Earnings release
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NEWS RELEASE APi Group Reports Record Second Quarter 2026 Financial Results and Raises Full-Year 2026 Outlook 2026-07-30 -Record second quarter net revenues of $2.3 billion, representing year-over-year growth of 13.3%, 10.1% on an organic basis- -Record second quarter reported net income of $99 million with year-over-year growth of 28.6%- -Record second quarter adjusted EBITDA of $311 million with year-over-year growth of 14.3% and adjusted EBITDA margin expansion of 10 basis points to 13.8%- -Raising full-year guidance for net revenues and adjusted EBITDA- NEW BRIGHTON, Minn.--(BUSINESS WIRE)-- APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today reported its nancial results for the three and six months ended June 30, 2026. Russ Becker, APi’s President and Chief Executive O cer stated: “We continued building on our strong start to the year in the second quarter, delivering over 10% organic revenue growth and adjusted EBITDA margin expansion year over year. Our results re ect continued strength in inspection, service, and monitoring revenues, as well as robust project activity across both segments. Following a strong rst half, we enter the second half with great momentum, supported by record backlog exceeding $5 billion and disciplined execution of our M&A strategy. We are con dent in our leaders’ abilities to execute our strategic priorities and drive continued progress toward our 10/16/60+ nancial targets." Second Quarter 2026 Consolidated Results: 1
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Three Months Ended June 30, 2026 2025 Y/Y Net revenues $ 2,254$ 1,990 13.3%Organic net revenue growth(a) 10.1% GAAP Gross pro t $ 703$ 615 14.3%Gross margin 31.2% 30.9% +30 bpsNet income $ 99$ 77 28.6%Diluted EPS $ 0.20$ 0.16 25.0% Adjusted non-GAAP comparison Adjusted gross pro t $ 704$ 620 13.5%Adjusted gross margin 31.2% 31.2% —Adjusted EBITDA $ 311$ 272 14.3%Adjusted EBITDA margin 13.8% 13.7% +10 bpsAdjusted net income $ 195$ 164 18.9%Adjusted diluted EPS $ 0.44$ 0.39 12.8% Notes: Amounts in millions, except per share data. Refer to non-GAAP reconciliations to the most comparable GAAP measures.(a)Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts ofmaterial acquisitions and divestitures and the impact of changes due to foreign currency translation. Reported net revenues increased by 13.3% (10.1% organic) driven by solid growth in inspection, service, and monitoring revenues, robust growth in project revenues, acquisitions, and pricing improvements. Reported gross margin increased by 30 basis points while adjusted gross margin was unchanged compared to the prior year period. Margins increased in both project and service revenues, driven by disciplined customer and project selection and pricing improvements, o set by project and business mix. Reported net income was $99 million and diluted EPS was $0.20. Adjusted net income was $195 million and adjusted diluted EPS was $0.44, representing a 12.8% increase compared to the prior year period. The increase in adjusted diluted EPS was driven by strong revenue growth and adjusted EBITDA margin expansion, partially o set by an increase in the adjusted diluted weighted average shares outstanding. Adjusted EBITDA increased by 14.3% (13.1% on a xed currency basis) compared to the prior year period and adjusted EBITDA margin increased 10 basis points to 13.8%. Growth in adjusted EBITDA margin was driven by strong revenue growth resulting in favorable SG&A leverage. Second Quarter 2026 Safety Services Segment Results: Three Months Ended June 30, 2026 2025 Y/YSafety Services Net revenues $ 1,482$ 1,362 8.8%Organic net revenue growth(a) 4.7% GAAP Gross pro t $ 554$ 501 10.6%Gross margin 37.4% 36.8% +60 bpsSegment earnings $ 252$ 232 8.6%Segment earnings margin 17.0% 17.0% — Adjusted non-GAAP comparison Adjusted gross pro t $ 555$ 506 9.7%Adjd i 374% 372% 20b 2
