business services company providing statutorily mandated and contracted services across its Safety Services and Specialty Services segments, including fire and life safety, electronic security, elevator and escalator, and infrastructure services. With more than 600 locations in over 20 countries, APi is built on a century of expertise, a people-first culture, and its purpose of Building Great Leaders®. In 2026, APi is celebrating its 100-year anniversary and its debut on the Fortune 500. More information is available at www.apigroup.com. Forward-Looking Statements and Disclaimers: Please note that in this press release the Company may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of APi Group Corporation (“APi” or the “Company”). Such discussion and statements may contain words such as “expect,” “anticipate,” “will,” “should,” “believe,” “intend,” “plan,” “estimate,” “predict,” “seek,” “continue,” “pro forma,” “outlook,” “may,” “might,” “can have,” “have,” “likely,” “potential,” “target,” “indicative,” “illustrative,” and variations of such words and similar expressions, and relate in this press release, without limitation, to statements, beliefs, projections and expectations about future events. Such statements are based on the Company’s 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 guarantees 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, including: (i) economic conditions, competition, political risks, and other risks that may affect the Company’s future performance, including the impacts of inflationary pressures and other macroeconomic factors on the Company’s business, markets, supply chain, customers and workforce, on the credit and financial markets, on the alignment of expenses and revenues and on the global economy generally; (ii) supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the supplies and materials the Company uses in its business and for which the Company bears the risk of such increases; (iii) risks associated with the Company’s international operations; (iv) failure to realize the anticipated benefits of our acquisitions and our ability to successfully execute the Company’s bolt-on acquisition strategy to acquire other businesses and successfully integrate them into its operations; (v) failure to fully execute the Company’s inspection-first strategy or to realize the expected service revenue from such inspections; (vi) failure to realize expected benefits from the Company’s other business strategies, including the Company’s disciplined approach to customer and project selection and the Company’s asset-light, services-focused business model and its expected impact on future capital expenditures; (vii) risks associated with the Company’s decentralized business model and participation in joint ventures; (viii) improperly managed projects or project delays; (ix) adverse developments in the credit markets which could impact the Company’s ability to secure financing in the future; (x) the Company’s level of indebtedness; (xi) risks associated with the Company’s contract portfolio; (xii) changes in applicable laws or regulations; (xiii) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (xiv) the impact of a global armed conflict; (xv) the trading price of the Company’s common stock, which may be positively or negatively impacted by market and economic conditions, the availability of the Company’s common stock, the Company’s financial performance or determinations following the date of this press release to use the Company’s funds for other purposes; (xvi) geopolitical risks; and (xvii) other risks and uncertainties, including those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 under the heading “Risk Factors,” and any updates to the risk factors in our Form 10-Q and 8-K filings with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning these risks, uncertainties and other factors that could cause actual results to vary is, or will be, included in the periodic and other reports filed by the Company with the Securities and Exchange Commission. Forward-looking statements included in this press release speak only as of the date hereof and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this press release. We do not provide reconciliations of forward-looking non-U.S. GAAP adjusted EBITDA to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisitions and divestitures, systems and business enablement expenses, business process transformation expenses, one-time and other events such as impairment charges, transaction and other costs related to acquisitions and divestitures, restructuring costs, miscellaneous capital market activities, and other charges reflected in our reconciliation of historical numbers, the amount of which, based on historical experience, could be significant. Non-GAAP Financial Measures: This press release contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this press release and the additional financial information both in explaining its results to shareholders and the investment community and in its internal evaluation and management of its businesses. The Company’s management believes that these non-U.S. GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company’s performance using the same tools that management uses to evaluate the Company’s past performance and prospects for future performance, (b) permit investors to compare the Company with its peers, (c) determine certain elements of management’s incentive compensation, and (d) provide consistent period-to-period comparisons of the results. Specifically, the Company supplements the reporting of its consolidated financial information with certain non-U.S. GAAP financial measures, including adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization, excluding the impact of certain non-cash and other specifically identified items. The Company believes these measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. On a consolidated basis, the Company uses adjusted EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results. View source version on businesswire.com: https://www.businesswire.com/news/home/20260702084305/en/ Investor Relations and Media Inquiries:
Adam Walters
Senior Director of Investor Relations
Tel: +1 920-419-5432
Email: investorrelations@apigroupinc.us Original: APi Group Completes the Acquisition of WTech Fire Group and Updates 2026 Guidance
US Market News
1 month ago
APi Group Completes Acquisition of Onyx-Fire Protection Services, Inc. And Updates 2026 GuidanceJune 9, 2026 7:30 AM
Business Wire APi Group Corporation (NYSE: APG) ("APi" or the "Company") today announced that on June 8, 2026, it closed the acquisition of Onyx-Fire Protection Services, Inc. ("Onyx-Fire"), a leading inspection-first provider of fire and life safety services in Canada. The acquisition, previously announced on April 23, 2026, strengthens APi's position as a premier provider of safety services focused on non-discretionary, regulatory-driven, recurring revenue. Onyx-Fire is expected to contribute approximately $190 million in annual revenue and be accretive to APi's "10/16/60+" shareholder value creation framework driven by its EBITDA margin profile and asset-light business model. Russ Becker, APi's President and Chief Executive Officer, stated: “We are thrilled to officially welcome the entire Onyx-Fire team to the APi family. This is a meaningful addition to our North American business, and we are excited about what we can accomplish together in the Canadian market. We look forward to partnering with the Onyx-Fire team as they continue building on the strong foundation they have created. More broadly, our balance sheet remains strong and continues to provide the flexibility to pursue attractive capital deployment opportunities, including accretive M&A and share repurchases.” The Company is raising its full year 2026 outlook to reflect the expected contribution from Onyx-Fire for the remainder of 2026. The Company now expects net revenues in the range of $8,575 million to $8,775 million, up from $8,475 million to $8,675 million, and adjusted EBITDA in the range of $1,165 million to $1,225 million, up from $1,150 million to $1,210 million. Importantly, underlying business trends remain strong across both segments, and the Company reaffirms its second quarter 2026 guidance before accounting for the partial month contribution of Onyx-Fire in June. About APi: APi is a global, market-leading business services provider of fire and life safety, security, elevator and escalator, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. APi has a winning leadership culture driven by entrepreneurial business leaders delivering innovative solutions for customers. In 2026, APi is proud to celebrate its 100-year anniversary and its debut on the Fortune 500. More information can be found at www.apigroup.com. Forward-Looking Statements and Disclaimers: Please note that in this press release the Company may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of APi Group Corporation (“APi” or the “Company”). Such discussion and statements may contain words such as “expect,” “anticipate,” “will,” “should,” “believe,” “intend,” “plan,” “estimate,” “predict,” “seek,” “continue,” “pro forma,” “outlook,” “may,” “might,” “can have,” “have,” “likely,” “potential,” “target,” “indicative,” “illustrative,” and variations of such words and similar expressions, and relate in this press release, without limitation, to statements, beliefs, projections and expectations about future events. Such statements are based on the Company’s 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 guarantees 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, including: (i) economic conditions, competition, political risks, and other risks that may affect the Company’s future performance, including the impacts of inflationary pressures and other macroeconomic factors on the Company’s business, markets, supply chain, customers and workforce, on the credit and financial markets, on the alignment of expenses and revenues and on the global economy generally; (ii) supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the supplies and materials the Company uses in its business and for which the Company bears the risk of such increases; (iii) risks associated with the Company’s international operations; (iv) failure to realize the anticipated benefits of our acquisitions and our ability to successfully execute the Company’s bolt-on acquisition strategy to acquire other businesses and successfully integrate them into its operations; (v) failure to fully execute the Company’s inspection-first strategy or to realize the expected service revenue from such inspections; (vi) failure to realize expected benefits from the Company’s other business strategies, including the Company’s disciplined approach to customer and project selection and the Company’s asset-light, services-focused business model and its expected impact on future capital expenditures; (vii) risks associated with the Company’s decentralized business model and participation in joint ventures; (viii) improperly managed projects or project delays; (ix) adverse developments in the credit markets which could impact the Company’s ability to secure financing in the future; (x) the Company’s level of indebtedness; (xi) risks associated with the Company’s contract portfolio; (xii) changes in applicable laws or regulations; (xiii) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (xiv) the impact of a global armed conflict; (xv) the trading price of the Company’s common stock, which may be positively or negatively impacted by market and economic conditions, the availability of the Company’s common stock, the Company’s financial performance or determinations following the date of this press release to use the Company’s funds for other purposes; (xvi) geopolitical risks; and (xvii) other risks and uncertainties, including those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 under the heading “Risk Factors,” and any updates to the risk factors in our Form 10-Q and 8-K filings with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning these risks, uncertainties and other factors that could cause actual results to vary is, or will be, included in the periodic and other reports filed by the Company with the Securities and Exchange Commission. Forward-looking statements included in this press release speak only as of the date hereof and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this press release. We do not provide reconciliations of forward-looking non-U.S. GAAP adjusted EBITDA to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisitions and divestitures, systems and business enablement expenses, business process transformation expenses, one-time and other events such as impairment charges, transaction and other costs related to acquisitions and divestitures, restructuring costs, miscellaneous capital market activities, and other charges reflected in our reconciliation of historical numbers, the amount of which, based on historical experience, could be significant. Non-GAAP Financial Measures: This press release contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this press release and the additional financial information both in explaining its results to shareholders and the investment community and in its internal evaluation and management of its businesses. The Company’s management believes that these non-U.S. GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company’s performance using the same tools that management uses to evaluate the Company’s past performance and prospects for future performance, (b) permit investors to compare the Company with its peers, (c) determine certain elements of management’s incentive compensation, and (d) provide consistent period-to-period comparisons of the results. Specifically, the Company supplements the reporting of its consolidated financial information with certain non-U.S. GAAP financial measures, including adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization, excluding the impact of certain non-cash and other specifically identified items. The Company believes these measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. On a consolidated basis, the Company uses adjusted EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results. View source version on businesswire.com: https://www.businesswire.com/news/home/20260609553468/en/ Investor Relations and Media Inquiries:
Adam Walters
Senior Director of Investor Relations
Tel: +1 920-419-5432
Email: investorrelations@apigroupinc.us Original: APi Group Completes Acquisition of Onyx-Fire Protection Services, Inc. And Updates 2026 Guidance
US Market News
2 months ago
APi Group Reports First Quarter 2026 Financial ResultsApril 30, 2026 7:30 AM
Business Wire
-Record first quarter net revenues of $2.0 billion, representing year-over-year growth of 15.3%, 10.4% on an organic basis-
-Record first quarter reported net income of $57 million with year-over-year growth of 62.9%-
-Record first quarter adjusted EBITDA of $235 million with year-over-year growth of 21.8% and adjusted EBITDA margin expansion of 70 basis points to 11.9%-
-Raising full-year guidance for net revenues and adjusted EBITDA-
APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today reported its financial results for the three months ended March 31, 2026.
