Revenue growth has accelerated to 15.3% in 2026Q1, yet gross margins remain constrained within a narrow 28.1% to 31.4% range, suggesting limited pricing power in its industrial contracting segments.
| Sales/Revenue | 8.17B | 7.91B | 7.02B | 6.93B | 6.56B | 3.94B | 3.59B | 985M | 3.73B | 3.05B |
| Revenue Growth % | 14.55% | 12.72% | 1.3% | 5.64% | 66.45% | 9.84% | 264.16% | -73.58% | 22.39% | - |
| Cost of Goods Sold | 5.79B | 5.42B | 4.84B | 4.99B | 4.84B | 3B | 2.83B | 787M | 2.94B | 2.38B |
| COGS % of Revenue | - | 68.56% | 68.97% | 72% | 73.86% | 76.17% | 78.92% | 79.9% | 78.89% | 78.2% |
| Gross Profit | 2.38B | 2.49B | 2.18B | 1.94B | 1.71B | 939M | 756M | 198M | 787M | 664M |
| Gross Margin % | 29.14% | 31.44% | 31.03% | 28% | 26.14% | 23.83% | 21.08% | 20.1% | 21.11% | 21.8% |
| Gross Profit Growth % | - | 14.19% | 12.27% | 13.19% | 82.53% | 24.21% | 281.82% | -74.84% | 18.52% | - |
| Operating Expenses | 1.84B | 1.93B | 1.69B | 1.58B | 1.55B | 803M | 922M | 359M | 625M | 511M |
| OpEx % of Revenue | - | 24.43% | 24.14% | 22.82% | 23.67% | 20.38% | 25.7% | 36.45% | 16.77% | 16.78% |
| Selling, General & Admin | 1.84B | 1.93B | 1.69B | 1.58B | 1.55B | 803M | 725M | 359M | 625M | 511M |
| SG&A % of Revenue | - | 24.43% | 24.14% | 22.82% | 23.67% | 20.38% | 20.21% | 36.45% | 16.77% | 16.78% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 197M | 0 | 0 | 0 |
| Operating Income | 545M | 554M | 484M | 359M | 162M | 136M | -166M | -161M | 162M | 123M |
| Operating Margin % | 6.67% | 7% | 6.9% | 5.18% | 2.47% | 3.45% | -4.63% | -16.35% | 4.35% | 4.04% |
| Operating Income Growth % | - | 14.46% | 34.82% | 121.6% | 19.12% | 181.93% | -3.11% | -199.38% | 31.71% | - |
| EBITDA | 876M | 881M | 786M | 662M | 466M | 338M | 97M | -92M | 271M | 124.86M |
| EBITDA Margin % | 10.72% | 11.14% | 11.2% | 9.56% | 7.11% | 8.58% | 2.7% | -9.34% | 7.27% | 4.1% |
| EBITDA Growth % | 11.73% | 12.09% | 18.73% | 42.06% | 37.87% | 248.45% | 205.43% | -133.95% | 117.05% | - |
| D&A (Non-Cash Add-back) | 331M | 327M | 302M | 303M | 304M | 202M | 263M | 69M | 109M | 1.86M |
| EBIT | 547M | 554M | 476M | 377M | 218M | 139M | -132M | -136M | 168M | -1.86M |
| Net Interest Income | -90M | -141M | -146M | -145M | -125M | -60M | -52M | -15M | -22M | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 90M | 141M | 146M | 145M | 125M | 60M | 52M | 15M | 22M | 8M |
| Other Income/Expense | -107M | -141M | -154M | -127M | -69M | -57M | -18M | 10M | -16M | -114.44M |
| Pretax Income | 438M | 413M | 330M | 232M | 93M | 79M | -184M | -151M | 146M | 120M |
| Pretax Margin % | 5.36% | 5.22% | 4.7% | 3.35% | 1.42% | 2.01% | -5.13% | -15.33% | 3.92% | 3.94% |
| Income Tax | 114M | 111M | 80M | 79M | 20M | 32M | -31M | 2M | 10M | 8M |
| Effective Tax Rate % | 26.03% | 26.88% | 24.24% | 34.05% | 21.51% | 40.51% | 16.85% | -1.32% | 6.85% | 6.67% |
| Net Income | 324M | 302M | 250M | 153M | 73M | 47M | -153M | -153M | 136M | 112M |
| Net Margin % | 3.96% | 3.82% | 3.56% | 2.21% | 1.11% | 1.19% | -4.27% | -15.53% | 3.65% | 3.68% |
| Net Income Growth % | 35% | 20.8% | 63.4% | 109.59% | 55.32% | 130.72% | 0% | -212.5% | 21.43% | - |
| Net Income (Continuing) | 324M | 302M | 250M | 153M | 73M | 47M | -153M | -153M | 136M | 8.56M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.74 | -0.69 | -0.56 | -0.46 | 0.07 | -0.44 | -1.48 | -0.59 | 0.78 | 0.07 |
| EPS Growth % | -317.52% | -23.21% | -21.74% | -732.74% | 116.52% | 70.27% | -150.85% | -175.64% | 1038.69% | - |
| EPS (Basic) | - | -0.69 | -0.56 | -0.46 | 0.08 | -0.44 | -1.48 | -1.01 | 0.78 | 0.07 |
| Diluted Shares Outstanding | 435M | 416M | 401.51M | 352.71M | 399.12M | 308.64M | 254.22M | 260.85M | 175.15M | 121.03M |