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Adjusted gross margin 37.4% 37.2% +20 bps Notes: Amounts in millions. Refer to non-GAAP reconciliations to the most comparable GAAP measures.(a)Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts ofmaterial acquisitions and divestitures and the impact of changes due to foreign currency translation. Reported net revenues increased by 8.8% (4.7% organic) driven by solid growth in inspection, service, and monitoring revenues, growth in project revenues, acquisitions, pricing improvements, and impacts of foreign exchange translation. Reported and adjusted gross margin increased by 60 and 20 basis points, respectively, compared to the prior year period. This was driven by disciplined customer and project selection and pricing improvements, resulting in margin expansion in inspection, service, and monitoring revenues and project revenues, partially o set by mix. Reported segment earnings increased by 8.6% (7.7% on a xed currency basis) compared to the prior year period. Segment earnings margin was unchanged compared to the prior year period, primarily driven by adjusted gross margin expansion, o set by increased SG&A expenses. Second Quarter 2026 Specialty Services Segment Results: Three Months Ended June 30, 2026 2025 Y/Y Specialty Services Net revenues $ 773$ 629 22.9%Organic net revenue growth(a) 22.0% GAAP Gross pro t $ 149$ 114 30.7%Gross margin 19.3% 18.1% +120 bpsSegment earnings $ 92$ 71 29.6%Segment earnings margin 11.9% 11.3% +60 bps Adjusted non-GAAP comparison Adjusted gross pro t $ 149$ 114 30.7%Adjusted gross margin 19.3% 18.1% +120 bps Notes: Amounts in millions. Refer to non-GAAP reconciliations to the most comparable GAAP measures.(a)Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts ofmaterial acquisitions and divestitures, and the impact of changes due to foreign currency translation. Reported net revenues increased by 22.9% (22.0% organic) driven by robust growth in both project and service revenues. Reported and adjusted gross margin increased by 120 basis points compared to the prior year period driven by disciplined customer and project selection and pricing improvements, resulting in margin expansion in 3
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service and project revenues. Reported segment earnings increased by 29.6% compared to the prior year period. Segment earnings margin was 11.9%, representing a 60 basis point increase compared to the prior year period, driven by adjusted gross margin expansion, partially o set by SG&A expenses, including variable compensation expense. Guidance: APi increases its full-year 2026 guidance for net revenues and adjusted EBITDA. Net Revenues of $8,875 to $9,025 million, up from the guidance provided on July 2, 2026 of $8,660 to $8,860 million Adjusted EBITDA of $1,205 to $1,245 million, up from the guidance provided on July 2, 2026 of $1,177 to $1,237 million Adjusted Free Cash Flow Conversion of 115%, based on adjusted net income APi announces its guidance for the third quarter of 2026. Net Revenues of $2,375 to $2,425 million Adjusted EBITDA of $325 to $335 million Conference Call: APi will host a webcast and conference call to discuss its nancial results at 8:30 a.m. ET on Thursday, July 30, 2026. Participants on the call will include Russell A. Becker, President and Chief Executive O cer, and David Jackola, EVP and Chief Financial O cer. 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/781429281 Analysts Link: https://events.q4inc.com/analyst/781429281?pwd=2Kq4r26b A replay of the webcast will be available shortly after the live event via the webcast link above. About APi: APi Group is a global, market-leading business services company providing statutorily mandated and contracted services across its Safety Services and Specialty Services segments, including re and life safety, electronic security, elevator and escalator, and infrastructure services. With more than 600 locations in over 20 countries, APi is built on a century of expertise, a people- rst culture, and its purpose of Building Great Leaders®. In 2026, APi is 4
