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APi Group Reports Second Quarter 2025 Financial Results and Raises Full-Year 2025 Outlook

-Record second quarter net revenues of $2.0 billion, representing accelerating year-over-year growth of 15.0% and organic growth of 8.3%-

-Record second quarter reported net income of $77 million with year-over-year growth of 11.6%-

-Record second quarter adjusted EBITDA of $272 million with year-over-year growth of 17.7% and adjusted EBITDA margin expansion of 30 basis points to a record 13.7%-

-Raising full-year guidance for net revenues and adjusted EBITDA-

NEW BRIGHTON, Minn.--(BUSINESS WIRE)-- APi Group Corporation (NYSE: APG) (鈥淎Pi鈥� or the 鈥淐ompany鈥�) today reported its financial results for the three and six months ended June 30, 2025.

Russ Becker, APi鈥檚 President and Chief Executive Officer stated: 鈥淲e enter the second half of 2025 with continued positive momentum across our global business platform. We continue to accelerate organic growth while expanding adjusted EBITDA margins, growing our recurring inspection, service and monitoring business, building on our record backlog, and improving our free cash flow generation. We believe our proven operating model, built on an inspection and service-first strategy, purpose-driven leadership, and a disciplined approach to capital allocation, positions APi for sustained organic growth, margin expansion and value-accretive M&A. We are confident in our leaders鈥� ability to execute our strategy and deliver against our new 10/16/60+ long-term financial targets creating value for all of our stakeholders."

Second Quarter 2025 Consolidated Results:

• Reported net revenue increased by 15.0% (8.3% organic) driven by acquisitions, strong project revenue growth, pricing improvements, and growth in inspection, service, and monitoring revenues.
• Reported and adjusted gross margin each decreased 50 basis points compared to prior year period primarily driven by mix, partially offset by pricing improvements across the business.
• Reported net income was $77 million and diluted EPS was $0.16. Adjusted net income was $164 million and adjusted diluted EPS was $0.39, representing an 18.2% increase compared to prior year period driven by strong adjusted EBITDA growth.
• Adjusted EBITDA increased by 17.7% (16.7% on a fixed currency basis) compared to the prior year period and adjusted EBITDA margin increased 30 basis points to 13.7%. Growth in adjusted EBITDA was driven by an increase in adjusted gross profit.

Second Quarter 2025 Segment Results:

Safety Services

• Reported net revenue growth of 15.8% (5.6% organic) driven by acquisitions completed in the last year, pricing improvements, and strong growth in both service and project revenues.
• Reported and adjusted gross margin each increased 70 basis points compared to prior year period driven by disciplined customer and project selection and pricing improvements leading to margin expansion in both service and project revenues.
• Reported segment earnings increased by 22.1% (21.5% on a fixed currency basis) compared to the prior year period. Segment earnings margin was 17.0%, representing an 80 basis point increase compared to prior year period, primarily due to the increase in adjusted gross margin.

Specialty Services

• Reported net revenue increased by 13.3% (13.3% organic) driven by strong project revenue growth.
• Reported and adjusted gross margin each decreased by 350 basis points compared to prior year period driven by increased project starts, rising material costs, and weather.
• Reported segment earnings decreased by 2.7% compared to prior year period. Segment earnings margin was 11.3%, representing a 190 basis point decrease compared to prior year period, primarily due to the decrease in adjusted gross margin, partially offset by favorable fixed cost absorption.

Guidance

APi increases its full-year 2025 guidance for net revenue and adjusted EBITDA.

• Net Revenues of $7,650 to $7,850 million, up from $7,400 to $7,600 million
• Adjusted EBITDA of $1,005 to $1,045 million, up from $985 to $1,035 million
• Adjusted Free Cash Flow Conversion of approximately 75%

APi announces its guidance for the third quarter of 2025.

• Net Revenues of $1,985 to $2,035 million
• Adjusted EBITDA of $270 to $280 million

Stock Split

On June 30, 2025, we executed a three-for-two stock split by a payment of a stock dividend of one-half of one share of common stock for each share of common stock. We retained the current par value of $0.0001 per share for all common shares.

Conference Call

APi will hold a webcast/dial-in conference call to discuss its financial results at 8:30 a.m. (Eastern Time) on Thursday, July 31, 2025. Participants on the call will include Russell A. Becker, President and Chief Executive Officer; G. David Jackola, Executive Vice President and Chief Financial Officer; and James E. Lillie and Sir Martin E. Franklin, Co-Chairs.

