APi Group Corp 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm (PCAOB ID 185 ) 52 Consolidated Balance Sheets as of December 31, 202 5 and 20 24 54 Consolidated Statements of Operations for the Years Ended December 31, 202 5 , 202 4 , and 20 23 55 Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 202 5 , 202 4 , and 20 23 56 Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 202 5 , 202 4 , and 20 23 57 Consolidated Statements of Cash Flows for the Years Ended December 31, 202 5 , 202 4 , and 202 3 58 Notes to Consolidated Financial Statements 59 51 Table of Conten t s Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors APi Group Corporation: Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of APi Group Corporation and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 52 Table of Conten t s Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Total estimated costs for certain fixed price projects recognized over time As discussed in Note 7 to the consolidated financial statements, the Company recognizes revenue on certain safety services and specialty services for fixed price projects over time. For these fixed price projects, the Company uses a cost-to-cost measure of progress. More specifically, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. We identified the assessment of total estimated costs at completion for certain fixed price projects recognized over time as a critical audit matter. Evaluating the Company’s initial and subsequent changes to the total estimated costs for the fixed price projects involved subjective auditor judgment. More specifically, our subjective auditor judgment involved the evaluation of management’s assumptions related to estimated direct and indirect material, labor, and subcontractor costs, which affect the measurement of revenue recognized by the Company on certain fixed price projects. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s revenue process, including controls over the estimation of total costs for certain fixed price projects recognized over time. We selected certain projects and inspected related contract agreements, amendments, and change orders to test the existence of customer arrangements and to understand the nature and scope of the related projects. We evaluated the Company’s ability to accurately estimate the total costs for certain projects by (1) interviewing project personnel to gain an understanding of the status of project activities, (2) analyzing and comparing costs incurred to the nature of total estimated costs remaining, and (3) inspecting subsequent changes to the total estimated costs at completion and inquiring with project personnel as to the reason for the change. We further evaluated the Company’s ability to accurately estimate the total costs by evaluating the difference between the estimated costs and the final costs incurred for projects completed during the year. /s/ KPMG LLP We have served as the Company’s auditor since 2012. Minneapolis, Minnesota February 25, 2026 53 Table of Conten t s APi Group Corporation and Subsidiaries Consolidated Balance Sheets December 31, 2025 and 2024 (In millions, except share and per share amounts) December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 912 $ 499 Accounts receivable, net of allowances of $ 14 and $ 9 at December 31, 2025 and 2024, respectively 1,563 1,444 Inventories 145 143 Contract assets 484 453 Prepaid expenses and other current assets 125 119 Total current assets 3,229 2,658 Property and equipment, net 397 379 Operating lease right-of-use assets 301 268 Goodwill 3,167 2,894 Intangible assets, net 1,584 1,660 Deferred tax assets 40 57 Pension and post-retirement assets 129 120 Other assets 89 116 Total assets $ 8,936 $ 8,152 Liabilities and Shareholders’ Equity Current liabilities: Short-term and current portion of long-term debt $ 5 $ 4 Accounts payable 526 497 Contingent consideration and compensation liabilities 60 20 Accrued salaries and wages 444 381 Contract liabilities 694 590 Operating and finance leases 98 90 Other accrued liabilities 323 303 Total current liabilities 2,150 1,885 Long-term debt, less current portion 2,754 2,749 Pension and post-retirement obligations 50 48 Contingent consideration and compensation liabilities 8 22 Operating and finance leases 215 192 Deferred tax liabilities 205 198 Other noncurrent liabilities 146 105 Total liabilities 5,528 5,199 Commitments and contingencies (Note 18) — — Shareholders’ equity: Series A Preferred Stock, $ 0.0001 par value; 7,000,000 authorized shares; 4,000,000 shares issued and outstanding at December 31, 2025 and 2024 — — Common stock, $ 0.0001 par value; 1,000,000,000 and 500,000,000 authorized shares; and 415,915,273 shares and 412,167,491 shares issued at December 31, 2025 and 2024, respectively (excluding 15,212,810 and 11,916,156 shares declared for stock dividend at December 31, 2025 and 2024, respectively) — — Additional paid-in capital 3,296 3,305 Retained earnings 517 215 Accumulated other comprehensive loss ( 405 ) ( 567 ) Total shareholders’ equity 3,408 2,953 Total liabilities and shareholders’ equity $ 8,936 $ 8,152 See notes to consolidated financial statements. 54 Table of Conten t s APi Group Corporation and Subsidiaries Consolidated Statements of Operations (In millions, except per share amounts) Year Ended December 31, 2025 2024 2023 Net revenues $ 7,911 $ 7,018 $ 6,928 Cost of revenues 5,424 4,840 4,988 Gross profit 2,487 2,178 1,940 Selling, general, and administrative expenses 1,933 1,694 1,581 Operating income 554 484 359 Interest expense, net 141 146 145 Investment expense (income) and other, net — 8 ( 18 ) Other expense, net 141 154 127 Income before income taxes 413 330 232 Income tax provision 111 80 79 Net income $ 302 $ 250 $ 153 Net loss attributable to common shareholders: Accrued stock dividend on Series A Preferred Stock ( 590 ) ( 95 ) ( 270 ) Stock dividend on Series B Preferred Stock — ( 7 ) ( 44 ) Stock conversion of Series B Preferred Stock — ( 372 ) — Net loss attributable to common shareholders $ ( 288 ) $ ( 224 ) $ ( 161 ) Net loss per common share (basic and diluted): $ ( 0.69 ) $ ( 0.56 ) $ ( 0.46 ) Weighted-average shares outstanding (basic and diluted): 416 402 353 See notes to consolidated financial statements. 55 Table of Conten t s APi Group Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (Loss) (In millions) Year Ended December 31, 2025 2024 2023 Net income $ 302 $ 250 $ 153 Other comprehensive income (loss): Fair value change - derivatives, net of tax benefit (expense) of $ 10 , ($ 7 ), and $ 8 , respectively ( 29 ) 18 ( 24 ) Defined benefit pension plans adjustment, net of tax (expense) benefit of $( 5 ), $( 9 ), and $ 81 , respectively 15 26 ( 244 ) Foreign currency translation adjustment 176 ( 107 ) 61 Comprehensive income (loss) $ 464 $ 187 $ ( 54 ) See notes to consolidated financial statements. 56 Table of Conten t s APi Group Corporation and Subsidiaries Consolidated Statements of Shareholders’ Equity (In millions, except share amounts) Preferred Stock Issued and Outstanding Common Stock Issued and Outstanding Additional Paid-In Capital (Accumulated Deficit) Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity Shares Amount Shares Amount Balance, December 31, 2022 4,000,000 $ — 350,105,868 $ — $ 2,558 $ ( 164 ) $ ( 267 ) $ 2,127 Net income — — — — — 153 — 153 Fair value change - derivatives — — — — — — ( 24 ) ( 24 ) Foreign currency translation adjustment — — — — — — 61 61 Pension plans adjustment — — — — — — ( 244 ) ( 244 ) Loss on dedesignated derivatives amortized from AOCI into income — — — — — — ( 16 ) ( 16 ) Series B Preferred Stock dividend — — 2,899,506 — — — — — Share repurchases — — ( 2,439,739 ) — ( 41 ) — — ( 41 ) Profit sharing plan contributions — — 946,791 — 14 — — 14 Share-based compensation and other, net — — 1,850,548 — 41 — — 41 Balance, December 31, 2023 4,000,000 $ — 353,362,974 $ — $ 2,572 $ ( 11 ) $ ( 490 ) $ 2,071 Net income — — — — — 250 — 250 Fair value change - derivatives — — — — — — 18 18 Foreign currency translation adjustment — — — — — — ( 107 ) ( 107 ) Pension plans fair value adjustment — — — — — — 26 26 Loss on dedesignated derivatives amortized from AOCI into income — — — — — — ( 14 ) ( 14 ) Series A Preferred Stock dividend — — 11,916,156 — — — — — Series B Preferred Stock dividend — — 930,360 — 7 ( 7 ) — — Conversion of Series B Preferred Stock, net — — 24,390,245 — 214 ( 17 ) — 197 Issuance of common shares — — 18,975,000 — 458 — — 458 Profit sharing plan contributions — — 765,479 — 16 — — 16 Share-based compensation and other, net — — 1,827,277 — 38 — — 38 Balance, December 31, 2024 4,000,000 $ — 412,167,491 $ — $ 3,305 $ 215 $ ( 567 ) $ 2,953 Net income — — — — — 302 — 302 Fair value change - derivatives — — — — — — ( 29 ) ( 29 ) Foreign currency translation adjustment — — — — — — 176 176 Pension plans fair value adjustment — — — — — — 15 15 Series A Preferred Stock dividend — — 3,815,493 — — — — — Share Repurchases — — ( 3,095,573 ) — ( 75 ) — — ( 75 ) Profit sharing plan contributions — — 928,483 — 24 — — 24 Share-based compensation and other, net — — 2,099,379 — 42 — — 42 Balance, December 31, 2025 4,000,000 $ — 415,915,273 $ — $ 3,296 $ 517 $ ( 405 ) $ 3,408 See notes to consolidated financial statements. 57 Table of Conten t s APi Group Corporation and Subsidiaries Consolidated Statements of Cash Flows (In millions) Year Ended December 31, 2025 2024 2023 Cash flows from operating activities: Net income $ 302 $ 250 $ 153 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 85 80 79 Amortization 242 222 224 Restructuring charges, net of cash paid ( 6 ) ( 16 ) 9 Deferred taxes 15 ( 30 ) ( 32 ) Share-based compensation expense 44 32 29 Profit-sharing expense 36 27 19 Non-cash lease expense 110 97 88 Net periodic pension cost (benefit) 23 27 ( 8 ) Other, net ( 9 ) ( 28 ) 3 Changes in operating assets and liabilities, net of effects of acquisitions: Accounts receivable ( 57 ) ( 2 ) ( 69 ) Contract assets ( 17 ) ( 9 ) 26 Inventories 6 9 13 Prepaid expenses and other current assets 1 6 ( 14 ) Accounts payable 5 16 ( 14 ) Accrued liabilities and income taxes payable 45 ( 3 ) 42 Contract liabilities 85 46 51 Other assets and liabilities ( 151 ) ( 104 ) ( 85 ) Net cash provided by operating activities 759 620 514 Cash flows from investing activities: Acquisitions, net of cash acquired ( 186 ) ( 778 ) ( 83 ) Purchases of property and equipment ( 96 ) ( 84 ) ( 86 ) Proceeds from sales of property, equipment, held for sale assets, and businesses 28 33 54 Net cash used in investing activities ( 254 ) ( 829 ) ( 115 ) Cash flows from financing activities: Proceeds from long-term borrowings — 850 — Payments on long-term borrowings ( 7 ) ( 437 ) ( 484 ) Repurchases of common stock ( 75 ) — ( 41 ) Proceeds from the issuance of common shares — 458 — Conversion of Series B Preferred Stock — ( 600 ) — Payments of acquisition-related consideration ( 18 ) ( 8 ) ( 4 ) Restricted shares tendered for taxes ( 21 ) ( 13 ) ( 3 ) Other financing activities — ( 5 ) — Net cash (used in) provided by financing activities ( 121 ) 245 ( 532 ) Effect of foreign currency exchange rate change on cash, cash equivalents, and restricted cash 28 ( 15 ) 6 Net increase (decrease) in cash, cash equivalents, and restricted cash 412 21 ( 127 ) Cash, cash equivalents, and restricted cash, beginning of period 501 480 607 Cash, cash equivalents, and restricted cash, end of period $ 913 $ 501 $ 480 Supplemental cash flow disclosures: Cash paid for interest, net of interest income $ 136 $ 152 $ 150 Cash paid for income taxes, net of refunds 111 101 95 Accrued consideration issued in business combinations 30 31 11 Shares of common stock issued to profit sharing plan 24 18 14 Shares of common stock issued for conversion of Series B Preferred Stock — 569 — See notes to consolidated financial statements. 58 Table of Conten t s APi Group Corporation Notes to Consolidated Financial Statements (Amounts in millions, except shares and where noted otherwise) NOTE 1. NATURE OF BUSINESS APi Group Corporation (the “Company,” “APG,” or "APi Group") is 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. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying consolidated financial statements (the “Financial Statements”) include the accounts of the Company and of its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Investments in entities over which the Company has significant influence but not control are accounted for using the equity method of accounting. These investments are initially recorded at cost and subsequently adjusted based on the Company’s proportionate share of earnings, losses, and distributions from each entity. Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include the estimation of total contract costs used for net revenues and cost recognition from construction contracts, fair value estimates included in the accounting for acquisitions, valuation of long-lived assets and acquisition-related contingent consideration, self-insurance liabilities, income taxes, and the estimated effects of litigation and other contingencies. Foreign currency and currency translation The assets and liabilities of foreign subsidiaries with a functional currency other than the U.S. dollar are translated into U.S. dollars at exchange rates in effect at year-end, with resulting translation gains or losses included within other comprehensive income or loss. Net revenues and expenses are translated into U.S. dollars at average monthly rates of exchange in effect during the year. Foreign currency transaction gains and losses, including hedging impacts, are classified in investment expense (income) and other, net, in the consolidated statements of operations and were a loss (gain) of $ 2 , $ 2 and $( 1 ) for the years ended December 31, 2025, 2024, and 2023, respectively. These net foreign currency transaction gains and losses include derivative instruments designed to reduce foreign currency exchange rate risks. Refer to Note 10 – "Derivatives" for further information. Translation gains or losses, which are recorded in accumulated other comprehensive income (loss) on the consolidated balance sheets, result from translation of the assets and liabilities of APi Group’s foreign subsidiaries into U.S. dollars. Foreign currency translation gains (losses) totaled approximately $ 176 , $( 107 ), and $ 61 for the years ended December 31, 2025, 2024, and 2023, respectively. Nearly all of the Company’s foreign operations use their local currency as their functional currency. Currency gains or losses resulting from transactions executed in currencies other than the functional currency are included in investment expense (income) and other, net, in the consolidated statements of operations. Cash and cash equivalents The Company considers all highly liquid investments purchased with an original maturity date of three months or less to be cash equivalents. The Company maintains cash in bank accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Restricted cash is reported as other current assets in the consolidated balance sheets. Restricted cash reflects collateral against certain bank guarantees. 59 Table of Conten t s Fair value of financial instruments The financial instruments of the Company include cash and cash equivalents, accounts receivable, accounts payable, contingent consideration and compensation liabilities, and debt obligations. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market as of the measurement date. ASC Topic 820, Fair Value Measurements , provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to and is composed of the following levels: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets. Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3: Unobservable inputs that reflect the Company's own assumptions. The carrying values of cash and cash equivalents, accounts receivable, contract assets, other receivables, accounts payable, contingent compensation liabilities, accrued liabilities, and contract liabilities approximate their fair values because of their short maturity. The fair value of the Company’s revolving line of credit facility and long-term debt are based on current lending rates for similar borrowings, assuming the debt is outstanding through maturity, and considering the collateral. The carrying values of revolving line of credit facility approximate its fair values because the variable interest rates of these instruments are generally reset monthly. The fair value of the Company's debt is estimated by discounting future cash flows at currently available rates for borrowing arrangements with similar terms and conditions, which are considered to be Level 2 inputs under the fair value hierarchy. The fair value of the Company’s derivative instruments designated as hedging instruments are determined using standard pricing models and market-based assumptions for all significant inputs, such as yield curves and quoted spot and forward exchange rates. The fair value of the Company’s contingent consideration obligations is determined using a probability-weighted discounted cash flow method. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. Inventories Inventories consist primarily of wholesale insulation products, contracting materials and supplies. Inventories are valued at the lower of cost or net realizable value. Property and equipment Property and equipment, including additions, replacements, and improvements is stated at cost, or fair value for assets acquired in a business combination, less accumulated depreciation. Expenditures for maintenance and repairs are charged to operating expenses as incurred unless such expenditures extend the life of the asset or increase its capacity or efficiency. Depreciation expense is recognized over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improvements. Upon sale or disposition of property and equipment, the cost and related accumulated depreciation and amortization are removed from the consolidated balance sheets and any resulting gain or loss is recognized in the consolidated statements of operations. Leases The Company’s lease portfolio mainly consists of facilities, equipment, and vehicles. Operating lease assets represent the Company’s right to use an underlying asset for the lease term whereas lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term (or at fair values in the case of those leases assumed in an acquisition). As most of the Company’s leases do not provide an implicit rate, the Company uses incremental borrowing rates that are based on its own external unsecured borrowing rates and are risk-adjusted to approximate secured borrowing rates over similar terms. These rates are assessed on a quarterly basis for measurement of new lease obligations. The 60 Table of Conten t s operating lease assets are calculated based on the value of the lease liability plus prepaid rental payments less lease incentives that the Company expects to receive. Leases with an initial term of less than one year are not recorded on the Company’s consolidated balance sheets. Operating lease expense is recognized on a straight-line basis over the lease term. Many leases include one or more options to renew, with renewal terms that can extend the lease term for several years. The exercise of lease renewal options is generally at the Company’s sole discretion. Certain leases also include options to purchase the leased assets. The Company's lease terms include these renewal or purchase options when it is reasonably certain that those options will be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company’s lease agreements contain lease and non-lease components, which are accounted for as a single lease component for all asset classes except for certain asset classes within its information technology arrangements. Operating lease right-of-use assets are reported as separate lines in the consolidated balance sheets. Finance leases are generally those leases that allow the Company to substantially utilize or pay for the entire asset over its estimated life. For finance leases, the Company recognizes more expense in the initial years of total lease expense recognition due to the accretion of the lease liability and the straight-line amortization of the leased asset. Assets acquired under finance leases are recorded in property and equipment, net. Goodwill impairment Goodwill represents the excess of cost over the fair market value of net tangible and identifiable intangible assets of acquired businesses. The Company has recorded goodwill in connection with its historical acquisitions of businesses. Upon acquisition, these businesses were either combined into one of the existing components or managed on a stand-alone basis as an individual component. The components are aligned to one of the Company’s two reportable segments, Safety Services or Specialty Services. Goodwill is required to be evaluated for impairment at the reporting unit level, which represents the operating segment level or one level below the operating segment level for which discrete financial information is available. Management identifies its reporting units by assessing whether components have discrete financial information available, engage in business activities, and have a segment manager regularly review the component’s operating results. If two or more components are deemed economically similar, those components are aggregated into one reporting unit when performing the annual goodwill impairment test. Goodwill is not amortized, but instead is annually tested for impairment on October 1 each fiscal year, or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired. Qualitative indicators that may trigger the need for annual or interim quantitative impairment testing include, among other things, deterioration in macroeconomic conditions, declining financial performance, deterioration in the operational environment, or an expectation of selling or disposing of a portion of a reporting unit. Additionally, a significant change in business climate, a loss of a significant customer, increased competition, a sustained decrease in share price, or a decrease in estimated fair value below book value may trigger the need for interim impairment testing of goodwill associated with one or more reporting units. Accounting standards for testing goodwill for impairment require the application of either a qualitative or quantitative assessment to analyze whether or not goodwill has been impaired. The Company performs the qualitative analysis by evaluating financial performance, macroeconomic conditions, and industry trends. Under the quantitative assessment, the Company evaluates each reporting unit for impairment comparing the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recorded as a reduction to goodwill with a corresponding change to earnings in the period the goodwill is determined to be impaired. Any goodwill impairment is limited to the total amount of goodwill allocated to that reporting unit. During 2025, the Company performed a qualitative assessment for all reporting units to analyze whether or not goodwill has been impaired. See Note 8 – “Goodwill and Intangibles” for additional detail on goodwill and other intangible assets. Impairment of long-lived assets excluding goodwill The Company periodically reviews the carrying amount of its long-lived asset groups, including property and equipment and other identifiable intangible assets subject to amortization, when events or changes in circumstances indicate the carrying value may not be recoverable. Qualitative indicators that may trigger the need for impairment testing include an expectation of selling or disposing of a business unit. If facts and circumstances support the possibility of impairment, the 61 Table of Conten t s Company will compare the carrying value of the asset or asset group with the undiscounted future cash flows related to the asset or asset group. If the carrying value of the asset or asset group is greater than its undiscounted cash flows, the resulting impairment will be determined as the difference between the carrying value and the fair value, where fair value is determined for the carrying amount of the specific asset groups based on discounted future cash flows or appraisal of the asset groups. Investments The Company holds investments in joint ventures, the majority of which are accounted for under the equity method of accounting as the Company does not exercise control over the joint ventures. The Company exercises control over one joint venture that is consolidated into the Company's financial statements. The share of earnings from the consolidated joint venture was $ 0 , $ 1 , and $ 0 , for the years ended December 31, 2025, 2024, and 2023, respectively. The Company’s share of earnings from the non-consolidated joint ventures was $ 13 , $ 8 , and $ 7 , during the years ended December 31, 2025, 2024, and 2023, respectively. The earnings are recorded within investment expense (income) and other, net in the consolidated statements of operations. The investment balances were $ 6 and $ 4 as of December 31, 2025 and 2024, respectively, and are recorded within other assets in the consolidated balance sheets. Pension and post-retirement obligations The Company sponsors both funded and unfunded foreign defined benefit pension plans that cover a portion of the Company's employees. The Company accounts for its benefit plans in accordance with ASC 715, Compensation - Retirement Benefits, which requires balance sheet recognition of the overfunded or underfunded status of pension and post-retirement benefit plans. The amounts associated with these benefits are determined by actuaries and dependent on various actuarial assumptions including discount rates, expected return on plan assets, compensation increases, mortality, and health care cost trends. Under this guidance, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in accumulated other comprehensive loss, net of tax effects, until they are amortized as a component of net periodic benefit cost. The Company reviews its actuarial assumptions at each measurement date and makes modifications to the assumptions based on current rates and trends, if appropriate. During 2023, an annuity purchase transaction, commonly known as a “buy-in,” was executed for the two pension plans in the United Kingdom. Under the terms of the insurance contracts, which were issued by a third-party insurance company with no affiliation to the Company, all pension obligations will be funded by the insurer’s annuity payments, but the plans still retain full legal responsibility to pay the benefits to plan participants using the insurance payments. The Company's accounting policies related to pension obligations and the buy-in transaction are disclosed in Note 16 – "Pension." In December 2024, the Company entered into a non-binding agreement in principle with the Trustees of the two pension plans in the United Kingdom to proceed with wind-up of the plans contingent on certain conditions. If all conditions are met, the Company expects to execute the final wind-up in 2027. Definite-lived intangibles Intangibles consist of trade names and trademarks, customer relationships, and backlog intangibles. The intangibles are amortized over their estimated useful lives, which range from two to fifteen years for trade names and trademarks and customer relationships, and a period of six to thirty-six months for backlog. Cloud computing implementation costs The Company capitalizes certain implementation costs incurred associated with cloud computing arrangements ("CCA") that are service contracts. Capitalized costs for CCA are included in other assets on the Company's consolidated balance sheets. Costs not subject to capitalization are recognized within selling, general, and administrative expenses in the consolidated statements of operations. Amounts capitalized are recognized over the initial term of the software licenses, plus any probable renewals, beginning on the date the associated hosting arrangement is ready for its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. 62 Table of Conten t s Insurance liabilities Other accrued and other noncurrent liabilities include management’s best estimates of amounts expected to be incurred for health insurance claims, workers’ compensation, general liability, and automobile liability losses. A portion of this risk is retained on a self-insured basis through Sprocket, the Company's wholly-owned captive insurance subsidiary. The estimates are based on claim reports provided by the insurance carrier, management’s best estimates, and the maximum premium for a policy period. The amounts the Company will ultimately incur could differ in the near-term from the estimated amounts accrued. At December 31, 2025 and 2024, the Company had accrued $ 125 and $ 112 , respectively, relating to workers’ compensation, general and automobile claims, with $ 90 and $ 87 , respectively, included in other noncurrent liabilities. The Company recorded a receivable from the insurance carriers of $ 5 and $ 11 at December 31, 2025 and 2024, respectively, to offset the liabilities due above the Company’s deductible, which, under contract, are payable by the insurance carrier. The Company has outstanding letters of credit as collateral totaling approximately $ 153 and $ 147 at December 31, 2025 and 2024, respectively. The Company had $ 8 and $ 7 recorded within accrued salaries and wages relating to outstanding health insurance claims at December 31, 2025 and 2024, respectively. Share-based compensation The Company recognizes share-based compensation over the requisite service period of the awards (usually the vesting period) based on the grant date fair value of awards. An offsetting increase to shareholders’ equity is recorded equal to the amount of the compensation expense charge. For restricted stock grants with performance-based milestones, the expense is valued based on the closing market share price of the Company’s stock on the date of grant and recorded over the service period after the achievement of the milestone is probable or the performance condition is achieved. Forfeitures are estimated and recorded using historical forfeiture rates. The Company has an employee stock purchase plan (“ESPP”) under which shares of the Company’s common stock are available for purchase by eligible participants. The plan allows participants to purchase APi Group common stock at 85 % of its fair market value at the lower of (i) the date of commencement of the offering period or (ii) the last day of the exercise period, as defined in the plan documents. The fair value of purchases under the Company’s ESPP is estimated using the Black-Scholes option-pricing valuation model. The determination of fair value of stock-based awards using an option-pricing model is affected by the Company’s stock price as well as assumptions pertaining to several variables, including expected stock price volatility, the expected term of the award and the risk-free rate of interest. In the option-pricing model for the Company’s ESPP, expected stock price volatility is based on historical volatility of the Company’s common stock. The expected term of the award is based on historical and expected exercise patterns and the risk-free rate of interest is based on U.S. Treasury yields. Earnings per share Basic earnings per common share excludes dilution and is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period. The Company has determined that its Series A Preferred Stock and, prior to its extinguishment, Series B Preferred Stock were participating securities as the Series A Preferred Stock and Series B Preferred Stock participated in dividends with common stock according to a predetermined formula. Accordingly, the Company used the two-class method of computing basic and diluted earnings per share for common stock according to participation rights of the Series A Preferred Stock and Series B Preferred Stock. Under this method, net income applicable to holders of common stock is first reduced by the amount of dividends declared on Series A Preferred Stock and Series B Preferred Stock in the current period with remaining undistributed earnings allocated on a pro rata basis to the holders of common stock, Series A Preferred Stock, and Series B Preferred Stock to the extent that each class may share income for the period; whereas undistributed net loss is allocated to common stock because holders of Series A Preferred Stock and Series B Preferred Stock are not contractually obligated to share the loss. Revenue recognition and contract costs Refer to Note 7 – “Net Revenues,” for further discussion on the Company’s revenue recognition policies. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax 63 Table of Conten t s assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more-likely-than-not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties relating to unrecognized tax benefits and delinquent payments in income tax expense. NOTE 3. RECENT ACCOUNTING PRONOUNCEMENTS Accounting standards issued and adopted In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The ASU focuses on the rate reconciliation and income taxes paid. ASU 2023-09 requires the Company to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. The Company prospectively adopted this ASU on January 1, 2025. Refer to Note 14 – "Income Taxes" for details. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) , which requires business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The ASU also requires disclosure of purchases of inventory, employee compensation, depreciation, and intangible asset amortization. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, with early adoption permitted. In January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual periods beginning after December 15, 2026, and interim periods in fiscal years beginning after December 15, 2027. The Company is currently evaluating the potential impact of adopting these ASUs on its consolidated financial statements and disclosures. In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Credit Losses for Accounts Receivable and Contract Assets , which provides a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from revenue transactions accounted for under FASB Accounting Standards Codification ("ASC") Topic 606. ASU 2025-05 is effective for the Company's annual and interim periods in fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this ASU on its consolidated financial statements and disclosures but does not expect the impact to be material. On September 18, 2025, the FASB issued ASU 2025-06, Intangibles — Goodwill and Other—Internal‑Use Software (Subtopic 350-40): Target Improvements to the Accounting for Internal-Use Software, which improves ASC Subtopic 350-40 to better align the guidance (1) for development of software to be sold via SaaS and software to sold via license by introducing new capitalization considerations and (2) with agile software development by eliminating the existing software project staging guidance. This ASU is effective for all entities for annual and interim periods in fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this ASU on its consolidated financial statements and disclosures but does not expect the impact to be material. NOTE 4. BUSINESS COMBINATIONS The Company regularly evaluates potential acquisitions that strategically fit with the Company’s existing portfolio or expand the Company’s portfolio into a new and attractive business area. Acquisitions are accounted for as business combinations using the acquisition method of accounting. As such, the Company makes a preliminary allocation of the purchase price to the tangible assets and identifiable intangible assets acquired and liabilities assumed. In the months after closing, as the Company obtains additional information about the acquired assets and liabilities and learns more about the newly acquired business, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Purchase price is allocated to assets acquired and liabilities assumed based upon their estimated fair values, with limited exceptions as permitted pursuant to GAAP, as determined based on estimates and assumptions deemed reasonable by the Company. The Company engages third-party valuation specialists to assist with preparation of critical assumptions and 64 Table of Conten t s calculations of the fair value of acquired tangible and intangible assets in connection with significant acquisitions. The excess of the purchase price over the tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. Goodwill is attributable to the workforce of the acquired businesses, the complementary strategic fit and resulting synergies these businesses bring to existing operations, and the opportunities in new markets expected to be achieved from the expanded platform . 