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celebrating its 100-year anniversary and its debut on the Fortune 500. More information is available at www.apigroup.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,” “can have,” “have,” “likely,” “potential,” “target,” “indicative,” “illustrative,” and variations of such words and similar expressions, and relate in this document, 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 di er materially from those expressed or implied by such forward-looking statements, including: (i) economic conditions, competition, political risks, and other risks that may a ect the Company’s future performance, including the impacts of in ationary pressures and other macroeconomic factors on the Company’s business, markets, supply chain, customers and workforce, on the credit and nancial 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, including changes in tari and trade policies, import and export restrictions, retaliatory trade measures, sanctions, and other governmental actions that may a ect the cost, timing, or viability of the Company's cross-border operations and supply chains; (iv) failure to realize the anticipated bene ts 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- rst strategy or to realize the expected service revenue from such inspections; (vi) failure to realize expected bene ts 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 nancial reporting; (x) adverse developments in the credit markets which 5
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could impact the Company’s ability to secure nancing in the future; (xi) the Company’s level of indebtedness; (xii) risks associated with the Company’s contract portfolio; and (xiii) 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 led 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 nancial measures within the meaning of Regulation G. Management uses these measures to evaluate the Company's performance and believes they are useful to investors because they (a) re ect the same tools management uses to assess performance and prospects, (b) facilitate peer comparison, (c) provide consistent period-to-period comparisons, and (d) in the case of adjusted EBITDA, determine certain elements of executive incentive compensation. Adjusted gross pro t, adjusted SG&A, adjusted net income, and adjusted diluted EPS exclude amortization of intangible assets, restructuring costs, contingent consideration and compensation, acquisition and divestiture related expenses, systems and business enablement expenses, business process transformation expenses, and other miscellaneous items, as further described in the reconciliation tables. These adjustments remove items management does not consider indicative of the Company's core ongoing operational performance. Adjusted EBITDA is net income before interest, taxes, depreciation, and amortization, further adjusted to exclude the same items listed above plus non-service pension cost. Adjusted EBITDA margin is adjusted EBITDA divided by net revenues. Organic net revenue growth excludes the impacts of material acquisitions, material divestitures, and foreign currency translation from year-over-year revenue comparisons. Fixed currency measures translate results at exchange rates established by management at the beginning of 2026. An acquisition or divestiture is considered material based on management's assessment of its signi cance to comparability; this threshold is applied consistently across periods. Adjusted free cash ow is cash provided by operating activities, adjusted for the cash impact of the same items excluded from adjusted EBITDA, less capital expenditures. Adjusted free cash ow conversion is adjusted free cash ow as a percentage of adjusted net income. Net leverage ratio is calculated in accordance with the Company’s debt agreements and includes pro forma 6
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adjustments for acquisitions and cost savings not re ected in adjusted EBITDA; see the Company’s SEC lings for the covenant EBITDA de nition. These measures are supplemental and should not be considered a substitute for, or superior to, GAAP nancial measures, and may di er from similarly titled measures used by other companies. Reconciliations to the most directly comparable GAAP measures are included in this document. The Company is unable to provide a quantitative reconciliation of forward-looking adjusted EBITDA, organic net revenue growth, and adjusted free cash ow conversion to GAAP without unreasonable e ort, as the amounts and timing of reconciling items – including acquisition-related costs, systems and business enablement