Russ Becker, APi’s President and Chief Executive Officer, stated: "We are off to a strong start in 2026, delivering 10% organic net revenue growth and expanding adjusted EBITDA margins by 70 basis points year over year, with strength across both our Safety Services and Specialty Services segments. At the same time, we continued to advance our M&A strategy. We closed the CertaSite acquisition and signed transactions for Wtech and Onyx, representing an investment of more than $1 billion across these three acquisitions to further build out our Safety Services segment across the U.S., Europe, and Canada. In a year that marks APi's 100th anniversary, I am proud of our team's execution, and we remain confident in our path toward our "10/16/60+" targets."
First Quarter 2026 Consolidated Results:
Three Months Ended March 31,
2026
2025
Y/Y
Net revenues
$
1,982
$
1,719
15.3
%
Organic net revenue growth (a)
10.4
%
GAAP
Gross profit
$
620
$
542
14.4
%
Gross margin
31.3
%
31.5
%
(20) bps
Net income
$
57
$
35
62.9
%
Diluted EPS
$
0.12
$
0.07
71.4
%
Adjusted non-GAAP comparison
Adjusted gross profit
$
620
$
545
13.8
%
Adjusted gross margin
31.3
%
31.7
%
(40) bps
Adjusted EBITDA
$
235
$
193
21.8
%
Adjusted EBITDA margin
11.9
%
11.2
%
+70 bps
Adjusted net income
$
142
$
104
36.5
%
Adjusted diluted EPS (b)
$
0.32
$
0.25
28.0
%
Notes: Amounts in millions, except per share data. Refer to non-GAAP reconciliations to the most comparable GAAP measures.
(a)
Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions and divestitures, and the impact of changes due to foreign currency translation.
(b)
Per share data has been adjusted to reflect the three-for-two stock split executed June 30, 2025.
Reported net revenues increased by 15.3% (10.4% organic) driven by solid growth in inspection, service, and monitoring revenues, growth in project revenues, acquisitions, pricing improvements, and impacts of foreign exchange translation.
Reported and adjusted gross margin decreased by 20 and 40 basis points, respectively, compared to the prior year period, primarily driven by business mix, partially offset by disciplined customer and project selection and pricing improvements.
Reported net income was $57 million and diluted EPS was $0.12. Adjusted net income was $142 million and adjusted diluted EPS was $0.32, representing a 28.0% increase compared to the prior year period. The increase in adjusted diluted EPS was driven by strong revenue growth, adjusted EBITDA margin expansion, and a decrease in interest expense, partially offset by an increase in the adjusted diluted weighted average shares outstanding.
Adjusted EBITDA increased by 21.8% (18.1% on a fixed currency basis) compared to the prior year period, and adjusted EBITDA margin increased 70 basis points to 11.9%. Growth in adjusted EBITDA was driven by strong revenue growth and favorable SG&A leverage.
First Quarter 2026 Safety Services Segment Results:
Three Months Ended March 31,
2026
2025
Y/Y
Safety Services
Net revenues
$
1,415
$
1,267
11.7
%
Organic net revenue growth (a)
5.4
%
GAAP
Gross profit
$
527
$
466
13.1
%
Gross margin
37.2
%
36.8
%
+40 bps
Segment earnings
$
230
$
199
15.6
%
Segment earnings margin
16.3
%
15.7
%
+60 bps
Adjusted non-GAAP comparison
Adjusted gross profit
$
527
$
469
12.4
%
Adjusted gross margin
37.2
%
37.0
%
+20 bps
Notes: Amounts in millions. Refer to non-GAAP reconciliations to the most comparable GAAP measures.
(a)
Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions and divestitures, and the impact of changes due to foreign currency translation.
Reported net revenues increased by 11.7% (5.4% organic) driven by solid growth in inspection, service, and monitoring revenues, growth in project revenues, acquisitions, pricing improvements, and impacts of foreign exchange translation.
Reported and adjusted gross margin increased by 40 and 20 basis points, respectively, compared to the prior year period. This was driven by disciplined customer and project selection and pricing improvements, resulting in margin expansion in inspection, service, and monitoring revenues and project revenues, partially offset by mix.
Reported segment earnings increased by 15.6% (11.7% on a fixed currency basis) compared to the prior year period. Segment earnings margin was 16.3%, representing a 60 basis point increase compared to the prior year period, primarily driven by adjusted gross margin expansion and favorable SG&A leverage.
First Quarter 2026 Specialty Services Segment Results:
Three Months Ended March 31,
2026
2025
Y/Y
Specialty Services
Net revenues
$
569
$
453
25.6
%
Organic net revenue growth (a)
24.8
%
GAAP
Gross profit
$
93
$
76
22.4
%
Gross margin
16.3
%
16.8
%
(50) bps
Segment earnings
$
39
$
29
34.5
%
Segment earnings margin
6.9
%
6.4
%
+50 bps
Adjusted non-GAAP comparison
Adjusted gross profit
$
93
$
76
22.4
%
Adjusted gross margin
16.3
%
16.8
%
(50) bps
Notes: Amounts in millions. Refer to non-GAAP reconciliations to the most comparable GAAP measures.
(a)
Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions and divestitures, and the impact of changes due to foreign currency translation.
Reported net revenues increased by 25.6% (24.8% organic) driven by growth in both project and service revenues.
Reported and adjusted gross margin decreased by 50 basis points compared to the prior year period primarily driven by mix.
Reported segment earnings increased by 34.5% compared to the prior year period. Segment earnings margin was 6.9%, representing a 50 basis point increase compared to the prior year period, primarily due to favorable fixed cost absorption, partially offset by mix.
Guidance:
APi increases its full-year 2026 guidance for net revenues and adjusted EBITDA.
Net Revenues of $8,475 to $8,675 million, up from $8,400 to $8,600 million
Adjusted EBITDA of $1,150 to $1,210 million, up from $1,140 to $1,200 million
Adjusted Free Cash Flow Conversion of 115%, based on adjusted net income
APi announces its guidance for the second quarter of 2026.
Net Revenues of $2,175 to $2,225 million
Adjusted EBITDA of $300 to $310 million
Conference Call:
APi will hold a webcast/dial-in conference call to discuss its financial results at 8:30 a.m. (Eastern Time) on Thursday, April 30, 2026. Participants on the call will include Russell A. Becker, President and Chief Executive Officer; and David Jackola, EVP and Chief Financial Officer. The conference call can be accessed by registering online using the links below. Analysts will receive dial-in information as well as a conference ID once registered.
Webcast Link: https://events.q4inc.com/attendee/963913077
Analysts Link: https://events.q4inc.com/analyst/963913077?pwd=MsHzmq1e
A replay of the call will be available shortly after completion of the live call/webcast via the webcast link above.
About APi:
APi is a global, market-leading business services provider of fire and life safety, security, elevator and escalator, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. APi has a winning leadership culture driven by entrepreneurial business leaders delivering innovative solutions for customers. More information can be found at www.apigroupinc.com.
Forward-Looking Statements and Disclaimers
Please note that in this document the Company may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of APi Group Corporation ("APi" or the "Company"). Such discussion and statements may contain words such as "expect," "anticipate," "will," "believe," "intend," "plan," "estimate," "predict," "seek," "continue," "pro forma," "outlook," "may," "might," "should," "could," "would," "can have," "likely," "potential," "target," "indicative," "illustrative," "goal," "objective," "forecast," "guidance," "assumes," "strategy," "opportunity," and variations of such words and similar expressions, and relate in this document, without limitation, to statements, beliefs, projections and expectations about future events. Forward-looking statements in this document include, but are not limited to: the Company's full-year and second quarter 2026 guidance for net revenues, adjusted EBITDA, and adjusted free cash flow conversion; the Company's long-term performance targets, including the "10/16/60+" targets (referring to the Company's goals of $10 billion or greater in net revenues by 2028, 16% or greater adjusted EBITDA margins by 2028, and 60% of revenues coming from inspection, service and monitoring over the long-term); statements regarding the anticipated benefits of completed and future acquisitions; statements regarding the Company's M&A strategy and pipeline; and statements regarding the Company's confidence in its future performance and execution of its business strategies. Certain of these forward-looking statements reference non-GAAP financial measures; investors should refer to the "Non-GAAP Financial Measures" section of this document for important information regarding such measures. Such statements are based on the Company's 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 guarantees 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, including: (i) economic conditions, competition, political risks, and other risks that may affect the Company's future performance, including the impacts of inflationary pressures and other macroeconomic factors on the Company's business, markets, supply chain, customers and workforce, on the credit and financial markets, and on the global economy generally; (ii) supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the supplies and materials the Company uses in its business and for which the Company may bear the risk of such increases; (iii) risks associated with the Company's international operations, including changes in tariff and trade policies, import and export restrictions, retaliatory trade measures, sanctions, and other governmental actions that may affect the cost, timing, or viability of the Company's cross-border operations and supply chains; (iv) failure to realize the anticipated benefits of our acquisitions and our ability to successfully execute the Company's bolt-on acquisition strategy to acquire other businesses and successfully integrate them into its operations; (v) failure to fully execute the Company's inspection-first strategy or to realize the expected service revenue from such inspections; (vi) failure to realize expected benefits from the Company's other business strategies, including the Company's disciplined approach to customer and project selection and the Company's asset-light, services-focused business model and its expected impact on future capital expenditures; (vii) risks associated with the Company's decentralized business model and participation in joint ventures; (viii) improperly managed projects or project delays; (ix) risks associated with the implementation and maintenance of the Company's enterprise resource planning systems and cloud-based platforms, including potential disruptions to operations, cost overruns, delays, and impacts on internal controls over financial reporting; (x) adverse developments in the credit markets which could impact the Company's ability to secure financing in the future; (xi) the Company's level of indebtedness; (xii) risks associated with the Company's contract portfolio; (xiii) changes in applicable laws or regulations, including changes in building codes, fire and life safety regulations, inspection mandates, professional licensing requirements, and environmental, health and safety laws that may affect demand for the Company's services or increase the cost of compliance; (xiv) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (xv) geopolitical risks, including armed conflicts, political instability, sanctions, and their impacts on the Company's operations, customers, and supply chains; (xvi) the trading price of the Company's common stock, which may be positively or negatively impacted by market and economic conditions, the Company's financial performance, or other factors; (xvii) the Company's ability to attract, retain, and develop qualified employees, including skilled trade labor, and the impact of labor shortages, wage inflation, and competition for talent on the Company's operations and cost structure; (xviii) cybersecurity incidents, information technology system failures, data breaches, or disruptions, and the costs of compliance with evolving data privacy and cybersecurity laws and regulations; and (xix) other risks and uncertainties, including those discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 under the heading "Risk Factors."
Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning these risks, uncertainties and other factors that could cause actual results to vary is, or will be, included in the periodic and other reports filed by the Company with the Securities and Exchange Commission. Forward-looking statements included in this document speak only as of the date hereof and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this document.
