APi Group Reports Record Third Quarter 2025 Financial Results and Raises Full-Year 2025 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, 2025.

Russ Becker, APi’s President and Chief Executive Officer stated: “We approach 2026 with strong momentum across our global platform. We continue to accelerate organic growth while expanding adjusted EBITDA margins, growing our recurring inspection, service and monitoring business, building on our record backlog, and improving our free cash flow generation. We believe our proven operating model, built on our inspection and service-first strategy, purpose-driven leadership, and a disciplined approach to capital allocation, positions APi for sustained organic growth, margin expansion and value-accretive M&A. We are confident in our leaders’ ability to execute our strategy and deliver against our new 10/16/60+ financial targets, creating value for all our stakeholders."

Third Quarter 2025 Consolidated Results:

Three Months Ended September 30,

2025

2024

Y/Y

Net revenues

2,085

1,826

14.2

Organic net revenue growth (a)

9.7

GAAP

Gross profit

652

567

15.0

Gross margin

31.3

31.1

+20 bps

Net income

34.8

Diluted EPS

0.20

0.15

33.3

Adjusted non-GAAP comparison

Adjusted gross profit

656

566

15.9

Adjusted gross margin

31.5

31.0

+50 bps

Adjusted EBITDA

281

245

14.7

Adjusted EBITDA as a % of adjusted net revenues

13.5

13.4

+10 bps

Adjusted net income

174

141

23.4

Adjusted diluted EPS (b)

0.41

0.34

20.6

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.

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

Third Quarter 2025 Segment Results:

Safety Services

Three Months Ended September 30,

2025

2024

Y/Y

Safety Services

Net revenues

1,403

1,216

15.4

Organic net revenue growth (a)

8.7

GAAP

Gross profit

520

445

16.9

Gross margin

37.1

36.6

+50 bps

Segment earnings

236

199

18.6

Segment earnings margin

16.8

16.4

+40 bps

Adjusted non-GAAP comparison

Adjusted gross profit

524

444

18.0

Adjusted gross margin

37.3

36.5

+80 bps

Specialty Services

Three Months Ended September 30,

2025

2024

Y/Y

Specialty Services

Net revenues

683

612

11.6

Organic net revenue growth (a)

11.6

GAAP

Gross profit

132

122

8.2

Gross margin

19.3

19.9

(60) bps

Segment earnings

3.8

Segment earnings margin

11.9

12.7

(80) bps

Adjusted non-GAAP comparison

Adjusted gross profit

132

122

8.2

Adjusted gross margin

19.3

19.9

(60) bps

Guidance:

APi increases its full-year 2025 guidance for net revenues and adjusted EBITDA.

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, October 30, 2025. Participants on the call will include Russell A. Becker, President and Chief Executive Officer; G. David Jackola, Executive Vice President and Chief Financial Officer; and James E. Lillie and Sir Martin E. Franklin, Board of Directors Co-Chairs.

To listen to the call by telephone, please dial 800-715-9871 or 646-307-1963 and provide Conference ID 4836166. You may also attend and view the presentation (live or by replay) via webcast by accessing the following URL:

https://events.q4inc.com/attendee/741497819

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

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. We have a winning leadership culture driven by entrepreneurial business leaders to deliver innovative solutions for our customers. More information can be found at www.apigroup.com.

Forward-Looking Statements and Disclaimers

Please note that in this press release the Company may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of APi Group Corporation (“APi” or the “Company”). Such discussion and statements may contain words such as “expect,” “anticipate,” “will,” “should,” “believe,” “intend,” “plan,” “estimate,” “predict,” “seek,” “continue,” “pro forma” “outlook,” “may,” “might,” “should,” “can have,” “have,” “likely,” “potential,” “target,” “indicative,” “illustrative,” and variations of such words and similar expressions, and relate in this press release, without limitation, to statements, beliefs, projections and expectations about future events. Such statements are based on the Company’s expectations, intentions and projections regarding the Company’s future performance, anticipated events or trends and other matters that are not historical facts.

