APi Group Corporation Reports Record First Quarter 2026 Results: Revenue, Profit, and EBITDA Surge

Key Highlights for Investors

• Record Net Revenues: APi Group Corp delivered record first quarter net revenues of \$2.0 billion, a year-over-year increase of 15.3% (or 10.4% on an organic basis).
• Substantial Profit Growth: Reported net income rose to \$57 million, marking a significant 62.9% increase from the prior year.
• Robust Adjusted EBITDA: Adjusted EBITDA reached \$235 million, a growth of 21.8%, with an adjusted EBITDA margin of 11.2% (up 70 basis points year-over-year).
• Strong Non-GAAP Performance: Adjusted net income stood at \$142 million (up 36.5%), while adjusted diluted EPS was \$0.32 (up 28%).
• Earnings Per Share: Reported diluted EPS was \$0.12.
• Net Revenue Drivers: Growth was driven by strong gains in inspection, service, and monitoring revenues, project revenues, acquisitions, pricing improvements, and positive foreign currency effects.

Detailed Financial Performance

Revenue and Profitability Metrics

• Net Revenues: \$2.0 billion, up 15.3% as reported, 10.4% organic growth.
• Net Income: \$57 million (GAAP), up 62.9% from Q1 2025.
• Diluted EPS (GAAP): \$0.12
• Adjusted Net Income (Non-GAAP): \$142 million, up 36.5%.
• Adjusted Diluted EPS (Non-GAAP): \$0.32, up 28%.
• Adjusted EBITDA: \$235 million, up 21.8%.
• Adjusted EBITDA Margin: 11.2%, up 70 basis points year-over-year.

Margins and Gross Profit

• Reported Gross Profit: \$527 million (GAAP), up from \$466 million in Q1 2025.
• Gross Margin: 13.1% (GAAP), adjusted gross margin was 13.8% (up 70 basis points).
• Segment Earnings: \$230 million, with a segment earnings margin of 16.3% (vs 15.7% prior year).

Cash Flow and Capital Allocation

• Net Cash Used in Investing Activities: \$(305) million, including \$(289) million for acquisitions.
• Net Cash Used in Financing Activities: \$(42) million.
• Repurchases of Common Stock: None in Q1 2026 (versus \$(75) million in Q1 2025).
• Restricted Shares Tendered for Taxes: \$(37) million (vs \$(19) million prior year).

Other Important Information for Shareholders

• Shareholder Equity: Increased to \$3.49 billion as of March 31, 2026 (from \$3.41 billion at March 31, 2025).
• Stock Split: Per share data reflects the three-for-two stock split executed on June 30, 2025.
• Preferred Stock: Income allocable to Series A Preferred Stock was \$(6) million, with a dilutive impact of 4 million shares on adjusted diluted EPS.
• Acquisitions: The company continued an active M&A strategy, with \$289 million spent on acquisitions in the quarter, supporting long-term growth targets.

Forward-Looking Statements and Guidance

• APi Group reaffirmed its commitment to its “10/16/60+” long-term targets:
  • \$10 billion or more in net revenues by 2028
  • 16%+ adjusted EBITDA margin by 2028
  • 60%+ of revenues from inspection, service, and monitoring
• The company expressed confidence in continued M&A activity and pipeline, with ongoing benefits from completed and future acquisitions expected to further enhance future financial performance and strategic positioning.

Risks, Uncertainties, and Factors for Shareholders to Monitor

• Macroeconomic Risks: Inflation, supply chain constraints, labor shortages, wage inflation, and geopolitical risks remain key uncertainties that could impact future results.
• Cybersecurity and IT Risks: The company notes exposure to cybersecurity incidents, IT systems failures, and evolving regulations on data privacy.
• Market Risks: Share price may be affected by market volatility, the company’s financial performance, and broader economic factors.
• Regulatory and Legal Risks: Any changes in trade, tariff, or environmental regulations could affect operations and profitability.
• Forward-Looking Cautions: The company emphasizes that forward-looking statements are not guarantees and actual results could differ materially.

Conclusion: Implications for Shareholders

The record growth in net revenues, net income, and adjusted EBITDA, coupled with continued strategic acquisitions and a reaffirmed long-term growth plan, are all highly positive developments that could drive APi Group Corporation’s share price higher. The robust organic growth, margin expansion, and clear focus on high-value service lines further underline the company’s operational momentum. However, investors should remain attentive to macroeconomic risks and ongoing execution of strategy.

Contact and Investor Relations

For further information, investors can contact:
Adam Walter
Senior Director of Investor Relations
Tel: +1 920-419-5432
Email: [email protected]
Website: www.apigroupinc.com

Disclaimer: This article is based on APi Group Corp’s official Q1 2026 financial report and related disclosures. Forward-looking statements are subject to risks and uncertainties and actual results may differ materially. This is not investment advice. Please refer to the company’s filings with the SEC and consult a financial advisor before making investment decisions.

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