Non-GAAP Financial Measures
This document contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this document and the additional financial information both in explaining its results to shareholders and the investment community and in its internal evaluation and management of its businesses. The Company’s management believes that these non-U.S. GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company’s performance using the same tools that management uses to evaluate the Company’s past performance, reportable business segments and prospects for future performance, (b) permit investors to compare the Company with its peers, (c) in the case of adjusted EBITDA, determines certain elements of management’s incentive compensation, (d) provide consistent period-to-period comparisons of the results, and (e) in the case of organic net revenue growth, enable investors to assess the growth rate of the Company’s existing operations independent of the impact of acquisitions and foreign currency translation. Specifically:
The Company’s management believes that adjusted gross profit, adjusted selling, general and administrative (“SG&A”) expenses, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP financial measures that exclude amortization of intangible assets (including backlog amortization), systems and business enablement expenses, business process transformation expenses, and other specifically identified items, such as impairment charges, restructuring costs, transaction and other costs related to acquisitions and divestitures, non-service pension cost, contingent consideration and compensation, and miscellaneous capital market activities, are useful because they provide investors with a meaningful perspective on the current underlying performance of the Company’s core ongoing operations by removing items that management does not consider indicative of the Company’s ongoing operational performance.
The Company supplements the reporting of its consolidated financial information with certain financial measures including adjusted EBITDA, a non-GAAP financial measure, which is defined as earnings before interest, taxes, depreciation and amortization, adjusted to exclude contingent consideration and compensation, non-service pension cost, systems and business enablement expenses, business process transformation expenses, acquisition and divestiture related expenses, restructuring program related costs, and other miscellaneous items, as further described in the reconciliation tables included in this document. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net revenues. The Company believes these measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. On a consolidated basis, the Company uses adjusted EBITDA to evaluate its performance, both internally and as compared with its peers, because this measure excludes certain items that may not be indicative of the Company’s core operating results. Adjusted EBITDA also serves as a performance metric for certain elements of the Company’s executive incentive compensation program.
The Company discloses fixed currency net revenues and adjusted EBITDA on a consolidated basis and segment earnings on a segment specific basis to provide a more complete understanding of underlying revenue, adjusted EBITDA, and segment earnings trends by providing net revenues, adjusted EBITDA, and segment earnings on a consistent basis. Under U.S. GAAP, income statement results are translated in U.S. Dollars at the average exchange rates for the period presented. Management believes that the fixed currency non-GAAP measures are useful in providing period-to-period comparisons of the results of the Company’s operational performance, as it excludes the translation impact of exchange rate fluctuations on our international results. Fixed currency amounts included in this document are based on translation into U.S. dollars at the fixed foreign currency exchange rates established by management at the beginning of 2026.
The Company also presents organic changes in net revenues on a consolidated basis or segment specific basis to provide a more complete understanding of underlying revenue trends by providing net revenues on a consistent basis as it excludes the impacts of material acquisitions, material and completed divestitures, and changes in foreign currency from year-over-year comparisons on reported net revenues, calculated as the difference between the reported net revenues for the current period and reported net revenues for the current period converted at fixed foreign currency exchange rates (excluding material acquisitions and divestitures). The remainder is divided by prior year fixed currency net revenues, excluding the impacts of completed divestitures. For purposes of this calculation, an acquisition or divestiture is considered material based on management’s assessment of its significance to the comparability of the Company’s consolidated or segment-level results. Management applies this threshold consistently across periods.
The Company presents free cash flow, adjusted free cash flow and adjusted free cash flow conversion, which are liquidity measures used by management as factors in determining the amount of cash that is available for working capital needs or other uses of cash, however, they do not represent residual cash flows available for discretionary expenditures. Free cash flow is defined as cash provided by operating activities less capital expenditures. Adjusted free cash flow is defined as cash provided by operating activities plus or minus the following specifically identified items: contingent compensation, systems and business enablement expenses, business process transformation expenses, acquisition and divestiture related expenses, restructuring program related payments, and other miscellaneous items, such as capital market activities and costs or gains/losses associated with fixed asset acquisitions or dispositions. The Company applies these adjustments consistently across periods and will disclose the nature of any new adjustment category at the time it is first included. Adjusted free cash flow conversion is defined as adjusted free cash flow as a percentage of adjusted net income. The Company believes that adjusted free cash flow conversion helps investors assess the Company’s ability to convert earnings into cash available for debt repayment, capital allocation, and shareholder returns.
The Company calculates its net leverage ratio in accordance with its debt agreements, which include different adjustments to EBITDA, including pro forma financial adjustments for acquisitions and cost savings, that are not reflected in the adjusted EBITDA figures reported in this document. A description of the covenant EBITDA calculation is included in the Company’s filings with the Securities and Exchange Commission.
While the Company believes these non-U.S. GAAP measures are useful in evaluating the Company’s performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with U.S. GAAP. Additionally, these non-U.S. GAAP financial measures may differ from similar measures presented by other companies. A reconciliation of these non-U.S. GAAP financial measures is included later in this document.
The Company is unable to provide a quantitative reconciliation of forward-looking non-U.S. GAAP adjusted EBITDA, growth in reported and organic net revenues, and adjusted free cash flow conversion to U.S. GAAP without unreasonable effort due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisitions and divestitures, systems and business enablement expenses, business process transformation expenses, impairment charges, transaction and other costs related to acquisitions and divestitures, restructuring costs, miscellaneous capital market activities, and other charges reflected in the Company’s reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
Additional Information
Following the three-for-two stock split executed on June 30, 2025, all references to the number of shares outstanding, issued shares, and per share amounts of the Company’s common shares have been restated to reflect the effect of the stock split for all historical periods presented in this document.
APi Group Corporation
Condensed Consolidated Statements of Operations (GAAP)
(Amounts in millions, except per share data)
(Unaudited)
Three Months Ended March 31,
2026
2025
Net revenues
$
1,982
$
1,719
Cost of revenues
1,362
1,177
Gross profit
620
542
Selling, general, and administrative expenses
517
458
Operating income
103
84
Interest expense, net
30
38
Investment expense and other, net
2
—
Other expense, net
32
38
Income before income taxes
71
46
Income tax provision
14
11
Net income
$
57
$
35
Net income attributable to common shareholders:
Income allocable to Series A Preferred Stock
(6
)
(4
)
Net income attributable to common shareholders
$
51
$
31
Net income per common share:
Basic
$
0.12
$
0.07
Diluted
0.12
0.07
Weighted average shares outstanding:
Basic
431
416
Diluted
435
417
APi Group Corporation
Condensed Consolidated Balance Sheets (GAAP)
(Amounts in millions)
(Unaudited)
March 31,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$
645
$
912
Accounts receivable, net of allowances
1,545
1,563
Inventories
156
145
Contract assets
538
484
Prepaid expenses and other current assets
140
125
Total current assets
3,024
3,229
Property and equipment, net
401
397
Operating lease right-of-use assets
294
301
Goodwill
3,326
3,167
Intangible assets, net
1,623
1,584
Deferred tax assets
20
40
Pension and post-retirement assets
123
129
Other assets
155
89
Total assets
$
8,966
$
8,936
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term and current portion of long-term debt
$
5
$
5
Accounts payable
506
526
Accrued liabilities
726
827
Contract liabilities
773
694
Operating and finance leases
97
98
Total current liabilities
2,107
2,150
Long-term debt, less current portion
2,755
2,754
Pension and post-retirement obligations
49
50
Operating and finance leases
213
215
Deferred tax liabilities
200
205
Other noncurrent liabilities
156
154
Total liabilities
5,480
5,528
Total shareholders’ equity
3,486
3,408
Total liabilities and shareholders’ equity
$
8,966
$
8,936
APi Group Corporation
Condensed Consolidated Statements of Cash Flows (GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended March 31,
2026
2025
Cash flows from operating activities:
Net income
$
57
$
35
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
84
80
Restructuring charges, net of cash paid
(2
)
(6
)
Share-based compensation expense
11
10
Profit-sharing expense
11
9
Non-cash lease expense
32
28
Net periodic pension cost
6
6
Other, net
—
1
Changes in operating assets and liabilities, net of effects of acquisitions:
(114
)
(101
)
Net cash provided by operating activities
85
62
Cash flows from investing activities:
Acquisitions, net of cash acquired
(289
)
(6
)
Purchases of property and equipment
(18
)
(12
)
Proceeds from sales of property and equipment
2
4
Net cash used in investing activities
(305
)
(14
)
Cash flows from financing activities:
Payments on long-term borrowings
(1
)
(2
)
Repurchases of common stock
—
(75
)
Payments of acquisition-related consideration
(4
)
(2
)
Restricted shares tendered for taxes
(37
)
(19
)
Net cash used in financing activities
(42
)
(98
)
Effect of foreign currency exchange rate change on cash, cash equivalents, and restricted cash
(6
)
10
Net decrease in cash, cash equivalents, and restricted cash
(268
)
(40
)
Cash, cash equivalents, and restricted cash, beginning of period
913
501
Cash, cash equivalents, and restricted cash, end of period
$
645
$
461
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Organic Change in Net Revenues (non-GAAP)
(Unaudited)
Organic change in net revenues
Three Months Ended March 31, 2026
Net revenues
change
(as reported)
Foreign
currency
translation (a)
Net revenues
change
(fixed currency) (b)
Acquisitions and
divestitures, net (c)
Organic
change in
net revenues (d)
Safety Services
11.7
%
4.4
%
7.3
%
1.9
%
5.4
%
Specialty Services
25.6
%
—
%
25.6
%
0.8
%
24.8
%
Consolidated
15.3
%
3.3
%
12.0
%
1.6
%
10.4
%
Notes:
(a)
Represents the effect of foreign currency on reported net revenues, calculated as the difference between reported net revenues and net revenues at fixed currencies for both periods. Fixed currency amounts are based on translation into U.S. Dollars at fixed foreign currency exchange rates established by management at the beginning of 2026.
(b)
Amount represents the year-over-year change after eliminating the impact of fluctuations in foreign exchange rates by translating foreign currency denominated results at fixed foreign currency rates for both periods.
(c)
Adjustment to exclude net revenues from material acquisitions from their respective dates of acquisition until the first year anniversary from date of acquisition and net revenues from material divestitures for all periods for businesses divested as of March 31, 2026.
(d)
Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions, material divestitures, and the impact of changes due to foreign currency translation.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Gross Profit and Adjusted Gross Profit (non-GAAP)
SG&A and Adjusted SG&A (non-GAAP)
(Amounts in millions)
(Unaudited)
Adjusted gross profit
Three Months Ended March 31,
2026
2025
Gross profit (as reported)
$
620
$
542
Adjustments to reconcile gross profit to adjusted gross profit:
Backlog amortization
(a)
—
3
Adjusted gross profit
$
620
$
545
Net revenues
$
1,982
$
1,719
Adjusted gross margin
31.3
%
31.7
%
Adjusted SG&A
Three Months Ended March 31,
2026
2025
Selling, general, and administrative expenses ("SG&A") (as reported)
$
517
$
458
Adjustments to reconcile SG&A to adjusted SG&A:
Amortization of intangible assets
(b)
(63
)
(57
)
Contingent consideration and compensation
(c)
—
(1
)
Systems and business enablement
(d)
(27
)
(12
)
Business process transformation expenses
(e)
—
(4
)
Acquisition and divestiture related expenses
(f)
(19
)
(3
)
Restructuring program related costs
(g)
—
(3
)
Other
(h)
1
(2
)
Adjusted SG&A expenses
$
409
$
376
Net revenues
$
1,982
$
1,719
Adjusted SG&A as a % of net revenues
20.6
%
21.9
%
Notes:
(a)
Adjustment to reflect the elimination of amortization expense related to backlog intangible assets.
