APi Group Reports First Quarter 2026 Financial Results (Form 8-K)

APi Group Reports First Quarter 2026 Financial Results

-Record first quarter net revenues of $2.0 billion, representing year-over-year growth of 15.3%, 10.4% on an organic basis-

-Record first quarter reported net income of $57 million with year-over-year growth of 62.9%-

-Record first quarter adjusted EBITDA of $235 million with year-over-year growth of 21.8% and adjusted EBITDA margin expansion of 70 basis points to 11.9%-

-Raising full-year guidance for net revenues and adjusted EBITDA-

New Brighton, Minnesota - April 30, 2026 - APi Group Corporation (NYSE: APG) ("APi" or the "Company") today reported its financial results for the three months ended March 31, 2026.

Russ Becker, APi's President and Chief Executive Officer, stated: "We are off to a strong start in 2026, delivering 10% organic net revenue growth and expanding adjusted EBITDA margins by 70 basis points year over year, with strength across both our Safety Services and Specialty Services segments. At the same time, we continued to advance our M&A strategy. We closed the CertaSite acquisition and signed transactions for Wtech and Onyx, representing an investment of more than $1 billion across these three acquisitions to further build out our Safety Services segment across the U.S., Europe, and Canada. In a year that marks APi's 100th anniversary, I am proud of our team's execution, and we remain confident in our path toward our "10/16/60+" targets."

First Quarter 2026 Consolidated Results:

			Three Months Ended March 31,
			2026						2025						Y/Y
Net revenues			$	1,982					$	1,719					15.3		%
Organic net revenue growth (a)															10.4		%
GAAP
Gross profit			$	620					$	542					14.4		%
Gross margin			31.3		%				31.5		%				(20) bps
Net income			$	57					$	35					62.9		%
Diluted EPS			$	0.12					$	0.07					71.4		%
Adjusted non-GAAP comparison
Adjusted gross profit			$	620					$	545					13.8		%
Adjusted gross margin			31.3		%				31.7		%				(40) bps
Adjusted EBITDA			$	235					$	193					21.8		%
Adjusted EBITDA margin			11.9		%				11.2		%				+70 bps
Adjusted net income			$	142					$	104					36.5		%
Adjusted diluted EPS (b)			$	0.32					$	0.25					28.0		%

Notes: Amounts in millions, except per share data. Refer to non-GAAP reconciliations to the most comparable GAAP measures.

(a)Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions and divestitures, and the impact of changes due to foreign currency translation.

(b)Per share data has been adjusted to reflect the three-for-two stock split executed June 30, 2025.

•Reported net revenues increased by 15.3% (10.4% organic) driven by solid growth in inspection, service, and monitoring revenues, growth in project revenues, acquisitions, pricing improvements, and impacts of foreign exchange translation.

•Reported and adjusted gross margin decreased by 20 and 40 basis points, respectively, compared to the prior year period, primarily driven by business mix, partially offset by disciplined customer and project selection and pricing improvements.

•Reported net income was $57 million and diluted EPS was $0.12. Adjusted net income was $142 million and adjusted diluted EPS was $0.32, representing a 28.0% increase compared to the prior year period. The increase in adjusted diluted EPS was driven by strong revenue growth, adjusted EBITDA margin expansion, and a decrease in interest expense, partially offset by an increase in the adjusted diluted weighted average shares outstanding.

•Adjusted EBITDA increased by 21.8% (18.1% on a fixed currency basis) compared to the prior year period, and adjusted EBITDA margin increased 70 basis points to 11.9%. Growth in adjusted EBITDA was driven by strong revenue growth and favorable SG&A leverage.

First Quarter 2026 Safety Services Segment Results:

						Three Months Ended March 31,
						2026						2025						Y/Y
Safety Services
Net revenues						$	1,415					$	1,267					11.7		%
Organic net revenue growth (a)																		5.4		%
GAAP
Gross profit						$	527					$	466					13.1		%
Gross margin						37.2		%				36.8		%				+40 bps
Segment earnings						$	230					$	199					15.6		%
Segment earnings margin						16.3		%				15.7		%				+60 bps
Adjusted non-GAAP comparison
Adjusted gross profit						$	527					$	469					12.4		%
Adjusted gross margin						37.2		%				37.0		%				+20 bps

Notes: Amounts in millions. Refer to non-GAAP reconciliations to the most comparable GAAP measures.

