APi Group (APG) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and full-year 2025 results, with net revenues up 13.8% in Q4 and 12.7% for the year, driven by strong growth in inspection, service, monitoring, project revenues, and acquisitions.

• Q4 adjusted EBITDA rose 21.9% to $295M, margin up 90 bps to 13.9%; FY adjusted EBITDA up 16.6% to $1.04B, margin up 50 bps to 13.2%.

• Adjusted diluted EPS for Q4 was $0.44 (up 29.4%), and for FY was $1.48 (up 20.3%).

• Adjusted free cash flow for FY 2025 was $836M (80% conversion); Q4 was $402M (136% conversion); net leverage ratio at year-end was 1.6x.

• Completed 14 acquisitions in 2025 and closed CertaSite in early 2026, strengthening fire and life safety services.

Financial highlights

• Q4 2025 net revenues were $2.12B, up 13.8% year-over-year (11.1% organic); FY net revenues were $7.9B, up 12.7% (7.9% organic).

• Q4 adjusted gross margin: 32.2% (up 110 bps); FY: 31.6% (up 50 bps).

• Q4 adjusted net income was $185M (up 29.4%); FY adjusted net income was $627M (up 22%).

• Operating cash flow for FY 2025 was $759M (up 22.4%).

• Adjusted free cash flow conversion for Q4 was 136%; for FY was 80%.

Outlook and guidance

• 2026 net revenues expected at $8.4–$8.6B, with 5–9% organic growth; adjusted EBITDA guidance is $1.14–$1.2B, margin expected to reach 13.8% at midpoint.

• 2026 adjusted free cash flow conversion expected at or above 115% of adjusted net income (about 75% of adjusted EBITDA).

• Q1 2026 net revenues expected at $1.875–$1.98B, with organic growth of 4–15%; adjusted EBITDA $225M–$235M.

• Long-term targets for 2028: $10B+ net revenues, 16%+ adjusted EBITDA margin, 60%+ revenue from inspection, service, and monitoring, and $3B cumulative adjusted free cash flow.