To listen to the call by telephone, please dial 800-715-9871 or 646-307-1963 and provide Conference ID 4836166. You may also attend and view the presentation (live or by replay) via webcast by accessing the following URL:

A replay of the call will be available shortly after completion of the live call/webcast via the webcast link above.

About APi:

APi is a global, market-leading business services provider of fire and life safety, security, elevator and escalator, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. We have a winning leadership culture driven by entrepreneurial business leaders to deliver innovative solutions for our customers. More information can be found at .

Forward-Looking Statements and Disclaimers

Please note that in this press release 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 (鈥淎Pi鈥� or the 鈥淐ompany鈥�). Such discussion and statements may contain words such as 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥渨ill,鈥� 鈥渟hould,鈥� 鈥渂elieve,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥渆stimate,鈥� 鈥減redict,鈥� 鈥渟eek,鈥� 鈥渃ontinue,鈥� 鈥減ro forma鈥� 鈥渙utlook,鈥� 鈥渕ay,鈥� 鈥渕ight,鈥� 鈥渟hould,鈥� 鈥渃an have,鈥� 鈥渉ave,鈥� 鈥渓ikely,鈥� 鈥減otential,鈥� 鈥渢arget,鈥� 鈥渋ndicative,鈥� 鈥渋llustrative,鈥� and variations of such words and similar expressions, and relate in this press release, without limitation, to statements, beliefs, projections and expectations about future events. Such statements are based on the Company鈥檚 expectations, intentions and projections regarding the Company鈥檚 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鈥檚 future performance, including the impacts of inflationary pressures and other macroeconomic factors on the Company鈥檚 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 materials and commodities the Company uses in its business and for which the Company bears the risk of such increases; (iii) risks associated with the Company鈥檚 expanded international operations; (iv) failure to realize the anticipated benefits of our acquisitions and restructuring program, and our ability to successfully execute the Company鈥檚 bolt-on acquisition strategy to acquire other businesses and successfully integrate them into its operations; (v) failure to fully execute the Company鈥檚 inspection first strategy or to realize the expected service revenue from such inspections; (vi) failure to realize expected benefits from the Company鈥檚 other business strategies, including the Company鈥檚 disciplined approach to customer and project selection, the Company鈥檚 asset-light, services-focused business model and its expected impact on future capital expenditures, and the expected efficiencies from the realignment of the Company鈥檚 Safety Services segment; (vii) risks associated with the Company鈥檚 decentralized business model and participation in joint ventures; (viii) improperly managed projects or project delays; (ix) adverse developments in the credit markets which could impact the Company鈥檚 ability to secure financing in the future; (x) the Company鈥檚 substantial level of indebtedness; (xi) risks associated with the Company鈥檚 contract portfolio; (xii) changes in applicable laws or regulations; (xiii) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (xiv) the impact of a global armed conflict; (xv) the trading price of the Company鈥檚 common stock, which may be positively or negatively impacted by market and economic conditions, the availability of the Company鈥檚 common stock, the Company鈥檚 financial performance or determinations following the date of this press release to use the Company鈥檚 funds for other purposes; (xvi) geopolitical risks; and (xvii) other risks and uncertainties, including those discussed in the Company鈥檚 Annual Report on Form 10-K for the year ended December 31, 2024 under the heading 鈥淩isk Factors.鈥� Given these risks and uncertainties, you 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 filed by the Company with the Securities and Exchange Commission. Forward-looking statements included in this press release 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 press release.

Non-GAAP Financial Measures

This press release contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this press release and the additional financial information both in explaining its results to shareholders and the investment community and in its internal evaluation and management of its businesses. The Company鈥檚 management believes that these non-U.S. GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company鈥檚 performance using the same tools that management uses to evaluate the Company鈥檚 past performance, reportable business segments and prospects for future performance, (b) permit investors to compare the Company with its peers, (c) in the case of adjusted EBITDA, determines certain elements of management鈥檚 incentive compensation, and (d) provide consistent period-to-period comparisons of the results. Specifically:

