# APi Group Corp (APG) Informational only - not investment advice. CIK: 0001796209 SIC: 7340 Services-To Dwellings & Other Buildings SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7340 Services-To Dwellings & Other Buildings](/industry/7340/) Latest 10-K filed: 2026-02-25 SEC page: https://www.sec.gov/edgar/browse/?CIK=1796209 Filing source: https://www.sec.gov/Archives/edgar/data/1796209/000162828026011620/apg-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0001628280-26-011620 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001796209.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 7,911,000,000 USD | 2025 | verified | | Net income | 302,000,000 USD | 2025 | verified | | Assets | 8,936,000,000 USD | 2025 | verified | | Free cash flow | 663,000,000 USD | 2025 | computed | | Net margin | 3.82% | 2025 | computed | | Operating margin | 7.00% | 2025 | computed | | Revenue YoY | +12.72% | 2025 | computed | | ROE | 8.86% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | APG | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 3.8% | 4.2% | 50 | 310 | | Operating margin | 7.0% | 6.3% | 52 | 301 | | Revenue growth | 12.7% | 9.2% | 60 | 315 | | FCF margin | 8.4% | 14.9% | 32 | 307 | | ROE | 8.9% | 6.6% | 55 | 287 | | ROA | 3.4% | 2.6% | 55 | 318 | | Liabilities / equity | 1.62 | 1.27 | 63 | 290 | | Current ratio | 1.50 | 1.50 | 50 | 313 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 73 Business Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 7911000000 | USD | 2025 | 2026-02-25 | | Net income | 302000000 | USD | 2025 | 2026-02-25 | | Assets | 8936000000 | USD | 2025 | 2026-02-25 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001796209.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 3,728,000,000 | 985,000,000 | 3,587,000,000 | 3,940,000,000 | 6,558,000,000 | 6,928,000,000 | 7,018,000,000 | 7,911,000,000 | | Net income | | 136,000,000 | -153,000,000 | -153,000,000 | 47,000,000 | 73,000,000 | 153,000,000 | 250,000,000 | 302,000,000 | | Operating income | | 162,000,000 | -161,000,000 | -166,000,000 | 136,000,000 | 162,000,000 | 359,000,000 | 484,000,000 | 554,000,000 | | Gross profit | | 787,000,000 | 198,000,000 | 756,000,000 | 939,000,000 | 1,714,000,000 | 1,940,000,000 | 2,178,000,000 | 2,487,000,000 | | Diluted EPS | | | -1.15 | -2.21 | -0.67 | 0.10 | -0.46 | -0.56 | -0.69 | | Operating cash flow | | 112,000,000 | 150,000,000 | 496,000,000 | 182,000,000 | 270,000,000 | 514,000,000 | 620,000,000 | 759,000,000 | | Capital expenditures | | 74,000,000 | 11,000,000 | 38,000,000 | 55,000,000 | 79,000,000 | 86,000,000 | 84,000,000 | 96,000,000 | | Share buybacks | | | | 30,000,000 | 0.00 | 44,000,000 | 41,000,000 | 0.00 | 75,000,000 | | Assets | | | 4,011,000,000 | 4,065,000,000 | 5,159,000,000 | 8,091,000,000 | 7,590,000,000 | 8,152,000,000 | 8,936,000,000 | | Liabilities | | | 2,254,000,000 | 2,507,000,000 | 2,836,000,000 | 5,167,000,000 | 4,722,000,000 | 5,199,000,000 | 5,528,000,000 | | Stockholders' equity | | | 1,757,000,000 | 1,558,000,000 | 2,323,000,000 | 2,127,000,000 | 2,071,000,000 | 2,953,000,000 | 3,408,000,000 | | Cash and cash equivalents | 41,000,000 | 54,000,000 | 256,000,000 | 515,000,000 | 1,188,000,000 | 605,000,000 | 479,000,000 | 499,000,000 | 912,000,000 | | Free cash flow | | 38,000,000 | 139,000,000 | 458,000,000 | 127,000,000 | 191,000,000 | 428,000,000 | 536,000,000 | 663,000,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | 3.65% | -15.53% | -4.27% | 1.19% | 1.11% | 2.21% | 3.56% | 3.82% | | Operating margin | | 4.35% | -16.35% | -4.63% | 3.45% | 2.47% | 5.18% | 6.90% | 7.00% | | Return on equity | | | -8.71% | -9.82% | 2.02% | 3.43% | 7.39% | 8.47% | 8.86% | | Return on assets | | | -3.81% | -3.76% | 0.91% | 0.90% | 2.02% | 3.07% | 3.38% | | Liabilities / equity | | | 1.28 | 1.61 | 1.22 | 2.43 | 2.28 | 1.76 | 1.62 | | Current ratio | | | 1.63 | 1.71 | 3.03 | 1.38 | 1.43 | 1.41 | 1.50 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001796209.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.06 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.05 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.12 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 1,784,000,000 | 43,000,000 | 0.15 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 1,759,000,000 | -256,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 1,601,000,000 | -334,000,000 | -1.34 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 1,730,000,000 | 69,000,000 | 0.22 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 1,826,000,000 | 69,000,000 | 0.23 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 1,861,000,000 | -28,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 1,719,000,000 | 31,000,000 | 0.11 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 1,990,000,000 | 69,000,000 | 0.16 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 2,085,000,000 | 84,000,000 | 0.20 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 2,117,000,000 | -472,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 1,982,000,000 | 51,000,000 | 0.12 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 2,254,000,000 | 89,000,000 | 0.20 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from APG's latest 10-K: [/company/APG/business/](/company/APG/business/). ## Risk Factors Verbatim Item 1A Risk Factors from APG's latest 10-K: [/company/APG/risk-factors/](/company/APG/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1796209/000162828026051007/apg-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-07-30 Report date: 2026-06-30 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) section should be read in conjunction with the interim unaudited condensed consolidated financial statements (the "Interim Statements") and related notes included in this quarterly report, and the Company's 2025 audited annual consolidated financial statements, the related notes thereto and under the heading "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and other disclosures contained in our Annual Report on Form 10-K, including financial results for the year ended December 31, 2025. