APi Group raises 2026 revenue outlook to $9.2–$9.25B
APi’s revised full-year outlook puts revenue at $9,200 to $9,250 million and adjusted EBITDA at $1,235 to $1,255 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
APi Group Corporation (APG) reported third-quarter 2026 net revenues of $2.554 billion, up 22.5% year over year, including 15.7% organic growth. GAAP net income was $114 million, up 22.6%, and diluted EPS was $0.24, up 20.0%. Adjusted EBITDA rose 24.6% to $350 million, with its margin increasing 20 basis points to 13.7%; adjusted net income was $219 million and adjusted diluted EPS was $0.50, up 25.9% and 22.0%, respectively.
Gross profit margin declined 120 basis points to 30.1%, which APi attributed to project and business mix and rising material, fuel and other expenses. Safety Services revenue grew 18.5% (8.8% organic), while Specialty Services revenue grew 30.7% (29.9% organic). APi raised 2026 revenue guidance to $9,200–$9,250 million and adjusted EBITDA guidance to $1,235–$1,255 million, from $8,875–$9,025 million and $1,205–$1,245 million, respectively; its adjusted free cash flow conversion guidance was 110%, based on adjusted net income. Nine-month acquisitions, net of cash acquired, used $1.356 billion.
4 points · 1 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.APi raised 2026 guidance: revenue $9,200–$9,250 million; adjusted EBITDA $1,235–$1,255 million.
- Moderate pointThird-quarter revenue increased 22.5% to $2.554 billion.
- Moderate pointGAAP net income rose 22.6% to $114 million.
- Moderate pointAdjusted EBITDA increased 24.6% to $350 million.
Negative
- None.
Filing Explained
Through September, adjusted free-cash-flow conversion was 84.2%, alongside the company’s 110% full-year guidance.
The release reports adjusted free cash flow conversion of
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, or exhibit attachments filed with this report.
Key Figures
Net revenues: $2.554 billion
GAAP net income: $114 million
Adjusted EBITDA: $350 million
+5 more
8 metrics
Net revenues
$2.554 billion
Three months ended September 30, 2026; up 22.5% year over year
GAAP net income
$114 million
Three months ended September 30, 2026; up 22.6% year over year
Adjusted EBITDA
$350 million
Three months ended September 30, 2026; up 24.6% year over year
Adjusted EBITDA margin
13.7%
Three months ended September 30, 2026; increased 20 basis points year over year
Gross profit margin
30.1%
Three months ended September 30, 2026; decreased 120 basis points year over year
Full-year net revenue guidance
$9,200 to $9,250 million
2026 guidance, raised from $8,875 to $9,025 million
Full-year adjusted EBITDA guidance
$1,235 to $1,255 million
2026 guidance, raised from $1,205 to $1,245 million
Acquisitions, net of cash acquired
$1.356 billion
Nine months ended September 30, 2026; cash outflow
Key Terms
Organic net revenue growth, Adjusted EBITDA, Adjusted free cash flow conversion, Net leverage ratio
4 terms
Organic net revenue growth financial
"excludes the impacts of material acquisitions, material divestitures"
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 EBITDA financial
"net income before interest, taxes, depreciation, and amortization"
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.
Adjusted free cash flow conversion financial
"as a percentage of 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.
Net leverage ratio financial
"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: $2.554 billion · Guidance included
Three months ended September 30, 2026
Net revenues
$2.554 billion
+22.5% year over year
GAAP net income
$114 million
+22.6% year over year
Diluted EPS
$0.24
+20.0% year over year
Adjusted EBITDA
$350 million
+24.6% year over year
Adjusted EBITDA margin
13.7%
+20 basis points year over year
Guidance
Full-year 2026 net revenues of $9,200 to $9,250 million and adjusted EBITDA of $1,235 to $1,255 million; adjusted free cash flow conversion of 110%, based on adjusted net income.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did APG report in Q3 2026?
APi reported $2.554 billion in net revenues for the three months ended September 30, 2026, up 22.5% year over year. Organic net revenue growth was 15.7%.
What is APG’s updated 2026 guidance?
APi raised full-year 2026 net revenue guidance to $9,200 to $9,250 million and adjusted EBITDA guidance to $1,235 to $1,255 million. It also cited adjusted free cash flow conversion of 110%, based on adjusted net income.
What drove APG’s Q3 2026 revenue growth?
APi cited solid growth in inspection, service, and monitoring revenues; robust growth in project revenues; acquisitions; and pricing improvements.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): October 29, 2026
___________________________________
(Exact name of registrant as specified in its charter)
___________________________________
(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 October 29, 2026, APi Group Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended September 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 included with this report:
Exhibit No. | Description | |||||||
99.1 | Press Release Issued by APi Group Corporation on October 29, 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.
