APi Group Corp 10-Q for FY2026 Q3

APi Group Corp (APG)

10-Q 2026-10-29 For: 2026-09-30

Added on October 29, 2026

About this 10-Q

APi Group Corp filed this 10-Q on October 29, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.55B; up 22.5% from $2.09B a year earlier
Net income: $114M; up 22.6% from net income of $93M a year earlier
Diluted EPS: $0.24; up 20.0% from $0.20 a year earlier

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Delaware			98-1510303
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

1100 Old Highway 8 NW New Brighton, Minnesota			55112
(Address of principal executive offices)			(Zip Code)


PART I. FINANCIAL INFORMATION			3

Item 1. Financial Statements			3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			39
Item 3. Quantitative and Qualitative Disclosures About Market Risk			52
Item 4. Controls and Procedures			53

PART II. OTHER INFORMATION			55

Item 1. Legal Proceedings			55
Item 1A. Risk Factors			55
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities			55
Item 3. Defaults Upon Senior Securities			56
Item 4. Mine Safety Disclosures			56
Item 5. Other Information			56
Item 6. Exhibits			57

SIGNATURES			58


	September 30, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	373	$	912
Accounts receivable, net of allowances of $10 and $14 at September 30, 2026 and December 31, 2025, respectively	1,907		1,563
Inventories	182		145
Contract assets	736		484
Prepaid expenses and other current assets	205		125
Total current assets	3,403		3,229

Property and equipment, net	451		397
Operating lease right-of-use assets	297		301
Goodwill	3,897		3,167
Intangible assets, net	1,935		1,584
Deferred tax assets	16		40
Pension and post-retirement assets	129		129
Other assets	153		89
Total assets	$	10,281	$	8,936

Liabilities and Shareholders’ Equity
Current liabilities:
Short-term and current portion of long-term debt	$	361	$	5
Accounts payable	635		526
Contingent consideration and compensation liabilities	84		60
Accrued salaries and wages	407		444
Contract liabilities	902		694
Operating and finance leases	101		98
Other accrued liabilities	384		323
Total current liabilities	2,874		2,150

Long-term debt, less current portion	3,213		2,754
Pension and post-retirement obligations	48		50
Contingent consideration and compensation liabilities	2		8
Operating and finance leases	218		215
Deferred tax liabilities	296		205
Other noncurrent liabilities	142		146
Total liabilities	6,793		5,528

Commitments and contingencies (Note 14)

Shareholders’ equity:
Series A Preferred Stock, $0.0001 par value; 7,000,000 authorized shares; 4,000,000 shares issued and outstanding at September 30, 2026 and December 31, 2025	—		—
Common stock, $0.0001 par value; 1,000,000,000 authorized shares at September 30, 2026 and December 31, 2025; 427,423,170 shares and 415,915,273 shares issued at September 30, 2026 and December 31, 2025, respectively (excluding 15,212,810 shares declared for stock dividend at December 31, 2025)	—		—
Additional paid-in capital	3,097		3,296
Retained earnings	787		517
Accumulated other comprehensive loss	(396)		(405)
Total shareholders’ equity	3,488		3,408
Total liabilities and shareholders’ equity	$	10,281	$	8,936


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net revenues	$	2,554	$	2,085	$	6,790	$	5,794
Cost of revenues	1,784		1,433		4,697		3,985
Gross profit	770		652		2,093		1,809
Selling, general, and administrative expenses	568		489		1,613		1,419
Operating income	202		163		480		390
Interest expense, net	45		34		111		109
Investment expense (income) and other, net	2		(1)		5		(3)
Other expense, net	47		33		116		106
Income before income taxes	155		130		364		284
Income tax provision	41		37		94		79
Net income	114		93		270		205
Net income attributable to common shareholders:
Income allocable to Series A Preferred Stock	(12)		(9)		(28)		(21)
Net income attributable to common shareholders	$	102	$	84	$	242	$	184
Net income per common share:
Basic	$	0.24	$	0.20	$	0.56	$	0.44
Diluted	0.24		0.20		0.56		0.43
Weighted average shares outstanding:
Basic	431		416		432		416
Diluted	432		429		435		425


