APi Group Reports Record Fourth Quarter and Full Year 2025 Financial Results

NEW BRIGHTON, Minn.--( BUSINESS WIRE)--APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today reported its financial results for the three months and full year ended December 31, 2025.

Russ Becker, APi’s President and Chief Executive Officer stated: “Our record results in 2025 once again demonstrate the strength of our recurring revenue, services-focused business model and the ongoing execution of our strategy by our teammates. We ended 2025 with adjusted EBITDA margins at 13.2%, above our 13% target, and free cash flow conversion of 80%. I am proud of our team for these record financial results achieved in 2025, and for executing on our `13/60/80' targets. We begin 2026 with positive momentum and strong demand for our services across our global platform. Our balance sheet remains strong, with a net leverage ratio of 1.6x, allowing us the flexibility to pursue value enhancing capital deployment opportunities in 2026. We remain laser focused on delivering and executing our new `10/16/60+' financial targets, and creating value for all our stakeholders."

Fourth Quarter and Full Year 2025 Consolidated Results:

Three Months Ended December 31,

Year Ended December 31,

2025

2024

Y/Y

2025

2024

Y/Y

Net revenues

2,117

1,861

13.8

7,911

7,018

12.7

Organic net revenue growth (a)

11.1

7.9

GAAP

Gross profit

678

575

17.9

2,487

2,178

14.2

Gross margin

32.0

30.9

+110 bps

31.4

31.0

+40 bps

Net income

44.8

302

250

20.8

Diluted EPS

(1.19

)

(0.07

)

(0.69

)

(0.56

)

Adjusted non-GAAP comparison

Adjusted gross profit

681

579

17.6

2,502

2,186

14.5

Adjusted gross margin

32.2

31.1

+110 bps

31.6

31.1

+50 bps

Adjusted EBITDA

295

242

21.9

1,041

893

16.6

Adjusted EBITDA margin

13.9

13.0

+90 bps

13.2

12.7

+50 bps

Adjusted net income

185

143

29.4

627

514

22.0

Adjusted diluted EPS (b)

0.44

0.34

29.4

1.48

1.23

20.3

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.

Fourth Quarter 2025 Highlights

2025 Highlights

Fourth Quarter and Full Year 2025 Segment Results:

Safety Services

Three Months Ended December 31,

Year Ended December 31,

2025

2024

Y/Y

2025

2024

Y/Y

Safety Services

Net revenues

1,424

1,288

10.6

5,456

4,797

13.7

Organic net revenue growth (a)

6.6

6.7

GAAP

Gross profit

534

467

14.3

2,021

1,739

16.2

Gross margin

37.5

36.3

+120 bps

37.0

36.3

+70 bps

Segment earnings

249

211

18.0

916

765

19.7

Segment earnings margin

17.5

16.4

+110 bps

16.8

15.9

+90 bps

Adjusted non-GAAP comparison

Adjusted gross profit

537

471

14.0

2,036

1,747

16.5

Adjusted gross margin

37.7

36.6

+110 bps

37.3

36.4

+90 bps

Fourth Quarter 2025 Safety Services Highlights

2025 Safety Services Highlights

Specialty Services

Three Months Ended December 31,

Year Ended December 31,

2025

2024

Y/Y

2025

2024

Y/Y

Specialty Services

Net revenues

695

576

20.7

2,460

2,229

10.4

Organic net revenue growth (a)

20.7

10.4

GAAP

Gross profit

144

108

33.3

466

439

6.2

Gross margin

20.7

18.8

+190 bps

18.9

19.7

(80) bps

Segment earnings

40.7

264

253

4.3

Segment earnings margin

11.9

10.2

+170 bps

10.7

11.4

(70) bps

Adjusted non-GAAP comparison

Adjusted gross profit

144

108

33.3

466

439

6.2

Adjusted gross margin

20.7

18.8

+190 bps

18.9

19.7

(80) bps

Fourth Quarter 2025 Specialty Services Highlights

2025 Specialty Services Highlights

Guidance

APi Group announces initial 2026 guidance based on current foreign exchange rates and acquisitions closed to date.