APi Group Corporation | ||||||||
Date: October 29, 2026 | By: | /s/ Glenn David Jackola | ||||||
Glenn David Jackola | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
Exhibit 99.1
APi Group Reports Record Third Quarter 2026 Financial Results and Raises Full-Year 2026 Outlook
-Record third quarter net revenues of $2.6 billion, representing year-over-year growth of 22.5%, 15.7% on an organic basis-
-Record third quarter reported net income of $114 million up 22.6% year-over-year-
-Record third quarter adjusted EBITDA of $350 million with year-over-year growth of 24.6% and adjusted EBITDA margin expansion of 20 basis points to 13.7%-
-Raising full-year guidance for net revenues and adjusted EBITDA-
New Brighton, Minnesota – October 29, 2026 – APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today reported its financial results for the three and nine months ended September 30, 2026.
Russ Becker, APi’s President and Chief Executive Officer, stated: “We delivered exceptional third quarter results, including double digit organic growth and adjusted EBITDA margin expansion. This performance again demonstrates the durability of our business in a dynamic operating environment. Strong demand across our inspection, service, and monitoring business, robust project activity, and disciplined execution drove momentum across both segments. We enter the fourth quarter from a position of strength, supported by a growing backlog and improving margins and we remain focused on leading with inspection and service. I am proud of our leaders for delivering another strong quarter. The strength we are carrying into 2027 gives me continued confidence in our ability to deliver on our long-term "10/16/60+" targets."
Third Quarter 2026 Consolidated Results:
| Three Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Y/Y | |||||||||||||||
| Net revenues | $ | 2,554 | $ | 2,085 | 22.5 | % | |||||||||||
Organic net revenue growth (a) | 15.7 | % | |||||||||||||||
| GAAP | |||||||||||||||||
| Gross profit | $ | 770 | $ | 652 | 18.1 | % | |||||||||||
| Gross profit margin | 30.1 | % | 31.3 | % | (120) bps | ||||||||||||
| Net income | $ | 114 | $ | 93 | 22.6 | % | |||||||||||
| Diluted EPS | $ | 0.24 | $ | 0.20 | 20.0 | % | |||||||||||
| Adjusted non-GAAP comparison | |||||||||||||||||
| Adjusted gross profit | $ | 775 | $ | 656 | 18.1 | % | |||||||||||
| Adjusted gross profit margin | 30.3 | % | 31.5 | % | (120) bps | ||||||||||||
| Adjusted EBITDA | $ | 350 | $ | 281 | 24.6 | % | |||||||||||
| Adjusted EBITDA margin | 13.7 | % | 13.5 | % | +20 bps | ||||||||||||
| Adjusted net income | $ | 219 | $ | 174 | 25.9 | % | |||||||||||
| Adjusted diluted EPS | $ | 0.50 | $ | 0.41 | 22.0 | % | |||||||||||
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, material divestitures, and the impact of changes due to foreign currency translation.
•Reported net revenues increased by 22.5% (15.7% organic) driven by solid growth in inspection, service, and monitoring revenues, robust growth in project revenues, acquisitions, and pricing improvements.
•Reported and adjusted gross profit margin decreased by 120 basis points compared to the prior-year period driven by project and business mix and rising material, fuel, and other expenses.
•Reported net income was $114 million and diluted EPS was $0.24. Adjusted net income was $219 million and adjusted diluted EPS was $0.50, representing a 22.0% 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 increases in interest expense and the adjusted diluted weighted average shares outstanding.
•Adjusted EBITDA increased by 24.6% compared to the prior-year period and adjusted EBITDA margin increased 20 basis points to 13.7%. Growth in adjusted EBITDA margin was driven by strong revenue growth and the resulting favorable SG&A leverage, partially offset by factors impacting adjusted gross profit margin.
Third Quarter 2026 Safety Services Segment Results:
| Three Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | Y/Y | ||||||||||||||||||
| Safety Services | ||||||||||||||||||||
| Net revenues | $ | 1,662 | $ | 1,403 | 18.5 | % | ||||||||||||||
Organic net revenue growth (a) | 8.8 | % | ||||||||||||||||||
| GAAP | ||||||||||||||||||||
| Gross profit | $ | 597 | $ | 520 | 14.8 | % | ||||||||||||||
| Gross profit margin | 35.9 | % | 37.1 | % | (120) bps | |||||||||||||||
| Segment earnings | $ | 281 | $ | 236 | 19.1 | % | ||||||||||||||
| Segment earnings margin | 16.9 | % | 16.8 | % | +10 bps | |||||||||||||||
| Adjusted non-GAAP comparison | ||||||||||||||||||||
| Adjusted gross profit | $ | 602 | $ | 524 | 14.9 | % | ||||||||||||||
| Adjusted gross profit margin | 36.2 | % | 37.3 | % | (110) 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, material divestitures, and the impact of changes due to foreign currency translation.
•Reported net revenues increased by 18.5% (8.8% organic) driven by solid growth in both inspection, service, and monitoring revenues and project revenues, acquisitions, and pricing improvements.
•Reported and adjusted gross profit margin decreased by 120 and 110 basis points, respectively, compared to the prior-year period. This was driven by project and business mix and rising material, fuel, and other expenses.
