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Q3 2026 Earnings Presentation October 29, 2026 © 2026 APi Group, Inc. All rights reserved.
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2 Forward Looking Statements and Disclaimers This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which provides a safe harbor for certain forward-looking statements made by or on behalf of APi Group Corporation (“APi” or the “Company”). Forward-looking statements include statements regarding the Company’s full-year 2026 outlook for net revenues, adjusted EBITDA and adjusted free cash flow conversion; anticipated future growth and margin performance; expectations regarding performance in 2027; and the Company’s ability to achieve its long-term financial targets. Such statements may contain words such as “expect,” “anticipate,” “will,” “believe,” “intend,” “plan,” “estimate,” “predict,” “seek,” “continue,” “outlook,” “may,” “might,” “should,” “can have,” “have,” “likely,” “potential,” “target,” “indicative,” “illustrative,” and variations of such words and similar expressions. The absence of these words does not mean that a statement is not forward- looking. Such statements are based on the Company’s expectations, intentions, and projections regarding its 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, 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 the Company's acquisitions and its ability to successfully execute its bolt-on acquisition strategy and integrate acquired businesses 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 its disciplined approach to customer and project selection and its asset-light, services-focused business model and 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, project delays or cancellations, and the timing and extent of conversion of backlog into revenues; (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, project and business mix, and its ability to achieve anticipated margins; (xiii) the timing of customer collections, working-capital requirements, capital expenditures, and other cash payments, which may affect operating cash flow and cash conversion; and (xiv) other risks and uncertainties, including those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and in subsequent reports filed with the Securities and Exchange Commission. Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking statements. 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.
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3 Non-GAAP Financial Measures This document contains non-U.S. GAAP financial 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) reflect 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 profit, 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 significance to comparability; this threshold is applied consistently across periods. • Adjusted free cash flow 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 flow conversion is adjusted free cash flow as a percentage of adjusted net income. • Net leverage ratio is calculated in accordance with the Company’s debt agreements and includes pro forma adjustments for acquisitions and cost savings not reflected in adjusted EBITDA; see the Company’s SEC filings for the covenant EBITDA definition. These measures are supplemental and should not be considered a substitute for, or superior to, GAAP financial measures, and may differ 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 flow conversion to GAAP without unreasonable effort, as the amounts and timing of reconciling items – including acquisition-related costs, systems and business enablement expenses, and other charges – are inherently uncertain and could be significant.
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4 (1) Through 2028E. (1) APi’s “10/16/60+” Long-term Financial Targets
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5 OUR VALUES • Safety, health, and well- being of all our leaders • Caring and enduring relationships with others • Honesty and integrity • Excellence, nothing less • Joy in our work and in each other • Combining individual company agilities with large company advantages What We Believe – Culture Drives Results OUR PURPOSE Net Revenues ($B) Adjusted EBITDA Margin (%) OUR RESULTS
