APi Group (NYSE: APG) posts record Q2 2026 results and lifts 2026 guidance
Rhea-AI Filing Summary
APi Group Corporation reported record second-quarter 2026 results, with net revenues of $2.3 billion, up 13.3% year over year and 10.1% organic growth. Reported net income increased to $99 million, a 28.6% rise, and diluted EPS grew to $0.20.
Adjusted EBITDA was $311 million, up 14.3%, with margin improving 10 basis points to 13.8%. Safety Services net revenues rose 8.8% to $1.48 billion, while Specialty Services grew 22.9% to $773 million with 120-basis-point gross margin expansion.
Management cited strength in inspection, service, monitoring and project work and highlighted a record backlog exceeding $5 billion. For full-year 2026, APi raised guidance to net revenues of $8,875–$9,025 million and adjusted EBITDA of $1,205–$1,245 million, and guided to 115% adjusted free cash flow conversion.
Positive
- Record Q2 performance with double-digit growth: net revenues rose 13.3% to $2.3 billion, net income increased 28.6% to $99 million, and adjusted EBITDA grew 14.3% to $311 million with margin expansion.
- Raised full-year 2026 outlook: net revenues guidance increased to $8,875–$9,025 million and adjusted EBITDA to $1,205–$1,245 million, alongside a targeted 115% adjusted free cash flow conversion.
- Strong Specialty Services momentum: segment net revenues grew 22.9% (22.0% organic) to $773 million, with gross margin up 120 bps to 19.3% and segment earnings up 29.6%.
Negative
- None.
Filing Explained
The filing adds a current balance-sheet view to APi's earnings disclosure without presenting the results information as filed under the Exchange Act.
On
The accompanying results add a current balance-sheet view to the earnings update.
Adjusted EBITDA, adjusted net income, and adjusted free cash flow are supplemental non-GAAP measures built from reported results by excluding specified items; the filing says they are not substitutes for, or superior to, GAAP measures.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Net Revenues: $2,254 million
Q2 2026 Net Income: $99 million
Q2 2026 Adjusted EBITDA: $311 million
+5 more
8 metrics
Q2 2026 Net Revenues
$2,254 million
Three months ended June 30, 2026; up 13.3% year over year
Q2 2026 Net Income
$99 million
Three months ended June 30, 2026; up 28.6% year over year
Q2 2026 Adjusted EBITDA
$311 million
Three months ended June 30, 2026; 14.3% growth, 13.8% margin
Record Backlog
Exceeding $5 billion
Backlog level entering second half of 2026
FY 2026 Net Revenues Guidance
$8,875–$9,025 million
Updated full-year 2026 outlook
FY 2026 Adjusted EBITDA Guidance
$1,205–$1,245 million
Updated full-year 2026 outlook
H1 2026 Operating Cash Flow
$168 million
Net cash provided by operating activities, six months ended June 30, 2026
H1 2026 Acquisitions Cash Outflow
$816 million
Cash used for acquisitions, net of cash acquired, six months ended June 30, 2026
Key Terms
adjusted EBITDA, organic net revenue growth, adjusted free cash flow conversion, backlog, +2 more
6 terms
adjusted EBITDA financial
"Record second quarter adjusted EBITDA of $311 million with year-over-year growth of 14.3%"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
organic net revenue growth financial
"representing year-over-year growth of 13.3%, 10.1% on an organic basis"
Organic net revenue growth measures how much a company's sales have risen or fallen from its ongoing operations, excluding effects from buying or selling businesses, major one-time items, and currency swings. It matters to investors because it shows whether the core business is genuinely expanding or shrinking—like checking the engine’s performance rather than counting fuel added by a tow truck—helping separate sustainable progress from growth driven by deals or accounting quirks.
adjusted free cash flow conversion financial
"Adjusted Free Cash Flow Conversion of 115%, based on adjusted net income"
Adjusted free cash flow conversion measures how effectively a company turns its reported profit into available cash after accounting for necessary expenses and adjustments. It shows the percentage of profit that becomes actual cash the company can use for growth, debt repayment, or returning value to shareholders. This metric helps investors understand the quality and sustainability of a company's earnings.
backlog financial
"supported by record backlog exceeding $5 billion and disciplined execution"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
non-service pension cost financial
"Adjustment to reflect the elimination of non-service pension cost, which consists of interest cost"
net leverage ratio financial
"Net leverage ratio is calculated in accordance with the Company’s debt agreements"
The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.
Earnings Snapshot
Net revenues (Q2 2026): $2,254 million · Guidance included
Three and six months ended June 30, 2026
Net revenues (Q2 2026)
$2,254 million
up 13.3% year over year
Net income (Q2 2026)
$99 million
up 28.6% year over year
Adjusted EBITDA (Q2 2026)
$311 million
up 14.3% year over year; margin up 10 bps to 13.8%
Safety Services net revenues (Q2 2026)
$1,482 million
up 8.8% year over year; 4.7% organic
Specialty Services net revenues (Q2 2026)
$773 million
up 22.9% year over year; 22.0% organic
Guidance
For 2026, APi guides to net revenues of $8,875–$9,025 million, adjusted EBITDA of $1,205–$1,245 million, and adjusted free cash flow conversion of 115%; Q3 2026 guidance is net revenues of $2,375–$2,425 million and adjusted EBITDA of $325–$335 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did APi Group (APG) perform in the second quarter of 2026?
