APi Group Reports First Quarter 2026 Financial Results

APi Group Reports First Quarter 2026 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 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

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.

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.

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.

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

22.4

Gross margin

16.3

16.8

(50) bps

Segment earnings

34.5

Segment earnings margin

6.9

6.4

+50 bps

Adjusted non-GAAP comparison

Adjusted gross profit

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.

Guidance:

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

APi announces its guidance for the second quarter of 2026.

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.

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.

Forward-Looking Statements and Disclaimers

Please note that in this document 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," "believe," "intend," "plan," "estimate," "predict," "seek," "continue," "pro forma," "outlook," "may," "might," "should," "could," "would," "can have," "likely," "potential," "target," "indicative," "illustrative," "goal," "objective," "forecast," "guidance," "assumes," "strategy," "opportunity," and variations of such words and similar expressions, and relate in this document, without limitation, to statements, beliefs, projections and expectations about future events. Forward-looking statements in this document include, but are not limited to: the Company's full-year and second quarter 2026 guidance for net revenues, adjusted EBITDA, and adjusted free cash flow conversion; the Company's long-term performance targets, including the "10/16/60+" targets (referring to the Company's goals of $10 billion or greater in net revenues by 2028, 16% or greater adjusted EBITDA margins by 2028, and 60% of revenues coming from inspection, service and monitoring over the long-term); statements regarding the anticipated benefits of completed and future acquisitions; statements regarding the Company's M&A strategy and pipeline; and statements regarding the Company's confidence in its future performance and execution of its business strategies. Certain of these forward-looking statements reference non-GAAP financial measures; investors should refer to the "Non-GAAP Financial Measures" section of this document for important information regarding such measures. 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, 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 may bear 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 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) 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; (xiii) changes in applicable laws or regulations, including changes in building codes, fire and life safety regulations, inspection mandates, professional licensing requirements, and environmental, health and safety laws that may affect demand for the Company's services or increase the cost of compliance; (xiv) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (xv) geopolitical risks, including armed conflicts, political instability, sanctions, and their impacts on the Company's operations, customers, and supply chains; (xvi) the trading price of the Company's common stock, which may be positively or negatively impacted by market and economic conditions, the Company's financial performance, or other factors; (xvii) the Company's ability to attract, retain, and develop qualified employees, including skilled trade labor, and the impact of labor shortages, wage inflation, and competition for talent on the Company's operations and cost structure; (xviii) cybersecurity incidents, information technology system failures, data breaches, or disruptions, and the costs of compliance with evolving data privacy and cybersecurity laws and regulations; and (xix) 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 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 promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this document 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, (d) provide consistent period-to-period comparisons of the results, and (e) in the case of organic net revenue growth, enable investors to assess the growth rate of the Company’s existing operations independent of the impact of acquisitions and foreign currency translation. 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 document.

The Company is unable to provide a quantitative reconciliation 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 without unreasonable effort 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, 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 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 document.

APi Group Corporation

Condensed Consolidated Statements of Operations (GAAP)

(Amounts in millions, except per share data)

(Unaudited)

Three Months Ended March 31,

2026

2025

Net revenues

1,982

1,719

Cost of revenues

1,362

1,177

Gross profit

620

542

Selling, general, and administrative expenses

517

458

Operating income

103

Interest expense, net

Investment expense and other, net

—

Other expense, net

Income before income taxes

Income tax provision

Net income

Net income attributable to common shareholders:

Income allocable to Series A Preferred Stock

)

Net income attributable to common shareholders

Net income per common share:

Basic

0.12

0.07

Diluted

0.12

0.07

Weighted average shares outstanding:

Basic

431

416

Diluted

435

417

APi Group Corporation

Condensed Consolidated Balance Sheets (GAAP)

(Amounts in millions)

(Unaudited)

March 31,

2026

December 31,

2025

Assets

Current assets:

Cash and cash equivalents

645

912

Accounts receivable, net of allowances

1,545

1,563

Inventories

156

145

Contract assets

538

484

Prepaid expenses and other current assets

140

125

Total current assets

3,024

3,229

Property and equipment, net

401

397

Operating lease right-of-use assets

294

301

Goodwill

3,326

3,167

Intangible assets, net

1,623

1,584

Deferred tax assets

Pension and post-retirement assets

123

129

Other assets

155

Total assets

8,966

8,936

Liabilities and Shareholders’ Equity

Current liabilities:

Short-term and current portion of long-term debt

Accounts payable

506

526

Accrued liabilities

726

827

Contract liabilities

773

694

Operating and finance leases

Total current liabilities

2,107

2,150

Long-term debt, less current portion

2,755

2,754

Pension and post-retirement obligations

Operating and finance leases

213

215

Deferred tax liabilities

200

205

Other noncurrent liabilities

156

154

Total liabilities

5,480

5,528

Total shareholders’ equity

3,486

3,408

Total liabilities and shareholders’ equity

8,966

8,936

APi Group Corporation

Condensed Consolidated Statements of Cash Flows (GAAP)

(Amounts in millions)

(Unaudited)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net income

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

Depreciation and amortization

Restructuring charges, net of cash paid

)

Share-based compensation expense

Profit-sharing expense

Non-cash lease expense

Net periodic pension cost

Other, net

—

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

(114

)

(101

)

Net cash provided by operating activities

Cash flows from investing activities:

Acquisitions, net of cash acquired

(289

)

Purchases of property and equipment

(18

)

(12

)

Proceeds from sales of property and equipment

Net cash used in investing activities

(305

)

(14

)

Cash flows from financing activities:

Payments on long-term borrowings

)

Repurchases of common stock

—

(75

)

Payments of acquisition-related consideration

)

Restricted shares tendered for taxes

(37

)

(19

)

Net cash used in financing activities

(42

)

(98

)

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

)

Net decrease in cash, cash equivalents, and restricted cash

(268

)

(40

)

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

913

501

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

645

461

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 March 31, 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

11.7

4.4

7.3

1.9

5.4

Specialty Services

25.6

—

25.6

0.8

24.8

Consolidated

15.3

3.3

12.0

1.6

10.4

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 2026.