2025 acquisitions During the year ended December 31, 2025, the Company completed 14 acquisitions for total net consideration transferred of $ 233 , made up of cash paid at closing of $ 186 , cash deposited into escrow of $ 17 , and accrued consideration of $ 30 . The results of operations of these acquisitions are included in the Company's consolidated statements of operations from their respective dates of acquisition and were not material. 2025 Acquisitions Cash paid at closing $ 186 Cash deposited into escrow 17 Accrued consideration 30 Total net consideration $ 233 Cash and cash equivalents $ 15 Accounts receivable 25 Contract assets 2 Other current assets 2 Property and equipment 3 Intangible assets 86 Goodwill 126 Accounts Payable ( 8 ) Other accrued liabilities ( 8 ) Contract liabilities ( 6 ) Other noncurrent liabilities ( 4 ) Net assets acquired $ 233 The Company has not finalized its accounting for any of the acquisitions completed during 2025 and will make appropriate adjustments to the purchase price allocation prior to completion of the measurement periods, as required. Based on preliminary estimates, the total amount of goodwill from acquisitions expected to be deductible for tax purposes is $ 118 . See Note 8 – “Goodwill and Intangibles” for the provisional goodwill assigned to each segment. 2024 Acquisitions Elevated acquisition On June 3, 2024, the Company completed its acquisition of 100 % of the equity interests of Elevated Facility Services Group ("Elevated"). Elevated is a premier provider of contractually based services for all major brands of elevator and escalator equipment. Elevated is headquartered in Florida and serves customers in over 18 states. The results of the Elevated business are reported in the consolidated financial statements of the Company from the date of acquisition within the Company's Safety Services segment. 65 Table of Conten t s The following table summarizes the final fair values of the assets acquired and liabilities assumed at the date of the Elevated acquisition: Cash paid at closing $ 572 Cash deposited into escrow 6 Total net consideration $ 578 Cash and cash equivalents $ 7 Accounts receivable 29 Contract assets 14 Other current assets 6 Property and equipment 4 Operating lease right-of-use assets 2 Intangible assets 222 Goodwill 394 Accounts payable ( 12 ) Contract liabilities ( 10 ) Other accrued liabilities ( 26 ) Current and noncurrent operating and finance lease liabilities ( 3 ) Deferred tax liabilities ( 49 ) Net assets acquired $ 578 The Company finalized its accounting for the Elevated acquisition during the year ended December 31, 2025. The total amount of goodwill from the Elevated acquisition expected to be deductible for tax purposes is $ 19 . During the year ended December 31, 2024, the Company incurred transaction costs of $ 7 , which were expensed and included as a component of selling, general, and administrative expenses in the consolidated statements of operations. Other 2024 Acquisitions On September 3, 2024, the Company completed an acquisition included within the Safety Services segment ("Acquisition A24"). The results of the A24 business are reported within the Company's Safety Services segment. Consideration for Acquisition A24 included cash paid at closing of $ 24 and accrued consideration of $ 9 . On October 1, 2024, the Company completed an acquisition included within the Safety Services segment ("Acquisition B24"). The results of the B24 business are reported within the Company's Safety Services segment. Consideration for Acquisition B24 included cash paid at closing of $ 99 , cash deposited into escrow for future deferred payments of $ 2 , and no accrued consideration. On December 2, 2024, the Company completed an acquisition included within the Safety Services segment ("Acquisition C24"). The results of the C24 business are reported within the Company's Safety Services segment. Consideration for Acquisition C24 included cash paid at closing of $ 26 and accrued consideration of $ 7 . During 2024, the Company completed nine individually immaterial acquisitions for total net consideration transferred of $ 77 , made up of cash paid at closing of $ 63 and accrued consideration of $ 14 . The results of operations of these acquisitions are included in the Company’s consolidated statements of operations from their respective dates of acquisition and were not material. The total amount of goodwill from acquisitions deductible for tax purposes is $ 106 . 66 Table of Conten t s The following table summarizes the final fair values of the assets acquired and liabilities assumed at the dates of acquisition: Acquisition A24 Acquisition B24 Acquisition C24 Other 2024 acquisitions Cash paid at closing $ 24 $ 99 $ 26 $ 63 Cash deposited into escrow — 2 — — Accrued consideration 9 — 7 14 Total net consideration $ 33 $ 101 $ 33 $ 77 Cash and cash equivalents $ 6 $ — $ 2 $ — Accounts receivable 15 18 10 2 Contract assets — 2 — — Other current assets 2 4 1 1 Property and equipment 2 3 — 3 Intangible assets 8 38 10 33 Goodwill 10 52 16 43 Other assets — 2 — — Accounts payable ( 2 ) ( 4 ) ( 2 ) — Other accrued liabilities ( 3 ) ( 8 ) ( 2 ) ( 1 ) Contract liabilities ( 5 ) ( 1 ) — ( 2 ) Deferred tax liabilities — ( 2 ) ( 2 ) ( 2 ) Other noncurrent liabilities — ( 3 ) — — Net assets acquired $ 33 $ 101 $ 33 $ 77 The Company finalized its accounting for all 2024 acquisitions during the year ended 2025. The final allocations of the purchase prices did not differ materially from preliminary estimates with the exception of measurement period adjustments, primarily related to accounts receivable, other current assets, intangible assets, goodwill, other assets, other accrued liabilities, and other noncurrent liabilities recorded during the year ended December 31, 2025. Accrued consideration The Company’s acquisition purchase agreements typically include deferred payment provisions, often to sellers who become employees of the Company or its subsidiaries. The provisions are made up of three general types of arrangements, contingent compensation and contingent consideration (both of which are contingent on the future performance of the acquired entity) and deferred payments related to indemnities. Contingent compensation arrangements are typically contingent on the former owner’s future employment with the Company, and the related amounts are recognized over the required employment period, which is typically one to four years . Contingent consideration arrangements are not contingent on employment and are included as part of purchase consideration at the time of the initial acquisition and are paid over a one - to four-year period. The liability for deferred payments is recognized at the date of acquisition based on the Company’s best estimate and is typically payable over a one - to three-year period. Deferred payments are not contingent on any future performance or employment obligations and can be offset for working capital true-ups, and representations and warranty items. The total contingent compensation arrangement liability was $ 7 and $ 0 at December 31, 2025 and 2024, respectively. The maximum payout of these arrangements upon completion of the future performance periods was $ 15 and $ 2 , inclusive of the $ 7 and $ 0 , accrued as of December 31, 2025 and 2024, respectively. The contingent compensation liability is included in contingent consideration and compensation liabilities in the consolidated balance sheets for all periods presented. The Company primarily determines the contingent compensation liability based on forecasted cumulative earnings compared to the cumulative earnings target set forth in the arrangement. Compensation expense associated with these arrangements is recognized ratably over the required employment period. 67 Table of Conten t s The contingent consideration obligations are measured at fair value each reporting period and changes in estimates of fair value are recognized in earnings. For additional considerations regarding the fair value of the Company's contingent consideration liabilities, see Note 9 – "Fair Value of Financial Instruments." The total liability for deferred payments was $ 39 and $ 28 at December 31, 2025 and 2024, respectively, and is included in contingent consideration and compensation liabilities in the consolidated balance sheets for all periods presented. NOTE 5. DIVESTITURES During 2023, the Company completed the divestiture of an infrastructure and utility operating company in the Specialty Services segment (the "Operating Company"). The Company received $ 38 in cash for the sale. During the year ended December 31, 2023, the Company recorded an impairment charge of $ 12 in selling, general, and administrative expenses in the consolidated statements of operating related to impairment of goodwill, intangible assets, and other assets of the Operating Company. NOTE 6. RESTRUCTURING In 2022, the Company announced its 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, the Company incurred $ 4 of pre-tax restructuring costs within the Safety Services segment in connection with the Chubb restructuring program. As of December 31, 2025, the Company had $ 13 in restructuring liabilities recorded in other accrued liabilities on the consolidated balance sheets for this plan. In addition, the Company incurred $ 3 of related costs which include lease impairment charges, asset write-downs, and consulting fees. As of June 30, 2025, the Chubb restructuring program ended, and no additional expenses are expected. For the restructuring program, employee-related costs consisted of termination benefits provided to employees who were involuntarily terminated and voluntary early retirement benefits. Program related costs include costs incurred as a direct result of the restructuring program such as consulting fees and facility relocation costs. The following table summarizes the Company's restructuring liabilities for the years ended December 31, 2025 and 2024: December 31, 2023 $ 32 Charges 12 Payments ( 28 ) Reversals ( 1 ) December 31, 2024 15 Charges 4 Payments ( 7 ) Currency translation adjustment 1 December 31, 2025 $ 13 In addition to the costs noted above, the Company incurred asset write-down costs of $ 0 and $ 1 for the years ended December 31, 2025 and 2024, respectively. The Company incurred program related costs of $ 3 and $ 13 for the years ended December 31, 2025 and 2024, respectively. NOTE 7. NET REVENUES Under ASC 606, revenue is recognized when or as control of promised goods and services is transferred to customers, and the amount of revenue recognized reflects the consideration to which an entity expects to be entitled in exchange for the goods and services transferred. Net revenues are primarily recognized by the Company over time utilizing the cost-to-cost measure of progress. Net revenues recognized at a point in time primarily relate to distribution contracts and short-term time and materials contracts. 68 Table of Conten t s Contracts with customers The Company derives net revenues primarily from contracts with a duration of less than one week to five years (with the majority of contracts having durations of less than six months ), which are subject to multiple pricing options, including fixed price, unit price, time and material, or cost plus a markup. The Company also enters into fixed price service contracts related to inspection, service, and monitoring of safety systems. The Company may utilize subcontractors in the fulfillment of its performance obligations. When doing so, the Company is considered the principal in these transactions and revenues are recognized on a gross basis. 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 relative to total expected cost in satisfying its performance obligation. The cost-to-cost method is used as it best depicts the continuous transfer of control of goods or services to the customer. Costs incurred include direct materials, labor and subcontract costs, and indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs, and depreciation costs. Labor and subcontractor labor costs are considered to be incurred and recognized as the work is performed. These contract costs are included in the results of operations under cost of revenues. Net revenues from time and material contracts are recognized as the services are provided and is equal to the sum of the contract costs incurred plus an agreed upon markup. Net revenues earned from distribution contracts are recognized upon shipment or performance of the service. The cost estimation process for recognizing net revenues over time under the cost-to-cost method is based on the professional knowledge and experience of the Company’s project managers, engineers, and finance professionals. Management reviews estimates of total contract transaction price and total project costs on an ongoing basis. Changes in job performance, job conditions, and management’s assessment of expected variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts, and the Company’s profit recognition. Changes in these factors could result in cumulative revisions to net revenues in the period in which the revisions are determined, which could materially affect the Company’s consolidated results of operations for that period. Provisions for estimated losses on uncompleted contracts are recorded in the period in which such estimated losses are determined. The Company disaggregates its net revenues primarily by segment, service type, and country from which revenues are invoiced, as the nature, timing and uncertainty of cash flows are relatively consistent within each of these categories. The following tables provide disclosure of disaggregated net revenues by segment for the years ended December 31, 2025, 2024, and 2023. During 2025, in conjunction with the movement of the Heating, Ventilation, and Air Conditioning ("HVAC") business from the Safety Services segment to the Specialty Services segment, the Company reassessed the categories by which it disaggregates net revenues. The Company determined the nature, timing, and uncertainty of the cash flows of the HVAC business are consistent with the cash flows of the Specialty Contracting businesses. Additionally, the Company determined the nature, timing, and uncertainty of the cash flows of a distribution business previously included within Specialty Contracting are more consistent with the cash flows of the Fabrication business. As such, prior period amounts in this table have been recast to reflect the current period presentation. See Note 22 – “Segment Information” for additional information. Disaggregated net revenues information is as follows: Year Ended December 31, 2025 Safety Services Specialty Services Consolidated Life Safety $ 5,456 $ — $ 5,456 Infrastructure and Utility — 1,024 1,024 Fabrication and Distribution — 342 342 Specialty Contracting — 1,094 1,094 Corporate and Eliminations — — ( 5 ) Net revenues $ 5,456 $ 2,460 $ 7,911 69 Table of Conten t s Year Ended December 31, 2024 Safety Services Specialty Services Consolidated Life Safety $ 4,797 $ — $ 4,797 Infrastructure and Utility — 998 998 Fabrication and Distribution — 290 290 Specialty Contracting — 941 941 Corporate and Eliminations — — ( 8 ) Net revenues $ 4,797 $ 2,229 $ 7,018 Year Ended December 31, 2023 Safety Services Specialty Services Consolidated Life Safety $ 4,425 $ — $ 4,425 Infrastructure and Utility — 1,216 1,216 Fabrication and Distribution — 262 262 Specialty Contracting — 1,040 1,040 Corporate and Eliminations — — ( 15 ) Net revenues $ 4,425 $ 2,518 $ 6,928 Year Ended December 31, 2025 Safety Services Specialty Services Corporate and Eliminations Consolidated United States $ 2,725 $ 2,460 $ ( 5 ) $ 5,180 France 691 — — 691 Other 2,040 — — 2,040 Net revenues $ 5,456 $ 2,460 $ ( 5 ) $ 7,911 Year Ended December 31, 2024 Safety Services Specialty Services Corporate and Eliminations Consolidated United States $ 2,168 $ 2,223 $ ( 8 ) $ 4,383 France 637 — — 637 Other 1,992 6 — 1,998 Net revenues $ 4,797 $ 2,229 $ ( 8 ) $ 7,018 Year Ended December 31, 2023 Safety Services Specialty Services Corporate and Eliminations Consolidated United States $ 1,876 $ 2,477 $ ( 15 ) $ 4,338 France 607 — — 607 Other 1,942 41 — 1,983 Net revenues $ 4,425 $ 2,518 $ ( 15 ) $ 6,928 The Company’s contracts with its customers generally require significant services to integrate complex activities and equipment into a single deliverable and are, therefore, generally accounted for as a single performance obligation to provide a single contracted service for the duration of the project. For contracts with multiple performance obligations, the transaction price of a contract is allocated to each performance obligation and recognized as net revenues when or as the performance obligation is satisfied using the estimated stand-alone selling price of each distinct