$APG · APi Group Corp
APi Group filed its Q3 FY2026 10-Q, reporting net revenues of $2.554B (+22.5% YoY), net income of $114M (+22.6% YoY), and diluted EPS of $0.24 versus $0.20 in the prior-year quarter. Nine-month revenues reached $6.79B (+17.2%) with net income of $270M (+31.7%). Gross margin compressed to 30.1% from 31.3% in Q3, while the balance sheet reflects $1.36B in acquisition spending that reduced cash from $912M to $373M since year-end.
- Q3 net revenues rose 22.5% YoY to $2.554B, with organic growth contributing 13.5% and acquisitions 3.7%.
- Q3 diluted EPS of $0.24 vs $0.20 a year ago; nine-month diluted EPS of $0.56 vs $0.43.
- Gross profit margin compressed to 30.1% in Q3 from 31.3% a year ago, driven by project and business mix.
- Cash and equivalents dropped to $373M from $912M at year-end 2025, largely due to $1.36B in acquisition spending.
- Share repurchases totaled $252M in the first nine months of 2026, up from $75M in the prior-year period.
Stock rose 8.90% in the regular session to $45.02, adding $3.68. The strong top-line beat and 22.5% revenue growth appear to have outweighed the modest gross margin compression.
APG posted 22.5% revenue growth with double-digit organic expansion while deploying $1.36B on M&A in nine months — a rare combination of scale and speed in the fragmented life-safety services sector.
APG's 22.5% revenue growth significantly outpaces the broader fire/life-safety and specialty contracting sector, where mid-single-digit organic growth is typical. The $1.36B in nine-month acquisition spending signals aggressive consolidation in a fragmented industry.
Gross margin declined 120 bps YoY to 30.1% in Q3, with management citing project and business mix as the driver. Cash reserves fell sharply from $912M to $373M over nine months, primarily funding $1.36B in acquisitions, which raises integration and leverage risk.