•Reported segment earnings increased by 19.1% compared to the prior-year period. Segment earnings margin was 16.9%, representing a 10 basis point increase compared to the prior-year period, driven by strong revenue growth and favorable SG&A leverage, partially offset by factors impacting adjusted gross profit margin.
2
Third Quarter 2026 Specialty Services Segment Results:
| Three Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | Y/Y | ||||||||||||||||||
| Specialty Services | ||||||||||||||||||||
| Net revenues | $ | 893 | $ | 683 | 30.7 | % | ||||||||||||||
Organic net revenue growth (a) | 29.9 | % | ||||||||||||||||||
| GAAP | ||||||||||||||||||||
| Gross profit | $ | 173 | $ | 132 | 31.1 | % | ||||||||||||||
| Gross profit margin | 19.4 | % | 19.3 | % | +10 bps | |||||||||||||||
| Segment earnings | $ | 112 | $ | 81 | 38.3 | % | ||||||||||||||
| Segment earnings margin | 12.5 | % | 11.9 | % | +60 bps | |||||||||||||||
| Adjusted non-GAAP comparison | ||||||||||||||||||||
| Adjusted gross profit | $ | 173 | $ | 132 | 31.1 | % | ||||||||||||||
| Adjusted gross profit margin | 19.4 | % | 19.3 | % | +10 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, material divestitures, and the impact of changes due to foreign currency translation.
•Reported net revenues increased by 30.7% (29.9% organic) driven by robust growth in both project and service revenues.
•Reported and adjusted gross profit margin increased by 10 basis points compared to the prior-year period. This was driven by disciplined customer and project selection and pricing improvements, partially offset by rising material, fuel, and other expenses.
•Reported segment earnings increased by 38.3% compared to the prior-year period. Segment earnings margin was 12.5%, representing a 60 basis point increase compared to the prior-year period, driven by adjusted gross profit margin expansion, strong revenue growth, and favorable SG&A leverage.
Guidance:
APi is raising its full-year 2026 guidance for net revenues and adjusted EBITDA.
• Net revenues of $9,200 to $9,250 million, up from the guidance provided on July 30, 2026 of $8,875 to $9,025 million
• Adjusted EBITDA of $1,235 to $1,255 million, up from the guidance provided on July 30, 2026 of $1,205 to $1,245 million
• Adjusted free cash flow conversion of 110%, based on adjusted net income
Conference Call:
APi will host a webcast and conference call to discuss its financial results at 8:30 a.m. ET on Thursday, October 29, 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/894181837
Analysts Link: https://events.q4inc.com/analyst/894181837?pwd=ecOlF7Kh
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
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which provides a safe harbor for certain forward-looking statements made by or on behalf of APi Group Corporation (“APi” or the “Company”). Forward-looking statements include statements regarding the Company’s full-year 2026 outlook for net revenues, adjusted EBITDA and adjusted free cash flow conversion; anticipated future growth and margin performance; expectations regarding performance in 2027; and the Company’s ability to achieve its long-term financial targets. Such statements may contain words such as “expect,” “anticipate,” “will,” “believe,” “intend,” “plan,” “estimate,” “predict,” “seek,” “continue,” “outlook,” “may,” “might,” “should,” “can have,” “have,” “likely,” “potential,” “target,” “indicative,” “illustrative,” and variations of such words and similar expressions. The absence of these words does not mean that a statement is not forward-looking. Such statements are based on the Company’s expectations, intentions, and projections regarding its 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 the Company's acquisitions and its ability to successfully execute its bolt-on acquisition strategy and integrate acquired businesses 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 its disciplined approach to customer and project selection and its asset-light, services-focused business model and 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, project delays or cancellations, and the timing and extent of conversion of backlog into revenues; (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, project and business mix, and its ability to achieve anticipated margins; (xiii) the timing of customer collections, working-capital requirements, capital expenditures, and other cash payments, which may affect operating cash flow and cash conversion; and (xiv) other risks and uncertainties, including those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and in subsequent reports filed with the Securities and Exchange Commission. Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking statements. 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, 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net revenues | $ | 2,554 | $ | 2,085 | $ | 6,790 | $ | 5,794 | |||||||||||||||