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those discussed in these forward-looking statements. Factors that might cause a difference include, but are not limited to, those discussed under the “Cautionary Note Regarding Forward Looking Statements” section of this quarterly report. We prepare our financial statements in accordance with generally accepted accounting principles in the United States of America (“GAAP”). To supplement our financial results presented in accordance with GAAP in this MD&A section, we present EBITDA, which is a non-GAAP financial measure, to assist readers in understanding our performance and provide an additional perspective on trends and underlying operating results on a period-to-period comparable basis. Non-GAAP financial measures either exclude or include amounts not reflected in the most directly comparable measure calculated and presented in accordance with GAAP. Where a non-GAAP financial measure is used, we have provided the most directly comparable measure calculated and presented in accordance with GAAP, a reconciliation to the GAAP measure and a discussion of the reasons why management believes this information is useful to it and may be useful to investors. Unless the context otherwise requires, all references in this section to “APG,” the “Company,” “we,” “us,” and “our” refer to APi Group Corporation and its subsidiaries. Overview We are a global, market-leading business services company providing statutorily mandated and contracted services across our Safety Services and Specialty Services segments, including fire and life safety, electronic security, elevator and escalator, and infrastructure services. With more than 600 locations in over 20 countries, we are built on a century of expertise, a people-first culture, and our purpose of Building Great Leaders. We operate our business under three primary operating segments, two of which aggregate into a single reportable segment, resulting in two reportable segments: •Safety Services – A leading provider of safety services in North America, Europe, and Asia-Pacific, focusing on fire and life safety solutions, electronic security systems, and elevators and escalators, including design, installation, inspection, service, and monitoring of these 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. •Specialty Services – A leading provider of 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 high tech services, healthcare, and critical infrastructure throughout North America. We focus on growing our recurring revenue streams and repeat business from a diverse set of long-standing customers across a variety of end markets, which we believe provides us with stable cash flows and a platform for organic growth. We believe inspection, service, and monitoring revenues are generally more predictable through contractual arrangements with typical terms ranging from days to five years, with the majority having short durations and are often recurring due to consistent renewal rates and long-standing customer relationships. For financial information about our segments see Note 17 – “Segment Information” to our condensed consolidated financial statements included herein. 39 Table of Contents RECENT DEVELOPMENTS AND CERTAIN FACTORS AND TRENDS AFFECTING OUR RESULTS OF OPERATIONS Acquisitions For information about our acquisition activity, see Note 3 – "Business Combinations" to our condensed consolidated financial statements included herein. Economic, Industry, and Market Factors We closely monitor the effects of general changes in economic and market conditions on our customers. General economic and market conditions can positively or negatively affect demand for our customers’ products and services, which can impact their planned capital and maintenance budgets in certain end markets. Market, regulatory, and industry factors could affect demand for our services. Availability of transportation and transmission capacity and fluctuations in market prices for energy and other fuel sources can also affect demand for our services for pipeline and power generation construction services. These fluctuations, as well as the highly competitive nature of our industries, have resulted, and may continue to result, in lower proposals and lower profit on the services we provide. Increased volatility in the global economy, and the increased tariffs on imported goods by the United States, Canada, and other countries, may also impact the financial results of some of our businesses. These tariffs have a direct impact on the cost of certain materials utilized in the services we provide and will increase the overall cost of projects which could lower project activity and impact the demand for our services. In the face of increased cost pressure on key materials or other market developments, we strive to maintain our profit margins through productivity improvements, cost reduction programs, pricing adjustments, and business streamlining efforts. Increased competition for skilled labor resources and higher labor costs can reduce our profitability and impact our ability to deliver timely service to our customers. We could experience supply chain disruptions, which could negatively impact the source and supply of materials needed to perform our work. In addition, fluctuations in foreign currencies may have an impact on our financial position and results of operations. However, we believe that our exposure to transactional gains or losses resulting from changes in foreign currencies is limited because our foreign