The beat-and-raise quarter with accelerating organic growth (10.4% vs 7.9% FY2025) and margin expansion supports the bull case for APG's 10/16/60+ targets. Watch for Q2 guidance ($2.175B-$2.225B revenue, $300M-$310M adjusted EBITDA) as the next catalyst. The >$1B in announced M&A (CertaSite, Wtech, Onyx) signals aggressive capital deployment in Safety Services — monitor integration execution and leverage impact.
Price Chart
Executive Summary
APi Group reported record Q1 2026 results with net revenues of $1.982B (+15.3% YoY, +10.4% organic), adjusted EBITDA of $235M (+21.8% YoY), and adjusted diluted EPS of $0.32 (+28% YoY). The company raised full-year 2026 guidance for both net revenues and adjusted EBITDA, signaling continued operational momentum and confidence in its 10/16/60+ long-term targets.
Key Financial Metrics
Key Facts
- Record Q1 2026 net revenues of $1.982B, up 15.3% YoY (10.4% organic)
- Adjusted EBITDA of $235M, up 21.8% YoY; adjusted EBITDA margin expanded 70 bps to 11.9%
- Adjusted diluted EPS of $0.32, up 28% YoY from $0.25
- GAAP diluted EPS of $0.12, up 71.4% from $0.07
- Raised full-year 2026 guidance: net revenues to $8.475B-$8.675B (from $8.4B-$8.6B), adjusted EBITDA to $1.15B-$1.21B (from $1.14B-$1.2B)
- Safety Services segment revenues +11.7% YoY (5.4% organic), segment earnings margin +60 bps to 16.3%
- Specialty Services segment revenues +25.6% YoY (24.8% organic), segment earnings margin +50 bps to 6.9%
- Closed CertaSite acquisition and signed Wtech and Onyx transactions, representing >$1B total investment in Safety Services
- Adjusted free cash flow of $125M, up 45% YoY; conversion rate of 88% of adjusted net income
Financial Impact
Record Q1 revenue of $1.982B (+15.3% YoY), adjusted EBITDA $235M (+21.8%), adjusted EPS $0.32 (+28%) — all above consensus estimates. Full-year guidance raised by $75M on revenue midpoint and $10M on EBITDA midpoint.
Risk Factors
- Gross margin contracted 20 bps GAAP and 40 bps adjusted YoY due to business mix, particularly in Specialty Services (gross margin -50 bps)
- Operating cash flow of $85M was pressured by $114M working capital outflow; free cash flow of $67M was partly offset by acquisition-related cash costs
- Cash balance declined to $645M from $912M at year-end due to $289M in acquisition spending and $37M in share repurchases
- Integration risk from three large acquisitions (CertaSite, Wtech, Onyx) totaling >$1B
- Foreign exchange translation added 3.3% to reported revenue growth — organic growth of 10.4% is the cleaner metric
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001796209-26-000003 |
| Document: apg-20260430.htm | 0001796209-26-000003 |
| Document: 0001796209-26-000003-index-headers.html | 0001796209-26-000003 |
| Document: 0001796209-26-000003-index.html | 0001796209-26-000003 |
| Document: 0001796209-26-000003.txt | 0001796209-26-000003 |
| 8-K Data (Synthetic) | 0001796209-26-000003 |
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|---|---|---|---|---|---|
Aug 5, 2026 11w ago | Insider Cluster | $41.25 $41.72 | ▲ +1.14% | ▲ +0.53% | $40.63 (−1.52%) |
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Apr 3, 2026 29w ago | DEFA14A | $42.21 $41.94 | ▼ −0.64% | ▼ −0.70% | $40.63 (−3.76%) |
US Market Status
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