| Cost of revenues | 1,784 | 1,433 | 4,697 | 3,985 | |||||||||||||||||||
| Gross profit | 770 | 652 | 2,093 | 1,809 | |||||||||||||||||||
| Selling, general, and administrative expenses | 568 | 489 | 1,613 | 1,419 | |||||||||||||||||||
| Operating income | 202 | 163 | 480 | 390 | |||||||||||||||||||
| Interest expense, net | 45 | 34 | 111 | 109 | |||||||||||||||||||
| Investment expense (income) and other, net | 2 | (1) | 5 | (3) | |||||||||||||||||||
| Other expense, net | 47 | 33 | 116 | 106 | |||||||||||||||||||
| Income before income taxes | 155 | 130 | 364 | 284 | |||||||||||||||||||
| Income tax provision | 41 | 37 | 94 | 79 | |||||||||||||||||||
| Net income | 114 | 93 | 270 | 205 | |||||||||||||||||||
| Net income attributable to common shareholders: | |||||||||||||||||||||||
| Income allocable to Series A Preferred Stock | (12) | (9) | (28) | (21) | |||||||||||||||||||
| Net income attributable to common shareholders | $ | 102 | $ | 84 | $ | 242 | $ | 184 | |||||||||||||||
| Net income per common share: | |||||||||||||||||||||||
| Basic | $ | 0.24 | $ | 0.20 | $ | 0.56 | $ | 0.44 | |||||||||||||||
| Diluted | 0.24 | 0.20 | 0.56 | 0.43 | |||||||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 431 | 416 | 432 | 416 | |||||||||||||||||||
| Diluted | 432 | 429 | 435 | 425 | |||||||||||||||||||
7
APi Group Corporation
Condensed Consolidated Balance Sheets (GAAP)
(Amounts in millions)
(Unaudited)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 373 | $ | 912 | |||||||
| Accounts receivable, net of allowances | 1,907 | 1,563 | |||||||||
| Inventories | 182 | 145 | |||||||||
| Contract assets | 736 | 484 | |||||||||
| Prepaid expenses and other current assets | 205 | 125 | |||||||||
| Total current assets | 3,403 | 3,229 | |||||||||
| Property and equipment, net | 451 | 397 | |||||||||
| Operating lease right-of-use assets | 297 | 301 | |||||||||
| Goodwill | 3,897 | 3,167 | |||||||||
| Intangible assets, net | 1,935 | 1,584 | |||||||||
| Deferred tax assets | 16 | 40 | |||||||||
| Pension and post-retirement assets | 129 | 129 | |||||||||
| Other assets | 153 | 89 | |||||||||
| Total assets | $ | 10,281 | $ | 8,936 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Short-term and current portion of long-term debt | $ | 361 | $ | 5 | |||||||
| Accounts payable | 635 | 526 | |||||||||
| Accrued liabilities | 875 | 827 | |||||||||
| Contract liabilities | 902 | 694 | |||||||||
| Operating and finance leases | 101 | 98 | |||||||||
| Total current liabilities | 2,874 | 2,150 | |||||||||
| Long-term debt, less current portion | 3,213 | 2,754 | |||||||||
| Pension and post-retirement obligations | 48 | 50 | |||||||||
| Operating and finance leases | 218 | 215 | |||||||||
| Deferred tax liabilities | 296 | 205 | |||||||||
| Other noncurrent liabilities | 144 | 154 | |||||||||
| Total liabilities | 6,793 | 5,528 | |||||||||
| Total shareholders’ equity | 3,488 | 3,408 | |||||||||
| Total liabilities and shareholders’ equity | $ | 10,281 | $ | 8,936 | |||||||
8
APi Group Corporation
Condensed Consolidated Statements of Cash Flows (GAAP)
(Amounts in millions)
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 270 | $ | 205 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 277 | 242 | |||||||||
| Restructuring charges, net of cash paid | (5) | (6) | |||||||||
| Deferred taxes | (3) | 2 | |||||||||
| Share-based compensation expense | 36 | 31 | |||||||||
| Profit sharing expense | 22 | 23 | |||||||||
| Non-cash lease expense | 91 | 82 | |||||||||
| Net periodic pension cost | 19 | 17 | |||||||||
| Other, net | (2) | (1) | |||||||||
| Changes in operating assets and liabilities, net of effects of acquisitions: | (312) | (218) | |||||||||
| Net cash provided by operating activities | 393 | 377 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Acquisitions, net of cash acquired | (1,356) | (174) | |||||||||
| Purchases of property and equipment | (76) | (70) | |||||||||
| Proceeds from sales of property and equipment | 8 | 13 | |||||||||
| Net cash used in investing activities | (1,424) | (231) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Net short-term debt | 335 | — | |||||||||
| Proceeds from long-term borrowings | 795 | — | |||||||||
| Payments on long-term borrowings | (310) | (5) | |||||||||
| Payments of debt issuance costs | (16) | — | |||||||||
| Repurchases of common stock | (252) | (75) | |||||||||
| Payments of acquisition-related consideration | (14) | (16) | |||||||||
| Restricted shares tendered for taxes | (38) | (20) | |||||||||
| Net cash provided by (used in) financing activities | 500 | (116) | |||||||||
| Effect of foreign currency exchange rate change on cash, cash equivalents, and restricted cash | (9) | 25 | |||||||||
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (540) | 55 | |||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 913 | 501 | |||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 373 | $ | 556 | |||||||