operations primarily invoice and collect receivables in their respective local or functional currencies, and the expenses associated with these transactions are generally contracted and paid for in the same local currencies. In cases where operational transactions represent a material currency risk, we generally enter into cross-currency swaps. Refer to Note 8 – "Derivatives" to our condensed consolidated financial statements included in this quarterly report for additional information on our hedging activities. While we actively monitor economic, industry, and market factors that could affect our business, we cannot predict the effect that changes in such factors may have on our future consolidated results of operations, liquidity, and cash flows, and we may be unable to fully mitigate, or benefit from, such changes. Effect of Seasonality and Cyclical Nature of Business Our net revenues and results of operations can be subject to variability stemming from seasonal and other variations. Seasonal variations can be influenced by weather conditions impacting customer spending patterns, contract award seasons, and project schedules, as well as the timing of holidays. Consequently, net revenues for our businesses are typically lower during the first and second quarters due to the prevalence of unfavorable weather conditions within our North American companies, which can cause project delays and affect productivity. Additionally, the industries we serve can be cyclical. Fluctuations in end-user demand, or in the supply of services within those industries, can affect demand for our services. As a result, our businesses may be adversely affected by industry declines or by delays in new projects. Variations or unanticipated changes in project schedules in connection with large projects can create fluctuations in net revenues. Recent Accounting Pronouncements A summary of recent accounting pronouncements is included in Note 2 – “Recent Accounting Pronouncements” to our condensed consolidated financial statements included herein. DESCRIPTION OF KEY LINE ITEMS Net revenues Net revenues are generated from the sale of various types of contracted services, fabrication, and distribution. We derive net revenues primarily from services under contractual arrangements with durations ranging from days to five years, with the majority having short durations, and which may provide the customer with pricing options that include a combination of fixed, unit, or time and material pricing. Net revenues for fixed price agreements are generally recognized over time using the cost-to-cost method of accounting which measures progress based on the cost incurred to total expected cost in satisfying our performance obligation. 40 Table of Contents Net revenues from time and material contracts are recognized as the services are provided. Net revenues earned are based on total contract costs incurred plus an agreed upon markup. Net revenues for these cost-plus contracts are recognized over time on an input basis as labor hours are incurred, materials are utilized, and services are performed. Net revenues from wholesale or retail unit sales are recognized at a point-in-time upon shipment. Cost of revenues Cost of revenues consists of direct labor, materials, subcontract costs, and indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs, and depreciation costs. Labor costs are considered to be incurred as the work is performed. Subcontractor labor is recognized as the work is performed. Gross profit Our gross profit is influenced by direct labor, materials, and subcontract costs. Our profit margins are also influenced by raw material costs, contract mix, weather, and proper coordination with contract providers. Labor-intensive contracts usually drive higher margins than those contracts that include material, subcontract, and equipment costs. Selling, general, and administrative ("SG&A") expenses Selling expenses consist primarily of compensation and associated costs for sales and advertising, trade shows, and corporate marketing. General and administrative expenses consist primarily of compensation and associated costs for executive management, personnel, facility leases, impairment, administrative expenses associated with accounting, finance, legal, information systems, leadership development, human resources, and risk management, and overhead associated with these functions. General and administrative expenses also include outside professional fees and other corporate expenses. Investment expense (income) and other, net Investment expense (income) and other, net includes income and expense from foreign currency forward contracts, cross-currency swaps, joint ventures, non-service pension cost, and other miscellaneous items including gains or losses on extinguishment of debt. Non-service pension cost reflects the sum of the components of pension expense not related to service expense, i.e., interest expense, expected return on assets, and amortization of prior service costs and actuarial gains and losses. CRITICAL ACCOUNTING ESTIMATES For information regarding our critical accounting estimates, see the “Critical Accounting Estimates” section of the “Manageme [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1796209/000162828026011620/apg-20251231.htm Complete FY 2025 MD&A: /company/APG/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-25 Report date: 2025-12-31 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is a discussion and year-to-year comparisons of APG’s financial condition and results of operations for the years ended December 31, 2025 and 2024. Some of the information contained in this discussion and analysis or set forth elsewhere in this Annual Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” sections of this Annual Report, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. OVERVIEW