For the full year 2026, the company expects:

For the first quarter of 2026, the company expects:

Conference Call

APi will hold a webcast/dial-in conference call to discuss its financial results at 8:30 a.m. (Eastern Time) on Wednesday, February 25, 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/431836886

Analysts Link: https://events.q4inc.com/analyst/431836886?pwd=78%7B9qHb%3A

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.apigroupinc.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 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; (iv) failure to realize the anticipated benefits of our acquisitions 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 and the Company’s asset-light, services-focused business model and its 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 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 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, 2025 under the heading “Risk Factors.” Given these risks and uncertainties, investors 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, growth in reported and organic net revenues, and adjusted free cash flow conversion to U.S. 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, 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 December 31,

Year Ended December 31,

2025

2024

2025

2024

Net revenues

2,117

1,861

7,911

7,018

Cost of revenues

1,439

1,286

5,424

4,840

Gross profit

678

575

2,487

2,178

Selling, general, and administrative expenses

514

459

1,933

1,694

Operating income

164

116

554

484

Interest expense, net

141

146

Investment expense (income) and other, net

—

Other expense, net

141

154

Income before income taxes

129

413

330

Income tax provision

111

Net income

302

250

Net loss attributable to common shareholders:

Accrued stock dividend on Series A Preferred Stock

(590

)

(95

)

(590

)

(95

)

Stock dividend on Series B Preferred Stock

—

)

Stock conversion of Series B Preferred Stock

—

(372

)

Net loss attributable to common shareholders

(493

)

(28

)

(288

)

(224

)

Net loss per common share:

Net loss per common share (basic and diluted):

(1.19

)

(0.07

)

(0.69

)

(0.56

)

Weighted-average shares outstanding:

Weighted-average shares outstanding (basic and diluted):

416

413

416

402

APi Group Corporation

Condensed Consolidated Balance Sheets (GAAP)

(Amounts in millions)

(Unaudited)

December 31,

2025

December 31,

2024

Assets

Current assets:

Cash and cash equivalents

912

499

Accounts receivable, net

1,563

1,444

Inventories

145

143

Contract assets

484

453

Prepaid expenses and other current assets

125

119

Total current assets

3,229

2,658

Property and equipment, net

397

379

Operating lease right-of-use assets

301

268

Goodwill

3,167

2,894

Intangible assets, net

1,584

1,660

Deferred tax assets

Pension and post-retirement assets

129

120

Other assets

116

Total assets

8,936

8,152

Liabilities and Shareholders’ Equity

Current liabilities:

Short-term and current portion of long-term debt

Accounts payable

526

497

Accrued liabilities

827

704

Contract liabilities

694

590

Operating and finance leases

Total current liabilities

2,150

1,885

Long-term debt, less current portion

2,754

2,749

Pension and post-retirement obligations

Operating and finance leases

215

192

Deferred tax liabilities

205

198

Other noncurrent liabilities

154

127

Total liabilities

5,528

5,199

Total shareholders’ equity

3,408

2,953

Total liabilities and shareholders’ equity

8,936

8,152

APi Group Corporation

Condensed Consolidated Statements of Cash Flows (GAAP)

(Amounts in millions)

(Unaudited)

Year Ended December 31,

2025

2024

Cash flows from operating activities:

Net income

302

250

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

Depreciation and amortization

327

302

Restructuring charges, net of cash paid

)

(16

)

Deferred taxes

(30

)

Share-based compensation expense

Profit-sharing expense

Non-cash lease expense

110

Net periodic pension cost

Other, net

)

(28

)

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

(83

)

(41

)

Net cash provided by operating activities

759

620

Cash flows from investing activities:

Acquisitions, net of cash acquired

(186

)

(778

)

Purchases of property and equipment

(96

)

(84

)

Proceeds from sales of property, equipment, held for sale assets, and businesses

Net cash used in investing activities

(254

)

(829

)

Cash flows from financing activities:

Proceeds from long-term borrowings

—

850

Payments on long-term borrowings

)

(437

)

Repurchases of common stock

(75

)

—

Proceeds from the issuance of common shares

—

458

Conversion of Series B Preferred Stock

—

(600

)

Payments of acquisition-related consideration

(18

)

Restricted shares tendered for taxes

(21

)

(13

)

Other financing activities

—

)