These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including: (i) economic conditions, competition, political risks, and other risks that may affect the Company’s future performance, including the impacts of inflationary pressures and other macroeconomic factors on the Company’s business, markets, supply chain, customers and workforce, on the credit and financial markets, on the alignment of expenses and revenues and on the global economy generally; (ii) supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the materials and commodities the Company uses in its business and for which the Company bears the risk of such increases; (iii) risks associated with the Company’s expanded international operations; (iv) failure to realize the anticipated benefits of our acquisitions and restructuring program, and our ability to successfully execute the Company’s bolt-on acquisition strategy to acquire other businesses and successfully integrate them into its operations; (v) failure to fully execute the Company’s inspection first strategy or to realize the expected service revenue from such inspections; (vi) failure to realize expected benefits from the Company’s other business strategies, including the Company’s disciplined approach to customer and project selection, the Company’s asset-light, services-focused business model and its expected impact on future capital expenditures, and the expected efficiencies from the realignment of the Company’s Safety Services segment; (vii) risks associated with the Company’s decentralized business model and participation in joint ventures; (viii) improperly managed projects or project delays; (ix) adverse developments in the credit markets which could impact the Company’s ability to secure financing in the future; (x) the Company’s substantial level of indebtedness; (xi) risks associated with the Company’s contract portfolio; (xii) changes in applicable laws or regulations; (xiii) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (xiv) the impact of a global armed conflict; (xv) the trading price of the Company’s common stock, which may be positively or negatively impacted by market and economic conditions, the availability of the Company’s common stock, the Company’s financial performance or determinations following the date of this press release to use the Company’s funds for other purposes; (xvi) geopolitical risks; and (xvii) other risks and uncertainties, including those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 under the heading “Risk Factors.” Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. Additional information concerning these risks, uncertainties and other factors that could cause actual results to vary is, or will be, included in the periodic and other reports filed by the Company with the Securities and Exchange Commission. Forward-looking statements included in this press release 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 press release.

Non-GAAP Financial Measures

This press release contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this press release and the additional financial information both in explaining its results to shareholders and the investment community and in its internal evaluation and management of its businesses. The Company’s management believes that these non-U.S. GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company’s performance using the same tools that management uses to evaluate the Company’s past performance, reportable business segments and prospects for future performance, (b) permit investors to compare the Company with its peers, (c) in the case of adjusted EBITDA, determines certain elements of management’s incentive compensation, and (d) provide consistent period-to-period comparisons of the results. Specifically:

While the Company believes these non-U.S. GAAP measures are useful in evaluating the Company’s performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with U.S. GAAP. Additionally, these non-U.S. GAAP financial measures may differ from similar measures presented by other companies. A reconciliation of these non-U.S. GAAP financial measures is included later in this press release.

The Company does not provide reconciliations of forward-looking non-U.S. GAAP adjusted EBITDA and growth in organic net revenues to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisitions and divestitures, systems and business enablement expenses, business process transformation expenses, one-time and other events such as impairment charges, transaction and other costs related to acquisitions and divestitures, restructuring costs, amortization of intangible assets, miscellaneous capital market activities, and other charges reflected in the Company’s reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

Additional Information

Following the realignment of our segments in 2025, we have recast all historical segment information in this press release to reflect the move of the HVAC business to the Specialty Services segment.

In addition, following the three-for-two stock split executed on June 30, 2025, all references to the number of shares outstanding, issued shares, and per share amounts of the Company’s common shares have been restated to reflect the effect of the stock split for all historical periods presented in this press release.