expenses, restructuring costs, and other charges – are inherently uncertain and could be signi cant. APi Group Corporation Condensed Consolidated Statements of Operations (GAAP)(Amounts in millions, except per share data)(Unaudited) Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Net revenues $ 2,254$ 1,990$ 4,236$ 3,709Cost of revenues 1,551 1,375 2,913 2,552 Gross pro t 703 615 1,323 1,157Selling, general, and administrative expenses528 472 1,045 930 Operating income 175 143 278 227 Interest expense, net 36 37 66 75Investment expense (income) and other, net1 (2) 3 (2) Other expense, net 37 35 69 73 Income before income taxes 138 108 209 154Income tax provision 39 31 53 42 Net income 99 77 156 112Net income attributable to common shareholders:Income allocable to Series A Preferred Stock(10) (8) (16) (12) Net income attributable to common shareholders$ 89$ 69$ 140$ 100 Net income per common share: Basic $ 0.21$ 0.17$ 0.32$ 0.24Diluted 0.20 0.16 0.32 0.24 Weighted average shares outstanding: Basic 433 415 432 416Diluted 437 428 436 422 APi Group Corporation Condensed Consolidated Balance Sheets (GAAP)(Amounts in millions)(Unaudited) June 30, 2026December 31, 2025Assets Current assets:Cash and cash equivalents $ 851$ 912Accounts receivable, net of allowances 1,706 1,563Inventories 172 145Contract assets 630 484P id dh 171 125 7
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Prepaid expenses and other current assets 171 125 Total current assets 3,530 3,229Property and equipment, net 429 397Operating lease right-of-use assets 303 301Goodwill 3,643 3,167Intangible assets, net 1,736 1,584Deferred tax assets 20 40Pension and post-retirement assets 129 129Other assets 157 89 Total assets $ 9,947$ 8,936 Liabilities and Shareholders’ Equity Current liabilities:Short-term and current portion of long-term debt$ 306$ 5Accounts payable 554 526Accrued liabilities 766 827Contract liabilities 815 694Operating and nance leases 100 98 Total current liabilities 2,541 2,150Long-term debt, less current portion 3,217 2,754Pension and post-retirement obligations 48 50Operating and nance leases 219 215Deferred tax liabilities 248 205Other noncurrent liabilities 158 154 Total liabilities 6,431 5,528Total shareholders’ equity 3,516 3,408 Total liabilities and shareholders’ equity$ 9,947$ 8,936 APi Group Corporation Condensed Consolidated Statements of Cash Flows (GAAP)(Amounts in millions)(Unaudited) Six Months Ended June 30, 2026 2025 Cash ows from operating activities: Net income $ 156$ 112Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 173 161Restructuring charges, net of cash paid (4) (2)Deferred taxes (1) (1)Share-based compensation expense 23 21Pro t-sharing expense 15 14Non-cash lease expense 61 56Net periodic pension cost 12 11Other, net (2) 2Changes in operating assets and liabilities, net of e ects of acquisitions:(265) (229) Net cash provided by operating activities 168 145 Cash ows from investing activities: Acquisitions, net of cash acquired (816) (111)Purchases of property and equipment (49) (39)Proceeds from sales of property and equipment4 10 Net cash used in investing activities (861) (140) Cash ows from nancing activities: Net short-term debt 280 —Proceeds from long-term borrowings 795 —Payments on long-term borrowings (303) (4)Payments of debt issuance costs (16) —Repurchases of common stock (66) (75)Payments of acquisition-related consideration(13) (2)Restricted shares tendered for taxes (38) (20) Net cash provided by (used in) nancing activities639 (101)E ect of foreign currency exchange rate change on cash, cash equivalents, and restricted cash(8) 28 Net decrease in cash, cash equivalents, and restricted cash(62) (68) Cash, cash equivalents, and restricted cash, beginning of period913 501 Cash, cash equivalents, and restricted cash, end of period$ 851$ 433 8