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net income	$	114	$	93	$	270	$	205
Other comprehensive income:
Fair value change - derivatives, net of tax (expense) benefit of $(5), $0, $(12), and $12, respectively	12		5		33		(33)
Pension plans, net of tax expense of $0, $0, $1, and $0, respectively	5		—		16		—
Foreign currency translation adjustment	(1)		(15)		(40)		172
Comprehensive income	$	130	$	83	$	279	$	344


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Preferred Stock Issued and Outstanding			Common Stock Issued and Outstanding			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Amount		Shares	Amount
Balance, December 31, 2025	4,000,000	$	—	415,915,273	$	—	$	3,296	$	517	$	(405)	$	3,408
Net income	—	—		—	—		—		57		—		57
Fair value change - derivatives	—	—		—	—		—		—		24		24
Foreign currency translation adjustment	—	—		—	—		—		—		(16)		(16)
Series A Preferred Stock dividend	—	—		15,212,810	—		—		—		—		—
Profit sharing plan contributions	—	—		683,093	—		30		—		—		30
Share-based compensation and other, net	—	—		1,416,813	—		(17)		—		—		(17)
Balance, March 31, 2026	4,000,000	—		433,227,989	—		3,309		574		(397)		3,486
Net income	—	—		—	—		—		99		—		99
Fair value change - derivatives	—	—		—	—		—		—		(3)		(3)
Foreign currency translation adjustment	—	—		—	—		—		—		(23)		(23)
Pension plans	—	—		—	—		—		—		11		11
Share repurchases	—	—		(1,586,704)	—		(66)		—		—		(66)
Share-based compensation and other, net	—	—		53,050	—		12		—		—		12
Balance, June 30, 2026	4,000,000	—		431,694,335	—		3,255		673		(412)		3,516
Net income	—	—		—	—		—		114		—		114
Fair value change - derivatives	—	—		—	—		—		—		12		12
Foreign currency translation adjustment	—	—		—	—		—		—		(1)		(1)
Pension plans	—	—		—	—		—		—		5		5
Share repurchases	—	—		(4,751,859)	—		(186)		—		—		(186)
Share-based compensation and other, net	—	—		480,694	—		28		—		—		28
Balance, September 30, 2026	4,000,000	$	—	427,423,170	$	—	$	3,097	$	787	$	(396)	$	3,488


	CertaSite		Onyx-Fire		WTech		Other 2026 Acquisitions
Cash paid at closing	$	268	$	528	$	394	$	191
Cash deposited into escrow	3		4		—		—
Accrued consideration	—		—		—		36
Total net consideration	$	271	$	532	$	394	$	227

Cash and cash equivalents	$	3	$	13	$	18	$	3
Accounts receivable	18		40		40		23
Inventories	6		13		7		2
Contract assets	3		15		12		13
Other current assets	1		3		2		2
Operating lease right-of-use assets	4		—		—		—
Property and equipment	7		18		11		3
Intangible assets	98		234		160		83
Goodwill	155		286		222		118
Accounts payable	(3)		(16)		(21)		(9)
Other accrued liabilities	(3)		(8)		(12)		(3)
Contract liabilities	—		—		(8)		(3)
Operating and finance lease liabilities	(7)		—		—		—
Other noncurrent liabilities	(11)		(66)		(37)		(5)
Net assets acquired	$	271	$	532	$	394	$	227


	2025 Acquisitions
Cash paid at closing	$	186
Cash deposited into escrow	17
Accrued consideration	22
Total net consideration	$	225

Cash and cash equivalents	$	13
Accounts receivable	27
Contract assets	2
Other current assets	1
Property and equipment	3
Intangible assets	90
Goodwill	116
Accounts payable	(8)
Other accrued liabilities	(9)
Contract liabilities	(8)
Other noncurrent liabilities	(2)
Net assets acquired	$	225


	Three Months Ended September 30, 2026
	Safety Services		Specialty Services		Consolidated
Life Safety	$	1,662	$	—	$	1,662
Infrastructure and Utility	—		349		349
Fabrication and Distribution	—		123		123
Specialty Contracting	—		421		421
Corporate and Eliminations	—		—		(1)
Net revenues	$	1,662	$	893	$	2,554