(b)
Adjustment to reflect the elimination of amortization expense.
(c)
Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.
(d)
Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.
(e)
Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to technology and business enhancements, including systems and process development costs.
(f)
Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.
(g)
Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.
(h)
Adjustment includes various miscellaneous non-recurring items, such as gains and losses on the sale of buildings, elimination of changes in fair value estimates to acquired liabilities, and miscellaneous capital market activities.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended March 31,
2026
2025
Net income (as reported)
$
57
$
35
Adjustments to reconcile net income to EBITDA:
Interest expense, net
30
38
Income tax provision
14
11
Depreciation
21
20
Amortization
63
60
EBITDA
$
185
$
164
Adjustments to reconcile EBITDA to adjusted EBITDA:
Contingent consideration and compensation
(a)
—
1
Non-service pension cost
(b)
5
4
Systems and business enablement
(c)
27
12
Business process transformation expenses
(d)
—
4
Acquisition and divestiture related expenses
(e)
19
3
Restructuring program related costs
(f)
—
3
Other
(g)
(1
)
2
Adjusted EBITDA
$
235
$
193
Net revenues
$
1,982
$
1,719
Adjusted EBITDA margin
11.9
%
11.2
%
Notes:
(a)
Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.
(b)
Adjustment to reflect the elimination of non-service pension cost, which consists of interest cost, expected return on plan assets and amortization of actuarial gains/losses.
(c)
Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.
(d)
Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to technology and business enhancements, including systems and process development costs.
(e)
Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.
(f)
Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.
(g)
Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, elimination of changes in fair value estimates to acquired liabilities, and miscellaneous capital market activities.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Income before Income Tax, Net Income, and EPS and
Adjusted Income before Income Tax, Net Income, and EPS (non-GAAP)
(Amounts in millions, except per share data)
(Unaudited)
Three Months Ended March 31,
2026
2025
Income before income tax provision (as reported)
$
71
$
46
Adjustments to reconcile income before income tax provision to adjusted income before income tax provision:
Amortization of intangible assets
(a)
63
60
Contingent consideration and compensation
(b)
—
1
Non-service pension cost
(c)
5
4
Systems and business enablement
(d)
27
12
Business process transformation expenses
(e)
—
4
Acquisition and divestiture related expenses
(f)
19
3
Restructuring program related costs
(g)
—
3
Other
(h)
(1
)
2
Adjusted income before income tax provision
$
184
$
135
Income tax provision (as reported)
$
14
$
11
Adjustments to reconcile income tax provision to adjusted income tax provision:
Income tax provision adjustment
(i)
28
20
Adjusted income tax provision
$
42
$
31
Adjusted income before income tax provision
$
184
$
135
Adjusted income tax provision
42
31
Adjusted net income
$
142
$
104
Diluted weighted average shares outstanding (as reported)
435
417
Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding:
Dilutive impact of Series A Preferred Stock
(j)
4
6
Adjusted diluted weighted average shares outstanding
439
423
Adjusted diluted EPS
$
0.32
$
0.25
Notes:
(a)
Adjustment to reflect the elimination of amortization expense.
(b)
Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.
(c)
Adjustment to reflect the elimination of non-service pension cost, which consists of interest cost, expected return on plan assets, and amortization of actuarial gains/losses.
(d)
Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.
(e)
Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to technology and business enhancements, including systems and process development costs.
(f)
Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.
(g)
Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.
(h)
Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, elimination of changes in fair value estimates to acquired liabilities, and miscellaneous capital market activities.
(i)
Adjustment to reflect an adjusted effective tax rate of 23%, which reflects the Company's estimated expectations for taxes to be paid on its adjusted non-GAAP earnings.
(j)
Adjustment reflects the addition of the dilutive impact of 6 million shares associated with the deemed conversion of Series A Preferred Stock, when adjusted for the stock split, offset by the adjustment of the assumed dividend payable to the Series A Preferred Stock holders at year-end.
APi Group Corporation
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended March 31,
2026 (a)
2025 (a)
Safety Services
Net revenues
$
1,415
$
1,267
Adjusted gross profit
527
469
Segment earnings
230
199
Adjusted gross margin
37.2
%
37.0
%
Segment earnings margin
16.3
%
15.7
%
Specialty Services
Net revenues
$
569
$
453
Adjusted gross profit
93
76
Segment earnings
39
29
Adjusted gross margin
16.3
%
16.8
%
Segment earnings margin
6.9
%
6.4
%
Total net revenues before corporate and eliminations
(b)
$
1,984
$
1,720
Total segment earnings before corporate and eliminations
(b)
269
228
Segment earnings margin before corporate and eliminations
(b)
13.6
%
13.3
%
Corporate and Eliminations
Net revenues
$
(2
)
$
(1
)
Adjusted EBITDA
(34
)
(35
)
Total Consolidated
Net revenues
$
1,982
$
1,719
Adjusted gross profit
620
545
Adjusted EBITDA
235
193
Adjusted gross margin
31.3
%
31.7
%
Adjusted EBITDA margin
11.9
%
11.2
%
Notes:
(a)
Information derived from non-GAAP reconciliations included elsewhere in this document.
(b)
Calculated from results of the Company's reportable segments shown above, excluding Corporate and Eliminations.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended March 31, 2026
Three Months Ended March 31, 2025
As Reported
Adjustments
As Adjusted
As Reported
Adjustments
As Adjusted
Safety Services
Net revenues
$
1,415
$
—
$
1,415
$
1,267
$
—
$
1,267
Cost of revenues
888
—
888
801
(3
)
(a)
798
Gross profit
$
527
$
—
$
527
$
466
$
3
$
469
Gross margin
37.2
%
37.2
%
36.8
%
37.0
%
Specialty Services
Net revenues
$
569
$
—
$
569
$
453
$
—
$
453
Cost of revenues
476
—
476
377
—
377
Gross profit
$
93
$
—
$
93
$
76
$
—
$
76
Gross margin
16.3
%
16.3
%
16.8
%
16.8
%
Corporate and Eliminations
Net revenues
$
(2
)
$
—
$
(2
)
$
(1
)
$
—
$
(1
)
Cost of revenues
(2
)
—
(2
)
(1
)
—
(1
)
Total Consolidated
Net revenues
$
1,982
$
—
$
1,982
$
1,719
$
—
$
1,719
Cost of revenues
1,362
—
1,362
1,177
(3
)
(a)
1,174
Gross profit
$
620
$
—
$
620
$
542
$
3
$
545
Gross margin
31.3
%
31.3
%
31.5
%
31.7
%
Notes:
(a)
Adjustment to reflect the elimination of amortization expense related to backlog intangible assets.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended March 31,
2026
2025
Corporate and Eliminations
Income before income taxes
$
(91
)
$
(83
)
Interest expense, net
21
29
Depreciation
2
1
Amortization
2
1
Systems and business enablement
(a)
15
10
Business process transformation expenses
(b)
—
3
Acquisition and divestiture related expenses
(c)
18
3
Other
(d)
(1
)
1
Corporate and Eliminations adjusted EBITDA
$
(34
)
$
(35
)
Notes:
(a)
Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.
(b)
Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to technology and business enhancements, including systems and process development costs.
(c)
Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.
(d)
Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, elimination of changes in fair value estimates to acquired liabilities, and miscellaneous capital market activities.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Change in Segment Earnings (non-GAAP)
(Unaudited)
Change in Segment earnings
Three Months Ended March 31, 2026
Change in
Segment earnings
(as reported)
Foreign
currency
translation (a)
Change in
Segment earnings
(fixed currency) (b)
Safety Services
15.6%
3.9%
11.7%
Specialty Services
34.5%
—%
34.5%
Consolidated
21.8%
3.7%
18.1%
Notes:
(a)
Represents the effect of foreign currency on reported segment earnings, calculated as the difference between reported segment earnings and segment earnings at fixed currencies for both periods. Fixed currency amounts are based on translation into U.S. Dollars at fixed foreign currency exchange rates established by management at the beginning of 2026.
(b)
Amount represents the year-over-year change after eliminating the impact of fluctuations in foreign exchange rates by translating foreign currency denominated results at fixed foreign currency rates for both periods.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Free Cash Flow and Adjusted Free Cash Flow and Conversion (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended March 31,
2026
2025
Net cash provided by operating activities (as reported)
$
85
$
62
Less: Purchases of property and equipment
(18
)
(12
)
Free cash flow
$
67
$
50
Add: Cash payments related to following items:
Contingent compensation
(a)
1
1
Systems and business enablement
(b)
36
16
Business process transformation expenses
(c)
—
4
Acquisition and divestiture related expenses
(d)
18
3
Restructuring program related payments
(e)
2
9
Other
(f)
1
3
Adjusted free cash flow
$
125
$
86
Adjusted net income
$
142
$
104
Adjusted free cash flow as a % of adjusted net income
88.0
%
82.7
%
Notes:
(a)
Adjustment to reflect the elimination of expense attributable to one-time deferred consideration to prior owners of acquired businesses.
(b)
Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.
(c)
Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to technology and business enhancements, including systems and process development costs.
(d)
Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.
(e)
Adjustment to reflect payments made for restructuring programs and related costs.
(f)
Adjustment includes various miscellaneous non-recurring items, including capital market activity and costs or gains/losses associated with any one-time fixed asset acquisitions or dispositions.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260430987224/en/
Investor Relations and Media Inquiries:
Adam Walters
Senior Director of Investor Relations
Tel: +1 920-419-5432
Email: investorrelations@apigroupinc.us
Original: APi Group Reports First Quarter 2026 Financial Results
US Market News
4 months ago
APi Group Reports Record Fourth Quarter and Full Year 2025 Financial ResultsFebruary 25, 2026 7:30 AM
Business Wire
-Record fourth quarter net revenues of $2.1 billion, representing year-over-year growth of 14% and year-over-year organic growth of 11%-
-Record fourth quarter reported net income of $97 million, representing year-over-year growth of 45%-
-Record fourth quarter adjusted EBITDA of $295 million, representing year-over-year growth of 22% and adjusted EBITDA margin expansion of 90 basis points to 13.9%-
-Record full year adjusted free cash flow of $836 million, adjusted free cash flow conversion of 80%, and a net leverage ratio of 1.6x-
APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today reported its financial results for the three months and full year ended December 31, 2025.
Russ Becker, APi’s President and Chief Executive Officer stated: “Our record results in 2025 once again demonstrate the strength of our recurring revenue, services-focused business model and the ongoing execution of our strategy by our teammates. We ended 2025 with adjusted EBITDA margins at 13.2%, above our 13% target, and free cash flow conversion of 80%. I am proud of our team for these record financial results achieved in 2025, and for executing on our `13/60/80' targets. We begin 2026 with positive momentum and strong demand for our services across our global platform. Our balance sheet remains strong, with a net leverage ratio of 1.6x, allowing us the flexibility to pursue value enhancing capital deployment opportunities in 2026. We remain laser focused on delivering and executing our new `10/16/60+' financial targets, and creating value for all our stakeholders."