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,

2025

2024

2025

2024

Net revenues

2,085

1,826

5,794

5,157

Cost of revenues

1,433

1,259

3,985

3,554

Gross profit

652

567

1,809

1,603

Selling, general, and administrative expenses

489

425

1,419

1,235

Operating income

163

142

390

368

Interest expense, net

109

110

Investment (income) expense and other, net

)

Other expense, net

106

116

Income before income taxes

130

100

284

252

Income tax provision

Net income

205

183

Net loss attributable to common shareholders:

Less income allocable to Series A Preferred Stock

)

—

(21

)

—

Stock dividend on Series B Preferred Stock

—

)

Conversion of Series B Preferred Stock

—

(372

)

Net income (loss) attributable to common shareholders

184

(196

)

Net income (loss) per common share:

Basic

0.20

0.15

0.44

(0.49

)

Diluted

0.20

0.15

0.43

(0.49

)

Weighted average shares outstanding:

Basic

416

412

416

398

Diluted

429

414

425

398

APi Group Corporation

Condensed Consolidated Balance Sheets (GAAP)

(Amounts in millions)

(Unaudited)

September 30,

2025

December 31,

2024

Assets

Current assets:

Cash and cash equivalents

555

499

Accounts receivable net of allowances

1,562

1,444

Inventories

148

143

Contract assets

577

453

Prepaid expenses and other current assets

164

119

Total current assets

3,006

2,658

Property and equipment, net

393

379

Operating lease right of use assets

281

268

Goodwill

3,150

2,894

Intangible assets, net

1,636

1,660

Deferred tax assets

Pension and post-retirement assets

115

120

Other assets

116

Total assets

8,721

8,152

Liabilities and Shareholders’ Equity

Current liabilities:

Short-term and current portion of long-term debt

Accounts payable

537

497

Accrued liabilities

723

704

Contract liabilities

672

590

Operating and finance leases

Total current liabilities

2,031

1,885

Long-term debt, less current portion

2,753

2,749

Pension and post-retirement obligations

Operating and finance leases

200

192

Deferred tax liabilities

218

198

Other noncurrent liabilities

190

127

Total liabilities

5,445

5,199

Total shareholders’ equity

3,276

2,953

Total liabilities and shareholders’ equity

8,721

8,152

APi Group Corporation

Condensed Consolidated Statements of Cash Flows (GAAP)

(Amounts in millions)

(Unaudited)

Nine Months Ended September 30,

2025

2024

Cash flows from operating activities:

Net income

205

183

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

242

221

Restructuring charges, net of cash paid

)

(15

)

Deferred taxes

Share-based compensation expense

Profit-sharing expense

Non-cash lease expense

Net periodic pension cost

Other, net

)

(22

)

Changes in operating assets and liabilities, net of effects of acquisitions:

(218

)

(170

)

Net cash provided by operating activities

377

337

Cash flows from investing activities:

Acquisitions, net of cash acquired

(174

)

(647

)

Purchases of property and equipment

(70

)

(66

)

Proceeds from sales of property and equipment

Net cash used in investing activities

(231

)

(680

)

Cash flows from financing activities:

Proceeds from long-term borrowings

—

850

Payments on long-term borrowings

)

(335

)

Repurchases of common stock

(75

)

—

Proceeds from issuance of common shares

—

458

Conversion of Series B Preferred Stock

—

(600

)

Payments of acquisition-related consideration

(16

)

Restricted shares tendered for taxes

(20

)

(12

)

Other financing activities

—

)

Net cash (used in) provided by financing activities

(116

)

348

Effect of foreign currency exchange rate change on cash, cash equivalents, and restricted cash

Net increase in cash, cash equivalents, and restricted cash

Cash, cash equivalents, and restricted cash, beginning of period

501

480

Cash, cash equivalents, and restricted cash, end of period

556

489

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, 2025

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

15.4 %

1.2 %

14.2 %

5.5 %

8.7 %

Specialty Services

11.6 %

— %

11.6 %

— %

11.6 %

Consolidated

14.2 %

0.9 %

13.3 %

3.6 %

9.7 %

Nine Months Ended September 30, 2025

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

14.9 %

0.2 %

14.7 %

8.0 %

6.7 %

Specialty Services

6.8 %

— %

6.8 %

— %

6.8 %

Consolidated

12.4 %

0.2 %

12.2 %

5.4 %

6.8 %

Notes:

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 2025.

