The second consecutive guidance raise and double-digit organic growth across both segments signal sustained operational momentum. Watch Q4 for margin trajectory: gross margin compression from mix and input costs bears monitoring, but adjusted EBITDA margin expansion suggests operating leverage is intact. The $5B+ backlog (referenced in prior quarter) supports near-term revenue visibility.
Price Chart
Executive Summary
APi Group reported record Q3 2026 net revenues of $2.554B (+22.5% YoY, +15.7% organic) and adjusted diluted EPS of $0.50, beating the $0.47 consensus by 6.4%. The company raised full-year 2026 guidance for net revenues to $9.2B-$9.25B and adjusted EBITDA to $1.235B-$1.255B, marking the second consecutive upward revision. Adjusted EBITDA margin expanded 20 bps to 13.7%, though GAAP gross margin contracted 120 bps due to project mix and cost inflation.
Key Financial Metrics
Key Facts
- Record Q3 2026 net revenues of $2.554B, up 22.5% YoY (15.7% organic)
- Adjusted diluted EPS of $0.50, up 22.0% YoY and above consensus of $0.47
- Record adjusted EBITDA of $350M, up 24.6% YoY, with margin expansion of 20 bps to 13.7%
- Full-year 2026 guidance raised: net revenues to $9.2B-$9.25B (from $8.875B-$9.025B), adjusted EBITDA to $1.235B-$1.255B (from $1.205B-$1.245B)
- Safety Services segment revenue grew 18.5% (8.8% organic); Specialty Services grew 30.7% (29.9% organic)
- GAAP gross margin declined 120 bps to 30.1% due to project mix and rising material, fuel, and other expenses
- Adjusted free cash flow conversion guided to 110% for full year 2026
Financial Impact
Revenue beat consensus by ~$154M (6.4%); EPS beat by $0.03 (6.4%); full-year guidance raised by $325M-$225M on revenue and $30M-$10M on adjusted EBITDA
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Safety Services | $1.7B | +18.5% |
| Specialty Services | $893.0M | +30.7% |
Risk Factors
- GAAP gross margin contracted 120 bps YoY due to project mix and rising material, fuel, and other expenses
- Cash and cash equivalents declined from $912M (Dec 2025) to $373M (Sep 2026) due to $1.356B in acquisition spending and $252M in share repurchases
- Interest expense increased to $45M in Q3 2026 from $34M in Q3 2025, reflecting higher debt from acquisitions
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-068030 |
| Document: apg-20261029.htm | 0001628280-26-068030 |
| Document: 0001628280-26-068030-index-headers.html | 0001628280-26-068030 |
| Document: 0001628280-26-068030-index.html | 0001628280-26-068030 |
| Document: 0001628280-26-068030.txt | 0001628280-26-068030 |
| 8-K Data (Synthetic) | 0001628280-26-068030 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $45.02 $44.34 | ▼ −1.51% | ▲ +0.26% | $44.34 (−1.51%) |
Aug 5, 2026 12w ago | Insider Cluster | $41.25 $41.72 | ▲ +1.14% | ▲ +0.53% | $44.34 (+7.49%) |
Aug 3, 2026 12w ago | 144 | $41.54 $41.78 | ▼ −0.58% | ▼ −0.78% | $44.34 (−6.74%) |
Jul 30, 2026 13w ago | 8-K | $39.20 $39.68 | ▲ +1.22% | ▲ +0.52% | $44.34 (+13.11%) |
Jul 2, 2026 17w ago | 8-K | $41.98 $42.83 | ▲ +2.02% | ▲ +1.15% | $44.34 (+5.62%) |
Jun 11, 2026 20w ago | Institutional Cluster | $42.66 $42.34 | ▼ −0.75% | ▼ −1.29% | $44.34 (+3.94%) |
Jun 9, 2026 20w ago | 8-K | $43.68 $41.36 | ▼ −5.31% | ▼ −3.73% | $44.34 (+1.51%) |
May 4, 2026 26w ago | Insider Cluster | $44.67 $45.59 | ▲ +2.06% | ▲ +1.26% | $44.34 (−0.74%) |
Apr 30, 2026 26w ago | S-3ASR | $45.72 $45.94 | ▲ +0.48% | ▲ +0.26% | $44.34 (−3.02%) |
Apr 30, 2026 26w ago | 8-K | $45.72 $45.94 | ▲ +0.48% | ▲ +0.26% | $44.34 (−3.02%) |
US Market Status
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