APi Group delivered record Q2 2026 results with net revenues of $2.3 billion, up 13.3% year over year, and net income of $99 million, up 28.6%. Adjusted EBITDA reached $311 million with a 13.8% margin.
What were APi Group (APG)’s key segment results in Q2 2026?
In Q2 2026, Safety Services net revenues were $1,482 million, up 8.8%, with a 37.4% gross margin. Specialty Services net revenues were $773 million, up 22.9%, and gross margin improved to 19.3%, up 120 basis points.
What guidance did APi Group (APG) provide for full-year 2026?
APi now expects 2026 net revenues of $8,875–$9,025 million and adjusted EBITDA of $1,205–$1,245 million. The company also targets 115% adjusted free cash flow conversion based on adjusted net income.
What guidance did APi Group (APG) give for the third quarter of 2026?
For Q3 2026, APi projects net revenues of $2,375–$2,425 million and adjusted EBITDA of $325–$335 million. This quarterly outlook follows strong first-half performance and a record backlog exceeding $5 billion.
How strong was APi Group (APG)’s organic growth in Q2 2026?
Consolidated organic net revenue growth in Q2 2026 was 10.1%. Safety Services delivered 4.7% organic growth, while Specialty Services achieved 22.0% organic growth, reflecting broad-based strength across project and service revenues.
What were APi Group (APG)’s cash flow trends in the first half of 2026?
For the first six months of 2026, APi generated $168 million in net cash from operating activities and $119 million in free cash flow. Adjusted free cash flow was $228 million, representing 67.7% of adjusted net income.
How is APi Group (APG) positioned for future growth?
APi highlighted a record backlog exceeding $5 billion and continued execution of its M&A strategy. Management emphasized strength in inspection, service, and monitoring revenues and reaffirmed progress toward its 10/16/60+ financial targets.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2026
___________________________________
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices and zip code) | ||||||||
( | ||||||||
(Registrant's telephone number, including area code) | ||||||||
N/A | ||||||||
(Former name or former address, if changed since last report.) | ||||||||
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Exchange Act (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2026, APi Group Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1.
The information furnished under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in any such filing, unless the Company expressly sets forth in such filing that such information is to be considered "filed" or incorporated by reference therein.
Item 9.01 - Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are being furnished herewith:
Exhibit No. | Description | |||||||
99.1 | Press Release Issued by APi Group Corporation on July 30, 2026. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 30, 2026 | By: | /s/ Glenn David Jackola | ||||||
Glenn David Jackola | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
Exhibit 99.1
APi Group Reports Record Second Quarter 2026 Financial Results and Raises Full-Year 2026 Outlook
-Record second quarter net revenues of $2.3 billion, representing year-over-year growth of 13.3%, 10.1% on an organic basis-
-Record second quarter reported net income of $99 million with year-over-year growth of 28.6%-
-Record second quarter adjusted EBITDA of $311 million with year-over-year growth of 14.3% and adjusted EBITDA margin expansion of 10 basis points to 13.8%-
-Raising full-year guidance for net revenues and adjusted EBITDA-
New Brighton, Minnesota – July 30, 2026 – APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today reported its financial results for the three and six months ended June 30, 2026.
Russ Becker, APi’s President and Chief Executive Officer stated: “We continued building on our strong start to the year in the second quarter, delivering over 10% organic revenue growth and adjusted EBITDA margin expansion year over year. Our results reflect continued strength in inspection, service, and monitoring revenues, as well as robust project activity across both segments. Following a strong first half, we enter the second half with great momentum, supported by record backlog exceeding $5 billion and disciplined execution of our M&A strategy. We are confident in our leaders’ abilities to execute our strategic priorities and drive continued progress toward our 10/16/60+ financial targets."
Second Quarter 2026 Consolidated Results:
| Three Months Ended June 30, | |||||||||||||||||
| 2026 | 2025 | Y/Y | |||||||||||||||
| Net revenues | $ | 2,254 | $ | 1,990 | 13.3 | % | |||||||||||
Organic net revenue growth (a) | 10.1 | % | |||||||||||||||
| GAAP | |||||||||||||||||
| Gross profit | $ | 703 | $ | 615 | 14.3 | % | |||||||||||
| Gross margin | 31.2 | % | 30.9 | % | +30 bps | ||||||||||||
| Net income | $ | 99 | $ | 77 | 28.6 | % | |||||||||||
| Diluted EPS | $ | 0.20 | $ | 0.16 | 25.0 | % | |||||||||||
| Adjusted non-GAAP comparison | |||||||||||||||||
| Adjusted gross profit | $ | 704 | $ | 620 | 13.5 | % | |||||||||||
| Adjusted gross margin | 31.2 | % | 31.2 | % | — | ||||||||||||
| Adjusted EBITDA | $ | 311 | $ | 272 | 14.3 | % | |||||||||||
| Adjusted EBITDA margin | 13.8 | % | 13.7 | % | +10 bps | ||||||||||||
| Adjusted net income | $ | 195 | $ | 164 | 18.9 | % | |||||||||||
| Adjusted diluted EPS | $ | 0.44 | $ | 0.39 | 12.8 | % | |||||||||||
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.
•Reported net revenues increased by 13.3% (10.1% organic) driven by solid growth in inspection, service, and monitoring revenues, robust growth in project revenues, acquisitions, and pricing improvements.