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.

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, 2025.

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,

2025

2024

2025

2024

Gross profit (as reported)

652

567

1,809

1,603

Adjustments to reconcile gross profit to adjusted gross profit:

Backlog amortization

(a)

)

Restructuring program related costs

(b)

—

Adjusted gross profit

656

566

1,821

1,607

Net revenues

2,085

1,826

5,794

5,157

Adjusted gross margin

31.5

31.0

31.4

31.2

Adjusted SG&A

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Selling, general, and administrative expenses ("SG&A") (as reported)

489

425

1,419

1,235

Adjustments to reconcile SG&A to adjusted SG&A:

Amortization of intangible assets

(c)

(56

)

(57

)

(168

)

(159

)

Contingent consideration and compensation

(d)

)

Systems and business enablement

(e)

(31

)

—

(61

)

—

Business process transformation expenses

(f)

—

(13

)

(26

)

Acquisition and divestiture related expenses

(g)

)

(12

)

(11

)

Restructuring program related costs

(b)

—

)

(14

)

(15

)

Other

(h)

)

—

)

Adjusted SG&A expenses

402

348

1,154

1,027

Net revenues

2,085

1,826

5,794

5,157

Adjusted SG&A as a % of net revenues

19.3

19.1

19.9

Notes:

Adjustment to reflect the addback of amortization expense related to backlog intangible assets.

Adjustment to reflect the addback of expenses associated with restructuring programs and related costs.

Adjustment to reflect the elimination of amortization expense.

Adjustment to reflect the elimination of the expense attributable to deferred consideration to prior owners of acquired businesses not expected to continue or recur.

Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.

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.

Adjustment to reflect the elimination of transaction and integration costs related to potential and completed acquisitions and expenses associated with the transition of newly acquired businesses from prior ownership into APi Group, as well as transaction gains and losses associated with potential and completed divestitures.

Adjustment includes various miscellaneous non-recurring items, such as the gain on the sale of a building, elimination of changes in fair value estimates to acquired liabilities, and miscellaneous capital market activities.

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,

2025

2024

2025

2024

Net income (as reported)

205

183

Adjustments to reconcile net income to EBITDA:

Interest expense, net

109

110

Income tax provision

Depreciation and amortization

242

221

EBITDA

245

218

635

583

Adjustments to reconcile EBITDA to adjusted EBITDA:

Contingent consideration and compensation

(a)

Non-service pension cost

(b)

Systems and business enablement

(c)

—

Business process transformation expenses

(d)

—

Acquisition and divestiture related expenses

(e)

)

Restructuring program related costs

(f)

—

Other

(g)

—

)

Adjusted EBITDA

281

245

746

651

Net revenues

2,085

1,826

5,794

5,157

Adjusted EBITDA margin

13.5

13.4

12.9

12.6

Notes:

Adjustment to reflect the elimination of the expense attributable to deferred consideration to prior owners of acquired businesses not expected to continue or recur.

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 of the pension programs assumed as part of the Chubb acquisition.

Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.

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

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,

2025

2024

2025

2024

Income before income tax provision (as reported)

130

100

284

252

Adjustments to reconcile income before income tax provision to adjusted income before income tax provision:

Amortization of intangible assets

(a)

179

161

Contingent consideration and compensation

(b)

Non-service pension cost

(c)

Systems and business enablement

(d)

—

Business process transformation expenses

(e)

—

Acquisition and divestiture related expenses

(f)

)

Restructuring program related costs

(g)

—

Other

(h)

—

)

Adjusted income before income tax provision

226

183

574

481

Income tax provision (as reported)

Adjustments to reconcile income tax provision to adjusted income tax provision:

Income tax provision adjustment

(i)

Adjusted income tax provision

132

110

Adjusted income before income tax provision

226

183

574

481

Adjusted income tax provision

132

110

Adjusted net income

174

141

442

371

Diluted weighted average shares outstanding (as reported)

429

414

425

398

Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding:

Dilutive impact of shares from GAAP net loss

(j)

—

Dilutive impact of Series A Preferred Stock

(k)

)

Dilutive impact of conversion of Series B Preferred Stock

(l)

—

Adjusted diluted weighted average shares outstanding

424

416

423

Adjusted diluted EPS

0.41

0.34

1.04

0.88

Notes:

Adjustment to reflect the elimination of amortization expense.