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APi Group Corporation Reconciliations of GAAP to Non-GAAP Financial MeasuresOrganic Change in Net Revenues (non-GAAP)(Unaudited) Organic change in net revenuesThree Months Ended June 30, 2026 Net revenueschange(as reported) Foreigncurrencytranslation (a) Net revenueschange( xed currency)(b) Acquisitionsanddivestitures, net(c) Organicchange innet revenues(d) Safety Services 8.8% 1.2% 7.6% 2.9% 4.7%Specialty Services 22.9% —% 22.9% 0.9% 22.0% Consolidated 13.3% 0.9% 12.4% 2.3% 10.1% Six Months Ended June 30, 2026 Net revenueschange(as reported) Foreigncurrencytranslation (a) Net revenueschange( xed currency)(b) Acquisitionsanddivestitures, net(c) Organicchange innet revenues(d) Safety Services 10.2% 2.8% 7.4% 2.3% 5.1%Specialty Services 24.0% —% 24.0% 0.8% 23.2% Consolidated 14.2% 2.0% 12.2% 1.9% 10.3% Notes:(a)Represents the e ect of foreign currency on reported net revenues, calculated as the di erence between reported net revenues and netrevenues at xed currencies for both periods. Fixed currency amounts are based on translation into U.S. Dollars at xed foreign currencyexchange rates established by management at the beginning of 2026.(b)Amount represents the year-over-year change after eliminating the impact of uctuations in foreign exchange rates by translating foreigncurrency denominated results at xed foreign currency rates for both periods.(c)Adjustment to exclude net revenues from material acquisitions from their respective dates of acquisition until the rst year anniversary fromdate of acquisition and net revenues from material divestitures for all periods for businesses divested as of June 30, 2026.(d)Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts ofmaterial acquisitions, material divestitures, and the impact of changes due to foreign currency translation. APi Group Corporation Reconciliations of GAAP to Non-GAAP Financial MeasuresGross Pro t and Adjusted Gross Pro t (non-GAAP)SG&A and Adjusted SG&A (non-GAAP)(Amounts in millions)(Unaudited) Adjusted gross pro tThree Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Gross pro t (as reported)$ 703$ 615$ 1,323$ 1,157Adjustments to reconcile gross pro t to adjusted gross pro t:Backlog amortization (a) 1 4 1 7Restructuring program related costs(b) — 1 — 1 Adjusted gross pro t $ 704$ 620$ 1,324$ 1,165 Net revenues $ 2,254$ 1,990$ 4,236$ 3,709Adjusted gross margin 31.2% 31.2% 31.3% 31.4% 9
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Adjusted SG&AThree Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Selling, general, and administrative expenses ("SG&A") (asreported) $ 528$ 472$ 1,045$ 930Adjustments to reconcile SG&A to adjusted SG&A:Amortization of intangible assets(c) (67) (55) (130) (112)Contingent consideration and compensation(d) 1 — 1 (1)Systems and business enablement(e) (25) (18) (52) (30)Business process transformation expenses(f) — — — (4)Acquisition and divestiture related expenses(g) (9) (11) (28) (14)Restructuring program related costs(b) — (11) — (14)Other (h) (8) (1) (7) (3) Adjusted SG&A expenses$ 420$ 376$ 829$ 752 Net revenues $ 2,254$ 1,990$ 4,236$ 3,709Adjusted SG&A as a % of net revenues18.6% 18.9% 19.6% 20.3% Notes:(a)Adjustment to re ect the elimination of amortization expense related to backlog intangible assets.(b)Adjustment to re ect the elimination of expenses associated with restructuring programs and related costs.(c)Adjustment to re ect the elimination of amortization expense.(d)Adjustment to re ect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.(e)Adjustment to re ect the elimination of non-recurring expenses related to new systems implementations, information technologies, and othernew capabilities.(f)Adjustment to re ect 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.(g)Adjustment to re ect the elimination of transaction costs, integration costs, and gains and losses related to potential and completedacquisitions and divestitures.(h)Adjustment includes various miscellaneous non-recurring items, such as gains and losses on the sale of buildings, elimination of changes in fairvalue estimates to acquired liabilities, and costs associated with debt re nancing and other miscellaneous capital market activities. APi Group Corporation Reconciliations of GAAP to Non-GAAP Financial MeasuresEBITDA and Adjusted EBITDA (non-GAAP)(Amounts in millions)(Unaudited) Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Net income (as reported)$ 99$ 77$ 156$ 112Adjustments to reconcile net income to EBITDA:Interest expense, net 36 37 66 75Income tax provision 39 31 53 42Depreciation 21 22 42 42Amortization 68 59 131 119 EBITDA 263 226 448 390Adjustments to reconcile EBITDA to adjusted EBITDA:Contingent consideration and compensation(a) (1) — (1) 1Non-service pension cost(b) 5 5 10 9Systems and business enablement(c) 25 18 52 30Business process transformation expenses(d) — — — 4Acquisition and divestiture related expenses(e) 9 11 28 14Restructuring program related costs(f) — 11 — 14 Other (g) 10 1 9 3 Adjusted EBITDA $ 311$ 272$ 546$ 465 Net revenues $ 2,254$ 1,990$ 4,236$ 3,709Adjusted EBITDA margin 13.8% 13.7% 12.9% 12.5% 10