•Reported gross margin increased by 30 basis points while adjusted gross margin was unchanged compared to the prior year period. Margins increased in both project and service revenues, driven by disciplined customer and project selection and pricing improvements, offset by project and business mix.
•Reported net income was $99 million and diluted EPS was $0.20. Adjusted net income was $195 million and adjusted diluted EPS was $0.44, representing a 12.8% increase compared to the prior year period. The increase in adjusted diluted EPS was driven by strong revenue growth and adjusted EBITDA margin expansion, partially offset by an increase in the adjusted diluted weighted average shares outstanding.
•Adjusted EBITDA increased by 14.3% (13.1% on a fixed currency basis) compared to the prior year period and adjusted EBITDA margin increased 10 basis points to 13.8%. Growth in adjusted EBITDA margin was driven by strong revenue growth resulting in favorable SG&A leverage.
Second Quarter 2026 Safety Services Segment Results:
| Three Months Ended June 30, | ||||||||||||||||||||
| 2026 | 2025 | Y/Y | ||||||||||||||||||
| Safety Services | ||||||||||||||||||||
| Net revenues | $ | 1,482 | $ | 1,362 | 8.8 | % | ||||||||||||||
Organic net revenue growth (a) | 4.7 | % | ||||||||||||||||||
| GAAP | ||||||||||||||||||||
| Gross profit | $ | 554 | $ | 501 | 10.6 | % | ||||||||||||||
| Gross margin | 37.4 | % | 36.8 | % | +60 bps | |||||||||||||||
| Segment earnings | $ | 252 | $ | 232 | 8.6 | % | ||||||||||||||
| Segment earnings margin | 17.0 | % | 17.0 | % | — | |||||||||||||||
| Adjusted non-GAAP comparison | ||||||||||||||||||||
| Adjusted gross profit | $ | 555 | $ | 506 | 9.7 | % | ||||||||||||||
| Adjusted gross margin | 37.4 | % | 37.2 | % | +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 8.8% (4.7% 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 60 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 8.6% (7.7% on a fixed currency basis) compared to the prior year period. Segment earnings margin was unchanged compared to the prior year period, primarily driven by adjusted gross margin expansion, offset by increased SG&A expenses.
2
Second Quarter 2026 Specialty Services Segment Results:
| Three Months Ended June 30, | ||||||||||||||||||||
| 2026 | 2025 | Y/Y | ||||||||||||||||||
| Specialty Services | ||||||||||||||||||||
| Net revenues | $ | 773 | $ | 629 | 22.9 | % | ||||||||||||||
Organic net revenue growth (a) | 22.0 | % | ||||||||||||||||||
| GAAP | ||||||||||||||||||||
| Gross profit | $ | 149 | $ | 114 | 30.7 | % | ||||||||||||||
| Gross margin | 19.3 | % | 18.1 | % | +120 bps | |||||||||||||||
| Segment earnings | $ | 92 | $ | 71 | 29.6 | % | ||||||||||||||
| Segment earnings margin | 11.9 | % | 11.3 | % | +60 bps | |||||||||||||||
| Adjusted non-GAAP comparison | ||||||||||||||||||||
| Adjusted gross profit | $ | 149 | $ | 114 | 30.7 | % | ||||||||||||||
| Adjusted gross margin | 19.3 | % | 18.1 | % | +120 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 22.9% (22.0% organic) driven by robust growth in both project and service revenues.
•Reported and adjusted gross margin increased by 120 basis points compared to the prior year period driven by disciplined customer and project selection and pricing improvements, resulting in margin expansion in service and project revenues.
•Reported segment earnings increased by 29.6% compared to the prior year period. Segment earnings margin was 11.9%, representing a 60 basis point increase compared to the prior year period, driven by adjusted gross margin expansion, partially offset by SG&A expenses, including variable compensation expense.
Guidance:
APi increases its full-year 2026 guidance for net revenues and adjusted EBITDA.
• Net Revenues of $8,875 to $9,025 million, up from the guidance provided on July 2, 2026 of $8,660 to $8,860 million
• Adjusted EBITDA of $1,205 to $1,245 million, up from the guidance provided on July 2, 2026 of $1,177 to $1,237 million
• Adjusted Free Cash Flow Conversion of 115%, based on adjusted net income
APi announces its guidance for the third quarter of 2026.
•Net Revenues of $2,375 to $2,425 million
•Adjusted EBITDA of $325 to $335 million
Conference Call:
APi will host a webcast and conference call to discuss its financial results at 8:30 a.m. ET on Thursday, July 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/781429281
Analysts Link: https://events.q4inc.com/analyst/781429281?pwd=2Kq4r26b
A replay of the webcast will be available shortly after the live event via the webcast link above.
3
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.
Investor Relations and Media Inquiries:
Adam Walters
Senior Director of Investor Relations
Tel: +1 920-419-5432
Email: investorrelations@apigroupinc.us
4
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,” “can have,” “have,” “likely,” “potential,” “target,” “indicative,” “illustrative,” and variations of such words and similar expressions, and relate in this document, 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, 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; and (xiii) 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.
5
Non-GAAP Financial Measures
This document contains non-U.S. GAAP financial measures within the meaning of Regulation G. Management uses these measures to evaluate the Company's performance and believes they are useful to investors because they (a) reflect the same tools management uses to assess performance and prospects, (b) facilitate peer comparison, (c) provide consistent period-to-period comparisons, and (d) in the case of adjusted EBITDA, determine certain elements of executive incentive compensation.