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6 Third Quarter 2026 Performance Highlights Note: Refer to Appendix for a reconciliation of non-GAAP measures to most directly comparable GAAP measures. Third quarter net revenues of $2.6 billion, an increase of 22.5% vs. Q3 2025, 15.7% on an organic basis Third quarter adjusted EBITDA of $350 million, up 24.6% vs. Q3 2025, and an adjusted EBITDA margin increase of 20 basis points vs. Q3 2025 to 13.7% Adjusted diluted earnings per share in the third quarter of $0.50, up 22.0% vs. Q3 2025 Net Revenues (millions) $2,085 $2,554 Q3 2025 Q3 2026 Adj. EBITDA (millions) $281 $350 Q3 2025 Q3 2026 YTD Adj. FCF (millions) $434 $468 Q3 YTD 2025Q3 YTD 2026 ✔ ✔ ✔ ✔ Third quarter year-to-date adjusted free cash flow of $468 million, up $34 million vs. Q3 year-to-date 2025, representing 84.2% conversion as a percentage of adjusted net income
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7 Third Quarter 2026 Financial Results Overview Specialty Services Safety Services Notes: Refer to Appendix for a reconciliation of non-GAAP measures to most directly comparable GAAP measures. Excludes Corporate and Eliminations. 65% 35% 78% 22% 72% 28% T h r e e M o n t h s E n d e d S e p t e m b e r 3 0 , 2 0 2 6 Net Revenues Adjusted Gross Profit Adjusted EBITDA $2,554 million $775 million $350 million
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8 Key Financial and Operating Metrics Three Months Ended September 30, ($ in millions, except per share figures) 2026 2025 Y/Y Net revenues $2,554 $2,085 22.5% Organic net revenue growth (a) 15.7% Adjusted gross profit $775 $656 18.1% Adjusted gross profit margin 30.3% 31.5% (120) bps Adjusted EBITDA $350 $281 24.6% Adjusted EBITDA margin 13.7% 13.5% +20 bps Adjusted net income $219 $174 25.9% Adjusted diluted EPS $0.50 $0.41 22.0% Operating cash flow $225 $232 (3.0)% Adjusted free cash flow $240 $248 (3.2)% Adjusted free cash flow as a % of adjusted net income 109.6% 142.5% (3294) bps Notes: Amounts in millions, except per share data. Refer to non-GAAP reconciliations to the most comparable GAAP measures. (a) Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions, material divestitures, and the impact of changes due to foreign currency translation.
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9 Key Segment Financial and Operating Metrics Notes: Amounts in millions. Refer to non-GAAP reconciliations to the most comparable GAAP measures. (a) Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions, material divestitures, and the impact of changes due to foreign currency translation. Three Months Ended September 30, Safety Services Specialty Services ($ in millions) 2026 2025 Y/Y 2026 2025 Y/Y Net revenues $1,662 $1,403 18.5% $893 $683 30.7% Organic net revenue growth (a) 8.8% 29.9% Adjusted gross profit $602 $524 14.9% $173 $132 31.1% Adjusted gross profit margin 36.2% 37.3% (110) bps 19.4% 19.3% +10 bps Segment earnings $281 $236 19.1% $112 $81 38.3% Segment earnings margin 16.9% 16.8% +10 bps 12.5% 11.9% +60 bps
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10 2026 Full-Year and Q4 Guidance as of October 29, 2026 Notes: Based on current foreign exchange rates. 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 of material acquisitions, material divestitures, and the impact of changes due to foreign currency translation. Q4 2026 FY 2026 Net revenues $2,410 to $2,460 million $9,200 to $9,250 million Reported net revenues versus last year 14% - 16% 16% - 17% Net revenue organic growth(a) 7% - 9% 11% - 12% Adjusted EBITDA $339 to $359 million $1,235 to $1,255 million Adjusted EBITDA versus last year 15% - 22% 19% - 21% Adjusted EBITDA growth at fixed currencies 16% - 22% 18% - 20% Adjusted free cash flow conversion Approximately 110%
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11 2026 Full-Year Guidance Bridge Notes: Based on current foreign exchange rates. Refer to non-GAAP reconciliations to the most comparable GAAP measures. (1) Includes the partial year impact of the Evergreen Fire and Security acquisition. (2) The net change in guidance reflects the change between the midpoint of the prior guidance range and the midpoint of the new guidance range. Net Revenues Adjusted EBITDA 2026 Full-Year Guidance as of July 30, 2026 $8,875 to $9,025 million $1,205 to $1,245 million (+) Underlying Business Performance(1) $305 $25 (-) Impact of Change in Foreign Currency Exchange Rates $(30) $(5) 2026 Full-Year Guidance as of October 29, 2026 (2) $9,200 to $9,250 million $1,235 to $1,255 million