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Notes:(a)Adjustment to re ect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.(b)Adjustment to re ect the elimination of non-service pension cost, which consists of interest cost, expected return on plan assets andamortization of actuarial gains/losses.(c)Adjustment to re ect the elimination of non-recurring expenses related to new systems implementations, information technologies, and othernew capabilities.(d)Adjustment to re ect 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.(e)Adjustment to re ect the elimination of transaction costs, integration costs, and gains and losses related to potential and completedacquisitions and divestitures.(f)Adjustment to re ect the elimination of expenses associated with restructuring programs and related costs.(g)Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, elimination of changes infair value estimates to acquired liabilities, and costs associated with debt re nancing and other miscellaneous capital market activities. APi Group Corporation Reconciliations of GAAP to Non-GAAP Financial MeasuresIncome before Income Tax, Net Income and EPS andAdjusted Income before Income Tax, Net Income and EPS (non-GAAP)(Amounts in millions, except per share data)(Unaudited) Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Income before income tax provision (as reported)$ 138$ 108$ 209$ 154Adjustments to reconcile income before income tax provisionto adjusted income before income tax provision:Amortization of intangible assets(a) 68 59 131 119Contingent consideration and compensation(b) (1) — (1) 1Non-service pension cost(c) 5 5 10 9Systems and business enablement(d) 25 18 52 30Business process transformation expenses(e) — — — 4Acquisition and divestiture related expenses(f) 9 11 28 14Restructuring program related costs(g) — 11 — 14 Other (h) 10 1 9 3 Adjusted income before income tax provision$ 254$ 213$ 438$ 348 Income tax provision (as reported)$ 39$ 31$ 53$ 42Adjustments to reconcile income tax provision to adjustedincome tax provision: Income tax provision adjustment(i) 20 18 48 38 Adjusted income tax provision$ 59$ 49$ 101$ 80 Adjusted income before income tax provision$ 254$ 213$ 438$ 348 Adjusted income tax provision59 49 101 80 Adjusted net income $ 195$ 164$ 337$ 268 Diluted weighted average shares outstanding (as reported)437 428 436 422Adjustments to reconcile diluted weighted average sharesoutstanding to adjusted diluted weighted average sharesoutstanding: Dilutive impact of Series A Preferred Stock(j) 3 (5) 3 — Adjusted diluted weighted average shares outstanding440 423 439 422 Adjusted diluted EPS $ 0.44$ 0.39$ 0.77$ 0.64 Notes:(a)Adjustment to re ect the elimination of amortization expense.(b)Adjustment to re ect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses.(c)Adjustment to re ect the elimination of non-service pension cost, which consists of interest cost, expected return on plan assets, andamortization of actuarial gains/losses.(d)Adjustment to re ect the elimination of non-recurring expenses related to new systems implementations, information technologies, and othernew capabilities.(e)Adjustment to re ect 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.(f)Adjustment to re ect the elimination of transaction costs, integration costs, and gains and losses related to potential and completedacquisitions and divestitures.(g)Adjustment to re ect the elimination of expenses associated with restructuring programs and related costs.(h)Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, elimination of changes infair value estimates to acquired liabilities, and costs associated with debt re nancing and other miscellaneous capital market activities.(i)Adj dj d i f23%hih hC ' i d i f b idi 11