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 September 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 | 18.5% | (0.1)% | 18.6% | 9.8% | 8.8% | ||||||||||||||||||||||||
| Specialty Services | 30.7% | —% | 30.7% | 0.8% | 29.9% | ||||||||||||||||||||||||
| Consolidated | 22.5% | (0.1)% | 22.6% | 6.9% | 15.7% | ||||||||||||||||||||||||
| Nine Months Ended September 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 | 13.1% | 1.9% | 11.2% | 4.8% | 6.4% | ||||||||||||||||||||||||
| Specialty Services | 26.6% | —% | 26.6% | 0.8% | 25.8% | ||||||||||||||||||||||||
| Consolidated | 17.2% | 1.3% | 15.9% | 3.7% | 12.2% | ||||||||||||||||||||||||
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 September 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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Gross profit (as reported) | $ | 770 | $ | 652 | $ | 2,093 | $ | 1,809 | ||||||||||||||||||
| Adjustments to reconcile gross profit to adjusted gross profit: | ||||||||||||||||||||||||||
| Backlog amortization | (a) | 5 | 4 | 6 | 11 | |||||||||||||||||||||
| Restructuring program related costs | (b) | — | — | — | 1 | |||||||||||||||||||||
| Adjusted gross profit | $ | 775 | $ | 656 | $ | 2,099 | $ | 1,821 | ||||||||||||||||||
| Net revenues | $ | 2,554 | $ | 2,085 | $ | 6,790 | $ | 5,794 | ||||||||||||||||||
| Adjusted gross profit margin | 30.3 | % | 31.5 | % | 30.9 | % | 31.4 | % | ||||||||||||||||||
Adjusted SG&A
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Selling, general, and administrative expenses ("SG&A") (as reported) | $ | 568 | $ | 489 | $ | 1,613 | $ | 1,419 | ||||||||||||||||||
| Adjustments to reconcile SG&A to adjusted SG&A: | ||||||||||||||||||||||||||
| Amortization of intangible assets | (c) | (78) | (56) | (208) | (168) | |||||||||||||||||||||
| Contingent consideration and compensation | (d) | 1 | (1) | 2 | (2) | |||||||||||||||||||||
| Systems and business enablement | (e) | (30) | (31) | (82) | (61) | |||||||||||||||||||||
| Business process transformation expenses | (f) | — | — | — | (4) | |||||||||||||||||||||
| Acquisition and divestiture related expenses | (g) | (11) | 2 | (39) | (12) | |||||||||||||||||||||
| Restructuring program related costs | (b) | — | — | — | (14) | |||||||||||||||||||||
| Other | (h) | (1) | (1) | (8) | (4) | |||||||||||||||||||||
| Adjusted SG&A expenses | $ | 449 | $ | 402 | $ | 1,278 | $ | 1,154 | ||||||||||||||||||
| Net revenues | $ | 2,554 | $ | 2,085 | $ | 6,790 | $ | 5,794 | ||||||||||||||||||
| Adjusted SG&A as a % of net revenues | 17.6 | % | 19.3 | % | 18.8 | % | 19.9 | % | ||||||||||||||||||
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 costs associated with an end-to-end business systems implementation and primarily consist of third-party consulting fees related to system design, deployment, integration, and change leadership across the organization.
(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 miscellaneous non-recurring items, such as costs associated with debt refinancing and other capital market activities, and net gains related to building sales and facility exits.
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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net income (as reported) | $ | 114 | $ | 93 | $ | 270 | $ | 205 | ||||||||||||||||||
| Adjustments to reconcile net income to EBITDA: | ||||||||||||||||||||||||||
| Interest expense, net | 45 | 34 | 111 | 109 | ||||||||||||||||||||||
| Income tax provision | 41 | 37 | 94 | 79 | ||||||||||||||||||||||
| Depreciation | 21 | 21 | 63 | 63 | ||||||||||||||||||||||
| Amortization | 83 | 60 | 214 | 179 | ||||||||||||||||||||||
| EBITDA | 304 | 245 | 752 | 635 | ||||||||||||||||||||||
| Adjustments to reconcile EBITDA to adjusted EBITDA: | ||||||||||||||||||||||||||
| Contingent consideration and compensation | (a) | (1) | 1 | (2) | 2 | |||||||||||||||||||||
| Non-service pension cost | (b) | 5 | 5 | 15 | 14 | |||||||||||||||||||||
| Systems and business enablement | (c) | 30 | 31 | 82 | 61 | |||||||||||||||||||||
| Business process transformation expenses | (d) | — | — | — | 4 | |||||||||||||||||||||
| Acquisition and divestiture related expenses | (e) | 11 | (2) | 39 | 12 | |||||||||||||||||||||
| Restructuring program related costs | (f) | — | — | — | 14 | |||||||||||||||||||||
| Other | (g) | 1 | 1 | 10 | 4 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 350 | $ | 281 | $ | 896 | $ | 746 | ||||||||||||||||||
| Net revenues | $ | 2,554 | $ | 2,085 | $ | 6,790 | $ | 5,794 | ||||||||||||||||||
| Adjusted EBITDA margin | 13.7 | % | 13.5 | % | 13.2 | % | 12.9 | % | ||||||||||||||||||
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 costs associated with an end-to-end business systems implementation and primarily consist of third-party consulting fees related to system design, deployment, integration, and change leadership across the organization.