good or service. The stand-alone selling price is estimated using the expected cost plus a margin approach for each performance obligation. For in-process contracts, the aggregate amount of transaction price allocated to the unsatisfied performance obligations at 70 Table of Conten t s December 31, 2025 was $ 3,605 . The Company expects to recognize revenue on approximately 74 % of the remaining performance obligations over the next twelve months . When more than one contract is entered into with a customer on or close to the same date, management evaluates whether those contracts should be combined and accounted for as a single contract as well as whether those contracts should be accounted for as one, or more than one, performance obligation. This evaluation requires significant judgment and is based on the facts and circumstances of the various contracts. Contracts are often modified through change orders to account for changes in the scope and price of the goods or services being provided. Although the Company evaluates each change order to determine whether such modification creates a separate performance obligation, the majority of change orders are for goods or services that are not distinct within the context of the original contract and, therefore, not treated as a separate performance obligation but rather as a modification of the existing contract and performance obligation. Variable consideration Transaction prices for customer contracts may include variable consideration, which comprises items such as early completion bonuses and liquidated damages provisions. Management estimates variable consideration for a performance obligation utilizing estimation methods believed to best predict the amount of consideration to which the Company will be entitled. Variable consideration is included in the transaction price only to the extent it is probable, in the Company’s judgment, that a significant future reversal in the amount of cumulative revenue recognized under the contract will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Changes in the estimates of transaction prices are recognized in net revenues on a cumulative catch-up basis in the period in which the revisions to the estimates are made. Such changes in estimates may also result in the reversal of previously recognized net revenues if the ultimate outcome differs from the Company’s previous estimate. For the years ended December 31, 2025, 2024, and 2023, there were no significant reversals of revenues recognized associated with the revision of transaction prices. The Company typically does not incur any returns, refunds, or similar obligations after the completion of the performance obligation since any deficiencies are corrected during the course of performance. Contract assets and liabilities The Company typically invoices customers with payment terms of net due in 30 days. It is also common for contracts in the Company's end markets to specify a general contractor is not required to submit payments to a subcontractor until it has received those funds from the owner or funding source. In most instances, the Company receives payment of invoices between 30 to 90 days of the date of the invoice. The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from the Company’s projects when revenues are recognized under the cost-to-cost measure of progress and exceeds the amounts invoiced to the Company’s customers, as the amounts cannot be billed under the terms of the Company's contracts. In addition, many of the Company’s time and material arrangements are billed in arrears pursuant to contract terms, resulting in the Company recording contract assets as net revenues are recognized in advance of billings. Contract liabilities from the Company’s contracts arise when amounts invoiced to the Company’s customers exceed net revenues recognized under the cost-to-cost measure of progress. Contract liabilities also include advance payments from the Company’s customers on certain contracts. Contract liabilities decrease as the Company recognizes net revenues from the satisfaction of the related performance obligation. The Company utilizes the practical expedient under ASC 606 and does not adjust for a significant financing component if the time between payment and the transfer of the related good or service is expected to be one year or less. The Company’s revenue arrangements are typically accounted for under such expedient as payments are within one year of performance for the Company’s services. As of December 31, 2025 and 2024, none of the Company’s contracts contained a significant financing component. 71 Table of Conten t s Contract assets and contract liabilities are classified as current in the consolidated balance sheets as all amounts are expected to be relieved within one year. The balances of accounts receivable, net of allowances, contract assets and contract liabilities from contracts with customers as of December 31, 2025, 2024, and 2023 are as follows: Accounts receivable, net of allowances Contract assets Contract liabilities Balance at December 31, 2025 $ 1,563 $ 484 $ 694 Balance at December 31, 2024 1,444 453 590 Balance at December 31, 2023 1,395 436 526 The Company did not recognize significant revenues associated with the final settlement of contract value for any projects completed in prior periods. In accordance with industry practice, accounts receivable includes retentions receivable, a portion of which may not be received within one year. At December 31, 2025 and 2024, retentions receivable were $ 187 and $ 160 , respectively, while the portions that may not be received within one year were $ 48 and $ 38 , respectively. There were no other significant changes due to business acquisitions or significant changes in estimates of contract progress or transaction price. There were no significant impairments of contract assets recognized during the period. Costs to obtain or fulfill a contract The Company generally does not incur significant incremental costs related to obtaining or fulfilling a contract prior to the start of a project. The Company may incur certain fulfillment costs such as initial design or mobilization costs which are capitalized if: (i) they relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy the Company’s performance obligation under the contract, and (iii) are expected to be recovered through revenues generated under the contract. Such costs, which are amortized over the life of the respective project, were not material for any period presented. NOTE 8. GOODWILL AND INTANGIBLES Goodwill The following table provides disclosure of goodwill by segment as of December 31, 2025 and 2024. During 2025, the Company moved the HVAC business from the Safety Services segment to the Specialty Services segment, and segment-related prior period amounts have been recast to reflect this adjustment as of the beginning of the period presented. As a result of the reallocation of goodwill between reportable segments, the Company performed an impairment test for the impacted reporting unit pre-realignment and post-realignment and there was no impairment to be recorded. The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2025 and 2024 are as follows: Safety Services Specialty Services Total Goodwill Goodwill as of December 31, 2023 $ 2,241 $ 230 $ 2,471 Acquisitions 510 3 513 Foreign currency translation and other, net (1) ( 90 ) — ( 90 ) Goodwill as of December 31, 2024 2,661 233 2,894 Acquisitions 119 7 126 Foreign currency translation and other, net (1) 147 — 147 Goodwill as of December 31, 2025 $ 2,927 $ 240 $ 3,167 (1) Other includes immaterial measurement period adjustments related to acquisitions for which the measurement period was open at the beginning of the year (see Note 4 – "Business Combinations"). 72 Table of Conten t s Intangibles The Company's identifiable intangible assets are comprised of the following as of December 31, 2025 and 2024: December 31, 2025 Weighted- Average Remaining Useful Lives (in Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangibles: Contractual backlog 0.8 $ 169 $ ( 168 ) $ 1 Customer relationships 8.7 1,897 ( 869 ) 1,028 Trade names and trademarks 10.6 801 ( 246 ) 555 Total $ 2,867 $ ( 1,283 ) $ 1,584 December 31, 2024 Weighted- Average Remaining Useful Lives (in Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangibles: Contractual backlog 1.3 $ 171 $ ( 158 ) $ 13 Customer relationships 9.0 1,753 ( 672 ) 1,081 Trade names and trademarks 11.1 748 ( 182 ) 566 Total $ 2,672 $ ( 1,012 ) $ 1,660 Approximate annual aggregate amortization expense of the intangible assets for the five years subsequent to December 31, 2025, is as follows: Years ending December 31: 2026 $ 243 2027 218 2028 149 2029 146 2030 143 Thereafter 685 Total $ 1,584 Amortization expense recognized on identifiable intangible assets are as follows: Year Ended December 31, 2025 2024 2023 Cost of revenues $ 14 $ 6 $ 27 Selling, general, and administrative expenses 228 216 197 Total intangible asset amortization expense $ 242 $ 222 $ 224 NOTE 9. FAIR VALUE OF FINANCIAL INSTRUMENTS GAAP defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of 73 Table of Conten t s future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. As the basis for evaluating such inputs, a three-tier value hierarchy prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets. Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3: Unobservable inputs that reflect the Company’s own assumptions. Recurring fair value measurements The Company’s financial assets and liabilities (adjusted to fair value at least quarterly) are derivative instruments and contingent consideration obligations. In the consolidated balance sheets, derivative instruments are primarily included in other noncurrent assets and other noncurrent liabilities and contingent consideration obligations are primarily included in contingent consideration and compensation liabilities. The following tables summarize the fair values and levels within the fair value hierarchy in which the measurements fall for assets and liabilities measured on a recurring basis as of December 31, 2025 and 2024: Fair Value Measurements at December 31, 2025 Level 1 Level 2 Level 3 Total Financial assets: Derivatives designated as hedging instruments: Cash flow hedges: Interest rate swaps $ — $ 1 $ — $ 1 Cross currency contracts — 3 — 3 Foreign currency forward contracts — — — — Fair value hedges – cross currency contracts — 2 — 2 Net investment hedges – cross currency contracts — 10 — 10 Derivatives not designated as hedging instruments: Foreign currency forward contracts — 1 — 1 Total $ — $ 17 $ — $ 17 Financial liabilities: Derivatives not designated as hedging instruments: Foreign currency forward contracts — ( 5 ) — ( 5 ) Contingent consideration obligations — — ( 16 ) ( 16 ) Total $ — $ ( 5 ) $ ( 16 ) $ ( 21 ) 74 Table of Conten t s Fair Value Measurements at December 31, 2024 Level 1 Level 2 Level 3 Total Financial assets: Derivatives designated as hedging instruments: Cash flow hedges: Interest rate swaps $ — $ 25 $ — $ 25 Cross currency contracts — 14 — 14 Foreign currency forward contracts — — — — Fair value hedges – cross currency contracts — 54 — 54 Net investment hedges – cross currency contracts — 28 — 28 Derivatives not designated as hedging instruments: Foreign currency forward contracts — — — — Total $ — $ 121 $ — $ 121 Financial liabilities: Derivatives not designated as hedging instruments: Foreign currency forward contracts — — — — Contingent consideration obligations — — ( 13 ) ( 13 ) Total $ — $ — $ ( 13 ) $ ( 13 ) The Company determines the fair value of its derivative instruments designated as hedging instruments using standard pricing models and market-based assumptions for all inputs such as yield curves and quoted spot and forward exchange rates. Accordingly, the Company’s derivative instruments are classified as Level 2. Contingent consideration obligations The value of the contingent consideration obligations is determined using a probability-weighted discounted cash flow method. This fair value measurement is based on unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. This analysis reflects the contractual terms of the purchase agreements (e.g., potential payment amounts, length of measurement periods, manner of calculating any amounts due) and utilizes assumptions with regard to future cash flows, probabilities of achieving such future cash flows, and a discount rate. Depending on the contractual terms of the purchase agreement, the probabilities of achieving future cash flows or earnings generally represent the only significant unobservable inputs. The contingent consideration obligations are measured at fair value each reporting period and changes in estimates of fair value are recognized in earnings. The table below presents a reconciliation of the fair value of the Company’s contingent consideration obligations that use unobservable inputs, as well as other information about the contingent consideration obligations: Year Ended December 31, 2025 2024 2023 Balance at the beginning of the year $ 13 $ 6 $ 4 Issuances 9 13 3 Settlements ( 4 ) ( 6 ) ( 1 ) Adjustments to fair value ( 2 ) — — Balance at the end of the year $ 16 $ 13 $ 6 Number of open contingent consideration arrangements at the end of the year 10 9 2 Maximum potential payout at the end of the year $ 18 $ 13 $ 6 At December 31, 2025, the remaining open contingent consideration arrangements are set to expire at various dates through 2028. Level 3 unobservable inputs were used to calculate the fair value adjustments shown in the table above. The fair value adjustments and the related unobservable inputs were not considered significant for the year ended December 31, 2025. 75 Table of Conten t s Fair value estimates The following table presents the carrying amount and fair value of the Company’s variable and non-variable interest rate debt (instruments defined in Note 13 – “Debt”), including current portion and excluding unamortized debt issuance costs. Fair value is estimated by discounting future cash flows at currently available rates for borrowing arrangements with similar terms and conditions, which are considered to be Level 2 inputs under the fair value hierarchy. The interest rates of the variable interest rate long-term debt instruments are generally reset monthly. December 31, 2025 December 31, 2024 Carrying Value Fair Value Carrying Value Fair Value 2021 Term Loan $ 2,157 $ 2,162 $ 2,157 $ 2,155 4.125 % Senior Notes 337 327 337 305 4.750 % Senior Notes 277 271 277 259 NOTE 10. DERIVATIVES The Company uses foreign currency forward contracts, cross-currency swaps, and interest rate swap agreements to manage risks associated with foreign currency exchange rates, net investments in foreign operations, and interest rates. The Company does not hold derivative financial instruments of a speculative nature or for trading purposes. The Company records derivatives as assets and liabilities on the consolidated balance sheets at fair value. Changes in fair value are recognized immediately in earnings unless the derivative qualifies and is designated as a hedge under ASC 815, Derivatives and Hedging . Cash flows from derivatives are classified in the consolidated statements of cash flows in the same category as the cash flows from items subject to designated hedge or undesignated (economic) hedge relationships. The Company evaluates hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be effective, hedge accounting is discontinued. The Company is exposed to credit risk in the event of nonperformance of counterparties for foreign currency forward exchange contracts, cross currency swaps, and interest rate swap agreements. The Company monitors its exposure to credit risk by using credit approvals and credit limits and by selecting major global banks and financial institutions as counterparties. The Company does not enter into derivative transactions for trading purposes and is not party to any derivatives that require collateral to be posted prior to settlement. Certain of the Company’s derivative transactions are subject to master netting arrangements that allow the Company to net settle contracts with the same counterparties. These arrangements do not call for collateral and no cash collateral has been received or pledged related to the underlying derivatives. 76 Table of Conten t s The following table presents the fair value of derivative instruments: December 31, 2025 December 31, 2024 Outstanding Gross Notional Amount Other Assets Other Noncurrent Liabilities Outstanding Gross Notional Amount Other Assets Other Noncurrent Liabilities Derivatives designated as hedging instruments: Cash flow hedges: Interest rate swaps $ 1,840 $ 1 $ — $ 1,840 $ 25 $ — Cross currency contracts 120 3 — 120 14 — Foreign currency forward contracts — — — — — — Fair value hedges: Cross currency contracts 689 2 — 737 54 — Net investment hedges: Cross currency contracts 931 10 — 230 28 — Total derivatives designated as hedging instruments 3,580 16 — 2,927 121 — Derivatives not designated as hedging instruments: Foreign currency forward contracts 312 1 ( 5 ) 77 — — Total derivatives $ 3,892 $ 17 $ ( 5 ) $ 3,004 $ 121 $ — The following table presents the effect of derivatives on the consolidated statements of operations: Amount of expense (income) recognized in income Location of expense (income) recognized in income Year ended December 31, Derivatives 2025 2024 2023 Cash flow hedging relationships: Interest rate swaps Interest expense, net $ ( 8 ) $ ( 32 ) $ ( 32 ) Cross currency contracts Investment expense (income) and other, net 14 ( 7 ) 3 Cross currency contracts Interest expense, net ( 2 ) ( 2 ) ( 2 ) Fair value hedging relationships: Cross currency contracts Investment expense (income) and other, net 54 ( 37 ) 25 Cross currency contracts Interest expense, net 1 ( 3 ) ( 2 ) Net investment hedging relationships: Cross currency contracts Interest expense, net ( 9 ) ( 4 ) ( 4 ) Not designated as hedging instruments: Foreign currency forward contracts Investment expense (income) and other, net — — ( 1 ) Currency Effects The expense (income) from derivatives designed to offset foreign currency exposure and recorded in investment expense (income) and other, net were offset by foreign currency transaction gains and losses resulting in a net loss (gain) of $ 2 , $ 2 and $( 1 ) for the years ended December 31, 2025, 2024, and 2023, respectively. 