Results
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-
3-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.
1The 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:
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.
2Reported 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.
8Adjusted 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:
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.
4Reported 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.
5Segment 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.
Third Quarter 2026 Specialty Services Segment Results:
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.
6Reported 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.
7Segment 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
Participants on the call will include Russell A. Becker, President and Chief Executive Officer, and David Jackola, EVP and Chief Financial Officer.
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
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.
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.
18 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.