	Three Months Ended September 30, 2025
	Safety Services		Specialty Services		Consolidated
Life Safety	$	1,403	$	—	$	1,403
Infrastructure and Utility	—		291		291
Fabrication and Distribution	—		103		103
Specialty Contracting	—		289		289
Corporate and Eliminations	—		—		(1)
Net revenues	$	1,403	$	683	$	2,085


	Nine Months Ended September 30, 2026
	Safety Services		Specialty Services		Consolidated
Life Safety	$	4,559	$	—	$	4,559
Infrastructure and Utility	—		866		866
Fabrication and Distribution	—		306		306
Specialty Contracting	—		1,063		1,063
Corporate and Eliminations	—		—		(4)
Net revenues	$	4,559	$	2,235	$	6,790


	Nine Months Ended September 30, 2025
	Safety Services		Specialty Services		Consolidated
Life Safety	$	4,032	$	—	$	4,032
Infrastructure and Utility	—		732		732
Fabrication and Distribution	—		272		272
Specialty Contracting	—		761		761
Corporate and Eliminations	—		—		(3)
Net revenues	$	4,032	$	1,765	$	5,794


	Accounts receivable, net of allowances		Contract assets		Contract liabilities
Balance at September 30, 2026	$	1,907	$	736	$	902
Balance at December 31, 2025	1,563		484		694


	September 30, 2026
	Weighted Average Remaining Useful Lives (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangibles:
Contractual backlog	0.9	$	202	$	(173)	$	29
Customer relationships	8.0	2,277		(1,021)		1,256
Trade names and trademarks	9.1	941		(291)		650
Total		$	3,420	$	(1,485)	$	1,935


	December 31, 2025
	Weighted Average Remaining Useful Lives (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangibles:
Contractual backlog	0.8	$	169	$	(168)	$	1
Customer relationships	8.7	1,897		(869)		1,028
Trade names and trademarks	10.6	801		(246)		555
Total		$	2,867	$	(1,283)	$	1,584


	September 30, 2026				December 31, 2025
	Carrying Value		Fair Value		Carrying Value		Fair Value
2021 Term Loan	$	2,147	$	2,150	$	2,157	$	2,162
4.125% Senior Notes	337		318		337		327
4.750% Senior Notes	277		263		277		271
5.750% Senior Notes	500		473		—		—


	Safety Services		Specialty Services		Total Goodwill
Goodwill as of December 31, 2025	$	2,927	$	240	$	3,167
Acquisitions	781		—		781
Foreign currency translation and other, net (1)	(52)		1		(51)
Goodwill as of September 30, 2026	$	3,656	$	241	$	3,897


	Fair Value Measurements at September 30, 2026
Financial assets:	Level 1		Level 2		Level 3		Total
Derivatives designated as hedge instruments:
Cash flow hedges:
Interest rate swaps	$	—	$	30	$	—	$	30
Cross-currency contracts	—		6		—		6
Foreign currency forward contracts	—		—		—		—
Fair value hedges – cross-currency contracts	—		18		—		18
Net investment hedges – cross-currency contracts	—		27		—		27
Derivatives not designated as hedge instruments:
Foreign currency forward contracts	—		1		—		1
Total	$	—	$	82	$	—	$	82

Financial liabilities:
Derivatives designated as hedge instruments:
Fair value hedges – cross-currency contracts	$	—	$	—	$	—	$	—
Net investment hedges – cross-currency contracts	—		—		—		—
Derivatives not designated as hedge instruments:
Foreign currency forward contracts	—		(1)		—		(1)
Contingent consideration obligations	—		—		(17)		(17)
Total	$	—	$	(1)	$	(17)	$	(18)


	Fair Value Measurements at December 31, 2025
Financial assets:	Level 1		Level 2		Level 3		Total
Derivatives designated as hedge instruments:
Cash flow hedges:
Interest rate swaps	$	—	$	1	$	—	$	1
Cross-currency contracts	—		3		—		3
Foreign currency forward contracts	—		—		—		—
Fair value hedges – cross-currency contracts	—		2		—		2
Net investment hedges – cross-currency contracts	—		10		—		10
Derivatives not designated as hedge instruments:
Foreign currency forward contracts	—		1		—		1
Total	$	—	$	17	$	—	$	17