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12 Deployed $1.7 billion of capital through Q3 across accretive M&A, capital returned to shareholders, and investments in organic growth Capitalization Highlights (1) As calculated pursuant to terms of existing debt agreements. ✔ ✔ Repurchased $250 million in common shares through Q3, and an additional $143 million during Q4, leaving $607 million available under the current share repurchase program ✔ Ended the third quarter with a net leverage ratio(1) of 2.4x, approaching our target of 2.5x - 3.0x, and providing flexibility to pursue a range of attractive capital deployment opportunities Completed 13 acquisitions year-to-date at attractive multiples, including Evergreen Fire and Security, which deepens our electronic security capabilities and geographic footprint within North America✔
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Appendix
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1414
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15 Reconciliation of Non-GAAP Financial Measures Three Months Ended September 30, 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 18.5 % (0.1) % 18.6 % 9.8 % 8.8 % Specialty Services 30.7 % — % 30.7 % 0.8 % 29.9 % Consolidated 22.5 % (0.1) % 22.6 % 6.9 % 15.7 % Organic Change in Net Revenues (non-GAAP) Nine Months Ended September 30, 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 13.1 % 1.9 % 11.2 % 4.8 % 6.4 % Specialty Services 26.6 % — % 26.6 % 0.8 % 25.8 % Consolidated 17.2 % 1.3 % 15.9 % 3.7 % 12.2 % (a) 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. (b) 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. (c) Adjustment to exclude net revenues from material acquisitions from their respective dates of acquisition until the first year anniversary from date of acquisition and net revenues from material divestitures for all periods for businesses divested as of September 30, 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 of material acquisitions, material divestitures, and the impact of changes due to foreign currency translation.
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16 Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Gross profit (as reported) $ 770 $ 652 $ 2,093 $ 1,809 Adjustments to reconcile gross profit to adjusted gross profit: Backlog amortization (a) 5 4 6 11 Restructuring program related costs (b) — — — 1 Adjusted gross profit $ 775 $ 656 $ 2,099 $ 1,821 Net revenues $ 2,554 $ 2,085 $ 6,790 $ 5,794 Adjusted gross profit margin 30.3 % 31.5 % 30.9 % 31.4 % Reconciliation of Non-GAAP Financial Measures Adjusted Gross Profit (non-GAAP) (a) Adjustment to reflect the elimination of amortization expense related to backlog intangible assets. (b) Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.
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17 Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Selling, general, and administrative expenses ("SG&A") (as reported) $ 568 $ 489 $ 1,613 $ 1,419 Adjustments to reconcile SG&A to adjusted SG&A: Amortization of intangible assets (c) (78) (56) (208) (168) Contingent consideration and compensation (d) 1 (1) 2 (2) Systems and business enablement (e) (30) (31) (82) (61) Business process transformation expenses (f) — — — (4) Acquisition and divestiture related expenses (g) (11) 2 (39) (12) Restructuring program related costs (b) — — — (14) Other (h) (1) (1) (8) (4) Adjusted SG&A expenses $ 449 $ 402 $ 1,278 $ 1,154 Net revenues $ 2,554 $ 2,085 $ 6,790 $ 5,794 Adjusted SG&A as a % of net revenues 17.6 % 19.3 % 18.8 % 19.9 % Reconciliation of Non-GAAP Financial Measures Adjusted SG&A (non-GAAP) (a) Adjustment to reflect the elimination of amortization expense related to backlog intangible assets. (b) Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs. (c) Adjustment to reflect the elimination of amortization expense. (d) Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses. (e) Adjustment to reflect the elimination of non-recurring costs associated with an end-to-end business systems implementation and primarily consist of third-party consulting fees related to system design, deployment, integration, and change leadership across the organization. (f) 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. (g) Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures. (h) Adjustment includes miscellaneous non-recurring items, such as costs associated with debt refinancing and other capital market activities, and net gains related to building sales and facility exits.