Fourth Quarter and Full Year 2025 Consolidated Results:
Three Months Ended December 31,
Year Ended December 31,
2025
2024
Y/Y
2025
2024
Y/Y
Net revenues
$
2,117
$
1,861
13.8
%
$
7,911
$
7,018
12.7
%
Organic net revenue growth (a)
11.1
%
7.9
%
GAAP
Gross profit
$
678
$
575
17.9
%
$
2,487
$
2,178
14.2
%
Gross margin
32.0
%
30.9
%
+110 bps
31.4
%
31.0
%
+40 bps
Net income
$
97
$
67
44.8
%
$
302
$
250
20.8
%
Diluted EPS
$
(1.19
)
$
(0.07
)
NM
$
(0.69
)
$
(0.56
)
NM
Adjusted non-GAAP comparison
Adjusted gross profit
$
681
$
579
17.6
%
$
2,502
$
2,186
14.5
%
Adjusted gross margin
32.2
%
31.1
%
+110 bps
31.6
%
31.1
%
+50 bps
Adjusted EBITDA
$
295
$
242
21.9
%
$
1,041
$
893
16.6
%
Adjusted EBITDA margin
13.9
%
13.0
%
+90 bps
13.2
%
12.7
%
+50 bps
Adjusted net income
$
185
$
143
29.4
%
$
627
$
514
22.0
%
Adjusted diluted EPS (b)
$
0.44
$
0.34
29.4
%
$
1.48
$
1.23
20.3
%
Notes: Amounts in millions, except per share data. Refer to non-GAAP reconciliations to the most comparable GAAP measures.
(a)
Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions and divestitures, and the impact of changes due to foreign currency translation.
(b)
Per share data has been adjusted to reflect the three-for-two stock split executed June 30, 2025.
NM = Not meaningful
Fourth Quarter 2025 Highlights
Reported net revenues increased by 13.8% (11.1% organic) driven by growth in inspection, service, and monitoring revenues, strong growth in project revenues, acquisitions, and pricing improvements.
Reported and adjusted gross margin both increased 110 basis points compared to the prior year period driven by disciplined customer and project selection and pricing improvements, partially offset by project revenue mix.
Reported net income was $97 million and diluted EPS was $(1.19). Adjusted net income was $185 million and adjusted diluted EPS was $0.44, representing a 29.4% increase compared to prior year period. The increase in adjusted diluted EPS was driven by strong revenue growth, adjusted gross margin expansion, and a decrease in interest expense, partially offset by an increase in the adjusted diluted weighted average shares outstanding.
Adjusted EBITDA increased by 21.9% compared to prior year period and adjusted EBITDA margin increased 90 basis points to a record 13.9%. Growth in adjusted EBITDA was driven by strong revenue growth and adjusted gross margin expansion.
2025 Highlights
Reported net revenues increased by 12.7% (7.9% organic) driven by growth in inspection, service, and monitoring revenues, strong growth in project revenues, acquisitions, and pricing improvements.
Reported and adjusted gross margin increased 40 and 50 basis points, respectively, compared to prior year period driven by disciplined customer and project selection and pricing improvements, partially offset by project revenue mix.
Reported net income was a record $302 million and diluted EPS was $(0.69). Adjusted net income was $627 million and adjusted diluted EPS was $1.48, representing a 20.3% increase from prior year period. The increase in adjusted diluted EPS was driven by strong revenue growth, adjusted gross margin expansion, and a decrease in interest expense, partially offset by an increase in the adjusted diluted weighted average shares outstanding.
Adjusted EBITDA increased by 16.6% compared to the prior year period and adjusted EBITDA margin increased 50 basis points to a full year record of 13.2%. Growth in adjusted EBITDA was driven by strong revenue growth and adjusted gross margin expansion.
Fourth Quarter and Full Year 2025 Segment Results:
Safety Services
Three Months Ended December 31,
Year Ended December 31,
2025
2024
Y/Y
2025
2024
Y/Y
Safety Services
Net revenues
$
1,424
$
1,288
10.6
%
$
5,456
$
4,797
13.7
%
Organic net revenue growth (a)
6.6
%
6.7
%
GAAP
Gross profit
$
534
$
467
14.3
%
$
2,021
$
1,739
16.2
%
Gross margin
37.5
%
36.3
%
+120 bps
37.0
%
36.3
%
+70 bps
Segment earnings
$
249
$
211
18.0
%
$
916
$
765
19.7
%
Segment earnings margin
17.5
%
16.4
%
+110 bps
16.8
%
15.9
%
+90 bps
Adjusted non-GAAP comparison
Adjusted gross profit
$
537
$
471
14.0
%
$
2,036
$
1,747
16.5
%
Adjusted gross margin
37.7
%
36.6
%
+110 bps
37.3
%
36.4
%
+90 bps
Notes: Amounts in millions. Refer to non-GAAP reconciliations to the most comparable GAAP measures.
(a)
Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions and divestitures, and the impact of changes due to foreign currency translation.
Fourth Quarter 2025 Safety Services Highlights
Reported net revenues increased by 10.6% (6.6% organic) driven by growth in inspection, service and monitoring revenues, acquisitions, strong growth in project revenues, and pricing improvements.
Reported and adjusted gross margin increased 120 and 110 basis points, respectively, compared to prior year period driven by disciplined customer and project selection as well as pricing improvements leading to margin expansion in inspection, service, and monitoring revenues and project revenues.
Reported segment earnings increased by 18.0% (15.3% on a fixed currency basis) compared to prior year period. Segment earnings margin was 17.5%, a fourth quarter record and a 110 basis point increase compared to prior year period, primarily due to adjusted gross margin expansion.
2025 Safety Services Highlights
Reported net revenues increased by 13.7% (6.7% organic) driven by growth in inspection, service, and monitoring revenues, acquisitions, strong growth in project revenues, and pricing improvements.
Reported and adjusted gross margin increased 70 and 90 basis points, respectively, compared to prior year period driven by disciplined customer and project selection as well as pricing improvements leading to margin expansion in inspection, service, and monitoring revenues and project revenues.
Reported segment earnings increased by 19.7% (18.6% on a fixed currency basis) compared to prior year period. Segment earnings margin was 16.8%, a full year record and 90 basis point increase compared to prior year period, primarily driven by adjusted gross margin expansion.
Specialty Services
Three Months Ended December 31,
Year Ended December 31,
2025
2024
Y/Y
2025
2024
Y/Y
Specialty Services
Net revenues
$
695
$
576
20.7
%
$
2,460
$
2,229
10.4
%
Organic net revenue growth (a)
20.7
%
10.4
%
GAAP
Gross profit
$
144
$
108
33.3
%
$
466
$
439
6.2
%
Gross margin
20.7
%
18.8
%
+190 bps
18.9
%
19.7
%
(80) bps
Segment earnings
$
83
$
59
40.7
%
$
264
$
253
4.3
%
Segment earnings margin
11.9
%
10.2
%
+170 bps
10.7
%
11.4
%
(70) bps
Adjusted non-GAAP comparison
Adjusted gross profit
$
144
$
108
33.3
%
$
466
$
439
6.2
%
Adjusted gross margin
20.7
%
18.8
%
+190 bps
18.9
%
19.7
%
(80) bps
Notes: Amounts in millions. Refer to non-GAAP reconciliations to the most comparable GAAP measures.
(a)
Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions and divestitures, and the impact of changes due to foreign currency translation.
Fourth Quarter 2025 Specialty Services Highlights
Reported and organic net revenues increased by 20.7% driven by strong growth in project revenues.
Reported and adjusted gross margin each increased 190 basis points compared to prior year period driven by disciplined customer and project selection and improved leverage of fixed overhead costs.
Reported segment earnings increased by 40.7% compared to the prior year period. Segment earnings margin was 11.9%, representing a 170 basis point increase compared to prior year period, primarily driven by adjusted gross margin expansion.
2025 Specialty Services Highlights
Reported and organic net revenues increased by 10.4% driven by strong growth in project revenues.
Reported and adjusted gross margin each declined 80 basis points compared to prior year period driven primarily by increased project starts, mix, and increased material costs.
Reported segment earnings increased by 4.3% compared to the prior year. Segment earnings margin was 10.7%, representing a 70 basis point decline compared to prior year period, primarily due to the decrease in adjusted gross margin.
Guidance
APi Group announces initial 2026 guidance based on current foreign exchange rates and acquisitions closed to date.
For the full year 2026, the company expects:
Net Revenues of $8,400 to $8,600 million
Adjusted EBITDA of $1,140 to $1,200 million
Adjusted Free Cash Flow Conversion of approximately 115%, based on adjusted net income
For the first quarter of 2026, the company expects:
Net Revenues of $1,875 to $1,975 million
Adjusted EBITDA of $225 to $235 million
Conference Call
APi will hold a webcast/dial-in conference call to discuss its financial results at 8:30 a.m. (Eastern Time) on Wednesday, February 25, 2026. Participants on the call will include Russell A. Becker, President and Chief Executive Officer; and David Jackola, EVP and Chief Financial Officer. The conference call can be accessed by registering online using the links below. Analysts will receive dial-in information as well as a conference ID once registered.
Webcast Link: https://events.q4inc.com/attendee/431836886
Analysts Link: https://events.q4inc.com/analyst/431836886?pwd=78%7B9qHb%3A
A replay of the call will be available shortly after completion of the live call/webcast via the webcast link above.
About APi:
APi is a global, market-leading business services provider of fire and life safety, security, elevator and escalator, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. We have a winning leadership culture driven by entrepreneurial business leaders to deliver innovative solutions for our customers. More information can be found at www.apigroupinc.com.
Forward-Looking Statements and Disclaimers
Please note that in this press release the Company may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of APi Group Corporation (“APi” or the “Company”). Such discussion and statements may contain words such as “expect,” “anticipate,” “will,” “should,” “believe,” “intend,” “plan,” “estimate,” “predict,” “seek,” “continue,” “pro forma” “outlook,” “may,” “might,” “should,” “can have,” “have,” “likely,” “potential,” “target,” “indicative,” “illustrative,” and variations of such words and similar expressions, and relate in this press release, without limitation, to statements, beliefs, projections and expectations about future events. Such statements are based on the Company’s 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 guarantees 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, including: (i) economic conditions, competition, political risks, and other risks that may affect the Company’s future performance, including the impacts of inflationary pressures and other macroeconomic factors on the Company’s business, markets, supply chain, customers and workforce, on the credit and financial markets, on the alignment of expenses and revenues and on the global economy generally; (ii) supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the supplies and materials the Company uses in its business and for which the Company bears the risk of such increases; (iii) risks associated with the Company’s international operations; (iv) failure to realize the anticipated benefits of our acquisitions and our ability to successfully execute the Company’s bolt-on acquisition strategy to acquire other businesses and successfully integrate them into its operations; (v) failure to fully execute the Company’s inspection-first strategy or to realize the expected service revenue from such inspections; (vi) failure to realize expected benefits from the Company’s other business strategies, including the Company’s disciplined approach to customer and project selection and the Company’s asset-light, services-focused business model and its expected impact on future capital expenditures; (vii) risks associated with the Company’s decentralized business model and participation in joint ventures; (viii) improperly managed projects or project delays; (ix) adverse developments in the credit markets which could impact the Company’s ability to secure financing in the future; (x) the Company’s level of indebtedness; (xi) risks associated with the Company’s contract portfolio; (xii) changes in applicable laws or regulations; (xiii) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (xiv) the impact of a global armed conflict; (xv) the trading price of the Company’s common stock, which may be positively or negatively impacted by market and economic conditions, the availability of the Company’s common stock, the Company’s financial performance or determinations following the date of this press release to use the Company’s funds for other purposes; (xvi) geopolitical risks; and (xvii) other risks and uncertainties, including those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 under the heading “Risk Factors.” Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning these risks, uncertainties and other factors that could cause actual results to vary is, or will be, included in the periodic and other reports filed by the Company with the Securities and Exchange Commission. Forward-looking statements included in this press release speak only as of the date hereof and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this press release.