Financial liabilities:
Derivatives not designated as hedge instruments:
Foreign currency forward contracts	$	—	$	(5)	$	—	$	(5)
Contingent consideration obligations	—		—		(16)		(16)
Total	$	—	$	(5)	$	(16)	$	(21)


	Nine Months Ended September 30, 2026
Balance as of December 31, 2025	$	16
Issuances	3
Settlements	(2)
Balance as of September 30, 2026	$	17
Number of open contingent consideration arrangements at the end of the period	12
Maximum potential payout at the end of the period	$	18


	September 30, 2026						December 31, 2025
	Outstanding Gross Notional Amount		Other assets		Other noncurrent liabilities		Outstanding Gross Notional Amount		Other assets		Other noncurrent liabilities
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate swaps	$	1,840	$	30	$	—	$	1,840	$	1	$	—
Cross-currency contracts	120		6		—		120		3		—
Foreign currency forward contracts	—		—		—		—		—		—
Fair value hedges:
Cross-currency contracts	1,312		18		—		689		2		—
Net investment hedges:
Cross-currency contracts	931		27		—		931		10		—
Total derivatives designated as hedging instruments	4,203		81		—		3,580		16		—

Derivatives not designated as hedging instruments:
Foreign currency forward contracts	274		1		(1)		312		1		(5)
Total derivatives	$	4,477	$	82	$	(1)	$	3,892	$	17	$	(5)


		Amount of expense (income) recognized in income
Derivatives	Location of expense (income) recognized in the condensed consolidated statements of operations	Three Months Ended September 30,
		2026		2025
Cash flow hedging relationships:
Interest rate swaps	Interest expense, net	$	—	$	(2)
Cross-currency contracts	Investment expense (income) and other, net	(1)		—
Cross-currency contracts	Interest expense, net	—		—
Foreign currency forward contracts	Investment expense (income) and other, net	—		—
Fair value hedging relationships:
Cross-currency contracts	Investment expense (income) and other, net	(4)		(10)
Cross-currency contracts	Interest expense, net	(1)		—
Net investment hedging relationships:
Cross-currency contracts	Investment expense (income) and other, net	(5)		—
Cross-currency contracts	Interest expense, net	(3)		(4)
Not designated as hedging instruments:
Foreign currency forward contracts	Investment expense (income) and other, net	—		—


	Amount of gain (loss) recognized in other comprehensive income				Location of (gain) loss reclassified from AOCI into income	Amount of gain (loss) reclassified from AOCI into income
	Three Months Ended September 30,					Three Months Ended September 30,
Derivatives	2026		2025			2026		2025
Cash flow hedging relationships:
Interest rate swaps	$	11	$	—	Interest expense, net	$	—	$	—
Cross-currency contracts	—		—		Investment expense (income) and other, net	(3)		—
Foreign currency forward contracts	—		—		Investment expense (income) and other, net	—		—
Fair value hedging relationships:
Cross-currency contracts	(3)		—		Investment expense (income) and other, net	(16)		12
					Interest expense, net	—		—
Net investment hedging relationships:
Cross-currency contracts	5		5		Interest expense, net	—		3


	Estimated Useful Lives (In Years)	September 30, 2026		December 31, 2025
Land	N/A	$	21	$	20
Building	39	96		86
Machinery, equipment, and office equipment	1-20	467		429
Autos and trucks	4-10	169		138
Leasehold improvements	1-15	73		65
Total cost		826		738
Accumulated depreciation		(375)		(341)
Property and equipment, net		$	451	$	397