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18 Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net income (as reported) $ 114 $ 93 $ 270 $ 205 Adjustments to reconcile net income to EBITDA: Interest expense, net 45 34 111 109 Income tax provision 41 37 94 79 Depreciation 21 21 63 63 Amortization 83 60 214 179 EBITDA 304 245 752 635 Adjustments to reconcile EBITDA to adjusted EBITDA: Contingent consideration and compensation (a) (1) 1 (2) 2 Non-service pension cost (b) 5 5 15 14 Systems and business enablement (c) 30 31 82 61 Business process transformation expenses (d) — — — 4 Acquisition and divestiture related expenses (e) 11 (2) 39 12 Restructuring program related costs (f) — — — 14 Other (g) 1 1 10 4 Adjusted EBITDA $ 350 $ 281 $ 896 $ 746 Net revenues $ 2,554 $ 2,085 $ 6,790 $ 5,794 Adjusted EBITDA margin 13.7 % 13.5 % 13.2 % 12.9 % Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA (non-GAAP) (a) Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses. (b) 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. (c) Adjustment to reflect the elimination of non-recurring costs associated with an end-to-end business systems implementation and primarily consist of third-party consulting fees related to system design, deployment, integration, and change leadership across the organization. (d) 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. (e) Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures. (f) Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs. (g) Adjustment includes miscellaneous non-recurring items, such as costs associated with debt refinancing and other capital market activities, and net gains related to building sales and facility exits.
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19 Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Income before income tax provision (as reported) $ 155 $ 130 $ 364 $ 284 Adjustments to reconcile income before income tax provision to adjusted income before income tax provision: Amortization of intangible assets (a) 83 60 214 179 Contingent consideration and compensation (b) (1) 1 (2) 2 Non-service pension cost (c) 5 5 15 14 Systems and business enablement (d) 30 31 82 61 Business process transformation expenses (e) — — — 4 Acquisition and divestiture related expenses (f) 11 (2) 39 12 Restructuring program related costs (g) — — — 14 Other (h) 1 1 10 4 Adjusted income before income tax provision $ 284 $ 226 $ 722 $ 574 Income tax provision (as reported) $ 41 $ 37 $ 94 $ 79 Adjustments to reconcile income tax provision to adjusted income tax provision: Income tax provision adjustment (i) 24 15 72 53 Adjusted income tax provision $ 65 $ 52 $ 166 $ 132 Adjusted income before income tax provision $ 284 $ 226 $ 722 $ 574 Adjusted income tax provision 65 52 166 132 Adjusted net income $ 219 $ 174 $ 556 $ 442 Diluted weighted average shares outstanding (as reported) 432 429 435 425 Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding: Impact of Series A Preferred Stock (j) 6 (5) 4 (2) Adjusted diluted weighted average shares outstanding 438 424 439 423 Adjusted diluted EPS $ 0.50 $ 0.41 $ 1.27 $ 1.04 Reconciliation of Non-GAAP Financial Measures Adjusted Income Before Income Tax, Net Income, and EPS (non-GAAP) (a) Adjustment to reflect the elimination of amortization expense. (b) Adjustment to reflect the elimination of the expense attributable to one-time deferred consideration to prior owners of acquired businesses. (c) 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. (d) Adjustment to reflect the elimination of non-recurring costs associated with an end-to-end business systems implementation and primarily consist of third-party consulting fees related to system design, deployment, integration, and change leadership across the organization. (e) 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. (f) Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures. (g) Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs. (h) Adjustment includes miscellaneous non-recurring items, such as costs associated with debt refinancing and other capital market activities, and net gains related to building sales and facility exits. (i) 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. (j) Adjustment reflects the addition of the dilutive impact of six 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.