Non-GAAP Financial Measures
This press release contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this press release and the additional financial information both in explaining its results to shareholders and the investment community and in its internal evaluation and management of its businesses. The Company’s management believes that these non-U.S. GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company’s performance using the same tools that management uses to evaluate the Company’s past performance, reportable business segments and prospects for future performance, (b) permit investors to compare the Company with its peers, (c) in the case of adjusted EBITDA, determines certain elements of management’s incentive compensation, and (d) provide consistent period-to-period comparisons of the results. Specifically:
The Company’s management believes that adjusted gross profit, adjusted selling, general and administrative (“SG&A”) expenses, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP financial measures that exclude systems and business enablement expenses, business process transformation expenses, the impact and results of businesses classified as assets held-for-sale and businesses divested, and one-time and other events such as impairment charges, restructuring costs, transaction and other costs related to acquisitions and divestitures, non-service pension cost, and miscellaneous capital market activities, are useful because they provide investors with a meaningful perspective on the current underlying performance of the Company’s core ongoing operations.
The Company supplements the reporting of its consolidated financial information with certain financial measures including adjusted EBITDA, a non-GAAP financial measure, which is defined as earnings before interest, taxes, depreciation and amortization, excluding the impact of certain non-cash and other specifically identified items. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net revenues. The Company believes these measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. On a consolidated basis, the Company uses adjusted EBITDA to evaluate its performance, both internally and as compared with its peers, because this measure excludes certain items that may not be indicative of the Company’s core operating results.
The Company discloses fixed currency net revenues and adjusted EBITDA on a consolidated basis and segment earnings on a segment specific basis to provide a more complete understanding of underlying revenue, adjusted EBITDA, and segment earnings trends by providing net revenues, adjusted EBITDA, and segment earnings on a consistent basis. Under U.S. GAAP, income statement results are translated in U.S. Dollars at the average exchange rates for the period presented. Management believes that the fixed currency non-GAAP measures are useful in providing period-to-period comparisons of the results of the Company’s operational performance, as it excludes the translation impact of exchange rate fluctuations on our international results. Fixed currency amounts included in this release are based on translation into U.S. dollars at the fixed foreign currency exchange rates established by management at the beginning of 2025.
The Company also presents organic changes in net revenues on a consolidated basis or segment specific basis to provide a more complete understanding of underlying revenue trends by providing net revenues on a consistent basis as it excludes the impacts of material acquisitions, material and completed divestitures, and changes in foreign currency from year-over-year comparisons on reported net revenues, calculated as the difference between the reported net revenues for the current period and reported net revenues for the current period converted at fixed foreign currency exchange rates (excluding material acquisitions and divestitures). The remainder is divided by prior year fixed currency net revenues, excluding the impacts of completed divestitures.
The Company presents free cash flow, adjusted free cash flow and adjusted free cash flow conversion, which are liquidity measures used by management as factors in determining the amount of cash that is available for working capital needs or other uses of cash, however, it does not represent residual cash flows available for discretionary expenditures. Free cash flow is defined as cash provided by operating activities less capital expenditures. Adjusted free cash flow is defined as cash provided by operating activities plus or minus events including, but not limited to, transaction and other costs related to acquisitions and divestitures, systems and business enablement expenses, business process transformation expenses, payments on acquired liabilities, payments made for restructuring programs, one-time and other events such as miscellaneous capital market activities, and costs or gains/losses associated with one-time fixed asset acquisitions or dispositions. Adjusted free cash flow conversion is defined as adjusted free cash flow as a percentage of adjusted EBITDA.
The Company calculates its leverage ratio in accordance with its debt agreements which include different adjustments to EBITDA from those included in the adjusted EBITDA numbers reported externally.
While the Company believes these non-U.S. GAAP measures are useful in evaluating the Company’s performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with U.S. GAAP. Additionally, these non-U.S. GAAP financial measures may differ from similar measures presented by other companies. A reconciliation of these non-U.S. GAAP financial measures is included later in this press release.
The Company does not provide reconciliations of forward-looking non-U.S. GAAP adjusted EBITDA, growth in reported and organic net revenues, and adjusted free cash flow conversion to U.S. GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisitions and divestitures, systems and business enablement expenses, business process transformation expenses, one-time and other events such as impairment charges, transaction and other costs related to acquisitions and divestitures, restructuring costs, miscellaneous capital market activities, and other charges reflected in the Company’s reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
Additional Information
Following the realignment of our segments in 2025, we have recast all historical segment information in this press release to reflect the move of the HVAC business to the Specialty Services segment.
In addition, following the three-for-two stock split executed on June 30, 2025, all references to the number of shares outstanding, issued shares, and per share amounts of the Company’s common shares have been restated to reflect the effect of the stock split for all historical periods presented in this press release.
APi Group Corporation
Condensed Consolidated Statements of Operations (GAAP)
(Amounts in millions, except per share data)
(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Net revenues
$
2,117
$
1,861
$
7,911
$
7,018
Cost of revenues
1,439
1,286
5,424
4,840
Gross profit
678
575
2,487
2,178
Selling, general, and administrative expenses
514
459
1,933
1,694
Operating income
164
116
554
484
Interest expense, net
32
36
141
146
Investment expense (income) and other, net
3
2
—
8
Other expense, net
35
38
141
154
Income before income taxes
129
78
413
330
Income tax provision
32
11
111
80
Net income
$
97
$
67
$
302
$
250
Net loss attributable to common shareholders:
Accrued stock dividend on Series A Preferred Stock
(590
)
(95
)
(590
)
(95
)
Stock dividend on Series B Preferred Stock
—
—
—
(7
)
Stock conversion of Series B Preferred Stock
—
—
—
(372
)
Net loss attributable to common shareholders
$
(493
)
$
(28
)
$
(288
)
$
(224
)
Net loss per common share:
Net loss per common share (basic and diluted):
$
(1.19
)
$
(0.07
)
$
(0.69
)
$
(0.56
)
Weighted-average shares outstanding:
Weighted-average shares outstanding (basic and diluted):
416
413
416
402
APi Group Corporation
Condensed Consolidated Balance Sheets (GAAP)
(Amounts in millions)
(Unaudited)
December 31,
2025
December 31,
2024
Assets
Current assets:
Cash and cash equivalents
$
912
$
499
Accounts receivable, net
1,563
1,444
Inventories
145
143
Contract assets
484
453
Prepaid expenses and other current assets
125
119
Total current assets
3,229
2,658
Property and equipment, net
397
379
Operating lease right-of-use assets
301
268
Goodwill
3,167
2,894
Intangible assets, net
1,584
1,660
Deferred tax assets
40
57
Pension and post-retirement assets
129
120
Other assets
89
116
Total assets
$
8,936
$
8,152
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term and current portion of long-term debt
$
5
$
4
Accounts payable
526
497
Accrued liabilities
827
704
Contract liabilities
694
590
Operating and finance leases
98
90
Total current liabilities
2,150
1,885
Long-term debt, less current portion
2,754
2,749
Pension and post-retirement obligations
50
48
Operating and finance leases
215
192
Deferred tax liabilities
205
198
Other noncurrent liabilities
154
127
Total liabilities
5,528
5,199
Total shareholders’ equity
3,408
2,953
Total liabilities and shareholders’ equity
$
8,936
$
8,152
APi Group Corporation
Condensed Consolidated Statements of Cash Flows (GAAP)
(Amounts in millions)
(Unaudited)
Year Ended December 31,
2025
2024
Cash flows from operating activities:
Net income
$
302
$
250
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
327
302
Restructuring charges, net of cash paid
(6
)
(16
)
Deferred taxes
15
(30
)
Share-based compensation expense
44
32
Profit-sharing expense
36
27
Non-cash lease expense
110
97
Net periodic pension cost
23
27
Other, net
(9
)
(28
)
Changes in operating assets and liabilities, net of effects of acquisitions
(83
)
(41
)
Net cash provided by operating activities
759
620
Cash flows from investing activities:
Acquisitions, net of cash acquired
(186
)
(778
)
Purchases of property and equipment
(96
)
(84
)
Proceeds from sales of property, equipment, held for sale assets, and businesses
28
33
Net cash used in investing activities
(254
)
(829
)
Cash flows from financing activities:
Proceeds from long-term borrowings
—
850
Payments on long-term borrowings
(7
)
(437
)
Repurchases of common stock
(75
)
—
Proceeds from the issuance of common shares
—
458
Conversion of Series B Preferred Stock
—
(600
)
Payments of acquisition-related consideration
(18
)
(8
)
Restricted shares tendered for taxes
(21
)
(13
)
Other financing activities
—
(5
)
Net cash (used in) provided by financing activities
(121
)
245
Effect of foreign currency exchange rate change on cash, cash equivalents, and restricted cash
28
(15
)
Net increase in cash, cash equivalents, and restricted cash
412
21
Cash, cash equivalents, and restricted cash, beginning of period
501
480
Cash, cash equivalents, and restricted cash, end of period
$
913
$
501
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Organic Change in Net Revenues (non-GAAP)
(Unaudited)
Organic change in net revenues
Three Months Ended December 31, 2025
Net revenues
change (as
reported)
Foreign
currency
translation (a)
Net revenues
change (fixed
currency) (b)
Acquisitions and
divestitures, net (c)
Organic change
in net revenues (d)
Safety Services
10.6 %
2.4 %
8.2 %
1.6 %
6.6 %
Specialty Services
20.7 %
— %
20.7 %
— %
20.7 %
Consolidated
13.8 %
1.6 %
12.2 %
1.1 %
11.1 %
Year Ended December 31, 2025
Net revenues
change (as
reported)
Foreign
currency
translation (a)
Net revenues
change (fixed
currency) (b)
Acquisitions and
divestitures, net (c)
Organic change
in net revenues (d)
Safety Services
13.7 %
0.8 %
12.9 %
6.2 %
6.7 %
Specialty Services
10.4 %
— %
10.4 %
— %
10.4 %
Consolidated
12.7 %
0.5 %
12.2 %
4.3 %
7.9 %
Notes:
(a)
Represents the effect of foreign currency on reported net revenues, calculated as the difference between reported net revenues and net revenues at fixed currencies for both periods. Fixed currency amounts are based on translation into U.S. Dollars at fixed foreign currency exchange rates established by management at the beginning of 2025.
(b)
Amount represents the year-over-year change after eliminating the impact of fluctuations in foreign exchange rates by translating foreign currency denominated results at fixed foreign currency rates for both periods.
(c)
Adjustment to exclude net revenues from material acquisitions from their respective dates of acquisition until the first year anniversary from date of acquisition and net revenues from material divestitures for all periods for businesses divested as of December 31, 2025.
