APi Group (APG) Earnings Date & Reports

Key Takeaways

• APi Group reported record third-quarter net revenues of $2.55 billion, up 22.5% year over year, with organic growth of 15.7%.
• Adjusted diluted EPS (earnings per share) rose 22% to $0.50, beating analysts' consensus estimate of $0.47.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 24.6% to $350 million, with margin expansion of 20 basis points to 13.7%.
• Backlog exceeded $5 billion for the first time, providing greater visibility into 2027 demand.
• Management raised full-year 2026 guidance for net revenues and adjusted EBITDA, citing momentum across both business segments.
• Adjusted gross margin declined 120 basis points, pressured by project mix and higher material and fuel costs.
• For more context on APG's Major News, Today's Price Move, Price Targets, and Forecast, explore our dedicated APG pages.
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Earnings Context and Why It Matters

APi Group is a global provider of fire and life safety, security, elevator and escalator, and specialty services, anchored by a substantial base of statutorily mandated and contracted recurring revenue. Its third-quarter report matters because it tests whether the company can sustain double-digit organic growth while protecting margins in an environment of rising material, fuel, and labor costs. Investors also watch the company's inspection, service, and monitoring mix, which supports more predictable revenue and profitability over time. Following four consecutive quarters of double-digit organic growth, this report offered a key read on demand in end markets such as data centers, semiconductors, advanced manufacturing, healthcare, and critical infrastructure, and on whether APi's acquisition strategy is translating into durable value creation.

Reported Results

For the three months ended September 30, 2026, APi Group reported record net revenues of $2.55 billion, a 22.5% increase from $2.09 billion in the prior-year period, with organic growth of 15.7%. GAAP (Generally Accepted Accounting Principles) net income rose 22.6% to $114 million, and diluted EPS increased to $0.24 from $0.20. Adjusted diluted EPS of $0.50, up 22% from $0.41 a year earlier, exceeded the consensus estimate of $0.47, while revenue of $2.55 billion came in above the roughly $2.40 billion analysts had expected.

Adjusted EBITDA grew 24.6% to $350 million, with adjusted EBITDA margin expanding 20 basis points to 13.7%. Adjusted gross margin, however, declined 120 basis points to 30.3%, reflecting project and business mix along with higher material, fuel, and other expenses. Within the segments, Safety Services posted revenue of $1.66 billion, up 18.5% (8.8% organic), while Specialty Services revenue climbed 30.7% to $893 million (29.9% organic). Management raised full-year 2026 guidance to net revenues of $9.20 billion to $9.25 billion and adjusted EBITDA of $1.235 billion to $1.255 billion, with adjusted free cash flow conversion of roughly 110%.

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Market Reaction and Investor Sentiment

APi Group entered the report with strong momentum, having delivered double-digit organic growth in each of the first two quarters of 2026 and having raised its full-year outlook earlier in the year. The third-quarter results reinforced that narrative, with revenue and adjusted EPS both surpassing consensus estimates and management again lifting guidance. Investor sentiment appeared to focus on the combination of accelerating Specialty Services growth, a record backlog, and continued adjusted EBITDA margin expansion, even as adjusted gross margin came under pressure from mix and input-cost inflation. Commentary around a backlog exceeding $5 billion and confidence in the company's long-term "10/16/60+" targets provided additional support for the growth thesis, though rising material and fuel costs and data-center moratoriums in certain regions were flagged as factors to watch.

Forward Outlook and Key Factors to Monitor

Following the third quarter, APi Group enters the final stretch of 2026 with a record backlog and raised full-year guidance. The company's 2026 target for adjusted EBITDA margin and its longer-term goal of a 16% adjusted EBITDA margin by 2028 remain central benchmarks, and investors will be watching whether margin expansion can continue even as gross margins face pressure from project mix and input costs.

Acquisitions are another key theme. APi closed several significant transactions during 2026, including CertaSite, Onyx-Fire, WTech, and Evergreen, which together add more than $500 million of annualized revenue. Because 2026 reflects only a partial-year contribution from these deals, their full-year impact in 2027 represents a potential tailwind, along with ongoing integration, cross-selling, and procurement scale benefits.

Investors should also monitor demand signals in data centers, semiconductors, advanced manufacturing, and healthcare, as well as any policy or regulatory developments affecting data-center construction in certain regions. Labor availability, wage inflation, and material and fuel costs remain important swing factors for margins. Management has not yet issued 2027 guidance, but has indicated it expects the international Safety business to return to mid-single-digit organic growth next year and continues to emphasize disciplined customer and project selection as a lever for sustainable profitability.

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