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20 Adjusted Segment Financial Information (non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, 2026 (a) 2025 (a) 2026 (a) 2025 (a) Safety Services Net revenues $ 1,662 $ 1,403 $ 4,559 $ 4,032 Adjusted gross profit 602 524 1,684 1,499 Segment earnings 281 236 763 667 Adjusted gross profit margin 36.2% 37.3% 36.9% 37.2% Segment earnings margin 16.9% 16.8% 16.7% 16.5% Specialty Services Net revenues $ 893 $ 683 $ 2,235 $ 1,765 Adjusted gross profit 173 132 415 322 Segment earnings 112 81 243 181 Adjusted gross profit margin 19.4% 19.3% 18.6% 18.2% Segment earnings margin 12.5% 11.9% 10.9% 10.3% Total net revenues before corporate and eliminations (b) $ 2,555 $ 2,086 $ 6,794 $ 5,797 Total segment earnings before corporate and eliminations (b) 393 317 1,006 848 Segment earnings margin before corporate and eliminations (b) 15.4% 15.2% 14.8% 14.6% Corporate and Eliminations Net revenues $ (1) $ (1) $ (4) $ (3) Adjusted EBITDA (43) (36) (110) (102) Total Consolidated Net revenues $ 2,554 $ 2,085 $ 6,790 $ 5,794 Adjusted gross profit 775 656 2,099 1,821 Adjusted EBITDA 350 281 896 746 Adjusted gross profit margin 30.3% 31.5% 30.9% 31.4% Adjusted EBITDA margin 13.7% 13.5% 13.2% 12.9% Reconciliation of Non-GAAP Financial Measures (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.
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21 Reconciliation of Non-GAAP Financial Measures Adjusted Segment Financial Information (non-GAAP) (a) Adjustment to reflect the elimination of amortization expense related to backlog intangible assets. Three Months Ended September 30, 2026 Three Months Ended September 30, 2025 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Safety Services Net revenues $ 1,662 $ — $ 1,662 $ 1,403 $ — $ 1,403 Cost of revenues 1,065 (5) (a) 1,060 883 (4) (a) 879 Gross profit $ 597 $ 5 $ 602 $ 520 $ 4 $ 524 Gross profit margin 35.9% 36.2% 37.1% 37.3% Specialty Services Net revenues $ 893 $ — $ 893 $ 683 $ — $ 683 Cost of revenues 720 — 720 551 — 551 Gross profit $ 173 $ — $ 173 $ 132 $ — $ 132 Gross profit margin 19.4% 19.4% 19.3% 19.3% Corporate and Eliminations Net revenues $ (1) $ — $ (1) $ (1) $ — $ (1) Cost of revenues (1) — (1) (1) — (1) Total Consolidated Net revenues $ 2,554 $ — $ 2,554 $ 2,085 $ — $ 2,085 Cost of revenues 1,784 (5) (a) 1,779 1,433 (4) (a) 1,429 Gross profit $ 770 $ 5 $ 775 $ 652 $ 4 $ 656 Gross profit margin 30.1% 30.3% 31.3% 31.5%
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22 Nine Months Ended September 30, 2026 Nine Months Ended September 30, 2025 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Safety Services Net revenues $ 4,559 $ — $ 4,559 $ 4,032 $ — $ 4,032 Cost of revenues 2,881 (6) (a) 2,875 2,545 (11) (a) 2,533 (1) (b) Gross profit $ 1,678 $ 6 $ 1,684 $ 1,487 $ 12 $ 1,499 Gross profit margin 36.8% 36.9% 36.9% 37.2% Specialty Services Net revenues $ 2,235 $ — $ 2,235 $ 1,765 $ — $ 1,765 Cost of revenues 1,820 — 1,820 1,443 — 1,443 Gross profit $ 415 $ — $ 415 $ 322 $ — $ 322 Gross profit margin 18.6% 18.6% 18.2% 18.2% Corporate and Eliminations Net revenues $ (4) $ — $ (4) $ (3) $ — $ (3) Cost of revenues (4) — (4) (3) — (3) Total Consolidated Net revenues $ 6,790 $ — $ 6,790 $ 5,794 $ — $ 5,794 Cost of revenues 4,697 (6) (a) 4,691 3,985 (11) (a) 3,973 (1) (b) Gross profit $ 2,093 $ 6 $ 2,099 $ 1,809 $ 12 $ 1,821 Gross profit margin 30.8% 30.9% 31.2% 31.4% Reconciliation of Non-GAAP Financial Measures Adjusted Segment Financial Information (non-GAAP) (a) Adjustment to reflect the elimination of amortization expense related to backlog intangible assets. (b) Adjustment to reflect the elimination of expenses associated with restructuring programs and related costs.