(d)
Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions, material divestitures, and the impact of changes due to foreign currency translation.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Gross Profit and Adjusted Gross Profit (non-GAAP)
SG&A and Adjusted SG&A (non-GAAP)
(Amounts in millions)
(Unaudited)
Adjusted gross profit
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Gross profit (as reported)
$
678
$
575
$
2,487
$
2,178
Adjustments to reconcile gross profit to adjusted gross profit:
Backlog amortization
(a)
3
4
14
6
Restructuring program related costs
(b)
—
—
1
2
Adjusted gross profit
$
681
$
579
$
2,502
$
2,186
Net revenues
$
2,117
$
1,861
$
7,911
$
7,018
Adjusted gross margin
32.2
%
31.1
%
31.6
%
31.1
%
Adjusted SG&A
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Selling, general, and administrative expenses ("SG&A") (as reported)
$
514
$
459
$
1,933
$
1,694
Adjustments to reconcile SG&A to adjusted SG&A:
Amortization of intangible assets
(c)
(60
)
(57
)
(228
)
(216
)
Contingent consideration and compensation
(d)
—
2
(2
)
(3
)
Systems and business enablement
(e)
(35
)
—
(96
)
—
Business process transformation expenses
(f)
—
(26
)
(4
)
(52
)
Acquisition and divestiture related expenses
(g)
(12
)
(2
)
(24
)
(13
)
Restructuring program related costs
(b)
—
(15
)
(13
)
(30
)
Other
(h)
3
—
(1
)
8
Adjusted SG&A expenses
$
410
$
361
$
1,565
$
1,388
Net revenues
$
2,117
$
1,861
$
7,911
$
7,018
Adjusted SG&A as a % of net revenues
19.4
%
19.4
%
19.8
%
19.8
%
Notes:
(a)
Adjustment to reflect the elimination of amortization expense related to backlog intangible assets.
(b)
Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.
(c)
Adjustment to reflect the elimination of amortization expense.
(d)
Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.
(e)
Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.
(f)
Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to technology and business enhancements, including systems and process development costs.
(g)
Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.
(h)
Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, elimination of changes in fair value estimates to acquired liabilities, and miscellaneous capital market activities.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Net income (as reported)
$
97
$
67
$
302
$
250
Adjustments to reconcile net income to EBITDA:
Interest expense, net
32
36
141
146
Income tax provision
32
11
111
80
Depreciation and amortization
85
81
327
302
EBITDA
$
246
$
195
$
881
$
778
Adjustments to reconcile EBITDA to adjusted EBITDA:
Contingent consideration and compensation
(a)
—
(2
)
2
3
Non-service pension cost
(b)
5
5
19
22
Systems and business enablement
(c)
35
—
96
—
Business process transformation expenses
(d)
—
26
4
52
Acquisition and divestiture related expenses
(e)
12
2
24
13
Restructuring program related costs
(f)
—
15
14
32
Other
(g)
(3
)
1
1
(7
)
Adjusted EBITDA
$
295
$
242
$
1,041
$
893
Net revenues
$
2,117
$
1,861
$
7,911
$
7,018
Adjusted EBITDA margin
13.9
%
13.0
%
13.2
%
12.7
%
Notes:
(a)
Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.
(b)
Adjustment to reflect the elimination of non-service pension cost, which consists of interest cost, expected return on plan assets and amortization of actuarial gains/losses.
(c)
Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.
(d)
Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to technology and business enhancements, including systems and process development costs.
(e)
Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.
(f)
Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.
(g)
Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, elimination of changes in fair value estimates to acquired liabilities, and miscellaneous capital market activities.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Income before Income Tax, Net Income and EPS and
Adjusted Income before Income Tax, Net Income and EPS (non-GAAP)
(Amounts in millions, except per share data)
(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Income before income tax provision (as reported)
$
129
$
78
$
413
$
330
Adjustments to reconcile income before income tax provision to adjusted income before income tax provision:
Amortization of intangible assets
(a)
63
61
242
222
Contingent consideration and compensation
(b)
—
(2
)
2
3
Non-service pension cost
(c)
5
5
19
22
Systems and business enablement
(d)
35
—
96
—
Business process transformation expenses
(e)
—
26
4
52
Acquisition and divestiture related expenses
(f)
12
2
24
13
Restructuring program related costs
(g)
—
15
14
32
Other
(h)
(3
)
1
1
(7
)
Adjusted income before income tax provision
$
241
$
186
$
815
$
667
Income tax provision (as reported)
$
32
$
11
$
111
$
80
Adjustments to reconcile income tax provision to adjusted income tax provision:
Income tax provision adjustment
(i)
24
32
77
73
Adjusted income tax provision
$
56
$
43
$
188
$
153
Adjusted income before income tax provision
$
241
$
186
$
815
$
667
Adjusted income tax provision
56
43
188
153
Adjusted net income
$
185
$
143
$
627
$
514
Diluted weighted average shares outstanding (as reported)
416
413
416
402
Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding:
Dilutive impact of shares from GAAP net loss
(j)
2
1
1
1
Dilutive impact of Series A Preferred Stock
(k)
6
6
6
6
Dilutive impact of conversion of Series B Preferred Stock
(l)
—
—
—
8
Adjusted diluted weighted average shares outstanding
424
420
423
417
Adjusted diluted EPS
$
0.44
$
0.34
$
1.48
$
1.23
Notes:
(a)
Adjustment to reflect the elimination of amortization expense.
(b)
Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.
(c)
Adjustment to reflect the elimination of non-service pension cost (benefit), which consists of interest cost, expected return on plan assets and amortization of actuarial gains/losses.
(d)
Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.
(e)
Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to technology and business enhancements, including systems and process development costs.
(f)
Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.
(g)
Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.
(h)
Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, elimination of changes in fair value estimates to acquired liabilities, and miscellaneous capital market activities.
(i)
Adjustment to reflect an adjusted effective tax rate of 23% which reflects the Company's estimated expectations for taxes to be paid on its adjusted non-GAAP earnings.
(j)
Adjustment to add the dilutive impact of RSUs which were anti-dilutive and excluded from the diluted weighted average shares outstanding (as reported).
(k)
Adjustment reflects the addition of the dilutive impact of 6 million shares associated with the deemed conversion of Series A Preferred Stock, when adjusted for the stock split.
(l)
Adjustment for the weighted average impact of the Series B Preferred Stock that were convertible into approximately 49 million common shares and were outstanding for two months of 2024. On February 28, 2024, all Series B Preferred Stock was converted to common stock and there is no longer any dilutive impact from the Series B Preferred Stock.
APi Group Corporation
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025 (a)
2024 (a)
2025 (a)
2024 (a)
Safety Services
Net revenues
$
1,424
$
1,288
$
5,456
$
4,797
Adjusted gross profit
537
471
2,036
1,747
Segment earnings
249
211
916
765
Adjusted gross margin
37.7
%
36.6
%
37.3
%
36.4
%
Segment earnings margin
17.5
%
16.4
%
16.8
%
15.9
%
Specialty Services
Net revenues
$
695
$
576
$
2,460
$
2,229
Adjusted gross profit
144
108
466
439
Segment earnings
83
59
264
253
Adjusted gross margin
20.7
%
18.8
%
18.9
%
19.7
%
Segment earnings margin
11.9
%
10.2
%
10.7
%
11.4
%
Total net revenues before corporate and eliminations
(b)
$
2,119
$
1,864
$
7,916
$
7,026
Total segment earnings before corporate and eliminations
(b)
332
270
1,180
1,018
Segment earnings margin before corporate and eliminations
(b)
15.7
%
14.5
%
14.9
%
14.5
%
Corporate and Eliminations
Net revenues
$
(2
)
$
(3
)
$
(5
)
$
(8
)
Adjusted EBITDA
(37
)
(28
)
(139
)
(125
)
Total Consolidated
Net revenues
$
2,117
$
1,861
$
7,911
$
7,018
Adjusted gross profit
681
579
2,502
2,186
Adjusted EBITDA
295
242
1,041
893
Adjusted gross margin
32.2
%
31.1
%
31.6
%
31.1
%
Adjusted EBITDA margin
13.9
%
13.0
%
13.2
%
12.7
%
Notes:
(a)
Information derived from non-GAAP reconciliations included elsewhere in this press release.
(b)
Calculated from results of the Company's reportable segments shown above, excluding Corporate and Eliminations.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended December 31, 2025
Three Months Ended December 31, 2024
As Reported
Adjustments
As Adjusted
As Reported
Adjustments
As Adjusted
Safety Services
Net revenues
$
1,424
$
—
$
1,424
$
1,288
$
—
$
1,288
Cost of revenues
890
(3
)
(a)
887
821
(4
)
(a)
817
Gross profit
$
534
$
3
$
537
$
467
$
4
$
471
Gross margin
37.5
%
37.7
%
36.3
%
36.6
%
Specialty Services
Net revenues
$
695
$
—
$
695
$
576
$
—
$
576
Cost of revenues
551
—
551
468
—
468
Gross profit
$
144
$
—
$
144
$
108
$
—
$
108
Gross margin
20.7
%
20.7
%
18.8
%
18.8
%
Corporate and Eliminations
Net revenues
$
(2
)
$
—
$
(2
)
$
(3
)
$
—
$
(3
)
Cost of revenues
(2
)
—
(2
)
(3
)
—
(3
)
Total Consolidated
Net revenues
$
2,117
$
—
$
2,117
$
1,861
$
—
$
1,861
Cost of revenues
1,439
(3
)
(a)
1,436
1,286
(4
)
(a)
1,282
Gross profit
$
678
$
3
$
681
$
575
$
4
$
579
Gross margin
32.0
%
32.2
%
30.9
%
31.1
%
Notes:
(a)
Adjustment to reflect the elimination of amortization expense related to backlog intangible assets.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Year Ended December 31, 2025
Year Ended December 31, 2024
As Reported
Adjustments
As Adjusted
As Reported
Adjustments
As Adjusted
Safety Services
Net revenues
$
5,456
$
—
$
5,456
$
4,797
$
—
$
4,797
Cost of revenues
3,435
(14
)
(a)
3,420
3,058
(6
)
(a)
3,050
(1
)
(b)
(2
)
(b)
Gross profit
$
2,021
$
15
$
2,036
$
1,739
$
8
$
1,747
Gross margin
37.0
%
37.3
%
36.3
%
36.4
%
Specialty Services
Net revenues
$
2,460
$
—
$
2,460
$
2,229
$
—
$
2,229
Cost of revenues
1,994
—
1,994
1,790
—
1,790
Gross profit
$
466
$
—
$
466
$
439
$
—
$
439
Gross margin
18.9
%
18.9
%
19.7
%
19.7
%
Corporate and Eliminations
Net revenues
$
(5
)
$
—
$
(5
)
$
(8
)
$
—
$
(8
)
Cost of revenues
(5
)
—
(5
)
(8
)
—
(8
)
Total Consolidated
Net revenues
$
7,911
$
—
$
7,911
$
7,018
$
—
$
7,018
Cost of revenues
5,424
(14
)
(a)
5,409
4,840
(6
)
(a)
4,832
(1
)
(b)
(2
)
(b)
Gross profit
$
2,487
$
15
$
2,502
$
2,178
$
8
$
2,186
Gross margin
31.4
%
31.6
%
31.0
%
31.1
%
Notes:
(a)
Adjustment to reflect the elimination of amortization expense related to backlog intangible assets.
