APi Group Raises 2026 Outlook After Record Third Quarter

APi Group raised its full-year revenue and profit outlook on Thursday after a record third quarter in which net revenues jumped 22.5% to $2.55 billion, with organic growth of 15.7%.

The fire and life safety, security and specialty services company now expects 2026 net revenues of $9.20 billion to $9.25 billion, up from the $8.875 billion to $9.025 billion it guided to on July 30, according to the earnings release it filed with an 8-K on Thursday. It lifted its adjusted EBITDA forecast to $1.235 billion to $1.255 billion, from $1.205 billion to $1.245 billion.

A record quarter

Net income rose 22.6% to $114 million, or 24 cents a diluted share, from $93 million, or 20 cents, a year earlier. Adjusted net income rose 25.9% to $219 million, adjusted diluted EPS climbed 22.0% to 50 cents, and adjusted EBITDA grew 24.6% to $350 million. The company said higher interest expense and a larger adjusted share count partly offset the revenue gains at the per-share level.

Adjusted EBITDA margin widened 20 basis points to 13.7%, helped by strong revenue growth and leverage on selling, general and administrative costs. That offset a 120-basis-point drop in gross profit margin to 30.1%, which the company tied to project and business mix and rising material, fuel and other expenses.

"We delivered exceptional third quarter results, including double digit organic growth and adjusted EBITDA margin expansion," President and CEO Russ Becker said in the release. He said the company enters the fourth quarter "from a position of strength, supported by a growing backlog and improving margins."

Specialty Services leads growth

The smaller Specialty Services segment was the standout. Net revenues rose 30.7% to $893 million, with organic growth of 29.9%, driven by project and service revenues. Segment earnings jumped 38.3% to $112 million, and segment earnings margin expanded 60 basis points to 12.5%.

Safety Services, the larger unit, grew net revenues 18.5% to $1.66 billion, or 8.8% organically, helped by inspection, service and monitoring work, project revenues, acquisitions and pricing. Segment earnings rose 19.1% to $281 million, and segment margin edged up 10 basis points to 16.9%, even as its gross margin fell 120 basis points.

By the numbers

• Net revenues: $2.554 billion, up 22.5% (15.7% organic)
• Net income: $114 million, up 22.6%
• Adjusted diluted EPS: $0.50, up 22.0%
• Adjusted EBITDA: $350 million, up 24.6%
• 2026 net revenue outlook: $9.20 billion to $9.25 billion

Looking toward 2027

The updated 2026 outlook also calls for adjusted free cash flow conversion of 110%, based on adjusted net income. Becker said the strength the company is carrying into 2027 gives him "continued confidence" in its ability to deliver on its long-term "10/16/60+" targets.

The company scheduled a conference call for 8:30 a.m. ET on Thursday to discuss the results.

Sources

1. APi Group Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001628280-26-068030)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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