APi Group (APG) investor relations material

Executive summary

• Achieved record third-quarter net revenues of $2.1 billion, up 14.2% year-over-year, with organic growth of 9.7%.

• Adjusted EBITDA increased 14.7% to $281 million, with a margin of 13.5%, up 10 basis points.

• Net income for Q3 2025 was $93 million, up 34.8% year-over-year, with net income margin rising to 4.5%.

• Continued focus on technology investments, safety, and leadership development to support long-term growth and operational excellence.

• Completed 11 bolt-on acquisitions year-to-date, with a robust M&A pipeline and $250 million targeted for M&A in 2025.

Financial highlights

• Adjusted gross margin improved by 50 basis points to 31.5% year-over-year.

• Adjusted net income for Q3 2025 was $174 million, with adjusted diluted EPS of $0.41, up 20.6% year-over-year.

• Adjusted free cash flow for Q3 was $248 million, with conversion at 88.3% and year-to-date at $434 million.

• Operating cash flow for Q3 2025 was $232 million, a 5.5% increase year-over-year.

• SG&A expenses for Q3 2025 were $489 million (23.5% of net revenues), reflecting investments in growth and non-recurring systems expenses.

Outlook and guidance

• Raised full-year 2025 net revenue guidance to $7,825–$7,925 million, representing 12–13% reported growth and 7–8% organic growth.

• Full-year adjusted EBITDA expected at $1,015–$1,045 million, with margin above the 2025 goal of 13%.

• Adjusted free cash flow conversion projected at approximately 75%, with Q4 traditionally the strongest quarter.

• 2025 guidance includes $145 million interest expense, $85 million depreciation, $100 million capex, and 23% adjusted effective tax rate.

• Q4 2025 net revenues expected between $2,031 and $2,131 million, with adjusted EBITDA of $269 to $299 million.