77 Table of Conten t s The following table presents the effect of cash flow and fair value hedge accounting on accumulated other comprehensive income (loss) ("AOCI"): Amount of gain (loss) recognized in other comprehensive income Location of gain (loss) reclassified from AOCI into income Amount of gain (loss) reclassified from AOCI into income Year ended December 31, Year ended December 31, Derivatives 2025 2024 2023 2025 2024 2023 Cash flow hedging relationships: Interest rate swaps $ ( 18 ) $ 14 $ ( 6 ) Interest expense, net $ — $ 13 $ 16 Cross currency contracts 2 ( 2 ) ( 3 ) Investment expense (income) and other, net ( 14 ) 7 ( 3 ) Fair value hedging relationships: Cross currency contracts — — — Interest expense, net ( 2 ) — — Cross currency contracts 3 — ( 6 ) Investment expense (income) and other, net ( 52 ) 36 ( 25 ) Net investment hedging relationships: Cross currency contracts ( 16 ) 7 ( 9 ) Interest expense, net 3 1 1 Cross currency contracts — — — Investment expense (income) and other, net 3 — — Cash flow hedges For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized in current earnings. Interest rate swaps The Company manages its fixed and floating rate debt mix using interest rate swaps. The Company uses interest rate swap contracts to separate interest rate risk management from the debt funding decision. The Company elected a method that does not require continuous evaluation of hedge effectiveness. The Company has an aggregate $ 720 notional amount interest rate swap ("2026 Interest Rate Swap") and aggregate $ 400 notional swaps ("2028 Interest Rate Swap"). The 2026 Interest Rate Swap exchanges a variable rate of interest (SOFR) for an average fixed rate of interest of approximately 3.59 % over the term of the agreement, which matures in October 2026. The 2028 Interest Rate Swap exchanges a variable rate of interest (SOFR) for an average fixed rate of interest of approximately 3.41 % over the term of the agreements, which mature in January 2028. During 2024, the Company entered into a $ 720 notional amount forward starting interest rate swap that exchanges a variable rate of interest (SOFR) for an average fixed rate of interest of approximately 3.13 % over the term of the agreement, commencing in October 2026 and maturing in January 2029 ("2029 Interest Rate Swap"). Upon commencement, the 2029 Interest Rate Swap will cover the remainder of the interest payments starting in October 2026 to the maturity of the 2021 Term Loan. As of December 31, 2025, the Company had $ 1,840 notional amount outstanding in the 2026 Interest Rate Swap, the 2028 Interest Rate Swap, and the 2029 Interest Rate Swap. The Company has designated these swaps as cash flow hedges of the interest rate risk attributable to forecasted variable interest (SOFR) payments for its SOFR-based term loan of $ 2,157 . As of December 31, 2025, the weighted-average fixed rate of interest on these swaps was approximately 3.52 %. Variations in the assets and liability balances related to the swaps are primarily driven by changes in the applicable forward yield curves related to SOFR. Cross-currency swaps The Company enters into cross-currency exchange contracts utilized to hedge against the effect of exchange rate fluctuations on cash flows denominated in foreign currencies and to hedge exposures of certain intercompany loans subject to changes in foreign currency exchange rates. The Company periodically assesses whether its currency exchange contracts are effective, and when a contract is determined to be no longer effective as a hedge, the Company discontinues hedge accounting prospectively. 78 Table of Conten t s During 2021, the Company entered into two cross-currency swaps designated as cash flow hedges with gross notional U.S. dollar equivalent amounts of $ 26 and $ 94 with maturity dates of September 2027 and 2030, respectively. Foreign currency forward contracts The Company utilizes foreign currency forward contracts to hedge the effect of foreign currency exchange rate fluctuations on forecasted foreign currency transactions, including inventory purchases and intercompany charges and other payments. These forward contracts are designated as cash flow hedges. The changes in fair value of these contracts are recorded in other comprehensive income until the hedged items affect earnings, at which time the hedge gain or loss is reclassified into current earnings. The Company periodically assesses whether its currency exchange contracts are effective, and when a contract is determined to be no longer effective as a hedge, the Company discontinues hedge accounting prospectively. As of December 31, 2025, the Company had $ 0 total notional amount outstanding in foreign currency forward contracts designated as cash flow hedges. Fair value hedges The Company uses cross-currency swaps designated as fair value hedges to manage exposure from intercompany loans subject to foreign exchange risks. During 2024, an Australian dollars ("AUD") swap with a notional amount of $ 16 U.S. dollars ("USD") equivalent and a maturity date in June 2029 was added to the existing British pounds ("GBP"), Canadian dollars ("CAD"), and Euros ("EUR") swaps, which had a total notional amount of $ 721 USD equivalent and a maturity date in January 2027. During 2025, the Company partially terminated its CAD swap, resulting in the reclassification of $ 2 of losses from AOCI to interest expense, net in its consolidated statements of operations. Following the partial termination of the CAD swap, the remaining notional amount outstanding was $ 689 USD equivalent. The Company measures the effectiveness of fair value hedges on a spot-to-spot basis. Accordingly, the spot-to-spot change in the derivative fair values are recorded in the consolidated statements of operations and perfectly offset the spot-to-spot change in the underlying intercompany loans, and as such, these hedges are deemed highly effective. The excluded component of the fair values of these derivatives is reported in AOCI within shareholders’ equity in the consolidated balance sheets. Any cash flows associated with these instruments are included in operating activities in the consolidated statements of cash flows. Net investment hedges The Company has net investments in foreign subsidiaries subject to changes in foreign currency exchange rates. During 2025, the Company entered into a $ 701 notional foreign currency swap designated as a net investment hedge ("2025 Net Investment Hedge") for a portion of the Company’s net investments in Euro-denominated subsidiaries. In 2021, the Company entered into a $ 230 notional foreign currency swap designated as a net investment hedge ("2021 Net Investment Hedge") for a portion of the Company’s net investments in Euro-denominated subsidiaries. Gains and losses resulting from a change in fair value of the net investment hedges are offset by gains and losses on the underlying foreign currency exposure and are included in AOCI in the consolidated balance sheets. The Company evaluates the effectiveness of its net investment hedges at inception and on an ongoing basis. If a net investment hedge is no longer expected to be effective, the Company discontinues hedge accounting prospectively. In 2021, the Company amended the critical terms of the 2021 Net Investment Hedge by extending the maturity date to July 2029 and modifying the U.S. dollar and Euro coupons. The amended swap was redesignated as a net investment hedge and is recorded at fair value with changes recorded in AOCI. The initial net investment hedge was dedesignated. The fair value previously recognized in AOCI related to interest rate movements of the dedesignated swap is being amortized to interest expense on a straight-line basis through the third quarter of 2029 and is less than $ 1 annually. Foreign currency contracts The Company utilizes foreign currency forward contracts to hedge the effect of foreign currency exchange rate fluctuations on confirmed foreign currency transactions, including inventory purchases and intercompany charges and other payments. These forward contracts are undesignated for hedge accounting purposes. The changes in fair value of these contracts are recorded in investment expense (income) and other, net. 79 Table of Conten t s NOTE 11. PROPERTY AND EQUIPMENT, NET The components of property and equipment as of December 31, 2025 and 2024 are as follows: Estimated Useful Lives (In Years) December 31 2025 2024 Land N/A $ 20 $ 21 Building 39 86 100 Machinery, equipment, and office equipment 1 - 20 429 372 Autos and trucks 4 - 10 138 113 Leasehold improvements 1 - 15 65 47 Total cost 738 653 Accumulated depreciation ( 341 ) ( 274 ) Property and equipment, net $ 397 $ 379 Depreciation expense related to property and equipment, including finance leases, was $ 85 , $ 80 , and $ 79 , during the years ended December 31, 2025, 2024 and 2023, respectively. Depreciation expense is included within cost of revenues and selling, general, and administrative expenses in the consolidated statements of operations. NOTE 12. LEASES The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. Under ASC 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset. The Company leases various facilities, equipment and vehicles from unrelated parties, which are primarily classified and accounted for as operating leases. The facility leases are primarily for office space with initial terms extending up to ten years . The equipment leases are primarily related to heavy equipment utilized in the completion of construction jobs, and the terms of the agreements range from one to seven years . Vehicle leases have a minimum lease term ranging from one to seven years . Some leases include one or more options to renew, generally at the Company’s sole discretion, with renewal terms that can extend the lease term by one to twelve years or more. The Company made an accounting policy election to not recognize lease assets and lease liabilities for leases with terms of twelve months or less. For all other leases, the Company recognizes right-of-use ("ROU") assets and lease liabilities based on the present value of the lease payments over the lease term at the commencement date of the lease (or January 1, 2019 for leases existing upon the adoption of ASC 842). The ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date and are reduced by lease incentives. When material leases are acquired in business combinations, the Company is required to measure the acquired lease liabilities at the present value of the remaining lease payments as if the acquired leases were new leases. A reassessment of the lease term, lessee options to purchase an underlying asset, lease payments, and discount rates is performed as of the date of acquisition. The ROU assets are then remeasured at the amount of the lease liability, adjusted for any off-market terms present in the acquired leases. The Company’s future lease payments may include payments that depend on an index or a rate (such as the consumer price index). The Company initially measures payments based on an index or rate using the applicable rate at lease commencement, and subsequent changes in such rates are recognized as variable lease costs in the period incurred. Some leases contain variable payments that are not based on an index or rate and therefore are not included in the initial measurement of ROU assets and lease liabilities. These variable payments typically represent additional services transferred to the Company, such as common area maintenance for real estate, and maintenance or service programs for vehicles, and are recorded in lease expense in the period incurred. For leases that include residual value guarantees or payments for terminating the lease, the Company includes these costs in the lease liability when it is probable they will be incurred. 80 Table of Conten t s The Company determines the present value of lease payments using its incremental borrowing rate (“IBR”), as the Company’s leases generally do not have a readily determinable implicit discount rate. The Company applies judgment in assessing factors such as Company-specific credit risk, lease term, nature and quality of the underlying collateral, and economic environment in determining the incremental borrowing rates for its leases. The Company’s IBR reflects the rate of the parent or group level. The Company acts as the central treasury function for all its subsidiaries and its collateral quality was considered in aggregate for the IBR. The Company developed IBR curves for all currency denominations of its leases. To determine its creditworthiness, the Company considered publicly available credit ratings from S&P Global Ratings ("S&P") and Moody’s Investors Service ("Moody’s"). Both the S&P local currency long-term rating and the Moody’s long-term corporate family credit ratings have remained stable at BB and Ba2 in 2025. The amount (and impact) of the Company’s future operating lease payments, a consideration in the development of the IBR, would be reflected in the Company’s underlying credit rating. In its development of the IBR, the Company applied a base market yield curve reflective of its unsecured credit rating. Adjustments to the base market yield curve were then considered for any Company-specific debt instruments outstanding at the measurement date, and securitization adjustments were made to conclude on a lessee specific securitized market yield curve. No adjustment was considered for economic environment risk for the U.S. IBR as the underlying market data to derive the IBR was in USD. The Company also has significant leases located in (denominated in): Canada (CAD), the European Union (EUR), the United Kingdom (GBP), and Australia (AUD). To derive the applicable foreign IBR curves, the Company adjusted its calculated United States/USD IBR curve to the applicable foreign IBR curves using the covered interest rate parity theory, which captures foreign currency risk. The Company developed its IBR curves with tenors ranging from 1 -year to 30 -years to match its anticipated lease terms. For each lease, the Company applied the IBR that aligned with the concluded lease term. The Company estimated the IBRs on a quarterly basis throughout 2025. The Company has made an accounting policy election to account for lease and non-lease components in its contracts as a single lease component for all asset classes except for certain asset classes within its information technology arrangements. The Company allocates the consideration for certain asset classes within information technology arrangements to the separate components based on relative stand-alone prices using observable prices, if available, or estimates of stand-alone prices using observable information available. Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of amortization expense for the ROU assets and interest expense for the outstanding lease liabilities, and results in a front-loaded expense pattern over the lease term. The components of lease expense are as follows: Year Ended December 31, 2025 2024 2023 Operating lease cost $ 112 $ 99 $ 88 Finance lease cost - amortization of right-of-use assets 5 6 6 Short-term lease cost 66 42 41 Variable lease cost 24 21 22 Total lease cost $ 207 $ 168 $ 157 Supplemental consolidated statements of cash flows information related to leases is as follows: Year Ended December 31, 2025 2024 2023 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows - payments on operating leases $ 110 $ 97 $ 88 Financing cash outflows - payments on finance leases 7 7 7 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 126 $ 135 $ 81 Finance leases 4 5 5 81 Table of Conten t s Supplemental consolidated balance sheets information related to leases is as follows: Year Ended December 31, 2025 2024 Finance leases: Machinery and equipment 8 11 Property and equipment, net $ 8 $ 11 Weighted-average remaining lease term: Operating leases 4.5 years 4.4 years Finance leases 2.9 years 2.1 years Weighted-average discount rate: Operating leases 5.6 % 5.7 % Finance leases 4.7 % 5.1 % The future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the consolidated balance sheets as of December 31, 2025 is as follows: Operating Leases Finance Leases Total Year ending December 31: 2026 $ 103 $ 4 $ 107 2027 81 2 83 2028 58 2 60 2029 34 1 35 2030 20 — 20 Thereafter 43 — 43 Total lease payments 339 9 348 Less imputed interest 35 — 35 Total present value of lease liabilities $ 304 $ 9 $ 313 Operating and finance leases - current $ 93 $ 5 $ 98 Operating and finance leases - noncurrent 211 4 215 Total present value of lease liabilities $ 304 $ 9 $ 313 The Company leases office and operating facilities from various parties that are in management positions at certain businesses and the Company incurred rent expense, including real estate taxes and operating costs of approximately $ 3 , $ 4 , and $ 4 during the years ended December 31, 2025, 2024, and 2023, respectively, under these arrangements. 