| Basic Shares Outstanding | 431M | 416M | 401.51M | 352.71M | 349.8M | 308.64M | 254.22M | 151.15M | 175.15M | 121.03M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 54.41% | 99.11% |
M&A integration and leverage
According to the provided quarterly income statements, APG has successfully transitioned from negative year-over-year growth in early 2024 to a robust 15.3% expansion by 2026Q1, suggesting that the company's aggressive acquisition strategy and shift toward recurring inspection-led services are effectively driving top-line momentum across its global footprint.
The acceleration in revenue growth appears to be a direct result of integrating large-scale acquisitions like Chubb, which has expanded the company's reach into international markets. Investors should monitor whether this growth remains sustainable as the company moves past the initial integration phase and attempts to drive organic service pull-through.
As reported in financial statements, APG's gross margins have fluctuated between 28.1% and 31.4% over the last ten quarters, indicating that despite the focus on higher-margin inspection services, the company remains tethered to lower-margin industrial and specialty contracting work that limits overall profitability potential compared to pure-play service peers.
The inability to consistently maintain gross margins above the 30% threshold suggests that the company's cost structure is heavily influenced by labor-intensive field operations. This volatility warrants further investigation into whether management can successfully divest lower-margin industrial assets to improve the overall quality of the earnings profile.
Based on the reported figures, operating income has shown significant quarterly variance, peaking at $161 million in 2025Q3 before retreating to $149 million in 2026Q1, which suggests that SG&A expenses are scaling inconsistently with gross profit and potentially masking underlying inefficiencies in the company's decentralized management model.
The lack of clear operating leverage implies that the company is struggling to achieve economies of scale despite its growing revenue base. Analysts should be cautious, as persistent SG&A bloat may indicate that the costs of managing a global, decentralized organization are offsetting the benefits of top-line growth.
Data from the income statement reveals that EPS has experienced extreme swings, ranging from a loss of $1.19 in 2025Q4 to a gain of $0.20 in 2025Q3, highlighting that reported net income is frequently impacted by non-operating items and restructuring charges inherent in an aggressive buy-and-build strategy.
The significant gap between GAAP net income and operational performance suggests that investors should prioritize cash flow metrics over headline EPS. The recurring stock-based compensation, averaging over $10 million per quarter, further dilutes the quality of earnings and warrants careful scrutiny regarding management's long-term incentive alignment.
Quick answers to the most common questions about buying APG stock.
For fiscal year 2025, APi Group Corporation (APG) reported total revenue of $7.91B. This represents a 159.7% increase compared to $3.05B in 2017.
APi Group Corporation (APG) is profitable, generating $302.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.8%.
APi Group Corporation (APG) reported an operating income of $554.0M, resulting in an operating profit margin of 7.0%. This margin reflects the operational efficiency of the business before interest and taxes.
APi Group Corporation (APG) generated $2.49B in gross profit for the year, representing a gross profit margin of 31.4%. This demonstrates the company's core pricing power and production efficiency.