•Adjusted gross profit, adjusted SG&A, adjusted net income, and adjusted diluted EPS exclude amortization of intangible assets, restructuring costs, contingent consideration and compensation, acquisition and divestiture related expenses, systems and business enablement expenses, business process transformation expenses, and other miscellaneous items, as further described in the reconciliation tables. These adjustments remove items management does not consider indicative of the Company's core ongoing operational performance.
•Adjusted EBITDA is net income before interest, taxes, depreciation, and amortization, further adjusted to exclude the same items listed above plus non-service pension cost. Adjusted EBITDA margin is adjusted EBITDA divided by net revenues.
•Organic net revenue growth excludes the impacts of material acquisitions, material divestitures, and foreign currency translation from year-over-year revenue comparisons. Fixed currency measures translate results at exchange rates established by management at the beginning of 2026. An acquisition or divestiture is considered material based on management's assessment of its significance to comparability; this threshold is applied consistently across periods.
•Adjusted free cash flow is cash provided by operating activities, adjusted for the cash impact of the same items excluded from adjusted EBITDA, less capital expenditures. Adjusted free cash flow conversion is adjusted free cash flow as a percentage of adjusted net income.
•Net leverage ratio is calculated in accordance with the Company’s debt agreements and includes pro forma adjustments for acquisitions and cost savings not reflected in adjusted EBITDA; see the Company’s SEC filings for the covenant EBITDA definition.
These measures are supplemental and should not be considered a substitute for, or superior to, GAAP financial measures, and may differ from similarly titled measures used by other companies. Reconciliations to the most directly comparable GAAP measures are included in this document.
The Company is unable to provide a quantitative reconciliation of forward-looking adjusted EBITDA, organic net revenue growth, and adjusted free cash flow conversion to GAAP without unreasonable effort, as the amounts and timing of reconciling items – including acquisition-related costs, systems and business enablement expenses, restructuring costs, and other charges – are inherently uncertain and could be significant.
6
APi Group Corporation
Condensed Consolidated Statements of Operations (GAAP)
(Amounts in millions, except per share data)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net revenues | $ | 2,254 | $ | 1,990 | $ | 4,236 | $ | 3,709 | |||||||||||||||
| Cost of revenues | 1,551 | 1,375 | 2,913 | 2,552 | |||||||||||||||||||
| Gross profit | 703 | 615 | 1,323 | 1,157 | |||||||||||||||||||
| Selling, general, and administrative expenses | 528 | 472 | 1,045 | 930 | |||||||||||||||||||
| Operating income | 175 | 143 | 278 | 227 | |||||||||||||||||||
| Interest expense, net | 36 | 37 | 66 | 75 | |||||||||||||||||||
| Investment expense (income) and other, net | 1 | (2) | 3 | (2) | |||||||||||||||||||
| Other expense, net | 37 | 35 | 69 | 73 | |||||||||||||||||||
| Income before income taxes | 138 | 108 | 209 | 154 | |||||||||||||||||||
| Income tax provision | 39 | 31 | 53 | 42 | |||||||||||||||||||
| Net income | 99 | 77 | 156 | 112 | |||||||||||||||||||
| Net income attributable to common shareholders: | |||||||||||||||||||||||
| Income allocable to Series A Preferred Stock | (10) | (8) | (16) | (12) | |||||||||||||||||||
| Net income attributable to common shareholders | $ | 89 | $ | 69 | $ | 140 | $ | 100 | |||||||||||||||
| Net income per common share: | |||||||||||||||||||||||
| Basic | $ | 0.21 | $ | 0.17 | $ | 0.32 | $ | 0.24 | |||||||||||||||
| Diluted | 0.20 | 0.16 | 0.32 | 0.24 | |||||||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 433 | 415 | 432 | 416 | |||||||||||||||||||
| Diluted | 437 | 428 | 436 | 422 | |||||||||||||||||||
7
APi Group Corporation
Condensed Consolidated Balance Sheets (GAAP)
(Amounts in millions)
(Unaudited)
| June 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 851 | $ | 912 | |||||||
| Accounts receivable, net of allowances | 1,706 | 1,563 | |||||||||
| Inventories | 172 | 145 | |||||||||
| Contract assets | 630 | 484 | |||||||||
| Prepaid expenses and other current assets | 171 | 125 | |||||||||
| Total current assets | 3,530 | 3,229 | |||||||||
| Property and equipment, net | 429 | 397 | |||||||||
| Operating lease right-of-use assets | 303 | 301 | |||||||||
| Goodwill | 3,643 | 3,167 | |||||||||
| Intangible assets, net | 1,736 | 1,584 | |||||||||
| Deferred tax assets | 20 | 40 | |||||||||
| Pension and post-retirement assets | 129 | 129 | |||||||||
| Other assets | 157 | 89 | |||||||||
| Total assets | $ | 9,947 | $ | 8,936 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Short-term and current portion of long-term debt | $ | 306 | $ | 5 | |||||||
| Accounts payable | 554 | 526 | |||||||||
| Accrued liabilities | 766 | 827 | |||||||||
| Contract liabilities | 815 | 694 | |||||||||
| Operating and finance leases | 100 | 98 | |||||||||
| Total current liabilities | 2,541 | 2,150 | |||||||||
| Long-term debt, less current portion | 3,217 | 2,754 | |||||||||
