PresentationTimothy WojsRobert W. Baird & Co. Incorporated, Research Division All right. Great. Good afternoon. Thank you for joining us. I'm Tim Wojs, and I cover building products here at Baird. We're delighted to have Allegion join us again this year at our Global Industrial Conference. Allegion is one of the world's largest manufacturers of mechanical and electromechanical locks and security products. From the company, we have President and CEO, John Stone, up here with me on stage. We have CFO, Mike W ...

Allegion (NYSE:ALLE) FY Conference November 12, 2025 03:55 PM ET Speaker0Great. Good afternoon. Thank you for joining us. I'm Tim Weiss, and I cover building products here at Baird. We are delighted to have Allegion join us again this year at our Global Industrial Conference. Allegion is one of the world's largest manufacturers of mechanical and electromechanical locks and security products. From the company, we have President and CEO John Stone up here with me on stage. We have CFO Mike Wagnes, and then we ...

FireLite® Joins The Manufacturer's Other Fire-Rated Systems with Crucial Environmental Impact Documentation SNOQUALMIE, Wash., Nov. 11, 2025 /PRNewswire/ --Â To support ongoing green building initiatives, FireLite®, a fire-rated glazing material from Technical Glass Products (TGP), an Allegion company, is now registered with an Environmental Product Declaration (EPD). This internationally recognized label documents quantitative and third-party verified environmental data from raw material procurement to shi ...

On September 1, 2024, I started tracking an investable universe of what I believe to be 50 high-quality dividend growth stocks. You can find out more about the formation of this investableI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sharing my thoughts with the Seeking ...

Accessibility StatementSkip Navigation Integration of Schlage XE360 into Brivo Ecosystem Increases Flexibility and Connectivity for Multi-Family and Mixed-Use Properties CARMEL, Ind., Oct. 29, 2025 /PRNewswire/ -- Allegion Americas, a pioneer in door hardware, security technology, and services, and Brivo, a leader in cloud-native unified physical security and smart building technologies, are partnering to deliver a Connected Openings solution. Brivo's Security Suite now delivers an industry-first solution u ...

Core Insights - Allegion plc's third-quarter 2025 adjusted earnings per share (EPS) of $2.30 exceeded the Zacks Consensus Estimate of $2.21, marking a year-over-year increase of 6.5% [1][8] - The company's revenues reached $1.07 billion, reflecting a 10.7% year-over-year growth, driven by strong performance in the non-residential business in the Americas [2][8] Revenue Details - Allegion's organic revenues increased by 5.9%, with acquired assets contributing an additional 3.9% and foreign currency effects adding 0.9% [2] - Revenues from Allegion Americas rose by 7.9% year over year to $844 million, accounting for 78.9% of total revenues, while Allegion International revenues surged by 22.5% to $226.2 million [2][3] Margin Profile - The cost of revenues increased by 8.5% year over year to $580.4 million, while gross profit rose by 13.4% to $489.8 million, resulting in a gross margin improvement of 110 basis points to 45.8% [4] - Adjusted operating income increased by 10.1% year over year to $257.4 million, with an adjusted margin of 24.2%, up 10 basis points [5] Balance Sheet and Cash Flow - At the end of Q3 2025, Allegion had cash and cash equivalents of $302.7 million, down from $503.8 million at the end of 2024, while long-term debt increased to $2.06 billion [6] - The company generated net cash of $543.7 million from operating activities in the first nine months of 2025, a 19.2% increase year over year [7] 2025 Outlook - Allegion raised its 2025 revenue growth guidance to 7-8%, up from the previous estimate of 6.5-7.5%, with organic revenue growth expected in the range of 3.5-4.5% [10] - Adjusted earnings are projected to be between $8.10 and $8.20 per share, an increase from the earlier forecast of $8.00 to $8.15 [10]