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(i)Adjustment to re ect an adjusted e ective tax rate of 23% which re ects the Company's estimated expectations for taxes to be paid on itsadjusted non-GAAP earnings.(j)Adjustment re ects 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, o set 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 June 30,Six Months Ended June 30, 2026 (a)2025 (a)2026 (a)2025 (a)Safety Services Net revenues $ 1,482$ 1,362$ 2,897$ 2,629Adjusted gross pro t 555 506 1,082 975Segment earnings 252 232 482 431Adjusted gross margin 37.4% 37.2% 37.3% 37.1%Segment earnings margin 17.0% 17.0% 16.6% 16.4% Specialty Services Net revenues $ 773$ 629$ 1,342$ 1,082Adjusted gross pro t 149 114 242 190Segment earnings 92 71 131 100Adjusted gross margin 19.3% 18.1% 18.0% 17.6%Segment earnings margin 11.9% 11.3% 9.8% 9.2%Total net revenues before corporate and eliminations(b)$ 2,255$ 1,991$ 4,239$ 3,711Total segment earnings before corporate and eliminations(b) 344 303 613 531Segment earnings margin before corporate and eliminations(b) 15.3% 15.2% 14.5% 14.3% Corporate and Eliminations Net revenues $ (1) $ (1) $ (3) $ (2)Adjusted EBITDA (33) (31) (67) (66) Total Consolidated Net revenues $ 2,254$ 1,990$ 4,236$ 3,709Adjusted gross pro t 704 620 1,324 1,165Adjusted EBITDA 311 272 546 465Adjusted gross margin 31.2% 31.2% 31.3% 31.4%Adjusted EBITDA margin 13.8% 13.7% 12.9% 12.5% Notes:(a)Information derived from non-GAAP reconciliations included elsewhere in this document.(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 MeasuresAdjusted Segment Financial Information (non-GAAP)(Amounts in millions)(Unaudited) Three Months Ended June 30, 2026Three Months Ended June 30, 2025 As ReportedAdjustmentsAs AdjustedAs ReportedAdjustmentsAs AdjustedSafety Services Net revenues$ 1,482$ — $ 1,482$ 1,362$ — $ 1,362Cost of revenues928 (1) (a) 927 861 (4) (a) 856(1)(b) Gross pro t$ 554$ 1 $ 555$ 501$ 5 $ 506 Gross margin37.4% 37.4% 36.8% 37.2% Specialty Services Net revenues$ 773$ — $ 773$ 629$ — $ 629Cost of revenues624 — 624 515 — 515 Gross pro t$ 149$ — $ 149$ 114$ — $ 114 12
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Gross margin19.3% 19.3% 18.1% 18.1% Corporate and Eliminations Net revenues$ (1) $ — $ (1) $ (1) $ — $ (1)Cost of revenues(1) — (1) (1) — (1) Total Consolidated Net revenues$ 2,254$ — $ 2,254$ 1,990$ — $ 1,990Cost of revenues1,551 (1) (a) 1,550 1,375 (4) (a) 1,370(1)(b) Gross pro t$ 703$ 1 $ 704$ 615$ 5 $ 620 Gross margin31.2% 31.2% 30.9% 31.2% Notes:(a)Adjustment to re ect the elimination of amortization expense related to backlog intangible assets.(b)Adjustments to re ect the elimination of expenses associated with restructuring programs and related costs. APi Group Corporation Reconciliations of GAAP to Non-GAAP Financial MeasuresAdjusted Segment Financial Information (non-GAAP)(Amounts in millions)(Unaudited) Six Months Ended June 30, 2026Six Months Ended June 30, 2025 As ReportedAdjustmentsAs AdjustedAs ReportedAdjustmentsAs AdjustedSafety Services Net revenues$ 2,897$ — $ 2,897$ 2,629$ — $ 2,629Cost of revenues1,816 (1) (a) 1,815 1,662 (7) (a) 1,654—(b) (1)(b) Gross pro t$ 1,081$ 1 $ 1,082$ 967$ 8 $ 975 Gross margin 37.3% 37.3% 36.8% 37.1% Specialty Services Net revenues$ 1,342$ — $ 1,342$ 1,082$ — $ 1,082 Cost of revenues1,100 — 1,100 892 — 892 Gross pro t$ 242$ — $ 242$ 190$ — $ 190 Gross margin 18.0% 18.0% 17.6% 17.6% Corporate and Eliminations Net revenues$ (3) $ — $ (3) $ (2) $ — $ (2)Cost of revenues(3) — (3) (2) — (2) Total Consolidated Net revenues$ 4,236$ — $ 4,236$ 3,709$ — $ 3,709Cost of revenues2,913 (1) (a) 2,912 2,552 (7) (a) 2,544—(b) (1)(b) Gross pro t$ 1,323$ 1 $ 1,324$ 1,157$ 8 $ 1,165 Gross margin 31.2% 31.3% 31.2% 31.4% Notes:(a)Adjustment to re ect the elimination of amortization expense related to backlog intangible assets.(b)Adjustment to re ect the elimination of expenses associated with restructuring programs and related costs. APi Group Corporation Reconciliations of GAAP to Non-GAAP Financial MeasuresAdjdS Fi ilIf i ( GAAP) 13