We are a global, market-leading business services provider of fire and life safety, security, elevator and escalator, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. We provide statutorily mandated and other contracted services to a strong base of long-standing customers across industries. We have a winning leadership culture driven by entrepreneurial business leaders that deliver innovative solutions to our customers. We focus on growing our recurring revenue streams and repeat business from a diverse set of long-standing customers across a variety of end markets, which we believe provides us with stable cash flows and a platform for organic growth. We believe inspection, service, and monitoring revenues are generally more predictable through contractual arrangements with typical terms ranging from days to five years, with the majority having durations of less than six months and are often recurring due to consistent renewal rates and long-standing customer relationships. CERTAIN FACTORS AND TRENDS AFFECTING OUR RESULTS OF OPERATIONS Segment Realignment During 2025, due to a change in the way the businesses are managed, we realigned our segments by moving the HVAC business from the Safety Services segment to the Specialty Services segment. As such, all segment-related prior period amounts have been recast to reflect this change as of the beginning of the earliest period presented. For additional information about our segments, see Note 22 – “Segment Information” to our consolidated financial statements included in this Annual Report. Acquisitions During 2025, we completed 14 acquisitions. Total purchase consideration for all of the completed acquisitions of $233 million consisted of cash paid at closing of $186 million, cash deposited into escrow for future deferred payments of $17 million, and accrued consideration of $30 million. The results of operations of these acquisitions are included in our consolidated statements of operations from their respective dates of acquisition. For additional information about our acquisitions, see Note 4 – “Business Combinations” to our consolidated financial statements included in this Annual Report. Stock Split On June 30, 2025, we executed a three-for-two stock split by issuing a stock dividend of one-half of one share of common stock for each share of common stock. For additional information about our stock split, see Note 19 – "Shareholders' Equity and Redeemable Convertible Preferred Stock" to our consolidated financial statements included herein. 35 Table of Contents Restructuring In 2022, we announced our multi-year Chubb restructuring program designed to drive efficiencies and synergies and optimize operating margin. The Chubb restructuring program included expenses related to workforce reductions, lease termination costs, and other facility rationalization costs. During 2025, we incurred $4 million of pre-tax restructuring costs within the Safety Services segment in connection with the Chubb restructuring program. As of June 30,2025, the Chubb restructuring program ended and no additional expenses are expected. For additional information about our restructuring activity, see Note 6 – “Restructuring" to our consolidated financial statements included in this Annual Report. Economic, Industry, and Market Factors We closely monitor the effects of general changes in economic and market conditions on our customers. General economic and market conditions can positively or negatively affect demand for our customers’ products and services, which can impact their planned capital and maintenance budgets in certain end markets. Market, regulatory, and industry factors could affect demand for our services. Availability of transportation and transmission capacity and fluctuations in market prices for energy and other fuel sources can also affect demand for our services for pipeline and power generation construction services. These fluctuations, as well as the highly competitive nature of our industries, have resulted, and may continue to result, in lower proposals and lower profit on the services we provide. Increased volatility in the global economy, and the increased tariffs on imported goods by the United States, Canada, and other countries, may also impact the financial results of some of our businesses. These tariffs have a direct impact on the cost of certain materials utilized in the services we provide and will increase the overall cost of projects which could lower project activity and impact the demand for our services. In the face of increased cost pressure on key materials or other market developments, we strive to maintain our profit margins through productivity improvements, cost reduction programs, pricing adjustments, and business streamlining efforts. Increased competition for skilled labor resources and higher labor costs can reduce our profitability and impact our ability to deliver timely service to our customers. We could experience supply chain disruptions, which could negatively impact the source and supply of materials needed to perform our work. In addition, fluctuations in foreign currencies may have an impact on our financial position and results of operations. However, we believe that our exposure to transactional gains or losses resulting from changes in foreign currencies is limited because our foreign operations primarily invoice and collect receivables in their respective local or functional currencies, and the expenses associated with these transactions are generally contracted and paid for in the same local currencies. In cases where operational transactions represent a material currency risk, we generally enter into cross-currency swaps. Refer to Note 10 – "Derivatives" to our consolidated financial statements included in this Annual Report for