	Maturity Date	September 30, 2026		December 31, 2025
Term loan facility
2021 Term Loan	May 14, 2033	$	2,147	$	2,157
Revolving Credit Facility	May 14, 2031	335		—
Senior notes
4.125% Senior Notes	July 15, 2029	337		337
4.750% Senior Notes	October 15, 2029	277		277
5.750% Senior Notes	June 1, 2034	500		—
Other obligations		5		5
Total debt obligations		3,601		2,776
Less: unamortized deferred financing costs		(27)		(17)
Total debt, net of deferred financing costs		3,574		2,759
Less: short-term and current portion of long-term debt		(361)		(5)
Long-term debt, less current portion		$	3,213	$	2,754


	Three Months Ended September 30,				Change
($ in millions)	2026		2025		$		%
Net revenues	$	2,554	$	2,085	$	469	22.5	%
Cost of revenues	1,784		1,433		351		24.5	%
Gross profit	770		652		118		18.1	%
Selling, general, and administrative expenses	568		489		79		16.2	%
Operating income	202		163		39		23.9	%
Interest expense, net	45		34		11		32.4	%
Investment expense (income) and other, net	2		(1)		3		(300.0	%)
Other expense, net	47		33		14		42.4	%
Income before income taxes	155		130		25		19.2	%
Income tax provision	41		37		4		10.8	%
Net income	$	114	$	93	$	21	22.6	%


	Segment Earnings
	Three Months Ended September 30,						Change
($ in millions)	2026			2025			$		%
Safety Services	$	281		$	236		$	45	19.1	%
Safety Services segment earnings as a % of net revenues	16.9		%	16.8		%
Specialty Services	$	112		$	81		$	31	38.3	%
Specialty Services segment earnings as a % of net revenues	12.5		%	11.9		%
Corporate and Eliminations	$	(43)		$	(36)		NM		NM
Adjusted EBITDA (non-GAAP)	$	350		$	281		$	69	24.6	%


During the Three Months Ended September 30, 2026	Total Number of Shares Purchased(1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)
July 1, 2026 - July 31, 2026	—	$	—	—	$	934
August 1, 2026 - August 31, 2026	1,575,839	41.13		1,575,839	869
September 1, 2026 - September 30, 2026	3,176,020	37.61		3,176,020	750
Total	4,751,859	$	38.78	4,751,859	$	750


Exhibit No.						Description of Exhibits
31.1*						Certification by Russell A. Becker, President and Chief Executive Officer, pursuant to Exchange Act Rules 13a-14 and 15d-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*						Certification by Glenn David Jackola, Executive Vice President and Chief Financial Officer, pursuant to Exchange Act Rules 13a-14 and 15d-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**						Certification by Russell A. Becker, President and Chief Executive Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2**						Certification by Glenn David Jackola, Executive Vice President and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

95.1*						Mine Safety Disclosures.

101.INS*						Inline XBRL Instance Document.

101.SCH*						Inline XBRL Taxonomy Extension Schema Document.

101.DEF*						Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.CAL*						Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB*						Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104*						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


			APi GROUP CORPORATION

October 29, 2026			/s/ Russell A. Becker
			Russell A. Becker
			President and Chief Executive Officer
			(Duly Authorized Officer)

October 29, 2026			/s/ Glenn David Jackola
			Glenn David Jackola
			Executive Vice President and Chief Financial Officer
			(Principal Financial and Accounting Officer)


Date: October 29, 2026	By:	/s/ Russell A. Becker
	Name:	Russell A. Becker
	Title:	President and Chief Executive Officer (principal executive officer)


Three Months Ended September 30, 2026
Operation / MSHA Identification Number	Section 104 S&S Citations (#)	Section 104(b) Orders (#)	Section 104(d) Citations and Orders (#)	Section 110(b)(2) Violations (#)	Section 107(a) Orders (#)	Total Dollar Value of MSHA Assessments Proposed ($)	Mining-Related Fatalities (#)	Received Notice of Pattern of Violations Under Section 104(c) (Yes/No)	Received Notice of Potential to Have Pattern Under Section 104(c) (Yes/No)	Legal Actions Initiated During Period (#)	Legal Actions Resolved During Period (#)	Legal Actions Pending as of the End of the Period (#)
Eagle Mine/4607437	0	0	0	0	0	0	0	No	No	0	0	0
47-00148	0	0	0	0	0	0	0	No	No	0	0	0