Earnings quality appears obscured by volatility, as evidenced by OCF/NI ratios frequently exceeding 2.0x and free cash flow margins that have fluctuated wildly between -0.9% and 16.8% over the last ten quarters.
| Cash from Operations | 782M | 759M | 620M | 514M | 270M | 182M | 496M | 150M | 112M | 118M |
| Operating CF Margin % | - | 9.59% | 8.83% | 7.42% | 4.12% | 4.62% | 13.83% | 15.23% | 3% | 3.87% |
| Operating CF Growth % | 52.99% | 22.42% | 20.62% | 90.37% | 48.35% | -63.31% | 230.67% | 33.93% | -5.08% | - |
| Net Income | 324M | 302M | 250M | 153M | 73M | 47M | -153M | -153M | 136M | 112M |
| Depreciation & Amortization | 331M | 327M | 302M | 303M | 304M | 202M | 263M | 69M | 109M | 69M |
| Stock-Based Compensation | 45M | 44M | 32M | 29M | 18M | 12M | 5M | 156M | 3M | 10M |
| Deferred Taxes | 16M | 15M | -30M | -32M | -47M | 6M | -74M | -2M | 0 | 0 |
| Other Non-Cash Items | 314M | 154M | 107M | 111M | 33M | 62M | 241M | -2M | -1M | 26M |
| Working Capital Changes | -242M | -83M | -41M | -50M | -111M | -147M | 214M | 82M | -135M | -99M |
| Change in Receivables | -127M | -74M | -11M | -43M | -217M | -172M | 238M | 146M | -173M | -106M |
| Change in Inventory | -4M | 6M | 9M | 13M | -30M | -2M | 11M | 0 | -9M | -1M |
| Change in Payables | 45M | 5M | 16M | -14M | 71M | 78M | -24M | -32M | 1M | 5M |
| Cash from Investing | -545M | -254M | -829M | -115M | -2.9B | -121M | -340M | -1.73B | -300M | -56M |
| Capital Expenditures | -102M | -96M | -84M | -86M | -79M | -55M | -38M | -11M | -74M | -39M |
| CapEx % of Revenue | 1.25% | 1.21% | 1.2% | 1.24% | 1.2% | 1.4% | 1.06% | 1.12% | 1.98% | 1.28% |
| Acquisitions | -469M | -186M | -778M | -83M | -2.84B | -86M | -319M | -2.56B | -234M | -63M |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 26M | 28M | 33M | 54M | 17M | 20M | 17M | 848M | 8M | 46M |
| Cash from Financing | -65M | -121M | 245M | -532M | 1.76B | 917M | 99M | 1.4B | 203M | -106M |
| Debt Issued (Net) | -6M | -7M | 413M | -484M | 1.04B | 329M | 229M | 1.21B | 303M | 40M |
| Equity Issued (Net) | -52M | -75M | -142M | -41M | 753M | 676M | -27M | 210M | 1.23B | -1M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -74M | -111M |
| Share Repurchases | -76M | -75M | -600M | -41M | -44M | 0 | -30M | 0 | 0 | -1M |
| Other Financing | -7M | -39M | -26M | -7M | -37M | -88M | -103M | -26M | -26M | -34M |
| Net Change in Cash | 184M | 412M | 21M | -127M | -884M | 976M | 259M | -181M | 13M | -41M |
| Free Cash Flow | 680M | 663M | 536M | 428M | 191M | 127M | 458M | 139M | 38M | 79M |
| FCF Margin % | 8.32% | 8.38% | 7.64% | 6.18% | 2.91% | 3.22% | 12.77% | 14.11% | 1.02% | 2.59% |
| FCF Growth % | 13.14% | 23.69% | 25.23% | 124.08% | 50.39% | -72.27% | 229.5% | 265.79% | -51.9% | - |
| FCF per Share | 1.56 | 1.59 | 1.33 | 1.21 | 0.48 | 0.41 | 1.80 | 0.53 | 0.22 | 0.65 |
| FCF Conversion (FCF/Net Income) | 2.10x | 2.51x | 2.48x | 3.36x | 3.70x | 3.87x | -3.24x | -0.98x | 0.82x | 1.05x |
| Interest Paid | 35M | 0 | 152M | 150M | 120M | 41M | 47M | 14M | 0 | 8M |
| Taxes Paid | 40M | 0 | 101M | 95M | 43M | 66M | 29M | 3M | -9M | 8M |
M&A integration and leverage
According to the provided cash flow data, APG consistently reports operating cash flow significantly higher than net income, with OCF/NI ratios frequently exceeding 2.0x, which suggests that non-cash charges and aggressive accounting adjustments play a substantial role in the company's reported bottom-line performance.
The persistent gap between net income and operating cash flow indicates that GAAP earnings may not be the most reliable metric for assessing the company's underlying cash-generating capacity. Investors should monitor whether this divergence is driven by sustainable depreciation of acquired assets or if it reflects recurring restructuring costs that management excludes from adjusted figures.
As reported in financial statements, free cash flow margins have fluctuated wildly between -0.9% and 16.8% over the last ten quarters, indicating that the company's ability to convert earnings into cash is highly sensitive to project timing and the integration of acquired entities.
The extreme variance in FCF suggests that the business model remains prone to lumpy cash inflows, likely tied to the percentage-of-completion accounting used in its industrial segments. This inconsistency warrants caution, as it complicates the predictability of cash available for debt service or shareholder returns.
Based on the reported figures, working capital changes have been highly erratic, swinging from a $229 million outflow in 2025Q4 to a $229 million inflow in 2025Q3, which suggests that the company struggles to maintain a stable cash conversion cycle across its decentralized operations.
These dramatic shifts in working capital appear to be a primary driver of the company's inconsistent quarterly cash flow. Such volatility may indicate challenges in managing receivables and inventory across a fragmented global footprint, potentially creating liquidity pressure during periods of rapid expansion.
Data from the cash flow statement reveals that APG consistently prioritizes net acquisitions, with outflows reaching $583 million in 2024Q2, while simultaneously utilizing significant cash for share repurchases, which suggests a management strategy focused on inorganic growth and capital structure optimization over organic reinvestment.
The heavy reliance on acquisition-led growth, coupled with periodic share buybacks, implies that management is aggressively deploying capital to scale the business. However, this strategy appears to leave little room for error, as the high volume of cash outflows for M&A necessitates consistent operational performance to maintain balance sheet stability.
Quick answers to the most common questions about buying APG stock.
APi Group Corporation (APG) generated $759.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
APi Group Corporation (APG) generated $663.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
APi Group Corporation (APG) spent $96.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, APi Group Corporation (APG) spent $75.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.