Net cash (used in) provided by financing activities

(121

)

245

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

(15

)

Net increase in cash, cash equivalents, and restricted cash

412

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

501

480

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

913

501

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 December 31, 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

10.6 %

2.4 %

8.2 %

1.6 %

6.6 %

Specialty Services

20.7 %

— %

20.7 %

— %

20.7 %

Consolidated

13.8 %

1.6 %

12.2 %

1.1 %

11.1 %

Year Ended December 31, 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

13.7 %

0.8 %

12.9 %

6.2 %

6.7 %

Specialty Services

10.4 %

— %

10.4 %

— %

10.4 %

Consolidated

12.7 %

0.5 %

12.2 %

4.3 %

7.9 %

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 December 31, 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 December 31,

Year Ended December 31,

2025

2024

2025

2024

Gross profit (as reported)

678

575

2,487

2,178

Adjustments to reconcile gross profit to adjusted gross profit:

Backlog amortization

(a)

Restructuring program related costs

(b)

—

Adjusted gross profit

681

579

2,502

2,186

Net revenues

2,117

1,861

7,911

7,018

Adjusted gross margin

32.2

31.1

31.6

31.1

Adjusted SG&A

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

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

514

459

1,933

1,694

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

Amortization of intangible assets

(c)

(60

)

(57

)

(228

)

(216

)

Contingent consideration and compensation

(d)

—

)

Systems and business enablement

(e)

(35

)

—

(96

)

—

Business process transformation expenses

(f)

—

(26

)

(52

)

Acquisition and divestiture related expenses

(g)

(12

)

(24

)

(13

)

Restructuring program related costs

(b)

—

(15

)

(13

)

(30

)

Other

(h)

—

)

Adjusted SG&A expenses

410

361

1,565

1,388

Net revenues

2,117

1,861

7,911

7,018

Adjusted SG&A as a % of net revenues

19.4

19.8

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

Adjustment to reflect the elimination 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 one-time deferred consideration to prior owners of acquired businesses.

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 costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.

Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, 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 December 31,

Year Ended December 31,

2025

2024

2025

2024

Net income (as reported)

302

250

Adjustments to reconcile net income to EBITDA:

Interest expense, net

141

146

Income tax provision

111

Depreciation and amortization

327

302

EBITDA

246

195

881

778

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

295

242

1,041

893

Net revenues

2,117

1,861

7,911

7,018

Adjusted EBITDA margin

13.9

13.0

13.2

12.7

Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.

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.

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 transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.

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 December 31,

Year Ended December 31,

2025

2024

2025

2024

Income before income tax provision (as reported)

129

413

330

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

Amortization of intangible assets

(a)

242

222

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

241

186

815

667

Income tax provision (as reported)

111

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

Income tax provision adjustment

(i)

Adjusted income tax provision

188

153

Adjusted income before income tax provision

241

186

815

667

Adjusted income tax provision

188

153

Adjusted net income

185

143

627

514

Diluted weighted average shares outstanding (as reported)

416

413

416

402

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

420

423

417

Adjusted diluted EPS

0.44

0.34

1.48

1.23

Adjustment to reflect the elimination of amortization expense.

Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.

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.

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 transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.

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 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.

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 2024. 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 December 31,

Year Ended December 31,

2025 (a)

2024 (a)

2025 (a)

2024 (a)

Safety Services

Net revenues

1,424

1,288

5,456

4,797

Adjusted gross profit

537

471

2,036

1,747

Segment earnings

249

211

916

765

Adjusted gross margin

37.7

36.6

37.3

36.4

Segment earnings margin

17.5

16.4

16.8

15.9

Specialty Services

Net revenues

695

576

2,460

2,229

Adjusted gross profit

144

108

466

439

Segment earnings

264

253

Adjusted gross margin

20.7

18.8

18.9

19.7

Segment earnings margin

11.9

10.2

10.7

11.4

Total net revenues before corporate and eliminations

(b)

2,119

1,864

7,916

7,026

Total segment earnings before corporate and eliminations

(b)

332

270

1,180

1,018

Segment earnings margin before corporate and eliminations

(b)

15.7

14.5

14.9

14.5

Corporate and Eliminations

Net revenues

)

