APi Group Reports Record Third Quarter 2026 Financial Results and Raises Full-Year 2026 Outlook
NEW BRIGHTON, Minn.--( BUSINESS WIRE)--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
%
(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.
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
(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.
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
(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.
Guidance:
APi is raising its full-year 2026 guidance for net revenues and adjusted EBITDA.
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.
About APi:
APi Group is a global, market-leading business services company providing statutorily mandated and contracted services across its Safety Services and Specialty Services segments, including fire and life safety, electronic security, elevator and escalator, and infrastructure services. With more than 600 locations in over 20 countries, APi is built on a century of expertise, a people-first culture, and its purpose of Building Great Leaders®. In 2026, APi is celebrating its 100-year anniversary and its debut on the Fortune 500. More information is available at www.apigroup.com.
Forward-Looking Statements and Disclaimers
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.
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.
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.
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
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
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
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
%
(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.
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.
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.
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.
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.
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.
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.
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.
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.
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.