(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 miscellaneous non-recurring items, such as costs associated with debt refinancing and other capital market activities, and net gains related to building sales and facility exits.
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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Income before income tax provision (as reported) | $ | 155 | $ | 130 | $ | 364 | $ | 284 | ||||||||||||||||||
| Adjustments to reconcile income before income tax provision to adjusted income before income tax provision: | ||||||||||||||||||||||||||
| Amortization of intangible assets | (a) | 83 | 60 | 214 | 179 | |||||||||||||||||||||
| Contingent consideration and compensation | (b) | (1) | 1 | (2) | 2 | |||||||||||||||||||||
| Non-service pension cost | (c) | 5 | 5 | 15 | 14 | |||||||||||||||||||||
| Systems and business enablement | (d) | 30 | 31 | 82 | 61 | |||||||||||||||||||||
| Business process transformation expenses | (e) | — | — | — | 4 | |||||||||||||||||||||
| Acquisition and divestiture related expenses | (f) | 11 | (2) | 39 | 12 | |||||||||||||||||||||
| Restructuring program related costs | (g) | — | — | — | 14 | |||||||||||||||||||||
| Other | (h) | 1 | 1 | 10 | 4 | |||||||||||||||||||||
| Adjusted income before income tax provision | $ | 284 | $ | 226 | $ | 722 | $ | 574 | ||||||||||||||||||
| Income tax provision (as reported) | $ | 41 | $ | 37 | $ | 94 | $ | 79 | ||||||||||||||||||
| Adjustments to reconcile income tax provision to adjusted income tax provision: | ||||||||||||||||||||||||||
| Income tax provision adjustment | (i) | 24 | 15 | 72 | 53 | |||||||||||||||||||||
| Adjusted income tax provision | $ | 65 | $ | 52 | $ | 166 | $ | 132 | ||||||||||||||||||
| Adjusted income before income tax provision | $ | 284 | $ | 226 | $ | 722 | $ | 574 | ||||||||||||||||||
| Adjusted income tax provision | 65 | 52 | 166 | 132 | ||||||||||||||||||||||
| Adjusted net income | $ | 219 | $ | 174 | $ | 556 | $ | 442 | ||||||||||||||||||
| Diluted weighted average shares outstanding (as reported) | 432 | 429 | 435 | 425 | ||||||||||||||||||||||
| Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding: | ||||||||||||||||||||||||||
| Impact of Series A Preferred Stock | (j) | 6 | (5) | 4 | (2) | |||||||||||||||||||||
| Adjusted diluted weighted average shares outstanding | 438 | 424 | 439 | 423 | ||||||||||||||||||||||
| Adjusted diluted EPS | $ | 0.50 | $ | 0.41 | $ | 1.27 | $ | 1.04 | ||||||||||||||||||
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 costs associated with an end-to-end business systems implementation and primarily consist of third-party consulting fees related to system design, deployment, integration, and change leadership across the organization.
(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 miscellaneous non-recurring items, such as costs associated with debt refinancing and other capital market activities, and net gains related to building sales and facility exits.
(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 six 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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 (a) | 2025 (a) | 2026 (a) | 2025 (a) | |||||||||||||||||||||||
| Safety Services | ||||||||||||||||||||||||||
| Net revenues | $ | 1,662 | $ | 1,403 | $ | 4,559 | $ | 4,032 | ||||||||||||||||||
| Adjusted gross profit | 602 | 524 | 1,684 | 1,499 | ||||||||||||||||||||||
| Segment earnings | 281 | 236 | 763 | 667 | ||||||||||||||||||||||
| Adjusted gross profit margin | 36.2 | % | 37.3 | % | 36.9 | % | 37.2 | % | ||||||||||||||||||
| Segment earnings margin | 16.9 | % | 16.8 | % | 16.7 | % | 16.5 | % | ||||||||||||||||||
| Specialty Services | ||||||||||||||||||||||||||
| Net revenues | $ | 893 | $ | 683 | $ | 2,235 | $ | 1,765 | ||||||||||||||||||
| Adjusted gross profit | 173 | 132 | 415 | 322 | ||||||||||||||||||||||
| Segment earnings | 112 | 81 | 243 | 181 | ||||||||||||||||||||||
| Adjusted gross profit margin | 19.4 | % | 19.3 | % | 18.6 | % | 18.2 | % | ||||||||||||||||||
| Segment earnings margin | 12.5 | % | 11.9 | % | 10.9 | % | 10.3 | % | ||||||||||||||||||
| Total net revenues before corporate and eliminations | (b) | $ | 2,555 | $ | 2,086 | $ | 6,794 | $ | 5,797 | |||||||||||||||||
| Total segment earnings before corporate and eliminations | (b) | 393 | 317 | 1,006 | 848 | |||||||||||||||||||||