• The Company鈥檚 management believes that adjusted gross profit, adjusted selling, general and administrative (鈥淪G&A鈥�) expenses, adjusted net income, and adjusted earnings per share, which are non-GAAP financial measures that exclude systems and business enablement expenses, business process transformation expenses, the impact and results of businesses classified as assets held-for-sale and businesses divested, and one-time and other events such as impairment charges, restructuring costs, transaction and other costs related to acquisitions and divestitures, amortization of intangible assets, and non-service pension cost are useful because they provide investors with a meaningful perspective on the current underlying performance of the Company鈥檚 core ongoing operations.
• The Company supplements the reporting of its consolidated financial information with certain financial measures, including adjusted EBITDA, a non-GAAP financial measure, which is defined as earnings before interest, taxes, depreciation and amortization, excluding the impact of certain non-cash and other specifically identified items, and segment earnings. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net revenues. Segment earnings, which is defined as earnings before interest, taxes, depreciation and amortization, excluding the impact of certain non-cash and other specifically identified items, is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. Segment earnings margin is calculated as segment earnings divided by net revenue. The Company believes these measures provide meaningful information and help investors understand the Company鈥檚 financial results and assess its prospects for future performance. The Company uses adjusted EBITDA and segment earnings to evaluate its performance, both internally and as compared with its peers, because these measures exclude certain items that may not be indicative of the Company鈥檚 core operating results.
• The Company discloses fixed currency net revenues and adjusted EBITDA on a consolidated basis and segment earnings on a segment specific basis to provide a more complete understanding of underlying revenue, adjusted EBITDA, and segment earnings trends by providing net revenues, adjusted EBITDA, and segment earnings on a consistent basis. Under U.S. GAAP, income statement results are translated in U.S. Dollars at the average exchange rates for the period presented. Management believes that the fixed currency non-GAAP measures are useful in providing period-to-period comparisons of the results of the Company鈥檚 operational performance, as it excludes the translation impact of exchange rate fluctuations on our international results. Fixed currency amounts included in this release are based on translation into U.S. dollars at the fixed foreign currency exchange rates established by management at the beginning of 2025.
• The Company also presents organic changes in net revenues on a consolidated basis or segment specific basis to provide a more complete understanding of underlying revenue trends by providing net revenues on a consistent basis as it excludes the impacts of material acquisitions, completed divestitures, and changes in foreign currency from year-over-year comparisons on reported net revenues, calculated as the difference between the reported net revenues for the current period and reported net revenues for the current period converted at fixed foreign currency exchange rates (excluding material acquisitions and divestitures). The remainder is divided by prior year fixed currency net revenues, excluding the impacts of completed divestitures.
• The Company presents free cash flow, adjusted free cash flow and adjusted free cash flow conversion, which are liquidity measures used by management as factors in determining the amount of cash that is available for working capital needs or other uses of cash, however, it does not represent residual cash flows available for discretionary expenditures. Free cash flow is defined as cash provided by (used in) operating activities less capital expenditures. Adjusted free cash flow is defined as cash provided by (used in) operating activities plus or minus events including, but not limited to, transaction and other costs related to acquisitions and divestitures, systems and business enablement expenses, business process transformation expenses, payments on acquired liabilities, payments made for restructuring programs, impacts of businesses classified as assets held-for-sale and businesses divested, one-time and other events such as post-measurement period purchase accounting adjustments for acquisitions, debt repricing fees, and public offerings. Adjusted free cash flow conversion is defined as adjusted free cash flow as a percentage of adjusted EBITDA.
• The Company calculates its leverage ratio in accordance with its debt agreements which include different adjustments to EBITDA from those included in the adjusted EBITDA numbers reported externally.

While the Company believes these non-U.S. GAAP measures are useful in evaluating the Company鈥檚 performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with U.S. GAAP. Additionally, these non-U.S. GAAP financial measures may differ from similar measures presented by other companies. A reconciliation of these non-U.S. GAAP financial measures is included later in this press release.

The Company does not provide reconciliations of forward-looking non-U.S. GAAP adjusted EBITDA and growth in organic net revenues to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisitions and divestitures, systems and business enablement expenses, business process transformation expenses, one-time and other events such as impairment charges, transaction and other costs related to acquisitions and divestitures, restructuring costs, amortization of intangible assets, and other charges reflected in the Company鈥檚 reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

Additional Information

Following the realignment of our segments in 2025, we have recast all historical segment information in this press release to reflect the move of the HVAC business to the Specialty Services segment.

In addition, following the three-for-two stock split executed on June 30, 2025, all references to the number of shares outstanding, issued shares, and per share amounts of the Company鈥檚 common shares have been restated to reflect the effect of the stock split for all periods presented in this press release.