Financial Data and Key Metrics Changes - Q3 revenue exceeded $1 billion, marking a 10.7% increase compared to 2024, with organic revenue rising by 5.9% due to favorable pricing and volume [8][9] - Adjusted EPS for Q3 was $2.30, an increase of $0.14 or 6.5% year-over-year [9] - Year-to-date available cash flow reached $485.2 million, up 25.1% from the previous year [12] Business Line Data and Key Metrics Changes - The Americas segment reported revenue of $844 million, up 7.9% on a reported basis and 6.4% organically, driven by non-residential business demand [9][10] - The International segment delivered revenue of $226 million, a 22.5% increase on a reported basis and 3.6% organically, with acquisitions contributing significantly [11] Market Data and Key Metrics Changes - Non-residential business in the Americas showed mid-single-digit organic growth, while residential market demand remained soft [10][14] - International markets are expected to remain largely flat, with some growth driven by recent acquisitions [14][15] Company Strategy and Development Direction - The company is focused on long-term capital allocation for growth, with approximately $600 million allocated to acquisitions year-to-date [4][7] - Recent acquisitions, including UAP and Bressant, are aimed at strengthening the product portfolio and enhancing cost positions [6][11] Management's Comments on Operating Environment and Future Outlook - Management raised the 2025 adjusted EPS outlook to $8.10 to $8.20, reflecting strong execution and recent acquisitions [5][15] - The overall market conditions for 2026 are expected to be similar to 2025, with continued focus on price adjustments to offset inflation [15][16] Other Important Information - The company continues to pay dividends, amounting to $0.51 per share in Q3, totaling approximately $44 million [7] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 1.8 times [13] Q&A Session Summary Question: Update on spec writing and key verticals - Spec activity has accelerated in 2025, supporting organic growth in non-residential markets [20][22] Question: M&A pipeline and potential earnings accretion - The M&A pipeline remains strong across both reporting segments, with ongoing activity in portfolio expansion and complementary software [23][24] Question: Conversations with building owners and architects regarding macro uncertainty - Non-res project activity is healthy, with private finance returning to the market, indicating a positive environment [29][30] Question: International volume growth and momentum - International segment showed volume growth after previous declines, with electronics businesses performing well [32][33] Question: Adjusted operating margins and corporate costs - Margins are expected to expand in Q4, with corporate costs remaining consistent with previous quarters [36][39] Question: Residential outlook for Q4 - Residential market demand is expected to remain soft, aligning with year-to-date growth rates [65] Question: Pricing power and customer reactions to tariffs - The company has not seen pricing fatigue, and the demand environment in non-res remains strong [68] Question: Spec content evolution and new product contributions - There is an increase in electronics adoption in specs, with new product launches contributing positively [75][76]

Financial Data and Key Metrics Changes - Q3 revenue exceeded $1 billion, marking a 10.7% increase compared to 2024, with organic revenue growth of 5.9% driven by favorable pricing and volume [8][9] - Adjusted EPS for Q3 was $2.30, an increase of $0.14 or 6.5% year-over-year [9] - Year-to-date available cash flow reached $485.2 million, up 25.1% from the previous year [12][13] Business Line Data and Key Metrics Changes - Americas segment revenue was $844 million, up 7.9% reported and 6.4% organically, with non-residential business demand remaining healthy [9][10] - International segment revenue was $226 million, up 22.5% reported and 3.6% organically, with acquisitions contributing 13.6% to segment revenue [11] Market Data and Key Metrics Changes - Non-residential markets in the Americas are resilient, while residential markets remain soft, consistent with year-to-date growth rates [14][15] - International markets are expected to show roughly flat organic performance, with some segments at historical troughs [14][33] Company Strategy and Development Direction - The company is focused on capital allocation for long-term shareholder benefits, raising the 2025 adjusted EPS outlook to $8.10-$8.20 [5][15] - Allegion continues to pursue accretive acquisitions, with recent acquisitions including UAP and Bressant enhancing the product portfolio [6][7] Management's Comments on Operating Environment and Future Outlook - Management noted that spec activity has accelerated in 2025, supporting organic growth in non-residential markets [22][14] - The input cost environment remains dynamic, with expectations to drive pricing to offset inflation [15][68] Other Important Information - The company remains disciplined in capital deployment, with a strong balance sheet and a net debt to adjusted EBITDA ratio of 1.8x [12][13] - Allegion continues to be a dividend-paying stock, distributing $0.51 per share in Q3 [7] Q&A Session Summary Question: Update on spec writing and key verticals - Spec activity has continued to grow in 2025, with versatile spec writers capable of addressing various market needs [22] Question: M&A pipeline and potential earnings accretion - The M&A pipeline remains strong across both reporting segments, with ongoing activity in portfolio expansion and complementary software [24] Question: Conversations with building owners regarding macro uncertainty - Non-res project activity is healthy, with private finance returning to the market, supported by positive customer backlogs [31] Question: International volume growth and momentum - International segment showed volume growth after previous declines, with electronics businesses performing well [33] Question: Adjusted operating margins and corporate costs - Expectation of margin expansion in Q4, with corporate costs remaining consistent with previous quarters [36] Question: Pricing power and customer weakness - No signs of pricing fatigue observed, with the demand environment in non-res being healthy [68]

