APi Group Corporation
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsAPi Group is a global business services provider of fire and life safety, security, elevator and escalator, and specialty contracting services with over 600 locations in more than 20 countries.
What they do
APi operates through two reportable segments: Safety Services and Specialty Services. Safety Services provides fire protection, electronic security, and elevator and escalator design, installation, inspection, service, and monitoring across North America, Europe, and Asia-Pacific. Specialty Services provides specialty contracting, fabrication and distribution, and infrastructure and utility services, primarily in North America. The company emphasizes inspection, service, and monitoring revenues, which are recurring and generated by statutorily mandated building codes and contracted services.
Revenue drivers
- Safety Services — Largest segment, with Q2 2026 net revenues of $1.48 billion, up 8.8% year over year (4.7% organic). Includes fire protection, electronic security, and elevator and escalator inspection, service, and monitoring, with gross margin of 37.4%.
- Specialty Services — Second reportable segment, with total Q2 2026 revenues derived from the remainder of consolidated net revenues ($2.25 billion less Safety Services). Provides specialty contracting, fabrication and distribution, and infrastructure and utility services across North America.
- Inspection, service, and monitoring — Recurring revenue base driven by mandated inspections and maintenance, with typical contract terms from days to five years. Management cites continued strength in this category as a driver of Q2 2026 organic growth.
- Project revenues — Non-recurring project work, including installation and construction. Management cited robust project activity across both segments in Q2 2026.
Recent performance
Q2 2026 net revenues were a record $2.254 billion, up 13.3% year over year, with 10.1% organic growth. Reported net income was $99 million, up 28.6%, and diluted EPS was $0.20. Adjusted EBITDA was a record $311 million, up 14.3%, with adjusted EBITDA margin of 13.8%, up 10 basis points. Safety Services net revenues were $1.482 billion, up 8.8%, with segment earnings margin flat at 17.0%. Backlog exceeded $5 billion.
Strategy
APi pursues sustainable organic growth, accretive acquisitions, sharing of best practices across businesses, and leveraging scale. It has completed 140 acquisitions since 2005, targeting companies that expand service offerings in limited geographies and then applying an inspection-first strategy and cost synergies. The company operates a decentralized model to promote a business-owner mindset and accountability. Management references long-term financial targets of '10 16 60+'.
Risks
- Tariffs and material costs — Increased tariffs on imported goods by the U.S., Canada, and other countries directly raise the cost of materials used in services and can lower project activity and demand.
- Labor availability and cost — Increased competition for skilled labor and higher labor costs can reduce profitability and delay timely service to customers.
- International operations — Business in multiple countries exposes APi to currency fluctuations, trade protection measures, tax law changes, and anti-bribery and sanctions compliance costs.
- Regulatory and code changes — The life safety and elevator industries are highly regulated; changes in building codes and inspection requirements drive demand but also create compliance costs.
Outlook
Management raised full-year 2026 guidance for net revenues and adjusted EBITDA following record second-quarter results. CEO Russ Becker cited momentum entering the second half, supported by record backlog exceeding $5 billion and disciplined execution of the M&A strategy. The company expressed confidence in continuing progress toward its 10-16-60+ financial targets.