| Segment earnings margin before corporate and eliminations | (b) | 15.4 | % | 15.2 | % | 14.8 | % | 14.6 | % | |||||||||||||||||
| Corporate and Eliminations | ||||||||||||||||||||||||||
| Net revenues | $ | (1) | $ | (1) | $ | (4) | $ | (3) | ||||||||||||||||||
| Adjusted EBITDA | (43) | (36) | (110) | (102) | ||||||||||||||||||||||
| Total Consolidated | ||||||||||||||||||||||||||
| Net revenues | $ | 2,554 | $ | 2,085 | $ | 6,790 | $ | 5,794 | ||||||||||||||||||
| Adjusted gross profit | 775 | 656 | 2,099 | 1,821 | ||||||||||||||||||||||
| Adjusted EBITDA | 350 | 281 | 896 | 746 | ||||||||||||||||||||||
| Adjusted gross profit margin | 30.3 | % | 31.5 | % | 30.9 | % | 31.4 | % | ||||||||||||||||||
| Adjusted EBITDA margin | 13.7 | % | 13.5 | % | 13.2 | % | 12.9 | % | ||||||||||||||||||
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 September 30, 2026 | Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | As Adjusted | As Reported | Adjustments | As Adjusted | ||||||||||||||||||||||||||||||
| Safety Services | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 1,662 | $ | — | $ | 1,662 | $ | 1,403 | $ | — | $ | 1,403 | |||||||||||||||||||||||
| Cost of revenues | 1,065 | (5) | (a) | 1,060 | 883 | (4) | (a) | 879 | |||||||||||||||||||||||||||
| Gross profit | $ | 597 | $ | 5 | $ | 602 | $ | 520 | $ | 4 | $ | 524 | |||||||||||||||||||||||
| Gross profit margin | 35.9 | % | 36.2 | % | 37.1 | % | 37.3 | % | |||||||||||||||||||||||||||
| Specialty Services | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 893 | $ | — | $ | 893 | $ | 683 | $ | — | $ | 683 | |||||||||||||||||||||||
| Cost of revenues | 720 | — | 720 | 551 | — | 551 | |||||||||||||||||||||||||||||
| Gross profit | $ | 173 | $ | — | $ | 173 | $ | 132 | $ | — | $ | 132 | |||||||||||||||||||||||
| Gross profit margin | 19.4 | % | 19.4 | % | 19.3 | % | 19.3 | % | |||||||||||||||||||||||||||
| Corporate and Eliminations | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | (1) | $ | — | $ | (1) | $ | (1) | $ | — | $ | (1) | |||||||||||||||||||||||
| Cost of revenues | (1) | — | (1) | (1) | — | (1) | |||||||||||||||||||||||||||||
| Total Consolidated | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 2,554 | $ | — | $ | 2,554 | $ | 2,085 | $ | — | $ | 2,085 | |||||||||||||||||||||||
| Cost of revenues | 1,784 | (5) | (a) | 1,779 | 1,433 | (4) | (a) | 1,429 | |||||||||||||||||||||||||||
| Gross profit | $ | 770 | $ | 5 | $ | 775 | $ | 652 | $ | 4 | $ | 656 | |||||||||||||||||||||||
| Gross profit margin | 30.1 | % | 30.3 | % | 31.3 | % | 31.5 | % | |||||||||||||||||||||||||||
Notes:
(a)Adjustment to reflect the elimination of amortization expense related to backlog intangible assets.
15
APi Group Corporation
Reconciliations of GAAP to Non-GAAP Financial Measures
Adjusted Segment Financial Information (non-GAAP)
(Amounts in millions)
(Unaudited)
| Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | As Adjusted | As Reported | Adjustments | As Adjusted | ||||||||||||||||||||||||||||||
| Safety Services | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 4,559 | $ | — | $ | 4,559 | $ | 4,032 | $ | — | $ | 4,032 | |||||||||||||||||||||||
| Cost of revenues | 2,881 | (6) | (a) | 2,875 | 2,545 | (11) | (a) | 2,533 | |||||||||||||||||||||||||||
| (1) | (b) | ||||||||||||||||||||||||||||||||||
| Gross profit | $ | 1,678 | $ | 6 | $ | 1,684 | $ | 1,487 | $ | 12 | $ | 1,499 | |||||||||||||||||||||||
| Gross profit margin | 36.8 | % | 36.9 | % | 36.9 | % | 37.2 | % | |||||||||||||||||||||||||||
| Specialty Services | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 2,235 | $ | — | $ | 2,235 | $ | 1,765 | $ | — | $ | 1,765 | |||||||||||||||||||||||
| Cost of revenues | 1,820 | — | 1,820 | 1,443 | — | 1,443 | |||||||||||||||||||||||||||||
| Gross profit | $ | 415 | $ | — | $ | 415 | $ | 322 | $ | — | $ | 322 | |||||||||||||||||||||||
| Gross profit margin | 18.6 | % | 18.6 | % | 18.2 | % | 18.2 | % | |||||||||||||||||||||||||||
| Corporate and Eliminations | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | (4) | $ | — | $ | (4) | $ | (3) | $ | — | $ | (3) | |||||||||||||||||||||||
| Cost of revenues | (4) | — | (4) | (3) | — | (3) | |||||||||||||||||||||||||||||
| Total Consolidated | |||||||||||||||||||||||||||||||||||
