APi Group CorpAPG
APi Group Corp Segments Disclosure
SEGMENT INFORMATION
The Company manages its operations under three operating segments which represent the Company’s two reportable segments: Safety Services, comprised of the North American Life Safety and International Life Safety operating segments, and Specialty Services. This structure is generally comprised of various businesses related to contracted services, inspections, and monitoring of industrial and commercial facilities. The segments have separate management and have results that are regularly reviewed by the Chief Executive Officer and President, who acts as the Company's Chief Operating Decision Maker (“CODM”), for the purpose of allocating resources and evaluating performance, identifying them as separate reportable segments.
The Safety Services segment focuses on fire protection solutions, electronic security systems, and elevators and escalators, including the design, installation, inspection, service, and monitoring of these life safety systems. The work performed within this segment spans across a diverse mix of end markets with a focus on high tech services, advanced manufacturing, healthcare, fulfillment and distribution centers, and critical infrastructure.
The Specialty Services segment provides a variety of specialty contracting, fabrication and distribution, and infrastructure and utility services. The work within this segment spans across a diverse mix of end markets with a focus on critical infrastructure, high tech services, and healthcare throughout North America.
In January 2025, due to a change in the way the businesses are managed, the Company realigned its segments by moving the HVAC business from Safety Services to Specialty Services. As a result, information for the HVAC business is combined with the Specialty Services segment within the information reviewed by the CODM. The CODM began regularly reviewing financial information to allocate resources and assess performance utilizing these reorganized segments in January 2025. As such, all segment-related prior period amounts in these financial statements have been recast to reflect this change as of the beginning of the earliest period presented.
The accounting policies of the reportable segments are the same as those described in Note 2 – “Significant Accounting Policies.” All intercompany transactions and balances are eliminated in consolidation. Intercompany revenues and costs between entities within a reportable segment are eliminated to arrive at segment totals, and eliminations between segments are separately presented.
Segment earnings is the measure of profitability used by the CODM to manage the segments and, accordingly, in segment reporting. Segment earnings is defined as earnings before interest, taxes, depreciation, and amortization and after adjustments for non-recurring items. Adjustments include expenses that management deems are non-recurring in nature and not indicative of the Company’s core operating results. These adjustments include business transformation and other expenses for the integration of acquired businesses, the impact and results of businesses classified as held-for-sale and divested, and one-time and other events such as impairment charges, restructuring costs, transaction and other costs related to acquisitions, amortization of intangible assets, and non-service pension cost or benefit.
The CODM establishes budgets for the segments, including growth of segment earnings. The CODM considers segment earnings budget-to-actual variances when making decisions about allocating capital to the segments. Segment earnings is also used in the compensation of certain employees and to assess the performance of each segment by regularly comparing the results of each segment with forecasted amounts. The CODM uses segment earnings to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results for its reportable segments.
Summarized financial information for the Company’s reportable segments are presented and reconciled to consolidated financial information in the following tables, including a reconciliation of segment earnings to income before income taxes:
| For the Year Ended December 31, 2025 | |||||||||||||||||
| Safety Services | Specialty Services | Total | |||||||||||||||
| Revenues from external customers | $ | 5,455 | $ | 2,456 | $ | 7,911 | |||||||||||
| Intersegment revenues | 1 | 4 | 5 | ||||||||||||||
| Net revenues | 5,456 | 2,460 | 7,916 | ||||||||||||||
| Reconciliation of revenue: | |||||||||||||||||
| Elimination of intersegment revenues | (5) | ||||||||||||||||
| Total consolidated revenues | $ | 7,911 | |||||||||||||||
Less: (a) | |||||||||||||||||
Segment cost of revenues(b) | 3,420 | 1,994 | |||||||||||||||
Segment operating expenses (c) | 1,161 | 259 | |||||||||||||||
| Plus: | |||||||||||||||||
| Segment other income/expense | 5 | 14 | |||||||||||||||
| Depreciation | 36 | 43 | |||||||||||||||
| Segment earnings | $ | 916 | $ | 264 | $ | 1,180 | |||||||||||
| Reconciliation of profit/(loss): | |||||||||||||||||
Corporate/other profit/(loss) (d) | $ | (139) | |||||||||||||||
| Interest expense, net | (141) | ||||||||||||||||
| Depreciation | (85) | ||||||||||||||||
| Amortization | (242) | ||||||||||||||||
| Contingent consideration and compensation | (2) | ||||||||||||||||
| Non-service pension cost | (19) | ||||||||||||||||
| Systems and business enablement | (96) | ||||||||||||||||
| Business process transformation expenses | (4) | ||||||||||||||||
| Acquisition and divestiture related expenses | (24) | ||||||||||||||||
| Restructuring program related costs | (14) | ||||||||||||||||
| Other | (1) | ||||||||||||||||
| Income before income taxes | $ | 413 | |||||||||||||||
| Asset information: | |||||||||||||||||
| Total assets | $ | 6,861 | $ | 1,374 | $ | 8,235 | |||||||||||
| Capital expenditures | 29 | 42 | 71 | ||||||||||||||
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown and amortization expense is excluded from the amounts shown.
(b) Segment cost of revenues consists of costs such as direct labor, materials, subcontract costs and indirect costs related to contract performance, adjusted for non-recurring items.
(c) Segment operating expenses consist primarily of compensation and associated costs for sales and corporate marketing, administrative expenses associated with accounting, finance, legal, information systems, leadership development, and other corporate expenses, adjusted for non-recurring items.