| Pension and post-retirement obligations | 48 | 50 | |||||||||
| Operating and finance leases | 219 | 215 | |||||||||
| Deferred tax liabilities | 248 | 205 | |||||||||
| Other noncurrent liabilities | 158 | 154 | |||||||||
| Total liabilities | 6,431 | 5,528 | |||||||||
| Total shareholders’ equity | 3,516 | 3,408 | |||||||||
| Total liabilities and shareholders’ equity | $ | 9,947 | $ | 8,936 | |||||||
8
APi Group Corporation
Condensed Consolidated Statements of Cash Flows (GAAP)
(Amounts in millions)
(Unaudited)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 156 | $ | 112 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 173 | 161 | |||||||||
| Restructuring charges, net of cash paid | (4) | (2) | |||||||||
| Deferred taxes | (1) | (1) | |||||||||
| Share-based compensation expense | 23 | 21 | |||||||||
| Profit-sharing expense | 15 | 14 | |||||||||
| Non-cash lease expense | 61 | 56 | |||||||||
| Net periodic pension cost | 12 | 11 | |||||||||
| Other, net | (2) | 2 | |||||||||
| Changes in operating assets and liabilities, net of effects of acquisitions: | (265) | (229) | |||||||||
| Net cash provided by operating activities | 168 | 145 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Acquisitions, net of cash acquired | (816) | (111) | |||||||||
| Purchases of property and equipment | (49) | (39) | |||||||||
| Proceeds from sales of property and equipment | 4 | 10 | |||||||||
| Net cash used in investing activities | (861) | (140) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Net short-term debt | 280 | — | |||||||||
| Proceeds from long-term borrowings | 795 | — | |||||||||
| Payments on long-term borrowings | (303) | (4) | |||||||||
| Payments of debt issuance costs | (16) | — | |||||||||
| Repurchases of common stock | (66) | (75) | |||||||||
| Payments of acquisition-related consideration | (13) | (2) | |||||||||
| Restricted shares tendered for taxes | (38) | (20) | |||||||||
| Net cash provided by (used in) financing activities | 639 | (101) | |||||||||
| Effect of foreign currency exchange rate change on cash, cash equivalents, and restricted cash | (8) | 28 | |||||||||
| Net decrease in cash, cash equivalents, and restricted cash | (62) | (68) | |||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 913 | 501 | |||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 851 | $ | 433 | |||||||
9
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 June 30, 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 | 8.8% | 1.2% | 7.6% | 2.9% | 4.7 | % | |||||||||||||||||||||||
| Specialty Services | 22.9% | —% | 22.9% | 0.9% | 22.0 | % | |||||||||||||||||||||||
| Consolidated | 13.3% | 0.9% | 12.4% | 2.3% | 10.1 | % | |||||||||||||||||||||||
| Six Months Ended June 30, 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 | 10.2% | 2.8% | 7.4% | 2.3% | 5.1 | % | |||||||||||||||||||||||
| Specialty Services | 24.0% | —% | 24.0% | 0.8% | 23.2 | % | |||||||||||||||||||||||
| Consolidated | 14.2% | 2.0% | 12.2% | 1.9% | 10.3 | % | |||||||||||||||||||||||
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 June 30, 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.
10
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 June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Gross profit (as reported) | $ | 703 | $ | 615 | $ | 1,323 | $ | 1,157 | ||||||||||||||||||
| Adjustments to reconcile gross profit to adjusted gross profit: | ||||||||||||||||||||||||||
| Backlog amortization | (a) | 1 | 4 | 1 | 7 | |||||||||||||||||||||
| Restructuring program related costs | (b) | — | 1 | — | 1 | |||||||||||||||||||||
| Adjusted gross profit | $ | 704 | $ | 620 | $ | 1,324 | $ | 1,165 | ||||||||||||||||||
| Net revenues | $ | 2,254 | $ | 1,990 | $ | 4,236 | $ | 3,709 | ||||||||||||||||||
| Adjusted gross margin | 31.2 | % | 31.2 | % | 31.3 | % | 31.4 | % | ||||||||||||||||||
Adjusted SG&A
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Selling, general, and administrative expenses ("SG&A") (as reported) | $ | 528 | $ | 472 | $ | 1,045 | $ | 930 | ||||||||||||||||||
| Adjustments to reconcile SG&A to adjusted SG&A: | ||||||||||||||||||||||||||
| Amortization of intangible assets | (c) | (67) | (55) | (130) | (112) | |||||||||||||||||||||
| Contingent consideration and compensation | (d) | 1 | — | 1 | (1) | |||||||||||||||||||||
| Systems and business enablement | (e) | (25) | (18) | (52) | (30) | |||||||||||||||||||||
| Business process transformation expenses | (f) | — | — | — | (4) | |||||||||||||||||||||
| Acquisition and divestiture related expenses | (g) | (9) | (11) | (28) | (14) | |||||||||||||||||||||
| Restructuring program related costs | (b) | — | (11) | — | (14) | |||||||||||||||||||||
| Other | (h) | (8) | (1) | (7) | (3) | |||||||||||||||||||||
| Adjusted SG&A expenses | $ | 420 | $ | 376 | $ | 829 | $ | 752 | ||||||||||||||||||
| Net revenues | $ | 2,254 | $ | 1,990 | $ | 4,236 | $ | 3,709 | ||||||||||||||||||
| Adjusted SG&A as a % of net revenues | 18.6 | % | 18.9 | % | 19.6 | % | 20.3 | % | ||||||||||||||||||
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 gains and losses on the sale of buildings, elimination of changes in fair value estimates to acquired liabilities, and costs associated with debt refinancing and other miscellaneous capital market activities.