| Net revenues | $ | 6,790 | $ | — | $ | 6,790 | $ | 5,794 | $ | — | $ | 5,794 | |||||||||||||||||||||||
| Cost of revenues | 4,697 | (6) | (a) | 4,691 | 3,985 | (11) | (a) | 3,973 | |||||||||||||||||||||||||||
| (1) | (b) | ||||||||||||||||||||||||||||||||||
| Gross profit | $ | 2,093 | $ | 6 | $ | 2,099 | $ | 1,809 | $ | 12 | $ | 1,821 | |||||||||||||||||||||||
| Gross profit margin | 30.8 | % | 30.9 | % | 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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Corporate and Eliminations | ||||||||||||||||||||||||||
| Income before income taxes | $ | (91) | $ | (88) | $ | (273) | $ | (248) | ||||||||||||||||||
| Interest expense, net | 27 | 24 | 73 | 82 | ||||||||||||||||||||||
| Depreciation | 2 | 2 | 6 | 4 | ||||||||||||||||||||||
| Amortization | 1 | 1 | 3 | 3 | ||||||||||||||||||||||
| Systems and business enablement | (a) | 13 | 18 | 42 | 39 | |||||||||||||||||||||
| Business process transformation expenses | (b) | — | — | — | 3 | |||||||||||||||||||||
| Acquisition and divestiture related expenses | (c) | 4 | 3 | 29 | 10 | |||||||||||||||||||||
| Other | (d) | 1 | 4 | 10 | 5 | |||||||||||||||||||||
| Corporate and Eliminations adjusted EBITDA | $ | (43) | $ | (36) | $ | (110) | $ | (102) | ||||||||||||||||||
Notes:
(a)Adjustment to reflect the elimination of non-recurring costs associated with an end-to-end business systems implementation and primarily consist of third-party consulting fees related to system design, deployment, integration, and change leadership across the organization.
(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 miscellaneous non-recurring items, such as costs associated with debt refinancing and other capital market activities, and net gains related to building sales and facility exits.
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 September 30, 2026 | |||||||||||||||||
| Change in Segment earnings (public rates) | Foreign currency translation (a) | Change in Segment earnings (fixed currency) (b) | |||||||||||||||
| Safety Services | 19.1% | —% | 19.1% | ||||||||||||||
| Specialty Services | 38.3% | —% | 38.3% | ||||||||||||||
| Consolidated | 24.6% | —% | 24.6% | ||||||||||||||
| Nine Months Ended September 30, 2026 | |||||||||||||||||
| Change in Segment earnings (public rates) | Foreign currency translation (a) | Change in Segment earnings (fixed currency) (b) | |||||||||||||||
| Safety Services | 14.4% | 1.3% | 13.1% | ||||||||||||||
| Specialty Services | 34.3% | —% | 34.3% | ||||||||||||||
| Consolidated | 20.1% | 1.2% | 18.9% | ||||||||||||||
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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net cash provided by operating activities (as reported) | $ | 225 | $ | 232 | $ | 393 | $ | 377 | ||||||||||||||||||
| Less: Purchases of property and equipment | (27) | (31) | (76) | (70) | ||||||||||||||||||||||
| Free cash flow | 198 | 201 | 317 | 307 | ||||||||||||||||||||||
| Add: Cash payments related to following items: | ||||||||||||||||||||||||||
| Contingent compensation | (a) | — | — | 1 | 1 | |||||||||||||||||||||
| Systems and business enablement | (b) | 31 | 37 | 97 | 79 | |||||||||||||||||||||
| Business process transformation expenses | (c) | — | — | — | 4 | |||||||||||||||||||||
| Acquisition and divestiture related expenses | (d) | 11 | — | 38 | 10 | |||||||||||||||||||||
| Restructuring program related payments | (e) | (1) | 5 | 5 | 17 | |||||||||||||||||||||
| Other | (f) | 1 | 5 | 10 | 16 | |||||||||||||||||||||
| Adjusted free cash flow | $ | 240 | $ | 248 | $ | 468 | $ | 434 | ||||||||||||||||||
| Adjusted net income | $ | 219 | $ | 174 | $ | 556 | $ | 442 | ||||||||||||||||||
| Adjusted free cash flow as a % of adjusted net income | 109.6 | % | 142.5 | % | 84.2 | % | 98.2 | % | ||||||||||||||||||
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 costs associated with an end-to-end business systems implementation and primarily consist of third-party consulting fees related to system design, deployment, integration, and change leadership across the organization.
(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 miscellaneous non-recurring items, such as costs associated with debt refinancing and other capital market activities, and net gains related to building sales and facility exits.
19