(d) Corporate/other profit/(loss) includes amounts related to corporate functions such as administrative costs, professional fees, and other discrete items.
| For the Year Ended December 31, 2024 | |||||||||||||||||
| Safety Services | Specialty Services | Total | |||||||||||||||
| Revenues from external customers | $ | 4,795 | $ | 2,223 | $ | 7,018 | |||||||||||
| Intersegment revenues | 2 | 6 | 8 | ||||||||||||||
| Net revenues | 4,797 | 2,229 | 7,026 | ||||||||||||||
| Reconciliation of revenue: | |||||||||||||||||
| Elimination of intersegment revenues | (8) | ||||||||||||||||
| Total consolidated revenues | $ | 7,018 | |||||||||||||||
Less: (a) | |||||||||||||||||
Segment cost of revenues (b) | 3,050 | 1,790 | |||||||||||||||
Segment operating expenses (c) | 1,019 | 242 | |||||||||||||||
| Plus: | |||||||||||||||||
| Segment other income/expense | 6 | 10 | |||||||||||||||
| Depreciation | 31 | 46 | |||||||||||||||
| Segment earnings | $ | 765 | $ | 253 | $ | 1,018 | |||||||||||
| Reconciliation of profit/(loss): | |||||||||||||||||
Corporate/other profit/(loss) (d) | $ | (125) | |||||||||||||||
| Interest expense, net | (146) | ||||||||||||||||
| Depreciation | (80) | ||||||||||||||||
| Amortization | (222) | ||||||||||||||||
| Contingent consideration and compensation | (3) | ||||||||||||||||
| Non-service pension cost | (22) | ||||||||||||||||
| Business process transformation expenses | (52) | ||||||||||||||||
| Acquisition and divestiture related expenses | (13) | ||||||||||||||||
| Restructuring program related costs | (32) | ||||||||||||||||
| Other | 7 | ||||||||||||||||
| Income before income taxes | $ | 330 | |||||||||||||||
| Asset information: | |||||||||||||||||
| Total assets | $ | 6,266 | $ | 1,368 | $ | 7,634 | |||||||||||
| Capital expenditures | 23 | 48 | 71 | ||||||||||||||
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown and amortization expense is excluded from the amounts shown.
(b) Segment cost of revenues consists of costs such as direct labor, materials, subcontract costs and indirect costs related to contract performance, adjusted for non-recurring items.
(c) Segment operating expenses consist primarily of compensation and associated costs for sales and corporate marketing, administrative expenses associated with accounting, finance, legal, information systems, leadership development, and other corporate expenses, adjusted for non-recurring items.
(d) Corporate/other profit/(loss) includes amounts related to corporate functions such as administrative costs, professional fees, and other discrete items.
| For the Year Ended December 31, 2023 | |||||||||||||||||
| Safety Services | Specialty Services | Total | |||||||||||||||
| Revenues from external customers | $ | 4,422 | $ | 2,506 | $ | 6,928 | |||||||||||
| Intersegment revenues | 3 | 12 | 15 | ||||||||||||||
| Net revenues | 4,425 | 2,518 | 6,943 | ||||||||||||||
| Reconciliation of revenue: | |||||||||||||||||
| Elimination of intersegment revenues | (15) | ||||||||||||||||
| Total consolidated revenues | $ | 6,928 | |||||||||||||||
Less: (a) | |||||||||||||||||
Segment cost of revenues (b) | 2,898 | 2,064 | |||||||||||||||
Segment operating expenses (c) | 930 | 237 | |||||||||||||||
| Plus: | |||||||||||||||||
| Segment other income/expense | 3 | 10 | |||||||||||||||
| Depreciation | 25 | 51 | |||||||||||||||
| Segment earnings | $ | 625 | $ | 278 | $ | 903 | |||||||||||
| Reconciliation of profit/(loss): | |||||||||||||||||
Corporate/other profit/(loss) (d) | $ | (121) | |||||||||||||||
| Interest expense, net | (145) | ||||||||||||||||
| Depreciation | (79) | ||||||||||||||||
| Amortization | (224) | ||||||||||||||||
| Contingent consideration and compensation | (14) | ||||||||||||||||
| Non-service pension benefit | 12 | ||||||||||||||||
| Business process transformation expenses | (30) | ||||||||||||||||
| Acquisition and divestiture related expenses | (7) | ||||||||||||||||
| Restructuring program related costs | (46) | ||||||||||||||||
| Other | (17) | ||||||||||||||||
| Income before income taxes | $ | 232 | |||||||||||||||
| Asset information: | |||||||||||||||||
| Total assets | $ | 5,586 | $ | 1,423 | $ | 7,009 | |||||||||||
| Capital expenditures | 23 | 50 | 73 | ||||||||||||||
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown and amortization expense is excluded from the amounts shown.
(b) Segment cost of revenues consists of costs such as direct labor, materials, subcontract costs and indirect costs related to contract performance, adjusted for non-recurring items.
(c) Segment operating expenses consist primarily of compensation and associated costs for sales and corporate marketing, administrative expenses associated with accounting, finance, legal, information systems, leadership development, and other corporate expenses, adjusted for non-recurring items.
(d) Corporate/other profit/(loss) includes amounts related to corporate functions such as administrative costs, professional fees, and other discrete items.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 24, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.