APi Group (APG) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 net revenues of $2.0 billion, up 15.3% year-over-year (10.4% organic growth), driven by inspection, service, monitoring, project revenues, acquisitions, pricing improvements, and foreign exchange impacts.

• Adjusted EBITDA rose 21.8% to $235 million, with margin expanding 70 basis points to 11.9%.

• Net income increased 62.9% year-over-year to $57 million; adjusted net income was $142 million, up 36.5%.

• Closed CertaSite acquisition and announced agreements to acquire Wtech Fire Group and Onyx-Fire Protection Services, investing over $1 billion to expand Safety Services in the U.S., Europe, and Canada.

• Backlog remains robust and diversified, with significant contributions from data centers, advanced manufacturing, healthcare, and infrastructure projects.

Financial highlights

• Q1 net revenues were $1.98–$2.0 billion, up 15.3% year-over-year; organic revenue growth was 10.4%.

• Adjusted EBITDA increased 21.8% to $235–$236 million, with margin expanding to 11.9%.

• Adjusted diluted EPS rose 28% to $0.32.

• Adjusted free cash flow was $125 million, up $39 million year-over-year, with an 88% conversion rate.

• Adjusted net income was $142 million, up 36.5% year-over-year.

Outlook and guidance

• Raised full-year 2026 net revenue guidance to $8,475–$8,675 million (5–10% organic growth).

• Increased full-year Adjusted EBITDA guidance to $1,150–$1,210 million, with margin expected at 13.8% at midpoint.

• Q2 2026 net revenues expected at $2,175–$2,225 million, with 7–9% organic growth; Adjusted EBITDA of $300–$310 million.

• Guidance will be updated after Wtech and Onyx acquisitions close.

• Adjusted free cash flow conversion for FY 2026 is expected at approximately 115%.