additional information on our hedging activities. While we actively monitor economic, industry and market factors that could affect our business, we cannot predict the effect that changes in such factors may have on our future consolidated results of operations, liquidity, and cash flows, and we may be unable to fully mitigate, or benefit from, such changes. Effect of Seasonality and Cyclical Nature of Business Our net revenues and results of operations can be subject to variability stemming from seasonal and other variations. Seasonal variations can be influenced by weather conditions impacting customer spending patterns, contract award seasons, and project schedules, as well as the timing of holidays. Consequently, net revenues for our businesses are typically lower during the first and second quarters due to the prevalence of unfavorable weather conditions within our North American companies, which can cause project delays and affect productivity. Additionally, the industries we serve can be cyclical. Fluctuations in end-user demand, or in the supply of services within those industries, can affect demand for our services. As a result, our businesses may be adversely affected by industry declines or by delays in new projects. Variations or unanticipated changes in project schedules in connection with large projects can create fluctuations in net revenues. DESCRIPTION OF KEY LINE ITEMS Net revenues Net revenues are generated from the sale of various types of contracted services, fabrication, and distribution. We derive net revenues primarily from services under contractual arrangements with durations ranging from days to five years, 36 Table of Contents with the majority having durations of less than six months, and which may provide the customer with pricing options that include a combination of fixed, unit, or time and material pricing. Net revenues for fixed price agreements are generally recognized over time using the cost-to-cost method of accounting which measures progress based on the cost incurred to total expected cost in satisfying our performance obligation. Net revenues from time and material contracts are recognized as the services are provided. Net revenues earned are based on total contract costs incurred plus an agreed upon markup. Net revenues for these cost-plus contracts are recognized over time on an input basis as labor hours are incurred, materials are utilized, and services are performed. Net revenues from wholesale or retail unit sales are recognized at a point-in-time upon shipment. Cost of revenues Cost of revenues consists of direct labor, materials, subcontract costs, and indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs, and depreciation costs. Labor costs are considered to be incurred as the work is performed. Subcontractor labor is recognized as the work is performed. Gross profit Our gross profit is influenced by direct labor, materials, and subcontract costs. Our profit margins are also influenced by raw material costs, contract mix, weather, and proper coordination with contract providers. Labor intensive contracts usually drive higher margins than those contracts that include material, subcontract, and equipment costs. Selling, general, and administrative ("SG&A") expenses Selling expenses consist primarily of compensation and associated costs for sales and advertising, trade shows, and corporate marketing. General and administrative expenses consist primarily of compensation and associated costs for executive management, personnel, facility leases, impairment, administrative expenses associated with accounting, finance, legal, information systems, leadership development, human resources, and risk management and overhead associated with these functions. General and administrative expenses also include outside professional fees and other corporate expenses. Investment expense (income) and other, net Investment expense (income) and other, net includes income and expense from foreign currency forward contracts, cross-currency swaps, joint ventures, non-service pension cost, and other miscellaneous items including loss (gains) on extinguishment of debt. Non-service pension cost reflects the sum of the components of pension expense not related to service expense, i.e., interest expense, expected return on assets, and amortization of prior service costs and actuarial gains and losses. 37 Table of Contents RESULTS OF OPERATIONS The following is a discussion of our financial condition and results of operations for the years ended December 31, 2025 and 2024. The following financial information has been extracted from our audited consolidated financial statements included in this Annual Report. [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/APG/mda/fy2025/ All MD&A years: /company/APG/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/APG/mda/fy2024/): filed 2025-02-26; accession 0001628280-25-008189 (https://www.sec.gov/Archives/edgar/data/1796209/000162828025008189/apg-20241231.htm) - [FY 2023 MD&A](/company/APG/mda/fy2023/): filed 2024-02-28; accession 0001628280-24-007573 (https://www.sec.gov/Archives/edgar/data/1796209/000162828024007573/apg-20231231.htm) - [FY 2022 MD&A](/company/APG/mda/fy2022/): filed 2023-03-01; accession 0000950170-23-005456 (https://www.sec.gov/Archives/edgar/data/1796209/000095017023005456/apg-20221231.htm) - [FY 2021 MD&A](/company/APG/mda/fy2021/): filed 2022-03-01; accession 0000950170-22-002474 (https://www.sec.gov/Archives/edgar/data/1796209/000095017022002474/apg-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7340 Services-To Dwellings & Other Buildings) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/APG.md · JSON record: /company/APG.json · verified financials: /company/APG/financials.json / /company/APG/financials.csv · machine TOC for the whole site: /llms.txt