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Adjusted Segment Financial Information (non-GAAP)(Amounts in millions)(Unaudited) Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Corporate and EliminationsIncome before income taxes$ (91) $ (77) $ (182) $ (160)Interest expense, net 25 29 46 58Depreciation 2 1 4 2Amortization — 1 2 2Systems and business enablement(a) 14 11 29 21Business process transformation expenses(b) — — — 3Acquisition and divestiture related expenses(c) 7 4 25 7 Other (d) 10 — 9 1 Corporate and Eliminations adjusted EBITDA$ (33) $ (31) $ (67) $ (66) Notes:(a)Adjustment to re ect the elimination of non-recurring expenses related to new systems implementations, information technologies, and othernew capabilities.(b)Adjustment to re ect 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.(c)Adjustment to re ect the elimination of transaction costs, integration costs, and gains and losses related to potential and completedacquisitions and divestitures.(d)Adjustment includes various miscellaneous non-recurring items, such as the gains and losses on the sale of buildings, elimination of changes infair value estimates to acquired liabilities, and costs associated with debt re nancing and other miscellaneous capital market activities. APi Group Corporation Reconciliations of GAAP to Non-GAAP Financial MeasuresChange in Segment Earnings (non-GAAP)(Unaudited) Change in Segment earningsThree Months Ended June 30, 2026 Change inSegmentearnings(public rates) Foreigncurrencytranslation (a) Change inSegmentearnings( xedcurrency) (b) Safety Services 8.6% 0.9% 7.7%Specialty Services 29.6% —% 29.6% Consolidated 14.3% 1.2% 13.1% Six Months Ended June 30, 2026 Change inSegmentearnings(public rates) Foreigncurrencytranslation (a) Change inSegmentearnings( xedcurrency) (b) Safety Services 11.8% 2.2% 9.6%Specialty Services 31.0% —% 31.0% Consolidated 17.4% 2.2% 15.2% 14
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Notes:(a)Represents the e ect of foreign currency on reported segment earnings, calculated as the di erence between reported segment earnings andsegment earnings at xed currencies for both periods. Fixed currency amounts are based on translation into U.S. Dollars at xed foreigncurrency exchange rates established by management at the beginning of 2026.(b)Amount represents the year-over-year change after eliminating the impact of uctuations in foreign exchange rates by translating foreigncurrency denominated results at xed foreign currency rates for both periods. APi Group Corporation Reconciliations of GAAP to Non-GAAP Financial MeasuresFree Cash Flow and Adjusted Free Cash Flow and Conversion (non-GAAP)(Amounts in millions)(Unaudited) Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Net cash provided by operating activities (as reported)$ 83$ 83$ 168$ 145 Less: Purchases of property and equipment(31) (27) (49) (39) Free cash ow 52 56 119 106Add: Cash payments related to following items:Contingent compensation(a) — — 1 1Systems and business enablement(b) 30 26 66 42Business process transformation expenses(c) — — — 4Acquisition and divestiture related expenses(d) 9 7 27 10Restructuring program related payments(e) 4 3 6 12Other (f) 8 8 9 11 Adjusted free cash ow$ 103$ 100$ 228$ 186 Adjusted net income $ 195$ 164$ 337$ 268Adjusted free cash ow as a % of adjusted net income52.8% 61.0% 67.7% 69.4% Notes:(a)Adjustment to re ect the elimination of expense attributable to one-time deferred consideration to prior owners of acquired businesses.(b)Adjustment to re ect the elimination of non-recurring expenses related to new systems implementations, information technologies, and othernew capabilities.(c)Adjustment to re ect 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.(d)Adjustment to re ect the elimination of transaction costs, integration costs, and gains and losses related to potential and completedacquisitions and divestitures.(e)Adjustment to re ect payments made for restructuring programs and related costs.(f)Adjustment includes various miscellaneous non-recurring items, including costs associated with debt re nancing and capital market activityand costs or gains/losses associated with any one-time xed asset acquisitions or dispositions. Investor Relations and Media Inquiries: Adam Walters Senior Director of Investor Relations Tel: +1 920-419-5432 Email: investorrelations@apigroupinc.us Source: APi Group Corporation 15