Adjusted EBITDA

(37

)

(28

)

(139

)

(125

)

Total Consolidated

Net revenues

2,117

1,861

7,911

7,018

Adjusted gross profit

681

579

2,502

2,186

Adjusted EBITDA

295

242

1,041

893

Adjusted gross margin

32.2

31.1

31.6

31.1

Adjusted EBITDA margin

13.9

13.0

13.2

12.7

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

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 December 31, 2025

Three Months Ended December 31, 2024

As Reported

Adjustments

As Adjusted

As Reported

Adjustments

As Adjusted

Safety Services

Net revenues

1,424

—

1,424

1,288

—

1,288

Cost of revenues

890

)

(a)

887

821

)

(a)

817

Gross profit

534

537

467

471

Gross margin

37.5

37.7

36.3

36.6

Specialty Services

Net revenues

695

—

695

576

—

576

Cost of revenues

551

—

551

468

—

468

Gross profit

144

—

144

108

—

108

Gross margin

20.7

18.8

Corporate and Eliminations

Net revenues

)

—

)

—

)

Cost of revenues

)

—

)

—

)

Total Consolidated

Net revenues

2,117

—

2,117

1,861

—

1,861

Cost of revenues

1,439

)

(a)

1,436

1,286

)

(a)

1,282

Gross profit

678

681

575

579

Gross margin

32.0

32.2

30.9

31.1

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)

Year Ended December 31, 2025

Year Ended December 31, 2024

As Reported

Adjustments

As Adjusted

As Reported

Adjustments

As Adjusted

Safety Services

Net revenues

5,456

—

5,456

4,797

—

4,797

Cost of revenues

3,435

(14

)

(a)

3,420

3,058

)

(a)

3,050

)

(b)

)

(b)

Gross profit

2,021

2,036

1,739

1,747

Gross margin

37.0

37.3

36.3

36.4

Specialty Services

Net revenues

2,460

—

2,460

2,229

—

2,229

Cost of revenues

1,994

—

1,994

1,790

—

1,790

Gross profit

466

—

466

439

—

439

Gross margin

18.9

19.7

Corporate and Eliminations

Net revenues

)

—

)

—

)

Cost of revenues

)

—

)

—

)

Total Consolidated

Net revenues

7,911

—

7,911

7,018

—

7,018

Cost of revenues

5,424

(14

)

(a)

5,409

4,840

)

(a)

4,832

)

(b)

)

(b)

Gross profit

2,487

2,502

2,178

2,186

Gross margin

31.4

31.6

31.0

31.1

Adjustment to reflect the elimination 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 December 31,

Year Ended December 31,

2025

2024

2025

2024

Corporate and Eliminations

Income before income taxes

(94

)

(82

)

(342

)

(290

)

Interest expense, net

105

107

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

(37

)

(28

)

(139

)

(125

)

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 transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.

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 December 31, 2025

Change in

segment earnings

(public rates)

Foreign

currency

translation (a)

Change in

segment earnings

(fixed currency) (b)

Safety Services

18.0%

2.7%

15.3%

Specialty Services

40.7%

—%

40.7%

Consolidated

21.9%

2.2%

19.7%

Year Ended December 31, 2025

Change in

segment earnings

(public rates)

Foreign

currency

translation (a)

Change in

segment earnings

(fixed currency) (b)

Safety Services

19.7%

1.1%

18.6%

Specialty Services

4.3%

—%

4.3%

Consolidated

16.6%

1.0%

15.6%

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 December 31,

Year Ended December 31,

2025

2024

2025

2024

Net cash provided by operating activities (as reported)

382

283

759

620

Less: Purchases of property and equipment

(26

)

(18

)

(96

)

(84

)

Free cash flow

356

265

663

536

Add: Cash payments related to following items:

Contingent compensation

(a)

—

Systems and business enablement

(b)

—

118

—

Business process transformation expenses

(c)

—

Acquisition and divestiture related expenses

(d)

Restructuring program related payments

(e)

Other

(f)

)

Adjusted free cash flow

402

307

836

668

Adjusted EBITDA

(g)

295

242

1,041

893

Adjusted free cash flow conversion

136.3

126.9

80.3

74.8

Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.

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 transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures.

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.