11
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA (non-GAAP)
(Amounts in millions)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net income (as reported) | $ | 99 | $ | 77 | $ | 156 | $ | 112 | ||||||||||||||||||
| Adjustments to reconcile net income to EBITDA: | ||||||||||||||||||||||||||
| Interest expense, net | 36 | 37 | 66 | 75 | ||||||||||||||||||||||
| Income tax provision | 39 | 31 | 53 | 42 | ||||||||||||||||||||||
| Depreciation | 21 | 22 | 42 | 42 | ||||||||||||||||||||||
| Amortization | 68 | 59 | 131 | 119 | ||||||||||||||||||||||
| EBITDA | 263 | 226 | 448 | 390 | ||||||||||||||||||||||
| Adjustments to reconcile EBITDA to adjusted EBITDA: | ||||||||||||||||||||||||||
| Contingent consideration and compensation | (a) | (1) | — | (1) | 1 | |||||||||||||||||||||
| Non-service pension cost | (b) | 5 | 5 | 10 | 9 | |||||||||||||||||||||
| Systems and business enablement | (c) | 25 | 18 | 52 | 30 | |||||||||||||||||||||
| Business process transformation expenses | (d) | — | — | — | 4 | |||||||||||||||||||||
| Acquisition and divestiture related expenses | (e) | 9 | 11 | 28 | 14 | |||||||||||||||||||||
| Restructuring program related costs | (f) | — | 11 | — | 14 | |||||||||||||||||||||
| Other | (g) | 10 | 1 | 9 | 3 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 311 | $ | 272 | $ | 546 | $ | 465 | ||||||||||||||||||
| Net revenues | $ | 2,254 | $ | 1,990 | $ | 4,236 | $ | 3,709 | ||||||||||||||||||
| Adjusted EBITDA margin | 13.8 | % | 13.7 | % | 12.9 | % | 12.5 | % | ||||||||||||||||||
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 costs associated with debt refinancing and other miscellaneous capital market activities.
12
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 June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Income before income tax provision (as reported) | $ | 138 | $ | 108 | $ | 209 | $ | 154 | ||||||||||||||||||
| Adjustments to reconcile income before income tax provision to adjusted income before income tax provision: | ||||||||||||||||||||||||||
| Amortization of intangible assets | (a) | 68 | 59 | 131 | 119 | |||||||||||||||||||||
| Contingent consideration and compensation | (b) | (1) | — | (1) | 1 | |||||||||||||||||||||
| Non-service pension cost | (c) | 5 | 5 | 10 | 9 | |||||||||||||||||||||
| Systems and business enablement | (d) | 25 | 18 | 52 | 30 | |||||||||||||||||||||
| Business process transformation expenses | (e) | — | — | — | 4 | |||||||||||||||||||||
| Acquisition and divestiture related expenses | (f) | 9 | 11 | 28 | 14 | |||||||||||||||||||||
| Restructuring program related costs | (g) | — | 11 | — | 14 | |||||||||||||||||||||
| Other | (h) | 10 | 1 | 9 | 3 | |||||||||||||||||||||
| Adjusted income before income tax provision | $ | 254 | $ | 213 | $ | 438 | $ | 348 | ||||||||||||||||||
| Income tax provision (as reported) | $ | 39 | $ | 31 | $ | 53 | $ | 42 | ||||||||||||||||||
| Adjustments to reconcile income tax provision to adjusted income tax provision: | ||||||||||||||||||||||||||
| Income tax provision adjustment | (i) | 20 | 18 | 48 | 38 | |||||||||||||||||||||
| Adjusted income tax provision | $ | 59 | $ | 49 | $ | 101 | $ | 80 | ||||||||||||||||||
| Adjusted income before income tax provision | $ | 254 | $ | 213 | $ | 438 | $ | 348 | ||||||||||||||||||
| Adjusted income tax provision | 59 | 49 | 101 | 80 | ||||||||||||||||||||||
| Adjusted net income | $ | 195 | $ | 164 | $ | 337 | $ | 268 | ||||||||||||||||||
| Diluted weighted average shares outstanding (as reported) | 437 | 428 | 436 | 422 | ||||||||||||||||||||||
| Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding: | ||||||||||||||||||||||||||
| Dilutive impact of Series A Preferred Stock | (j) | 3 | (5) | 3 | — | |||||||||||||||||||||
| Adjusted diluted weighted average shares outstanding | 440 | 423 | 439 | 422 | ||||||||||||||||||||||
| Adjusted diluted EPS | $ | 0.44 | $ | 0.39 | $ | 0.77 | $ | 0.64 | ||||||||||||||||||
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 costs associated with debt refinancing and other 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.