(b)
Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Corporate and Eliminations
Income before income taxes
$
(94
)
$
(82
)
$
(342
)
$
(290
)
Interest expense, net
23
26
105
107
Depreciation
2
1
6
3
Amortization
1
2
4
5
Systems and business enablement
(a)
16
—
55
—
Business process transformation expenses
(b)
—
22
3
43
Acquisition and divestiture related expenses
(c)
12
2
22
13
Restructuring program related costs
(d)
—
—
—
1
Other
(e)
3
1
8
(7
)
Corporate and Eliminations adjusted EBITDA
$
(37
)
$
(28
)
$
(139
)
$
(125
)
Notes:
(a)
Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.
(b)
Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to technology and business enhancements, including systems and process development costs.
(c)
Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.
(d)
Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.
(e)
Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, elimination of changes in fair value estimates to acquired liabilities, and miscellaneous capital market activities.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Change in Segment Earnings (non-GAAP)
(Unaudited)
Change in segment earnings
Three Months Ended December 31, 2025
Change in
segment earnings
(public rates)
Foreign
currency
translation (a)
Change in
segment earnings
(fixed currency) (b)
Safety Services
18.0%
2.7%
15.3%
Specialty Services
40.7%
—%
40.7%
Consolidated
21.9%
2.2%
19.7%
Year Ended December 31, 2025
Change in
segment earnings
(public rates)
Foreign
currency
translation (a)
Change in
segment earnings
(fixed currency) (b)
Safety Services
19.7%
1.1%
18.6%
Specialty Services
4.3%
—%
4.3%
Consolidated
16.6%
1.0%
15.6%
Notes:
(a)
Represents the effect of foreign currency on reported segment earnings, calculated as the difference between reported segment earnings and segment earnings at fixed currencies for both periods. Fixed currency amounts are based on translation into U.S. Dollars at fixed foreign currency exchange rates established by management at the beginning of 2025.
(b)
Amount represents the year-over-year change after eliminating the impact of fluctuations in foreign exchange rates by translating foreign currency denominated results at fixed foreign currency rates for both periods.
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Free Cash Flow and Adjusted Free Cash Flow and Conversion (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Net cash provided by operating activities (as reported)
$
382
$
283
$
759
$
620
Less: Purchases of property and equipment
(26
)
(18
)
(96
)
(84
)
Free cash flow
$
356
$
265
$
663
$
536
Add: Cash payments related to following items:
Contingent compensation
(a)
—
2
1
18
Systems and business enablement
(b)
39
—
118
—
Business process transformation expenses
(c)
—
22
4
48
Acquisition and divestiture related expenses
(d)
12
2
22
12
Restructuring program related payments
(e)
1
15
18
45
Other
(f)
(6
)
1
10
9
Adjusted free cash flow
$
402
$
307
$
836
$
668
Adjusted EBITDA
(g)
$
295
$
242
$
1,041
$
893
Adjusted free cash flow conversion
136.3
%
126.9
%
80.3
%
74.8
%
Notes:
(a)
Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.
(b)
Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.
(c)
Adjustment to reflect the elimination of expenses associated with the integration and reorganization of newly acquired businesses and non-operational costs related to technology and business enhancements, including systems and process development costs.
(d)
Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.
(e)
Adjustment to reflect payments made for restructuring programs and related costs.
(f)
Adjustment includes various miscellaneous non-recurring items, including capital market activity and costs or gains/losses associated with any one-time fixed asset acquisitions or dispositions.
(g)
Adjusted EBITDA from non-GAAP reconciliations included elsewhere in this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225198443/en/
Investor Relations and Media Inquiries:
Adam Fee
Vice President of Investor Relations
Tel: +1 651-240-7252
Email: investorrelations@apigroupinc.us
Adam Walters
Senior Director of Investor Relations
Tel: +1 920-419-5432
Email: investorrelations@apigroupinc.us
Original: APi Group Reports Record Fourth Quarter and Full Year 2025 Financial Results
US Market News
5 months ago
APi Group Provides Update on 2025 Performance and Initial 2026 GuidanceFebruary 17, 2026 7:30 AM
Business Wire
APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today provided an update on year-end 2025 results and net revenue and adjusted EBITDA guidance for 2026.
Financial Update:
Russ Becker, APi’s President and Chief Executive Officer stated: “I want to thank all our leaders for their contributions to APi. In 2025, execution of our strategy drove another year of record financial results. We delivered strong organic growth, continued to expand adjusted EBITDA margins, and improved adjusted free cash flow conversion. We expect net revenues and adjusted EBITDA for 2025 to be comfortably above the midpoint of our guidance provided on October 30, 2025, of $7,825 to $7,925 million and $1,015 to $1,045 million, respectively.
Further, we expect our adjusted EBITDA margins to be above our 13% target and adjusted free cash flow conversion to be in line with our target of 80%. Back in 2021, we introduced our “13/60/80” shareholder value creation framework. Since then, and through 2025, “13/60/80” has been our north star, and I am thankful to all our teammates for their focus, discipline, and commitment that made these results possible. We also expect to end the year with a net leverage ratio significantly below 2.0x, comfortably under our target of 2.5 – 3.0x. We believe that the strength of our balance sheet provides continued opportunity to pursue value enhancing capital allocation alternatives in 2026.”
Becker continued, “I am excited about the opportunities for the business in 2026 across our global platform. At current foreign exchange rates and including acquisitions closed to date, we expect net revenues for 2026 to range between $8,400 to $8,600 million, driven by strong organic growth in both service and project revenues. For 2026 adjusted EBITDA, we expect to deliver between $1,140 to $1,200 million, representing a 13.8% adjusted EBITDA margin at the midpoint. We look forward to providing more detail on our 2025 performance as well as our outlook for 2026 on our earnings call on February 25, 2026.”
Upcoming Investor Conference Participation:
APi’s senior leadership will be participating in a fireside chat at the Citi 2026 Global Industrial Tech and Mobility Conference on Tuesday, February 17, 2026 at 1:00 PM ET and the Barclays 2026 Industrial Select Conference on Wednesday, February 18, 2026 at 7:30 AM ET. The live webcast link and archived replay will be available in the “Events” area on the Investor Relations page of APi’s website at www.apigroupcorp.com. Interested parties should check the Company’s website for any schedule updates or time changes.
About APi:
APi is a global, market-leading business services provider of fire and life safety, security, elevator and escalator, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. We have a winning leadership culture driven by entrepreneurial business leaders to deliver innovative solutions for our customers. More information can be found at www.apigroupinc.com.
Forward-Looking Statements and Disclaimers:
Please note that in this press release the Company may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of APi Group Corporation (“APi” or the “Company”). Such discussion and statements may contain words such as “expect,” “anticipate,” “will,” “should,” “believe,” “intend,” “plan,” “estimate,” “predict,” “seek,” “continue,” “pro forma” “outlook,” “may,” “might,” “should,” “can have,” “have,” “likely,” “potential,” “target,” “indicative,” “illustrative,” and variations of such words and similar expressions, and relate in this press release, without limitation, to statements, beliefs, projections and expectations about future events. Such statements are based on the Company’s 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 guarantees 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, including: (i) economic conditions, competition, political risks, and other risks that may affect the Company’s future performance, including the impacts of inflationary pressures and other macroeconomic factors on the Company’s business, markets, supply chain, customers and workforce, on the credit and financial markets, on the alignment of expenses and revenues and on the global economy generally; (ii) supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the supplies and materials the Company uses in its business and for which the Company bears the risk of such increases; (iii) risks associated with the Company’s international operations; (iv) failure to realize the anticipated benefits of our acquisitions and our ability to successfully execute the Company’s bolt-on acquisition strategy to acquire other businesses and successfully integrate them into its operations; (v) failure to fully execute the Company’s inspection-first strategy or to realize the expected service revenue from such inspections; (vi) failure to realize expected benefits from the Company’s other business strategies, including the Company’s disciplined approach to customer and project selection and the Company’s asset-light, services-focused business model and its expected impact on future capital expenditures; (vii) risks associated with the Company’s decentralized business model and participation in joint ventures; (viii) improperly managed projects or project delays; (ix) adverse developments in the credit markets which could impact the Company’s ability to secure financing in the future; (x) the Company’s level of indebtedness; (xi) risks associated with the Company’s contract portfolio; (xii) changes in applicable laws or regulations; (xiii) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (xiv) the impact of a global armed conflict; (xv) the trading price of the Company’s common stock, which may be positively or negatively impacted by market and economic conditions, the availability of the Company’s common stock, the Company’s financial performance or determinations following the date of this press release to use the Company’s funds for other purposes; (xvi) geopolitical risks; and (xvii) other risks and uncertainties, including those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 under the heading “Risk Factors,” and any updates to the risk factors in our Form 10-Q and 8-K filings with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning these risks, uncertainties and other factors that could cause actual results to vary is, or will be, included in the periodic and other reports filed by the Company with the Securities and Exchange Commission. Forward-looking statements included in this press release speak only as of the date hereof and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this press release.
We do not provide reconciliations of forward-looking non-U.S. GAAP adjusted EBITDA to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisitions and divestitures, systems and business enablement expenses, business process transformation expenses, one-time and other events such as impairment charges, transaction and other costs related to acquisitions and divestitures, restructuring costs, miscellaneous capital market activities, and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
The preliminary, unaudited financial estimates contained in this press release are based on information available to management as of the date of this press release, remain subject to the completion of normal year-end accounting procedures and adjustments, and are subject to change. Our independent registered public accounting firm has not completed its audit of our results for the year ended December 31, 2025. During the course of the preparation of our consolidated financial statements and related notes, and completion of our financial close and procedures for the year ended, adjustments to the preliminary estimates may be identified, and such adjustments may be material. In addition, other developments may arise between now and the time the financial statements for the year ended December 31, 2025 are finalized. We undertake no obligation to update the information in this press release in the event facts or circumstances change after the date of this press release.
Non-GAAP Financial Measures:
This press release contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this press release and the additional financial information both in explaining its results to shareholders and the investment community and in its internal evaluation and management of its businesses. The Company’s management believes that these non-U.S. GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company’s performance using the same tools that management uses to evaluate the Company’s past performance and prospects for future performance, (b) permit investors to compare the Company with its peers, (c) determine certain elements of management’s incentive compensation, and (d) provide consistent period-to-period comparisons of the results. Specifically:
The Company supplements the reporting of its consolidated financial information with certain non-U.S. GAAP financial measures, including adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization, excluding the impact of certain non-cash and other specifically identified items. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net revenues. The Company believes these measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. On a consolidated basis, the Company uses adjusted EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260217034434/en/
Investor Relations and Media Inquiries:
Adam Fee
Vice President of Investor Relations
Tel: +1 651-240-7252
Email: investorrelations@apigroupinc.us
Adam Walters
Senior Director of Investor Relations
Tel: +1 920-419-5432
Email: investorrelations@apigroupinc.us
Original: APi Group Provides Update on 2025 Performance and Initial 2026 Guidance
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