Adjustment to reflect the elimination of the expense attributable to deferred consideration to prior owners of acquired businesses not expected to continue or recur.

Adjustment to reflect the elimination of non-service pension cost (benefit), which consists of interest cost, expected return on plan assets and amortization of actuarial gains/losses of the pension programs assumed as part of the Chubb acquisition.

Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.

Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.

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.

Adjustment to add the dilutive impact of options and RSUs which were anti-dilutive and excluded from the diluted weighted average shares outstanding (as reported).

Adjustment reflects the addition of the dilutive impact of 6 million shares associated with the deemed conversion of Series A Preferred Stock, when adjusted for the stock split, offset by the adjustment of the assumed dividend payable to the Series A Preferred Stock holders at year-end.

Adjustment for the weighted average impact of the Series B Preferred Stock that were convertible into approximately 49 million common shares and were outstanding for two months of the year, when adjusted for the stock split. On February 28, 2024, all Series B Preferred Stock was converted to common stock and there is no longer any dilutive impact from the Series B Preferred Stock.

APi Group Corporation

Adjusted Segment Financial Information (non-GAAP)

(Amounts in millions)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2025 (a)

2024 (a)

2025 (a)

2024 (a)

Safety Services

Net revenues

1,403

1,216

4,032

3,509

Adjusted gross profit

524

444

1,499

1,276

Segment earnings

236

199

667

554

Adjusted gross margin

37.3

36.5

37.2

36.4

Segment earnings margin

16.8

16.4

16.5

15.8

Specialty Services

Net revenues

683

612

1,765

1,653

Adjusted gross profit

132

122

322

331

Segment earnings

181

194

Adjusted gross margin

19.3

19.9

18.2

20.0

Segment earnings margin

11.9

12.7

10.3

11.7

Total net revenues before corporate and eliminations

(b)

2,086

1,828

5,797

5,162

Total segment earnings before corporate and eliminations

(b)

317

277

848

748

Segment earnings margin before corporate and eliminations

(b)

15.2

14.6

14.5

Corporate and Eliminations

Net revenues

)

Adjusted EBITDA

(36

)

(32

)

(102

)

(97

)

Total Consolidated

Net revenues

2,085

1,826

5,794

5,157

Adjusted gross profit

656

566

1,821

1,607

Adjusted EBITDA

281

245

746

651

Adjusted gross margin

31.5

31.0

31.4

31.2

Adjusted EBITDA margin

13.5

13.4

12.9

12.6

Notes:

(a)

Information derived from non-GAAP reconciliations included elsewhere in this press release.

(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, 2025

Three Months Ended September 30, 2024

As Reported

Adjustments

As Adjusted

As Reported

Adjustments

As Adjusted

Safety Services

Net revenues

1,403

—

1,403

1,216

—

1,216

Cost of revenues

883

)

(a)

879

771

(a)

772

Gross profit

520

524

445

)

444

Gross margin

37.1

37.3

36.6

36.5

Specialty Services

Net revenues

683

—

683

612

—

612

Cost of revenues

551

—

551

490

—

490

Gross profit

132

—

132

122

—

122

Gross margin

19.3

19.9

Corporate and Eliminations

Net revenues

)

—

)

—

)

Cost of revenues

)

—

)

—

)

Total Consolidated

Net revenues

2,085

—

2,085

1,826

—

1,826

Cost of revenues

1,433

)