(a)Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions and divestitures, and the impact of changes due to foreign currency translation.

•Reported net revenues increased by 11.7% (5.4% organic) driven by solid growth in inspection, service, and monitoring revenues, growth in project revenues, acquisitions, pricing improvements, and impacts of foreign exchange translation.

•Reported and adjusted gross margin increased by 40 and 20 basis points, respectively, compared to the prior year period. This was driven by disciplined customer and project selection and pricing improvements, resulting in margin expansion in inspection, service, and monitoring revenues and project revenues, partially offset by mix.

•Reported segment earnings increased by 15.6% (11.7% on a fixed currency basis) compared to the prior year period. Segment earnings margin was 16.3%, representing a 60 basis point increase compared to the prior year period, primarily driven by adjusted gross margin expansion and favorable SG&A leverage.

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First Quarter 2026 Specialty Services Segment Results:

						Three Months Ended March 31,
						2026						2025						Y/Y
Specialty Services
Net revenues						$	569					$	453					25.6		%
Organic net revenue growth (a)																		24.8		%
GAAP
Gross profit						$	93					$	76					22.4		%
Gross margin						16.3		%				16.8		%				(50) bps
Segment earnings						$	39					$	29					34.5		%
Segment earnings margin						6.9		%				6.4		%				+50 bps
Adjusted non-GAAP comparison
Adjusted gross profit						$	93					$	76					22.4		%
Adjusted gross margin						16.3		%				16.8		%				(50) bps

Notes: Amounts in millions. Refer to non-GAAP reconciliations to the most comparable GAAP measures.

(a)Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions and divestitures, and the impact of changes due to foreign currency translation.

•Reported net revenues increased by 25.6% (24.8% organic) driven by growth in both project and service revenues.

•Reported and adjusted gross margin decreased by 50 basis points compared to the prior year period primarily driven by mix.

•Reported segment earnings increased by 34.5% compared to the prior year period. Segment earnings margin was 6.9%, representing a 50 basis point increase compared to the prior year period, primarily due to favorable fixed cost absorption, partially offset by mix.

Guidance:

APi increases its full-year 2026 guidance for net revenues and adjusted EBITDA.

• Net Revenues of $8,475 to $8,675 million, up from $8,400 to $8,600 million

• Adjusted EBITDA of $1,150 to $1,210 million, up from $1,140 to $1,200 million

• Adjusted Free Cash Flow Conversion of 115%, based on adjusted net income

APi announces its guidance for the second quarter of 2026.

• Net Revenues of $2,175 to $2,225 million

• Adjusted EBITDA of $300 to $310 million

Conference Call:

APi will hold a webcast/dial-in conference call to discuss its financial results at 8:30 a.m. (Eastern Time) on Thursday, April 30, 2026. Participants on the call will include Russell A. Becker, President and Chief Executive Officer; and David Jackola, EVP and Chief Financial Officer. The conference call can be accessed by registering online using the links below. Analysts will receive dial-in information as well as a conference ID once registered.

Webcast Link: https://events.q4inc.com/attendee/963913077

Analysts Link: https://events.q4inc.com/analyst/963913077?pwd=MsHzmq1e

A replay of the call will be available shortly after completion of the live call/webcast via the webcast link above.

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About APi:

APi is a global, market-leading business services provider of fire and life safety, security, elevator and escalator, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. APi has a winning leadership culture driven by entrepreneurial business leaders delivering innovative solutions for customers. More information can be found at www.apigroupinc.com.

Investor Relations and Media Inquiries:

Adam Walters

Senior Director of Investor Relations

Tel: +1 920-419-5432

Email: [email protected]

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