82 Table of Conten t s NOTE 13. DEBT Debt obligations consist of the following: December 31, Maturity Date 2025 2024 Term loan facility 2021 Term Loan January 3, 2029 $ 2,157 $ 2,157 Revolving Credit Facility May 20, 2030 — — Senior notes 4.125 % Senior Notes July 15, 2029 337 337 4.750 % Senior Notes October 15, 2029 277 277 Other obligations 5 5 Total debt obligations 2,776 2,776 Less: unamortized deferred financing costs ( 17 ) ( 23 ) Total debt, net of deferred financing costs 2,759 2,753 Less: short-term and current portion of long-term debt ( 5 ) ( 4 ) Long-term debt, less current portion $ 2,754 $ 2,749 Term loan facility As of December 31, 2025, the Company had $ 2,157 of principal outstanding under the incremental term loan (the "2021 Term Loan") with a maturity date of January 3, 2029. The interest rate applicable to the 2021 Term Loan is, at the Company's option, either (1) a base rate plus an applicable margin equal to 0.75 % or (2) Term SOFR rate (adjusted for statutory reserves) plus an applicable margin equal to 1.75 %. The interest rate applicable to borrowings under the $ 750 five-year senior secured revolving credit facility (the “Revolving Credit Facility”) is, at the Company’s option, either (1) a base rate plus an applicable margin equal to 0.25 %, or (2) a Term SOFR rate (adjusted for statutory reserves) plus an applicable margin equal to 1.25 %. As of December 31, 2025 and 2024, the Company had no amounts outstanding under the Revolving Credit Facility, and $ 745 and $ 494 was available at December 31, 2025 and 2024, after giving effect to $ 5 and $ 6 , respectively, of outstanding letters of credit. In the second quarter of 2025, the Company completed its Eighth Amendment to its credit agreement, which increased the Revolving Credit Facility from $ 500 to $ 750 , extended the facility's maturity to five years from the date of the Eighth Amendment, reduced the applicable margin by 75 basis points, and eliminated the credit spread adjustment ("CSA"). During the first quarter of 2025, the Company completed its Seventh Amendment to its credit agreement, repricing the 2021 Term Loan. The repricing reduced the applicable margin on the 2021 Term Loan by 25 basis points. During 2024, the Company completed its Sixth Amendment to its credit agreement, refining the 2021 Term Loan by increasing its principal amount and lowering the interest margin by 50 basis points. The amendment also removed the CSA. In connection with this transaction, the Company added approximately $ 550 of incremental principal to the 2021 Term Loan. The proceeds were used to fully repay the remaining $ 330 balance of the 2019 Term Loan, to pay down $ 100 outstanding under the Revolving Credit Facility, and for general corporate purposes, including partial funding of the Elevated acquisition. During 2024, the Company completed its Fifth Amendment to its credit agreement, upsizing its 2021 Term Loan by an aggregate principal amount equal to $ 300 . The loan proceeds were directed as consideration for a portion of the purchase price for the Series B Preferred Stock Conversion. For additional information regarding the Series B Preferred Stock Conversion, see Note 19 – "Shareholders' Equity and Redeemable Convertible Preferred Stock." As of December 31, 2025 and 2024, the Company was in compliance with all applicable debt covenants. 83 Table of Conten t s Swap activity As of December 31, 2025, the Company had the 2026 Interest Rate Swap with $ 720 notional value, exchanging one-month SOFR for a fixed rate of 3.59 % per annum, and 2028 Interest Rate Swap with aggregate $ 400 notional value, exchanging one-month SOFR for a rate of 3.41 %. Accordingly, the Company's fixed interest rate per annum on the swapped $ 720 notional value of the term loans is 5.34 % and the second swapped $ 400 notional value of the term loans is 5.16 % through the maturity of the swaps. The remaining $ 1,037 of the term loan balance will bear interest based on one-month SOFR plus 175 basis points, and the rate will fluctuate as SOFR fluctuates. During 2024, the Company entered into a $ 720 notional amount forward starting interest rate swap commencing in October 2026 and maturing in January 2029 that exchanges a variable rate of interest (SOFR) for an average fixed rate of interest of approximately 3.13 % over the term of the agreement. Refer to Note 10 – "Derivatives" for additional information. Senior notes 4.125 % Senior Notes During 2021, the Company completed a private offering of $ 350 aggregate principal amount of 4.125 % Senior Notes (the “ 4.125 % Senior Notes”) issued under an indenture dated June 22, 2021. The 4.125 % Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Company and certain of the Company’s subsidiaries. The balance as of December 31, 2025 was $ 337 . 4.750 % Senior Notes During 2021, the Company completed a private offering of $ 300 aggregate principal amount of 4.750 % Senior Notes due 2029 (the " 4.750 % Senior Notes"), issued under an indenture dated October 21, 2021, as supplemented by a supplemental indenture dated January 3, 2022. The 4.750 % Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Company and certain of the Company's subsidiaries. The balance as of December 31, 2025 was $ 277 . The Company was in compliance with all covenants contained in the indentures for the 4.125 % Senior Notes and 4.750 % Senior Notes as of December 31, 2025 and 2024. Other obligations As of December 31, 2025 and 2024, the Company had $ 5 in notes outstanding for working capital purposes and the acquisition of equipment and vehicles. Amounts outstanding under these notes are included in the table below. Approximate annual maturities, excluding amortization of debt issuance costs, of the Company’s financing arrangements for years subsequent to December 31, 2025, are as follows: Years Ending December 31: 2026 $ 5 2027 — 2028 — 2029 2,771 2030 — Thereafter — Total $ 2,776 NOTE 14. INCOME TAXES For the years ended December 31, 2025, 2024, and 2023, the components of income before income taxes are as follows: Year Ended December 31, 2025 2024 2023 U.S. earnings $ 251 $ 177 $ 186 Foreign earnings 162 153 46 Total earnings $ 413 $ 330 $ 232 84 Table of Contents The income tax provision for the years ended December 31, 2025, 2024, and 2023, consisted of the following: Year Ended December 31, 2025 2024 2023 Current: U.S. federal $ 21 $ 47 $ 48 State 20 14 23 Foreign 56 46 40 Total current tax provision $ 97 $ 107 $ 111 Deferred: U.S. federal $ 33 $ ( 15 ) $ ( 10 ) State 2 — ( 1 ) Foreign ( 21 ) ( 12 ) ( 21 ) Total deferred tax benefit $ 14 $ ( 27 ) $ ( 32 ) Total: U.S. federal $ 54 $ 32 $ 38 State 22 14 22 Foreign 35 34 19 Total income tax provision $ 111 $ 80 $ 79 The Company has elected to prospectively adopt the guidance in ASU No, 2023-09, Income Taxes (Topic 740): Improvements to Income Taxes Disclosures . The reconciliation of the federal statutory income tax rate to the Company's provision for income taxes for the year ended December 31, 2025 in accordance with the guidance in ASU No. 2023-09 is as follows: Year Ended December 31, 2025 U.S. federal statutory tax rate $ 87 21.0 % State and local income taxes, net of federal income tax effect (1) 18 4.4 % Foreign tax effects United Kingdom Other permanent differences ( 4 ) ( 1.0 ) % Other adjustments ( 2 ) ( 0.5 ) % Other foreign jurisdictions 6 1.5 % Effect of cross-border tax laws Cross-border financing arrangement ( 6 ) ( 1.5 ) % Other 1 0.2 % Nontaxable or nondeductible items Section 162(m) limitation 6 1.5 % Other adjustments 5 1.3 % Total provision for income taxes $ 111 26.9 % (1) State taxes in Minnesota, New Jersey, Illinois, Wisconsin, and Tennessee made up the majority (greater than 50%) of the tax effect in this category. 85 Table of Contents The reconciliation of the federal statutory income tax rate to the Company’s provision for income taxes for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09 is as follows: Year Ended December 31, 2024 2023 Expected provision at statutory federal rate $ 70 21.0 % $ 49 21.0 % State tax provision, net of federal benefit 11 3.3 % 17 7.3 % Foreign rate differential ( 3 ) ( 0.9 %) ( 1 ) ( 0.4 %) Valuation allowance ( 5 ) ( 1.5 %) 8 3.4 % Permanent differences and other 3 0.9 % 3 1.3 % Transaction costs 1 0.3 % — — % Section 162(m) limitation 3 0.9 % 3 1.3 % Total provision for income taxes $ 80 24.0 % $ 79 33.9 % The income taxes paid for the year ended December 31, 2025 consisted of the following: Year Ended December 31, 2025 U.S. federal $ 42 State 20 Australia 9 Canada 7 France 14 Hong Kong 8 United Kingdom 6 Other foreign 5 Total $ 111 86 Table of Contents The components of deferred tax assets and liabilities consisted of the following: December 31, 2025 2024 Deferred tax assets: Operating and finance lease liabilities $ 45 $ 68 Accrued compensation 43 42 Accrued expenses 32 27 Net operating loss carryforwards 17 22 Contingent consideration and compensation liabilities 9 14 Capital loss carryforwards 55 51 Credits 40 37 Reserves and allowances 4 6 Interest limitation 29 36 Derivatives 1 — Other 14 7 Gross deferred tax assets 289 310 Valuation allowances ( 107 ) ( 92 ) Net deferred tax assets $ 182 $ 218 Deferred tax liabilities: Depreciation on fixed assets $ 41 $ 39 Goodwill 69 44 Amortization on identified intangible assets 174 177 Operating lease right-of-use assets 43 67 Derivatives — 7 Deferred payments 3 3 Pension and post-retirement obligations 15 16 Other 2 6 Gross deferred tax liabilities $ 347 $ 359 Net deferred tax liabilities $ 165 $ 141 Deferred income tax assets represent potential future income tax benefits. Realization of these assets is ultimately dependent upon future taxable income. Deferred tax assets must be reduced by a valuation allowance if, based on all available evidence, it is considered more likely than not that some or all of the recorded deferred tax assets will not be realized in a future period. The Company considers all negative and positive evidence, including the weight of the evidence, to determine if a valuation allowance is required. As of December 31, 2025 and 2024, valuation allowances of $ 107 and $ 92 were recorded against certain deferred tax assets of the Company’s domestic and foreign subsidiaries. As of December 31, 2025, the Company had gross federal, state and foreign net operating loss carryforwards of approximately $ 1 , $ 20 , and $ 70 , respectively, foreign capital loss carryforwards of $ 220 , and foreign credit carryforwards of $ 40 . The state net operating loss carryforwards have carryforward periods of five to twenty years and begin to expire in 2029. The foreign attributes generally have carryforward periods of twenty years , which begin to expire in 2026, or can be carried forward indefinitely, subject to utilization rules. As of December 31, 2025, there were accumulated undistributed earnings of subsidiaries outside of the United States, all of which are considered to be indefinitely reinvested. Due to the complexity of the legal entity structure, the number of legal entities and jurisdictions involved, and the complexity of the laws and regulations, the Company believes it is not practicable to estimate the amount of additional taxes which may be payable upon distribution of these undistributed 87 Table of Contents earnings. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes on permanent reinvested earnings. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2025 2024 2023 Gross unrecognized tax benefits at the beginning of the year $ 9 $ 7 $ 8 Additions for tax positions taken in a prior period (including acquired uncertain tax positions) — 3 — Reductions for tax positions taken in a prior period (including acquired uncertain tax positions) — ( 1 ) ( 1 ) Additions for tax positions taken in the current period — — 1 Reductions for tax positions due to lapse in statute of limitations — — ( 1 ) Gross unrecognized tax benefits as of the end of the year $ 9 $ 9 $ 7 The Company’s liability for unrecognized tax benefits is recorded within other noncurrent liabilities on the consolidated balance sheets and recognizes interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of operations. The Company had $ 4 and $ 3 of accrued gross interest and penalties as of December 31, 2025 and 2024, respectively. During the years ended December 31, 2025, 2024, and 2023, the Company did not recognize net interest expense. As of December 31, 2025, $ 12 of unrecognized tax benefit would impact the Company’s effective tax rate, if recognized. The Company files income tax returns in the U.S. federal jurisdiction, and various state, local and foreign jurisdictions. As of December 31, 2025, with few exceptions, neither the Company nor its subsidiaries are subject to examination. There are various other audits in state and foreign jurisdictions. The IRS exam related to the 2019 final S Corporation return has been closed without adjustments. On July 4, 2025, the “One Big Beautiful Bill Act” was enacted into law. The legislation includes several changes to federal tax law including permanent extension of certain expiring Tax Cuts and Jobs Act provisions and modifications to US taxation of foreign activity. Certain provisions were effective for 2025, while others will be effective for tax years beginning after December 31, 2025. The Company has evaluated the impact of the legislation and incorporated the applicable tax provisions into its consolidated financial statements for the current reporting period. NOTE 15. EMPLOYEE BENEFIT PLANS Employee stock purchase plan Most of the Company’s employees in the U.S and Canada, including named executive officers, are eligible to participate in the Company’s ESPP. Sales of shares of the Company’s common stock under the ESPP are generally made pursuant to offerings that are intended to satisfy the requirements of Section 423 of the Internal Revenue Code. The ESPP permits employees of the Company to purchase common stock at a price equal to 85 % of the lesser of (i) the market value of the common stock on the first date of the offering period, or (ii) the market value of the common stock on the purchase date, whichever is lower. Participants are subject to eligibility requirements and may not purchase more than 500 shares in any offering period or more than ten thousand dollars of common stock in a year under the ESPP. During the year ended December 31, 2025, the Company recognized $ 7 of expense, and issued 907,005 shares of the Company's common stock at a weighted-average price per share of $ 20.44 related to the ESPP. As of December 31, 2025, the Company accrued a liability of $ 9 , which has been recorded as accrued salaries and wages in the consolidated balance sheets, for 311,400 shares of the Company's common stock that were issued to employees in January 2026. As of December 31, 2025, there were approximately 7,583,500 shares reserved for future issuance under the ESPP. 401(k) plans The Company has 401(k) plans that provide for annual contributions not to exceed the maximum amount allowed by the Internal Revenue Code. The plans are qualified and cover employees meeting certain eligibility requirements who are not covered by collective bargaining agreements. The amounts contributed each year are discretionary and are determined annually by management. 88 Table of Contents The Company recognized $ 18 , $ 16 , and $ 13 , in 401(k) expense during the years ended December 31, 2025, 2024, and 2023, respectively. Defined benefit pension plans The Company sponsors both funded and unfunded foreign defined benefit pension plans that cover a portion of the Company's employees, and the largest plans are closed to new participants and frozen for accrual of future service. Refer to Note 16 – "Pension" for more information on these plans. Post-retirement benefit plans As part of the Chubb Acquisition, the Company assumed an unfunded post-retirement benefit plan that provides life benefits to certain eligible retirees in Canada. As of December 31, 2025, the benefit obligation was $ 3 . The PBO discount rate was 4.8 % at December 31, 2025. Benefit payments, including amounts to be paid from corporate assets and reflecting expected future service, as appropriate, are expected to be less than $ 1 for 2026 through 2029 and thereafter. Profit sharing plans The Company has a trustee-administered, profit sharing retirement plan covering substantially all of the Company's employees in the U.S. not covered by collective bargaining agreements and a profit sharing plan for employees in Canada (collectively, “Profit Sharing Plans”). The Profit Sharing Plans provide for annual discretionary contributions in amounts based on a performance grid as determined by the Company’s directors, which may be settled in shares of the Company's common stock or in cash. In connection with these plans, the Company recognized $ 36 , $ 27 , and $ 19 in expense for shares distributed to eligible employees during the years ended December 31, 2025, 2024, and 2023, respectively. As of December 31, 2025 and 2024, the Company accrued a liability of $ 40 and $ 28 , respectively, which has been recorded as accrued salaries and wages in the consolidated balance sheets for shares of the Company's common stock. The liability accrued as of December 31, 2024 was settled in common stock during the year ended December 31, 2025. Multiemployer pension plans The Company participates in several multiemployer pension plans ("MEPP") that provide retirement benefits to certain union employees in accordance with various collective bargaining agreements ("CBA"). As one of many participating employers in these MEPPs, the Company may be responsible with the other participating employers for any plan underfunding. The Company’s contributions to a particular MEPP are established by the applicable CBAs; however, its required contributions may increase based on the funded status of the MEPP and the legal requirements of the Pension Protection Act of 2006 (the "PPA"), which requires substantially underfunded MEPPs to implement a funding improvement plan ("FIP") or a rehabilitation plan ("RP") to improve their funded status. Factors that could impact the funded status of the MEPP include, without limitation, investment performance, changes in the participant demographics, decline in the number of contributing employers, changes in actuarial assumptions, and the utilization of extended amortization provisions. The Company believes that certain of the MEPPs in which the Company participates may have underfunded vested benefits. Due to uncertainty regarding future factors that could trigger withdrawal liability, as well as the absence of specific information regarding the MEPPs current financial situation, the Company is unable to determine (a) the amount and timing of any future withdrawal liability, if any, and (b) whether the Company’s participation in these MEPPs could have a material adverse impact on the Company’s consolidated financial position, results of operations, or liquidity. The Company did not record any withdrawal liability for the years ended December 31, 2025, 2024, and 2023. The Company’s participation in MEPPs for the year ended December 31, 2025, is outlined in the table below. The EIN/PN column provides the Employer Identification Number ("EIN") and the three-digit plan number ("PN"). The most recent PPA zone status available for 2025, 2024 and 2023 is for the plan year-ends, as indicated below. The zone status is based on information that the Company received from the plans and is certified by the plans’ actuaries. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. The FIP/RP status pending/implemented column indicates plans for which an FIP or an RP either is pending or has been implemented. In addition, the Company may be subject to a surcharge if the Plan is in the red zone. The Surcharge imposed column indicates whether a surcharge has been imposed on contributions to 89 Table of Contents the Plan. The last column lists the expiration date(s) of the collective bargaining agreement(s) to which the plans are subject. Pension Fund EIN/PN Plan Year-End PPA Zone Status (1) FIP/RP Status Pending/ Implement Contributions More Than 5% (2) Surcharge Imposed Expiration Date of CBA December 31 (in millions) 2025 2024 2023 2025 (3) 2024 (3) 2023 (3) National Automatic Sprinkler Industry Pension Fund 52-6054620-001 12/31/2024 Green Green Green No $ 38 $ 34 $ 32 Yes No 3/31/2030 Pipe Trades Services MN Pension Fund 41-6131800-001 4/30/2025 Green Green Green No 12 8 11 Yes No 4/30/2027 Sheet Metal Workers' National Pension Fund 52-6112463-001 12/31/2024 Green Green Green No 6 4 6 No No 4/30/2026 Heavy And General Laborers Local Unions 472 And 172 Of New Jersey Pension Fund 22-6032103-001 3/31/2025 Green Green Green No 5 10 5 Yes No 2/28/2027 Boilermaker-Blacksmith National Pension Trust 48-6168020-001 12/31/2024 Red Red Green Yes 5 5 6 No No 9/30/2026 Total other 33 28 40 Total $ 99 $ 89 $ 100 (1) The zone status represents the most recent available information for the respective MEPP, which may be 2024 or earlier for the 2025 year and 2023 or earlier for the 2024 year. (2) This information was obtained from the respective plan’s Form 5500 (Forms) for the most current available filing. These dates may not correspond with the Company’s fiscal year contributions. The above-noted percentages of contributions are based upon disclosures contained in the plans’ Forms. Those Forms, among other things, disclose the names of individual participating employers whose annual contributions account for more than 5% of the aggregate annual amount contributed by all participating employers for a plan year. Accordingly, if the annual contribution of two or more of the Company’s subsidiaries each accounted for less than 5% of such contributions, but in the aggregate accounted for in excess of 5% of such contributions, that greater percentage is not available and accordingly is not disclosed. (3) 2025, 2024, and 2023 periods represent the years ended December 31, 2025, 2024, and 2023. The nature and diversity of the Company’s business may result in volatility in the amount of its contributions to a particular MEPP for any given period. That is because, in any given market, the Company could be working on a significant project and/or projects, which could result in an increase in its direct labor force and a corresponding increase in its contributions to the MEPP dictated by the applicable CBA. When that particular project finishes and is not replaced, the number of participants in the MEPP who are employed by the Company would also decrease, as would its level of contributions to the particular MEPP. Additionally, the amount of contributions to a particular MEPP could also be affected by the terms of the CBA, which could require, at a particular time, an increase in the contribution rate and/or surcharges. During the year ended December 31, 2025, the Company’s contributions to various MEPPs did not significantly increase as a result of acquisitions. NOTE 16. PENSION The Company sponsors both funded and unfunded foreign defined benefit pension plans that cover a portion of the Company's employees, and the largest plans are closed to new participants and frozen for accrual of future service. The Company assumed the pension plans as part of the Chubb Acquisition on January 3, 2022. Guidance under FASB ASC Topic 715, Compensation – Retirement Benefits , requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in accumulated other comprehensive loss, net of tax effects, until they are amortized as a component of net periodic benefit cost. Pension and post-retirement obligation balances and related costs reflected within the consolidated balance sheets include costs directly attributable to plans dedicated to the Company. 90 Table of Contents During 2023, an annuity purchase transaction, commonly known as a “buy-in,” was executed for the two pension plans in the United Kingdom ("U.K."). Under the terms of the insurance contracts, which were issued by a third-party insurance company with no affiliation to the Company, all pension obligations will be funded by the insurer’s annuity payments, but the plans still retain full legal responsibility to pay the benefits to plan participants using the insurance payments. As the plans maintain full legal responsibility, with the insurance contracts being assets of the plans, settlement accounting has not been applied. Given the funded status of the plans, the Company does not expect any future contributions to be required. In July 2024, the U.K. Court of Appeal upheld a ruling in the matter of Virgin Media Limited versus NTL Pension Trustees II Limited, that certain historical amendments for contracted out defined benefit schemes were invalid if they were not accompanied by the correct actuarial confirmation, a decision that the Company was not a party to or involved in and could impact the Company's non-U.S. pension plans in the U.K. The Company has not identified any benefit uncertainties for which the potential impact would need to be considered and will continue to monitor this development during 2026 and beyond. December 31, 2025 2024 Projected benefit obligation ("PBO") funded status Fair value of plan assets $ 1,521 $ 1,466 Benefit obligations ( 1,436 ) ( 1,388 ) Funded status of plans $ 85 $ 78 December 31, 2025 2024 Change in benefit obligation Beginning balance $ 1,388 $ 1,588 Service cost 4 5 Interest cost 65 60 Plan participants' contributions 1 1 Actuarial gain ( 18 ) ( 132 ) Benefits paid ( 100 ) ( 98 ) Settlements ( 9 ) ( 5 ) Other ( 1 ) 1 Foreign currency translation adjustment 106 ( 32 ) Ending balance $ 1,436 $ 1,388 Change in plan assets Beginning balance $ 1,466 $ 1,650 Employer contributions 5 6 Plan participants' contributions 1 1 Benefits paid ( 100 ) ( 98 ) Actual return (loss) on assets 49 ( 58 ) Settlements ( 9 ) ( 5 ) Other ( 1 ) 2 Foreign currency translation adjustment 110 ( 32 ) Ending balance $ 1,521 $ 1,466 91 Table of Contents Supplemental consolidated balance sheets information related to pension is as follows: December 31, 2025 2024 Pension and post-retirement assets $ 129 $ 120 Other accrued liabilities ( 1 ) — Other noncurrent liabilities ( 43 ) ( 42 ) Net amount recognized $ 85 $ 78 Information for pension plans with accumulated and projected benefit obligations in excess of plan assets: December 31, 2025 2024 Benefit obligation $ 60 $ 56 Accumulated benefit obligation 51 46 Fair value of plan assets 16 14 The components of the net periodic pension cost for the defined benefit pension plans are as follows: December 31, 2025 2024 Service cost $ 4 $ 5 Interest cost 65 60 Expected return on plan assets ( 69 ) ( 62 ) Amortization of net loss 22 22 Settlements 1 — Net periodic pension cost $ 23 $ 25 Major assumptions used in determining the benefit obligation and net periodic benefit cost for pension plans are presented in the following table as weighted averages: Year Ended December 31, 2025 2024 Benefit Obligation Net Periodic Benefit Cost Benefit Obligation Net Periodic Benefit Cost Discount rates: PBO 5.0 % 4.9 % 4.9 % 4.0 % Interest cost — % 3.9 % — % 3.9 % Service cost — % 4.6 % — % 3.9 % Salary scale 3.0 % 4.6 % 3.0 % 3.1 % Expected return on plan assets — % 3.0 % — % 3.9 % Except for the U.K. pension plans, the discount rate assumptions are developed using a bond yield curve constructed from a population of high-quality, non-callable, corporate bond issues with maturities ranging from five years to nineteen years . A discount rate is estimated for, and is based on, the durations of the underlying plans. For the U.K. pension plans, the discount rate is set using the U.K. Gilt yield curve. The expected long-term rate of return used for the Company’s pension plans is determined in each local jurisdiction and is based on the assets held in that jurisdiction, the expected rate of returns for the type of assets held and any guaranteed rate of return provided by the investment. The other assumptions used to measure the pension obligations, including discount rate, vary by country based on specific local requirements and information. 92 Table of Contents Non-U.S. pension plan assets are typically managed by decentralized fiduciary committees. The disclosure below of asset categories is presented in aggregate for 12 defined benefit plans in 7 countries; however, there is variation in asset allocation policy from country to country. Local regulations, local funding rules, and local financial and tax considerations are part of the funding and investment allocation process in each country. Each plan has its own strategic asset allocation. The asset allocations are reviewed periodically and rebalanced when necessary. The Company has no significant concentration of risk in the assets of its pension plans, other than the insurance contract assets, which are held with a single insurance company and subject to the insurance company’s ability to meet its payment obligations under the contracts. The allocation of the pension plan assets are presented in the following table as weighted averages: Year Ended December 31, 2025 2024 Target Asset Allocation Percentage Percentage of Plan Assets Target Asset Allocation Percentage Percentage of Plan Assets Equity securities 3.4 % 3.4 % 4.1 % 4.1 % Debt securities 5.0 % 5.2 % 4.6 % 4.7 % Real estate 0.5 % 0.5 % 0.6 % 0.6 % Other 1 91.1 % 90.9 % 90.7 % 90.6 % Total 100.0 % 100.0 % 100.0 % 100.0 % (1) Other includes insurance contracts. 93 Table of Contents The fair values of the pension plan assets by asset category are as follows: Asset Category Quoted Prices in Active Markets for Identical Assets Level 1 Significant Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Not Subject to Leveling (1) Total Equities: Global equity funds $ — $ 61 $ — $ — $ 61 Insurance contracts — — 1,244 — 1,244 Fixed income securities: Governments — 110 — — 110 Corporate bonds — 4 — — 4 Global fixed income at net asset value — 71 — — 71 Real estate (2) — 8 — — 8 Other (3) — 3 — 3 6 Cash & cash equivalents (4) 17 — — — 17 Total at December 31, 2025 $ 17 $ 257 $ 1,244 $ 3 $ 1,521 Asset Category Quoted Prices in Active Markets for Identical Assets Level 1 Significant Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Not Subject to Leveling 1 Total Equities: Global equity funds $ — $ 75 $ — $ — $ 75 Insurance contracts — — 1,203 — 1,203 Fixed income securities: Governments — 99 — — 99 Corporate bonds — 3 — — 3 Global fixed income at net asset value — 57 — — 57 Real estate (2) — 1 — — 1 Other (3) — 7 — 7 14 Cash & cash equivalents (4) 13 — — 1 14 Total at December 31, 2024 $ 13 $ 242 $ 1,203 $ 8 $ 1,466 (1) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension assets. (2) Represents investments in real estate, including commingled funds and directly held properties. (3) Represents various contracts and global risk balanced commingled funds consisting mainly of equity, bonds, and some commodities. (4) Represents short-term commercial paper, bonds, and other cash or cash-like investments. The insurance contracts were initially valued by taking the initial purchase price for the buy-in contract and using this to assess an assumed pricing basis. This pricing basis is then adjusted over time to reflect broad changes in insurers’ pricing methodologies under different prevailing market conditions, using third party actuarial guidance as to typical insurer pricing based on similar transactions. 94 Table of Contents The table below presents a reconciliation of the fair value of the Company’s pension assets that use significant unobservable inputs (Level 3): December 31, 2023 $ 1,383 Return on assets ( 94 ) Payments from insurance policy ( 86 ) December 31, 2024 1,203 Return on assets 132 Payments from insurance policy ( 91 ) December 31, 2025 $ 1,244 The plans review assets at least quarterly to ensure they are within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations. The plans generally employ a broadly diversified investment manager structure that includes diversification by active and passive management, style, capitalization, country, sector, industry, and number of investment managers. Quoted market prices are used to value investments when available. Investments in securities traded on exchanges, including listed futures and options, are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Fixed income securities are primarily measured using a market approach pricing methodology, where observable prices are obtained by market transactions involving identical or comparable securities of issuers with similar credit ratings. Over-the-counter securities and government obligations are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes. Temporary cash investments are stated at cost, which approximates fair value. The Company made total contributions of approximately $ 5 to the global defined benefit pension plans in 2025. Contributions do not reflect benefits to be paid directly from corporate assets. The Company estimates contributions to be made to its pension plans will approximate $ 7 in 2026. Benefit payments, including amounts to be paid from the plans and corporate assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: $ 102 in 2026, $ 107 in 2027, $ 109 in 2028, $ 106 in 2029, $ 106 in 2030, and $ 517 from 2031 through 2035. As of December 31, 2025 and 2024, the amount in accumulated other comprehensive loss not yet recognized as a component of net periodic pension cost was $ 534 and $ 517 , respectively, and relates primarily to the net actuarial loss. NOTE 17. RELATED-PARTY TRANSACTIONS The Company incurred advisory fees of $ 4 during both the years ended December 31, 2025 and 2024, in each case payable to Mariposa Capital, LLC, an entity owned by a co-chair of the Company’s Board of Directors. In addition, dividends for Series A Preferred Stock were declared as of December 31, 2025 and December 31, 2024 settled in 15,212,810 shares and 3,815,493 shares, respectively, issued during January 2026 and January 2025, respectively. The shares were issued to Mariposa Acquisition IV, LLC, a related entity that is controlled by a co-chair of the Company's Board of Directors. During 2022, the Company issued and sold 800,000 shares of the Company’s 5.5 % Series B Redeemable Convertible Preferred Stock, par value $ 0.0001 per share (the “Series B Preferred Stock”) for an aggregate purchase price of $ 800 . Of the 800,000 shares issued and sold, 200,000 shares were sold to Viking Global Equities Master Ltd. and Viking Global Equities II LP ("Viking Purchasers"), which is the aggregate owner of more than 5 % of the Company's outstanding stock, for an aggregate purchase price of $ 200 . During the year ended December 31, 2024, the Company declared and issued dividends of 106,197 shares of common stock on the Series B Preferred Stock held by Viking Purchasers. During the year-ended December 31, 2023, the Company declared dividends of 632,046 shares of common stock on the Series B Preferred Stock held by Viking Purchasers, with 505,655 shares issued in 2023 and 126,392 shares issued in 2024. 