(a)

1,429

1,259

(a)

1,260

Gross profit

652

656

567

)

566

Gross margin

31.3

31.5

31.1

31.0

Notes:

Adjustment to reflect the addback 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, 2025

Nine Months Ended September 30, 2024

As Reported

Adjustments

As Adjusted

As Reported

Adjustments

As Adjusted

Safety Services

Net revenues

4,032

—

4,032

3,509

—

3,509

Cost of revenues

2,545

(11

)

(a)

2,533

2,237

)

(a)

2,233

)

(b)

)

(b)

Gross profit

1,487

1,499

1,272

1,276

Gross margin

36.9

37.2

36.2

36.4

Specialty Services

Net revenues

1,765

—

1,765

1,653

—

1,653

Cost of revenues

1,443

—

1,443

1,322

—

1,322

Gross profit

322

—

322

331

—

331

Gross margin

18.2

20.0

Corporate and Eliminations

Net revenues

)

—

)

—

)

Cost of revenues

)

—

)

—

)

Total Consolidated

Net revenues

5,794

—

5,794

5,157

—

5,157

Cost of revenues

3,985

(11

)

(a)

3,973

3,554

)

(a)

3,550

)

(b)

)

(b)

Gross profit

1,809

1,821

1,603

1,607

Gross margin

31.2

31.4

31.1

31.2

Notes:

Adjustment to reflect the addback of amortization expense related to backlog intangible assets.

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,

2025

2024

2025

2024

Corporate and Eliminations

Income before income taxes

(88

)

(78

)

(248

)

(208

)

Interest expense, net

Depreciation

Amortization

Systems and business enablement

(a)

—

Business process transformation expenses

(b)

—

Acquisition and divestiture related expenses

(c)

Restructuring program related costs

(d)

—

Other

(e)

—

)

Corporate and Eliminations adjusted EBITDA

(36

)

(32

)

(102

)

(97

)

Notes:

Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.

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

Change in Segment Earnings (non-GAAP)

(Unaudited)

Change in Segment earnings

Three Months Ended September 30, 2025

Change in

Segment earnings

(public rates)

Foreign

currency

translation (a)

Change in

Segment earnings

(fixed currency) (b)

Safety Services

18.6%

1.1%

17.5%

Specialty Services

3.8%

—%

3.8%

Consolidated

14.7%

1.0%

13.7%

Nine Months Ended September 30, 2025

Change in

Segment earnings

(public rates)

Foreign

currency

translation (a)

Change in

Segment earnings

(fixed currency) (b)

Safety Services

20.4%

0.3%

20.1%

Specialty Services

(6.7)%

—%

(6.7)%

Consolidated

14.6%

0.6%

14.0%

Notes:

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 2025.

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,

2025

2024

2025

2024

Net cash provided by operating activities (as reported)

232

220

377

337

Less: Purchases of property and equipment

(31

)

(22

)

(70

)

(66

)

Free cash flow

201

198

307

271

Add: Cash payments related to following items:

Contingent compensation

(a)

—

Systems and business enablement

(b)

—

Business process transformation expenses

(c)

—

Acquisition and divestiture related expenses

(d)

—

Restructuring program related payments

(e)

Other

(f)

Adjusted free cash flow

248

227

434

361

Adjusted EBITDA

(g)

281

245

746

651

Adjusted free cash flow conversion

88.3

92.7

58.2

55.5

Notes:

Adjustment to reflect the elimination of deferred payments to prior owners of acquired businesses not expected to continue or recur.

Adjustment to reflect the elimination of non-recurring expenses related to new systems implementations, information technologies, and other new capabilities.

Adjustment to reflect payments made for restructuring programs and related costs.

Adjustment includes various miscellaneous non-recurring items, including capital market activity and costs or gains/losses associated with any one-time fixed asset acquisitions or dispositions.

Adjusted EBITDA from non-GAAP reconciliations included elsewhere in this press release.