APi Group (APG) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 22.5% to $2.554B, including 15.7% organic growth; adjusted EBITDA increased 24.6% to $350M, with margin up 20 bps to 13.7%.

• Backlog exceeded $5B, with broad demand across end markets and visibility into 2027.

• FY2026 revenue and adjusted EBITDA guidance increased for the third time this year; expected adjusted free cash flow conversion is ~110%.

• Leadership cited confidence in carrying momentum into 2027 and pursuing long-term “10/16/60+” targets.

Financial highlights

• Adjusted diluted EPS was $0.50, up 22.0%; adjusted net income was $219M, up 25.9%.

• Adjusted gross profit was $775M, up 18.1%; adjusted gross margin declined 120 bps to 30.3% on project mix and higher material, fuel and other expenses.

• Q3 operating cash flow was $225M and adjusted free cash flow was $240M; 9M operating cash flow was $393M and adjusted free cash flow was $468M, up $34M YoY.

• Q3 net income was $114M, up 22.6%; 9M revenue was $6.790B, up 17.2%, and 9M adjusted EBITDA was $896M, up 20.1%.

Outlook and guidance

• FY2026 revenue guidance rose to $9.200B–$9.250B from $8.875B–$9.025B; adjusted EBITDA guidance rose to $1.235B–$1.255B from $1.205B–$1.245B.

• FY revenue guidance implies 11% organic growth at midpoint; adjusted EBITDA guidance implies 13.5% margin and 20% growth at midpoint. FX headwinds versus prior guidance are $30M revenue and $5M EBITDA.

• Q4 revenue guidance is $2.410B–$2.460B, with adjusted EBITDA of $339M–$359M.

• FY2026 adjusted free cash flow conversion is expected at ~110% of adjusted net income; anticipated interest expense is $155M, capex $105M and adjusted tax rate 23%.

• Adjusted EBITDA margin expansion is expected to continue in 2027; the 2028 margin target remains 16%+. FY2027 budget and guidance are planned for February.