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23 Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Corporate and Eliminations Income before income taxes $ (91) $ (88) $ (273) $ (248) Interest expense, net 27 24 73 82 Depreciation 2 2 6 4 Amortization 1 1 3 3 Systems and business enablement (a) 13 18 42 39 Business process transformation expenses (b) — — — 3 Acquisition and divestiture related expenses (c) 4 3 29 10 Other (d) 1 4 10 5 Corporate and Eliminations adjusted EBITDA $ (43) $ (36) $ (110) $ (102) Reconciliation of Non-GAAP Financial Measures Adjusted Segment Financial Information (non-GAAP) (a) Adjustment to reflect the elimination of non-recurring costs associated with an end-to-end business systems implementation and primarily consist of third-party consulting fees related to system design, deployment, integration, and change leadership across the organization. (b) 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. (c) Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures. (d) Adjustment includes miscellaneous non-recurring items, such as costs associated with debt refinancing and other capital market activities, and net gains related to building sales and facility exits.
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24 Three Months Ended September 30, 2026 Change in Segment earnings (public rates) Foreign currency translation (a) Change in Segment earnings (fixed currency) (b) Safety Services 19.1% —% 19.1% Specialty Services 38.3% —% 38.3% Consolidated 24.6% —% 24.6% Reconciliation of Non-GAAP Financial Measures Change in Segment Earnings (non-GAAP) Nine Months Ended September 30, 2026 Change in Segment earnings (public rates) Foreign currency translation (a) Change in Segment earnings (fixed currency) (b) Safety Services 14.4% 1.3% 13.1% Specialty Services 34.3% —% 34.3% Consolidated 20.1% 1.2% 18.9% (a) 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. (b) 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.
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25 Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net cash provided by operating activities (as reported) $ 225 $ 232 $ 393 $ 377 Less: Purchases of property and equipment (27) (31) (76) (70) Free cash flow 198 201 317 307 Add: Cash payments related to following items: Contingent compensation (a) — — 1 1 Systems and business enablement (b) 31 37 97 79 Business process transformation expenses (c) — — — 4 Acquisition and divestiture related expenses (d) 11 — 38 10 Restructuring program related payments (e) (1) 5 5 17 Other (f) 1 5 10 16 Adjusted free cash flow $ 240 $ 248 $ 468 $ 434 Adjusted net income $ 219 $ 174 $ 556 $ 442 Adjusted free cash flow as a % of adjusted net income 109.6% 142.5% 84.2% 98.2% Reconciliation of Non-GAAP Financial Measures Adjusted Free Cash Flow and Conversion (non-GAAP) (a) Adjustment to reflect the elimination of expense attributable to one-time deferred consideration to prior owners of acquired businesses. (b) Adjustment to reflect the elimination of non-recurring costs associated with an end-to-end business systems implementation and primarily consist of third-party consulting fees related to system design, deployment, integration, and change leadership across the organization. (c) 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. (d) Adjustment to reflect the elimination of transaction costs, integration costs, and gains and losses related to potential and completed acquisitions and divestitures. (e) Adjustment to reflect payments made for restructuring programs and related costs. (f) Adjustment includes miscellaneous non-recurring items, such as costs associated with debt refinancing and other capital market activities, and net gains related to building sales and facility exits.
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Contact: Adam Walters Senior Director of Investor Relations +1 (920) 419 - 5432 investorrelations@apigroupinc.us