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 March 31, 2026.

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 March 31,

2026

2025

Gross profit (as reported)

620

542

Adjustments to reconcile gross profit to adjusted gross profit:

Backlog amortization

(a)

—

Adjusted gross profit

620

545

Net revenues

1,982

1,719

Adjusted gross margin

31.3

31.7

Adjusted SG&A

Three Months Ended March 31,

2026

2025

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

517

458

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

Amortization of intangible assets

(b)

(63

)

(57

)

Contingent consideration and compensation

(c)

—

)

Systems and business enablement

(d)

(27

)

(12

)

Business process transformation expenses

(e)

—

)

Acquisition and divestiture related expenses

(f)

(19

)

Restructuring program related costs

(g)

—

)

Other

(h)

)

Adjusted SG&A expenses

409

376

Net revenues

1,982

1,719

Adjusted SG&A as a % of net revenues

20.6

21.9

Notes:

(a)

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

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

Adjustment includes various miscellaneous non-recurring items, such as 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 March 31,

2026

2025

Net income (as reported)

Adjustments to reconcile net income to EBITDA:

Interest expense, net

Income tax provision

Depreciation

Amortization

EBITDA

185

164

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

235

193

Net revenues

1,982

1,719

Adjusted EBITDA margin

11.9

11.2

Notes:

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.

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

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 March 31,

2026

2025

Income before income tax provision (as reported)

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

Amortization of intangible assets

(a)

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

184

135

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

Adjusted income before income tax provision

184

135

Adjusted income tax provision

Adjusted net income

142

104

Diluted weighted average shares outstanding (as reported)

435

417

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

Dilutive impact of Series A Preferred Stock

(j)

Adjusted diluted weighted average shares outstanding

439

423

Adjusted diluted EPS

0.32

0.25

Notes:

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, 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 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.

APi Group Corporation

Adjusted Segment Financial Information (non-GAAP)

(Amounts in millions)

(Unaudited)

Three Months Ended March 31,

2026 (a)

2025 (a)

Safety Services

Net revenues

1,415

1,267

Adjusted gross profit

527

469

Segment earnings

230

199

Adjusted gross margin

37.2

37.0

Segment earnings margin

16.3

15.7

Specialty Services

Net revenues

569

453

Adjusted gross profit

Segment earnings

Adjusted gross margin

16.3

16.8

Segment earnings margin

6.9

6.4

Total net revenues before corporate and eliminations

(b)

1,984

1,720

Total segment earnings before corporate and eliminations

(b)

269

228

Segment earnings margin before corporate and eliminations

(b)

13.6

13.3

Corporate and Eliminations

Net revenues

)

Adjusted EBITDA

(34

)

(35

)

Total Consolidated

Net revenues

1,982

1,719

Adjusted gross profit

620

545

Adjusted EBITDA

235

193

Adjusted gross margin

31.3

31.7

Adjusted EBITDA margin

11.9

11.2

Notes:

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

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 March 31, 2026

Three Months Ended March 31, 2025

As Reported

Adjustments

As Adjusted

As Reported

Adjustments

As Adjusted

Safety Services

Net revenues

1,415

—

1,415

1,267

—

1,267

Cost of revenues

888

—

888

801

)

(a)

798

Gross profit

527

—

527

466

469

Gross margin

37.2

36.8

37.0

Specialty Services

Net revenues

569

—

569

453

—

453

Cost of revenues

476

—

476

377

—

377

Gross profit

—

Gross margin

16.3

16.8

Corporate and Eliminations

Net revenues

)

—

)

—

)

Cost of revenues

)

—

)

—

)

Total Consolidated

Net revenues

1,982

—

1,982

1,719

—

1,719

Cost of revenues

1,362

—

1,362

1,177

)

(a)

1,174

Gross profit

620

—

620

542

545

Gross margin

31.3

31.5

31.7

Notes:

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)

Three Months Ended March 31,

2026

2025

Corporate and Eliminations

Income before income taxes

(91

)

(83

)

Interest expense, net

Depreciation

Amortization

Systems and business enablement

(a)

Business process transformation expenses

(b)

—

Acquisition and divestiture related expenses

(c)

Other

(d)

)

Corporate and Eliminations adjusted EBITDA

(34

)

(35

)

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

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 March 31, 2026

Change in

Segment earnings

(as reported)

Foreign

currency

translation (a)

Change in

Segment earnings

(fixed currency) (b)

Safety Services

15.6%

3.9%

11.7%

Specialty Services

34.5%

—%

34.5%

Consolidated

21.8%

3.7%

18.1%

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 2026.

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 March 31,

2026

2025

Net cash provided by operating activities (as reported)

Less: Purchases of property and equipment

(18

)

(12

)

Free cash flow

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

125

Adjusted net income

142

104

Adjusted free cash flow as a % of adjusted net income

88.0

82.7

Notes:

Adjustment to reflect the elimination of 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.