APi Group Corporation

Good morning, ladies and gentlemen, and welcome to API Group's second quarter 2026 financial results conference call. All participants are now in a listen-only mode until the question and answer session. We ask that all participants limit themselves to one question during the question and answer session. Please note, this call is being recorded. I will be standing by should you need any assistance. I will now turn the call over to Adam Walters, Senior Director of Investor Relations at API Group. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining our second quarter 2026 earnings conference call. Joining me on the call today are Russ Becker, our President and CEO, and David Jackola, our Executive Vice President and CFO. Before we begin, I would like to remind you that certain statements in the company's earnings press release and on this call are forward-looking statements which are based on expectations, intentions, and projections regarding the company's future performance, anticipated events or trends, and other matters that are not historical facts. These statements are not a guarantee of future performance and are subject to known and unknown risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. In our press release and filings with the SEC, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, July 30th, and we undertake no obligation to update any forward-looking statement we may make except as required by law. As a reminder, We have posted a presentation detailing our second quarter financial performance on the investor relations page of our website. Our comments today will also include non-GAAP financial measures and other key operating metrics. The reconciliation of and other information regarding these items can be found in our press release and our presentation. It is now my pleasure to turn the call over to Russ.

Thank you, Adam. Good morning, everyone. Thank you for taking the time to join our call this morning. I want to begin by thanking our 31,000 leaders for their dedication to API. The safety, health, and well-being of each of our leaders remains our number one value. We are proud that API has once again been certified as a great place to work, marking our fifth consecutive year on the list. This achievement reflects the culture our leaders have built, one where we care for our teammates and empower them to do their best work. Our enduring purpose of building great leaders defines that culture and allows us to attract, develop, and retain exceptional leaders across API. We believe our culture will continue to be a competitive advantage for us over the long term. The strength of our business model and discipline execution drove another impressive quarter as we continue to deliver robust growth and margin expansion. Net revenues increased 13%, including 10% organic growth, with growth across both segments. Our North American safety business maintained its momentum and delivered another strong quarter, growing organically by high single digits with robust growth in both project and service revenues. This business has consistently outperformed our mid-single-digit long-term growth algorithm. underscoring the sustained strength of the business and the execution of our inspection first strategy. We continue to see a healthy pipeline in both project and service work, much of which is with existing customers, reinforcing our inspection first flywheel and creating attractive recurring revenue opportunities in the future. International safety was flat for the quarter. However, we saw a return to organic growth in the back half of the quarter. Improvements in underlying commercial indicators give us confidence that the business will continue to grow as we move through the balance of the year. Investments in our international global accounts capability are gaining traction. Both pipeline and book backlog increased during Q2 and include a number of meaningful new project awards in the data center space, which as many of you know, has led the US market in both the pace and magnitude of growth. Order intake grew mid-single digits in the quarter, and portfolio additions were at their highest level in more than two years. Longer term, there's a significant opportunity ahead in the international business as we double down on our recurring revenue and inspection-first go-to-market strategy, supplement growth through bolt-on M&A, and capitalize on the cross-sell opportunity that exists through WTEC's complimentary fire sprinkler and suppression capabilities. The specialty services segment outperformed expectations in the second quarter. Net revenues increased 22% organically with robust growth in both project and service revenues. Momentum was broad-based. Demand continues to be strong across our targeted end markets. Data Centers were a notable contributor where our businesses offer a variety of services including HVAC and mechanical, structured cabling, structural steel, and insulated paneling, among others. Our team has remained selective in its approach to customer and project selection and has executed at a high level, translating top line growth into a 60 basis point increase in segment earnings margin. We ended the second quarter with a record backlog, surpassing $5 billion for the first time in API's history. End markets matter. We remain focused on data centers, semiconductors, advanced manufacturing, healthcare, and critical national infrastructure. Within the data center market, activity remains a meaningful source of strength across both segments, and we see a healthy pipeline of opportunities. Our size, scale, technical expertise, and established customer relationships position us well to support the data center and related infrastructure build-out while creating long-term opportunities for recurring high margin inspection, service, and monitoring revenue once the data centers are operational. I am pleased with the portfolio of offerings across our segments, which positions us well to capture current demand in this dynamic market. Adjusted EBITDA margins increase 10 basis points despite the near-term mix impact from the robust project environment. As a reminder, gross margins from project work is typically 10 percentage points lower than those on service work. These attractive projects meet our discipline, customer, and project selection criteria and position us well to capture the recurring inspection and service work following project completion. Cash flow was once again strong in the quarter, with the business generating $228 million in adjusted free cash flow year to date. We ended the quarter with a net leverage ratio of 2.2 times below our long-term target. During the quarter, we repurchased approximately 1.6 million shares for $66 million, the first share repurchase under our existing $1 billion program. Our consistent free cash flow generation and strong balance sheet continue to provide us flexibility to pursue acquisitions, share repurchases, and reinvestment in the business through capital expenditures, supporting our 10, 16, 60 plus financial targets. As a reminder, these targets include the following. $10 billion plus in net revenues by 2028 supported by consistent mid single or mid single digit organic growth and accretive M&A. 16% plus adjusted EBITDA margin by 2028. 60% plus of our revenues from inspection, service and monitoring over the long term and $3 billion plus of cumulative adjusted free cash flow through 2028. We continue to flex our M&A muscle this quarter. In June, we closed the acquisition of Onyx Fire, followed by WTech in early July. It has been great to welcome both teams to the API family. These businesses are excellent strategic fits for API, add valuable capabilities in important geographies, and most importantly, align well with our culture. Integration is progressing and we are excited to see both businesses continue to grow as part of the API. We also remained active on the bolt-on front, completing three acquisitions during the quarter. This included the first bolt-on acquisition completed in our elevator and escalator services business, as well as one completed in our international safety business. These are important milestones as we build out our M&A pipelines in both businesses. The industries we serve remain highly fragmented, and our bolt-on pipeline remains robust with a broad range of opportunities at attractive multiples. Our value proposition as a forever home continues to resonate with sellers and their teams. Our strong balance sheet provides the flexibility to pursue larger acquisitions when the right opportunities arise. and we remain on track to deploy $250 million in bolt-on M&A this year. Looking forward, we are building the capabilities needed to support a higher volume of bolt-on M&A as we work to scale annual deployment towards $350 million. Lastly, API was named to the Fortune 500 list for the first time. This is a meaningful milestone which coincides with our 100 year anniversary and reflects the dedication of our leaders, the strength of our business model and the consistent execution of our strategy. We are proud of how far API has come and remain focused on continuing to build a durable business for the long term. I believe the best is yet to come. The business is executing at a high level and our financial results are strong, reinforcing our confidence in our long term targets. We are encouraged by the strength in the inspection, service, and monitoring business, the robust project environment, record backlog, and the disciplined execution of our M&A strategy. We are well positioned to build on this momentum in the second half of the year. I would now like to hand the call over to David to discuss our second quarter financial results and guidance in more detail. David?