13
APi Group Corporation
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 (a) | 2025 (a) | 2026 (a) | 2025 (a) | |||||||||||||||||||||||
| Safety Services | ||||||||||||||||||||||||||
| Net revenues | $ | 1,482 | $ | 1,362 | $ | 2,897 | $ | 2,629 | ||||||||||||||||||
| Adjusted gross profit | 555 | 506 | 1,082 | 975 | ||||||||||||||||||||||
| Segment earnings | 252 | 232 | 482 | 431 | ||||||||||||||||||||||
| Adjusted gross margin | 37.4 | % | 37.2 | % | 37.3 | % | 37.1 | % | ||||||||||||||||||
| Segment earnings margin | 17.0 | % | 17.0 | % | 16.6 | % | 16.4 | % | ||||||||||||||||||
| Specialty Services | ||||||||||||||||||||||||||
| Net revenues | $ | 773 | $ | 629 | $ | 1,342 | $ | 1,082 | ||||||||||||||||||
| Adjusted gross profit | 149 | 114 | 242 | 190 | ||||||||||||||||||||||
| Segment earnings | 92 | 71 | 131 | 100 | ||||||||||||||||||||||
| Adjusted gross margin | 19.3 | % | 18.1 | % | 18.0 | % | 17.6 | % | ||||||||||||||||||
| Segment earnings margin | 11.9 | % | 11.3 | % | 9.8 | % | 9.2 | % | ||||||||||||||||||
| Total net revenues before corporate and eliminations | (b) | $ | 2,255 | $ | 1,991 | $ | 4,239 | $ | 3,711 | |||||||||||||||||
| Total segment earnings before corporate and eliminations | (b) | 344 | 303 | 613 | 531 | |||||||||||||||||||||
| Segment earnings margin before corporate and eliminations | (b) | 15.3 | % | 15.2 | % | 14.5 | % | 14.3 | % | |||||||||||||||||
| Corporate and Eliminations | ||||||||||||||||||||||||||
| Net revenues | $ | (1) | $ | (1) | $ | (3) | $ | (2) | ||||||||||||||||||
| Adjusted EBITDA | (33) | (31) | (67) | (66) | ||||||||||||||||||||||
| Total Consolidated | ||||||||||||||||||||||||||
| Net revenues | $ | 2,254 | $ | 1,990 | $ | 4,236 | $ | 3,709 | ||||||||||||||||||
| Adjusted gross profit | 704 | 620 | 1,324 | 1,165 | ||||||||||||||||||||||
| Adjusted EBITDA | 311 | 272 | 546 | 465 | ||||||||||||||||||||||
| Adjusted gross margin | 31.2 | % | 31.2 | % | 31.3 | % | 31.4 | % | ||||||||||||||||||
| Adjusted EBITDA margin | 13.8 | % | 13.7 | % | 12.9 | % | 12.5 | % | ||||||||||||||||||
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.
14
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | As Adjusted | As Reported | Adjustments | As Adjusted | ||||||||||||||||||||||||||||||
| Safety Services | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 1,482 | $ | — | $ | 1,482 | $ | 1,362 | $ | — | $ | 1,362 | |||||||||||||||||||||||
| Cost of revenues | 928 | (1) | (a) | 927 | 861 | (4) | (a) | 856 | |||||||||||||||||||||||||||
| (1) | (b) | ||||||||||||||||||||||||||||||||||
| Gross profit | $ | 554 | $ | 1 | $ | 555 | $ | 501 | $ | 5 | $ | 506 | |||||||||||||||||||||||
| Gross margin | 37.4 | % | 37.4 | % | 36.8 | % | 37.2 | % | |||||||||||||||||||||||||||
| Specialty Services | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 773 | $ | — | $ | 773 | $ | 629 | $ | — | $ | 629 | |||||||||||||||||||||||
| Cost of revenues | 624 | — | 624 | 515 | — | 515 | |||||||||||||||||||||||||||||
| Gross profit | $ | 149 | $ | — | $ | 149 | $ | 114 | $ | — | $ | 114 | |||||||||||||||||||||||
| Gross margin | 19.3 | % | 19.3 | % | 18.1 | % | 18.1 | % | |||||||||||||||||||||||||||
| Corporate and Eliminations | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | (1) | $ | — | $ | (1) | $ | (1) | $ | — | $ | (1) | |||||||||||||||||||||||
| Cost of revenues | (1) | — | (1) | (1) | — | (1) | |||||||||||||||||||||||||||||
| Total Consolidated | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 2,254 | $ | — | $ | 2,254 | $ | 1,990 | $ | — | $ | 1,990 | |||||||||||||||||||||||
| Cost of revenues | 1,551 | (1) | (a) | 1,550 | 1,375 | (4) | (a) | 1,370 | |||||||||||||||||||||||||||
| (1) | (b) | ||||||||||||||||||||||||||||||||||
| Gross profit | $ | 703 | $ | 1 | $ | 704 | $ | 615 | $ | 5 | $ | 620 | |||||||||||||||||||||||
| Gross margin | 31.2 | % | 31.2 | % | 30.9 | % | 31.2 | % | |||||||||||||||||||||||||||
Notes:
(a)Adjustment to reflect the elimination of amortization expense related to backlog intangible assets.
(b)Adjustments to reflect the elimination of expenses associated with restructuring programs and related costs.