95 Table of Contents During 2024, the Company executed an agreement with the Viking Purchasers which allowed the exercise of their right to convert all of their Series B Preferred Stock into common stock. For additional information regarding the Series B Preferred Stock Conversion, see Note 19 –"Shareholders' Equity and Redeemable Convertible Preferred Stock." From time to time, the Company also enters into other immaterial related-party transactions. NOTE 18. CONTINGENCIES The Company is involved in various litigation matters and is subject to claims from time to time from customers and various government entities. While it is not feasible to determine the outcome of any of these uncertainties, it is the opinion of management that their outcomes will not have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Environmental The Company's operations are subject to environmental regulation by various authorities. The Company has accrued for the costs of environmental remediation activities, including but not limited to, investigatory, remediation, operating and maintenance costs, and performance guarantees, and periodically reassess these amounts. Management believes that the likelihood of incurring losses materially in excess of the amounts accrued is remote. The outstanding liability for these obligations was $ 13 and $ 15 and was included in other noncurrent liabilities as of December 31, 2025 and 2024, respectively. NOTE 19. SHAREHOLDERS' EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK Shareholders' equity Series A Preferred Stock The Company has 4,000,000 shares of Series A Preferred Stock issued and outstanding as of December 31, 2025 ("Series A Preferred Stock"). As a result of the three-for-two stock split completed in the second quarter of 2025, the Series A Preferred Stock will be convertible into 6,000,000 shares of common stock upon conversion on the last day of 2026 pursuant to the Company’s Certificate of Incorporation. The holders of the Series A Preferred Stock are entitled to receive an annual dividend in the form of common shares or cash, at the Company’s sole option (for which the Company settled in shares subsequent to year end) based on the increase in the market price of the Company’s common stock (the "Annual Dividend Amount"). The Annual Dividend Amount is equal to 20 % of the increase in the volume-weighted average market price per share of the Company’s common shares for the last ten trading days of the calendar year, multiplied by 211,791,957 shares. As of December 31, 2025, an annual dividend was calculated based on the appreciation of the Company’s share price of $ 38.8096 over the highest price previously used in calculating the Annual Dividend Amount of $ 24.8713 . The annual dividend declared as of December 31, 2025 was settled in shares and the Company issued 15,212,810 common shares to the holders of the Series A Preferred Stock in January 2026. As of December 31, 2024, an annual dividend was calculated based on the appreciation of the Company's share price of $ 24.8713 over the highest price previously used in calculating the Annual Dividend Amount of $ 22.6310 . The annual dividend declared as of December 31, 2024 was settled in shares and the Company issued 3,815,493 common shares to the holders of the Series A Preferred Stock in January 2025. The holders of Series A Preferred Stock are also entitled to participate in any dividends on the common shares on an if-converted basis. In addition, if the Company pays a dividend on its common shares, the Series A Preferred Stock holders will also receive an amount equal to 20 % of the dividend which would be distributable on 211,791,957 of common shares. All such dividends on the Series A Preferred Stock will be paid at the same time as the dividends on the common shares. Dividends are paid for the term the Series A Preferred Stock is outstanding. Every two shares of Series A Preferred Stock is convertible to three common shares at the option of the holder until conversion. If there is more than one holder of Series A Preferred Stock, a holder of Series A Preferred Stock may exercise its rights independently of any other holder of Series A Preferred Stock. 96 Table of Contents Common stock During 2024, the Company issued 18,975,000 shares of the Company’s common stock in a public underwritten offering. The proceeds from this offering totaled approximately $ 458 , net of related expenses. The Company used the net proceeds from this offering to finance a portion of the consideration for the Elevated acquisition and for general corporate purposes. Stock repurchases During the second quarter of 2025, the Company's Board of Directors authorized a share repurchase program ("2025 SRP") to purchase up to $ 1,000 shares of the Company's common stock. The timing, amount, and manner of any repurchases under the new repurchase program will be determined at the discretion of the Company's leadership based on a number of factors, including the availability of capital, capital allocation alternatives, and market conditions for the common stock. The share repurchase program is open-ended and does not require the Company to acquire any specific number of shares. It may be modified, suspended, extended, or terminated by the Company at any time without prior notice and may be executed through open-market purchases, privately negotiated transactions or otherwise, and the Company may enter into Rule 10b5-1 trading plans in connection with such repurchases. This new authorization replaces the Company's previous share repurchase authorization announced in 2024 ("2024 SRP"). Prior to the new authorization, the Company repurchased 3,095,573 shares of common stock for approximately $ 75 under the 2024 SRP. As of December 31, 2025, the Company had approximately $ 1,000 of authorized repurchases remaining under the 2025 SRP. During 2024, the Company's Board of Directors authorized the 2024 SRP to purchase up to an aggregate of $ 1,000 of shares of the Company's common stock. During the year ended December 31, 2024, the Company repurchased 24,390,240 shares of the Company's common stock for approximately $ 600 . Authorized Shares During the second quarter of 2025, upon the recommendation of the Company's Board of Directors, the Company's shareholders approved an amendment to the Company's Certificate of Incorporation to increase the number of authorized shares of the Company's common stock, par value $ 0.0001 per share, from 500,000,000 to 1,000,000,000 shares. Stock Split During the second quarter of 2025, the Company 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. No shares of common stock were issued to the holders of the Company’s Series A Preferred Stock in connection with the stock split. The Series A Preferred Stock will convert to 6,000,000 shares of common stock upon conversion as a result of the stock split. The Company retained the current par value of $ 0.0001 per share for all common shares. All references to the number of shares outstanding, issued shares, and per share amounts of the Company’s common shares have been restated to reflect the effect of the stock split for all historical periods presented in the Company’s accompanying consolidated financial statements and footnotes thereto. Redeemable Convertible Preferred Stock Series B Preferred Stock During 2022, the Company authorized, issued and sold, for an aggregate purchase price of $ 800 , 800,000 shares of the Company’s 5.5 % Series B Preferred Stock, par value $ 0.0001 per share. On February 28, 2024, the Company entered into a Conversion and Repurchase Agreement with Juno Lower Holdings L.P. ("Juno Lower Holdings"), FD Juno Holdings L.P. ("FD Juno Holdings," and together with Juno Lower Holdings, "Blackstone"), Viking Global Equities Master Ltd. ("VGEM") and Viking Global Equities II L.P. (VGE II, and collectively with VGEM, "Viking" and collectively with Blackstone, the "Series B Holders") pursuant to which Blackstone and Viking agreed to convert all of the outstanding shares of the Series B Preferred Stock that they hold, which represents all of the Series B Preferred Stock outstanding. The transactions contemplated by the agreement (the "Series B Preferred Stock Conversion") were also consummated on February 28, 2024. Under the terms of the agreement, (i) the Series B Holders each agreed to exercise their respective right to convert all of their Series B Preferred Stock into common stock, resulting in a total of 800,000 shares of Series B Preferred Stock being converted into approximately 49,205,279 shares of common stock of the Company (inclusive of approximately 424,794 shares attributable to accrued and unpaid dividends thereon (the "Conversion Shares")) and (ii) upon issuance of 97 Table of Contents the Conversion Shares, the Company agreed to immediately repurchase one-half of the Conversion Shares, on a pro rata basis, from the Series B Holders for an aggregate purchase price of $ 600 . The fair value of the issued one-half of the remaining Conversion Shares was $ 569 . The repurchase price was financed by (i) an incremental term facility of $ 300 and (ii) cash and available credit from the balance sheet. Dividends Following the Series B Preferred Stock Conversion there are no Series B Preferred Shares issued or outstanding and the former holders of Series B Preferred Stock are no longer entitled to receive cumulative dividends. The Company declared a pro rata Series B Preferred Stock dividend of $ 7 , or 424,794 shares of common stock, during the year ended December 31, 2024 for the Series B Preferred Stock outstanding through February 28, 2024. The Company declared and issued Series B Preferred Stock dividends of $ 33 or 2,022,630 shares of common stock during the year ended December 21, 2023. The Company declared a Series B Preferred Stock dividend of $ 11 or 505,566 shares of common stock in December 2023 and issued the shares in January 2024. NOTE 20. SHARE-BASED COMPENSATION The Company maintains a 2019 Equity Incentive Plan (the “2019 Plan”), which allows for grants of share-based awards. At December 31, 2025, there were 15,787,149 share-based awards collectively available for grant under the 2019 Plan. The 2019 Plan generally provides for awards to vest no earlier than one year from the date of grant, although most awards entitle the recipient to common shares if specified market or performance conditions are achieved, if applicable, and vest over a minimum of three years . The share-based awards granted to employees include stock options and restricted stock units. Stock Options In 2017, upon its initial public offering, the Company issued 243,750 nonqualified stock options to independent, non-executive directors at an exercise price of $ 7.67 per share with contractual terms of five years from the date of the acquisition of APi Group (the "APi Acquisition"), October 1, 2019. These stock options were performance-based and vested on the consummation of the APi Acquisition. The Company has not granted stock options since 2017 and all outstanding stock options were exercised during 2024. The following table summarizes the changes in the number of common shares underlying options for the year ended December 31, 2024 (shares in whole numbers and per share values in whole dollars): Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding at December 31, 2023 187,500 $ 7.67 0.8 $ 3 Exercised ( 187,500 ) 7.67 Outstanding at December 31, 2024 — $ — 0.0 $ — Restricted Stock Units The Company has issued Time-Based Restricted Stock Units ("RSUs"), Performance-Based Restricted Stock Units with EBITDA-based performance conditions (“PSUs”), and Performance-Based Restricted Stock Units with share-price targets ("MSUs"), which are independent of stock option grants and all generally subject to forfeiture if employment terminates prior to vesting. Forfeitures are estimated and recorded using historical forfeiture rates. As of December 31, 2025, the Company had outstanding RSUs, PSUs, and MSUs, detailed below (shares in whole numbers and per share values in whole dollars). 98 Table of Contents Time-Based Restricted Stock Units The RSUs entitle recipients to shares of the Company’s common stock and primarily vest in equal installments over a three-year service period from date of grant. The time-based RSUs granted to the Company’s directors vest at the end of the anniversary date of their grant date. Time-Based Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in Years) Outstanding at December 31, 2023 1,356,516 $ 14.85 1.0 Granted 787,817 24.13 Vested ( 617,928 ) 14.46 Forfeited ( 165,387 ) 20.26 Outstanding at December 31, 2024 1,361,018 $ 19.76 1.6 Granted 784,090 26.60 Vested ( 696,297 ) 18.31 Forfeited ( 59,340 ) 28.34 Outstanding at December 31, 2025 1,389,471 $ 23.98 1.5 Expected to vest at December 31, 2025 1,373,318 $ 23.94 1.5 EBITDA Performance-Based Restricted Stock Units The PSUs entitle recipients to shares of the Company's common stock if specified performance conditions are achieved. During the years ended December 31, 2025 and 2024, the Company approved and granted PSUs with EBITDA-based financial performance conditions. PSUs vest, if at all, following a three-year performance period. If the performance conditions are not met, no compensation cost is recognized and any recognized compensation cost is reversed. Performance- Based Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in Years) Outstanding at December 31, 2023 2,478,030 $ 14.23 1.0 Granted 611,529 23.87 Vested ( 702,433 ) 12.73 Forfeited ( 607,148 ) 17.43 Change in units based on performance expectations ( 21,666 ) 13.85 Outstanding at December 31, 2024 1,758,312 $ 17.72 1.1 Granted 827,393 25.77 Vested ( 812,591 ) 13.93 Forfeited ( 99,667 ) 19.73 Change in units based on performance expectations 356,541 13.85 Outstanding at December 31, 2025 2,029,988 $ 21.74 1.0 Expected to vest at December 31, 2025 1,967,186 $ 21.64 1.0 99 Table of Contents Market-Based Performance Restricted Stock Units The MSUs entitle the recipient to shares of the Company's common stock if specified market conditions are achieved. During the year ended December 31, 2022, the Company approved and granted MSUs with certain share-price targets. The MSUs vested 100 % on March 9, 2025, the third anniversary of the grant date, as the performance condition was satisfied during the year ended December 31, 2023. Market-Based Performance Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in Years) Outstanding at December 31, 2023 620,042 $ 11.37 1.2 Forfeited ( 107,553 ) 10.87 Outstanding at December 31, 2024 512,489 $ 10.87 0.2 Vested ( 508,830 ) 10.87 Forfeited ( 3,659 ) 10.87 Outstanding at December 31, 2025 — $ — 0.0 The Company recognized $ 37 and $ 29 of compensation expense during the years ended December 31, 2025 and 2024, respectively, for the RSUs, PSUs, and MSUs in total. Total unrecognized compensation related to unvested RSUs and PSUs as of December 31, 2025 was approximately $ 24 , which is expected to be recognized over a weighted-average period of approximately 1.5 years and 1.0 year, respectively. The Company's actual tax benefits realized from the tax deductions related to the vesting of RSUs was $ 11 and $ 7 during the years ended December 31, 2025 and 2024, respectively. NOTE 21. EARNINGS (LOSS) PER SHARE Net income is allocated between the Company’s common shares and other participating securities based on their participation rights. The Series A Preferred Stock and Series B Preferred Stock represent participating securities. Earnings attributable to Series A Preferred Stock and Series B Preferred Stock are not included in earnings attributable to common shares in calculating earnings per common share (the two-class method). For periods of net loss, there is no impact from the two-class method on earnings per share (“EPS”) as net loss is allocated to common shares because Series A Preferred Stock and Series B Preferred Stock are not contractually obligated to share the loss. The following table sets forth the computation of earnings per common share using the two-class method. The dilutive effect of outstanding Series A Preferred Stock, Series B Preferred Stock, the Series A Preferred Stock dividend, and the Series B Preferred Stock dividend is reflected in diluted EPS using the if-converted method and options, RSUs, PSUs and MSUs are reflected using the treasury stock method. For periods of net loss, basic and diluted EPS are the same, as the assumed exercise of Series A Preferred Stock, Series B Preferred Stock, RSUs, PSUs, MSUs, and stock options are anti-dilutive. (Amounts in millions, except share and per share amounts.) 100 Table of Contents Year Ended December 31, 2025 2024 2023 Basic and diluted loss per common share: Net income $ 302 $ 250 $ 153 Less stock dividend attributable to Series A Preferred Stock ( 590 ) ( 95 ) ( 270 ) Less stock dividend attributable to Series B Preferred Stock — ( 7 ) ( 44 ) Less stock conversion of Series B Preferred Stock — ( 372 ) — Net loss attributable to common shareholders $ ( 288 ) $ ( 224 ) $ ( 161 ) Weighted-average shares outstanding - basic and diluted (1) 415,709,895 401,513,646 352,705,274 Loss per common share - basic and diluted $ ( 0.69 ) $ ( 0.56 ) $ ( 0.46 ) (1) The following items were excluded from the calculation of diluted shares as their inclusion would be anti-dilutive: a. For each of the years ended December 31, 2025, 2024, and 2023, 4,000,000 shares of Series A Preferred Stock, which are convertible to 6,000,000 common shares. b. For the year ended December 31, 2023, 800,000 shares of Series B Preferred Stock which were convertible to 48,780,000 shares of common stock. c. For the year ended December 31, 2023, 187,500 stock options to purchase the same number of common shares. d. For the years ended December 31, 2025, 2024, and 2023 , 15,212,810 , 3,815,493 , and 11,916,156 common share equivalents, respectively, which represent the dividend that the Series A Preferred Stock holders are entitled to receive. (See additional description in Note 19 – "Shareholders' Equity and Redeemable Convertible Preferred Stock.") e. For the years ended December 31, 2025, 2024, and 2023, 1,389,471 RSUs and 2,029,988 PSUs; 1,361,018 RSUs, 1,758,312 PSUs, and 512,489 MSUs; and 1,356,516 RSUs, 2,478,030 PSUs, and 620,042 MSUs, respectively. NOTE 22. 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. 101 Table of Contents 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: 102 Table of Contents 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. 103 Table of Contents 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. 104 Table of Contents 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. 105 Table of Contents NOTE 23. SUBSEQUENT EVENTS On February 2, 2026, the Company completed the acquisition of CertaSite, LLC, an inspection-first provider of fire and life safety services. The total consideration transferred by the Company consists of approximately $ 271 cash paid at closing, 106 Table of Contents ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.