APi Group (APG) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenues reached $2.3 billion, up 13.3% year-over-year (10.1% organic), driven by strong performance in Safety and Specialty Services, acquisitions, and pricing improvements.

• Adjusted EBITDA rose 14.3% to $311 million, with margin expanding by 10 basis points to 13.8%.

• Adjusted diluted EPS increased 12.8% to $0.44, reflecting strong revenue growth and margin expansion.

• Net income rose 28.6% to $99 million for the quarter.

• Record backlog surpassed $5 billion, supporting momentum into the second half of the year.

Financial highlights

• Q2 net revenues: $2.3 billion, up 13.3% year-over-year; adjusted EBITDA: $311 million (14.3% increase), margin at 13.8%.

• Adjusted gross margin: 31.2%, flat year-over-year; adjusted gross profit: $704 million.

• Adjusted net income for Q2 was $195 million; adjusted diluted EPS: $0.44, up 12.8% year-over-year.

• Adjusted free cash flow YTD: $228 million, up $42 million year-over-year; Q2 adjusted free cash flow: $103 million.

• Adjusted free cash flow conversion: 68% YTD, 52.8% for Q2.

Outlook and guidance

• Full-year 2026 net revenue guidance raised to $8,875–$9,025 million (7–9% organic growth).

• Full-year adjusted EBITDA guidance increased to $1,205–$1,245 million (16–20% growth), margin at 13.7% midpoint.

• Q3 2026 net revenues expected at $2,375–$2,425 million, with 8–10% organic growth; Q3 adjusted EBITDA expected at $325–$335 million.

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

• Long-term targets reaffirmed: $10B+ net revenues, 16%+ adjusted EBITDA margin, 60%+ recurring revenue by 2028.