15
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | As Adjusted | As Reported | Adjustments | As Adjusted | ||||||||||||||||||||||||||||||
| Safety Services | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 2,897 | $ | — | $ | 2,897 | $ | 2,629 | $ | — | $ | 2,629 | |||||||||||||||||||||||
| Cost of revenues | 1,816 | (1) | (a) | 1,815 | 1,662 | (7) | (a) | 1,654 | |||||||||||||||||||||||||||
| — | (b) | (1) | (b) | ||||||||||||||||||||||||||||||||
| Gross profit | $ | 1,081 | $ | 1 | $ | 1,082 | $ | 967 | $ | 8 | $ | 975 | |||||||||||||||||||||||
| Gross margin | 37.3 | % | 37.3 | % | 36.8 | % | 37.1 | % | |||||||||||||||||||||||||||
| Specialty Services | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 1,342 | $ | — | $ | 1,342 | $ | 1,082 | $ | — | $ | 1,082 | |||||||||||||||||||||||
| Cost of revenues | 1,100 | — | 1,100 | 892 | — | 892 | |||||||||||||||||||||||||||||
| Gross profit | $ | 242 | $ | — | $ | 242 | $ | 190 | $ | — | $ | 190 | |||||||||||||||||||||||
| Gross margin | 18.0 | % | 18.0 | % | 17.6 | % | 17.6 | % | |||||||||||||||||||||||||||
| Corporate and Eliminations | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | (3) | $ | — | $ | (3) | $ | (2) | $ | — | $ | (2) | |||||||||||||||||||||||
| Cost of revenues | (3) | — | (3) | (2) | — | (2) | |||||||||||||||||||||||||||||
| Total Consolidated | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 4,236 | $ | — | $ | 4,236 | $ | 3,709 | $ | — | $ | 3,709 | |||||||||||||||||||||||
| Cost of revenues | 2,913 | (1) | (a) | 2,912 | 2,552 | (7) | (a) | 2,544 | |||||||||||||||||||||||||||
| — | (b) | (1) | (b) | ||||||||||||||||||||||||||||||||
| Gross profit | $ | 1,323 | $ | 1 | $ | 1,324 | $ | 1,157 | $ | 8 | $ | 1,165 | |||||||||||||||||||||||
| Gross margin | 31.2 | % | 31.3 | % | 31.2 | % | 31.4 | % | |||||||||||||||||||||||||||
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.
16
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Corporate and Eliminations | ||||||||||||||||||||||||||
| Income before income taxes | $ | (91) | $ | (77) | $ | (182) | $ | (160) | ||||||||||||||||||
| Interest expense, net | 25 | 29 | 46 | 58 | ||||||||||||||||||||||
| Depreciation | 2 | 1 | 4 | 2 | ||||||||||||||||||||||
| Amortization | — | 1 | 2 | 2 | ||||||||||||||||||||||
| Systems and business enablement | (a) | 14 | 11 | 29 | 21 | |||||||||||||||||||||
| Business process transformation expenses | (b) | — | — | — | 3 | |||||||||||||||||||||
| Acquisition and divestiture related expenses | (c) | 7 | 4 | 25 | 7 | |||||||||||||||||||||
| Other | (d) | 10 | — | 9 | 1 | |||||||||||||||||||||
| Corporate and Eliminations adjusted EBITDA | $ | (33) | $ | (31) | $ | (67) | $ | (66) | ||||||||||||||||||
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 costs associated with debt refinancing and other miscellaneous capital market activities.
17
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 June 30, 2026 | |||||||||||||||||
| Change in Segment earnings (public rates) | Foreign currency translation (a) | Change in Segment earnings (fixed currency) (b) | |||||||||||||||
| Safety Services | 8.6% | 0.9% | 7.7% | ||||||||||||||
| Specialty Services | 29.6% | —% | 29.6% | ||||||||||||||
| Consolidated | 14.3% | 1.2% | 13.1% | ||||||||||||||
| Six Months Ended June 30, 2026 | |||||||||||||||||
| Change in Segment earnings (public rates) | Foreign currency translation (a) | Change in Segment earnings (fixed currency) (b) | |||||||||||||||
| Safety Services | 11.8% | 2.2% | 9.6% | ||||||||||||||
| Specialty Services | 31.0% | —% | 31.0% | ||||||||||||||
| Consolidated | 17.4% | 2.2% | 15.2% | ||||||||||||||
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.
18
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 June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net cash provided by operating activities (as reported) | $ | 83 | $ | 83 | $ | 168 | $ | 145 | ||||||||||||||||||
| Less: Purchases of property and equipment | (31) | (27) | (49) | (39) | ||||||||||||||||||||||
| Free cash flow | 52 | 56 | 119 | 106 | ||||||||||||||||||||||
| Add: Cash payments related to following items: | ||||||||||||||||||||||||||
| Contingent compensation | (a) | — | — | 1 | 1 | |||||||||||||||||||||
| Systems and business enablement | (b) | 30 | 26 | 66 | 42 | |||||||||||||||||||||
| Business process transformation expenses | (c) | — | — | — | 4 | |||||||||||||||||||||
| Acquisition and divestiture related expenses | (d) | 9 | 7 | 27 | 10 | |||||||||||||||||||||
| Restructuring program related payments | (e) | 4 | 3 | 6 | 12 | |||||||||||||||||||||
| Other | (f) | 8 | 8 | 9 | 11 | |||||||||||||||||||||
| Adjusted free cash flow | $ | 103 | $ | 100 | $ | 228 | $ | 186 | ||||||||||||||||||
| Adjusted net income | $ | 195 | $ | 164 | $ | 337 | $ | 268 | ||||||||||||||||||
| Adjusted free cash flow as a % of adjusted net income | 52.8 | % | 61.0 | % | 67.7 | % | 69.4 | % | ||||||||||||||||||
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 costs associated with debt refinancing and capital market activity and costs or gains/losses associated with any one-time fixed asset acquisitions or dispositions.
19