Financial Data and Key Metrics Changes - Q3 revenue exceeded $1 billion, marking a 10.7% increase compared to 2024 [9] - Organic revenue grew by 5.9%, driven by favorable pricing and volume, particularly in the Americas nonresidential business [10] - Adjusted earnings per share (EPS) for Q3 was $2.3, an increase of $0.14 or 6.5% year-over-year [10] - Year-to-date available cash flow reached $485.2 million, up 25.1% compared to the previous year [11] Business Line Data and Key Metrics Changes - Americas segment revenue was $844 million, up 7.9% reported and 6.4% organically, with strong performance in nonresidential business [12] - International segment revenue was $226 million, up 22.5% reported and 3.6% organically, led by electronics businesses [15] - Adjusted operating margin for the Americas increased by 40 basis points, while the international segment's adjusted operating margin rose by 70 basis points [14][15] Market Data and Key Metrics Changes - Nonresidential markets in the Americas remain resilient, with solid demand and spec activity growth [19] - Residential markets are considered soft, with growth primarily driven by new electronic product launches [13][19] - International markets are expected to show roughly flat organic performance, with some segments at historical troughs [21] Company Strategy and Development Direction - The company is focused on capital allocation for long-term shareholder benefits, raising the 2025 adjusted EPS outlook to $8.1 to $8.2 [6][20] - Recent acquisitions, including UAP and Bressant, are aimed at strengthening the product portfolio and enhancing cost position [7][20] - The company emphasizes disciplined capital deployment and continues to seek accretive acquisitions in high-performing markets [32][58] Management's Comments on Operating Environment and Future Outlook - Management noted a positive environment for nonresidential project activity, with healthy customer backlogs supporting organic growth [38] - The input cost environment remains dynamic, with expectations to drive pricing to offset inflation [21][76] - Overall, the company remains confident in its ability to navigate the current economic landscape and achieve growth [22] Other Important Information - The company has allocated approximately $600 million to acquisitions year-to-date, consistent with priorities outlined at the Investor Day [5] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 1.8 times [17] Q&A Session Summary Question: Update on spec writing and key verticals - Spec activity has continued to grow in 2025, supporting organic growth in nonresidential markets [28][30] Question: M&A pipeline and potential earnings accretion - The M&A pipeline remains strong across both reporting segments, with ongoing activity in various product categories [32] Question: Conversations with building owners and architects regarding macro uncertainty - Nonresidential project activity is performing well, with private finance returning to the market [38] Question: International volume growth and momentum - International segment showed positive volume growth, with expectations for continued performance despite a largely unchanged market outlook [40] Question: Adjusted operating margins and corporate costs - Expectation of margin expansion in Q4, with corporate costs remaining consistent with previous quarters [46] Question: Residential outlook for Q4 - Residential market demand is expected to remain soft, aligning with year-to-date growth rates [74] Question: Pricing power and customer reactions to tariffs - The company has not observed pricing fatigue, with strong pricing power maintained in the current environment [76]

Financial Data and Key Metrics Changes - Q3 revenue exceeded $1 billion, marking a 10.7% increase compared to 2024, with organic revenue growth of 5.9% driven by favorable price and volume [8][9] - Adjusted EPS for Q3 was $2.30, an increase of $0.14 or 6.5% year-over-year [8][9] - Year-to-date available cash flow reached $485.2 million, up 25.1% from the previous year [12] Business Line Data and Key Metrics Changes - Americas segment revenue was $844 million, up 7.9% reported and 6.4% organically, with mid-single-digit growth in non-residential business [9][10] - International segment revenue was $226 million, up 22.5% reported and 3.6% organically, with acquisitions contributing 13.6% to segment revenue [11] Market Data and Key Metrics Changes - Demand in the Americas non-residential market remains healthy, while residential market demand is considered soft [13][14] - International markets are expected to show roughly flat organic performance, with some segments at historical troughs [14] Company Strategy and Development Direction - The company is focused on capital allocation for long-term shareholder benefits, with approximately $600 million allocated to acquisitions year-to-date [4][6] - Recent acquisitions, including UAP and Bressant, are expected to enhance the product portfolio and cost position [6][11] Management's Comments on Operating Environment and Future Outlook - Management raised the 2025 adjusted EPS outlook to $8.10 to $8.20, reflecting strong execution and recent acquisitions [5][14] - The company anticipates continued organic growth in non-residential business, while residential markets remain soft [13][14] Other Important Information - The company continues to pay dividends, amounting to $0.51 per share in Q3, totaling approximately $44 million [6] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 1.8 times [12] Q&A Session Summary Question: Update on spec writing and key verticals - Spec activity has accelerated in 2025, supporting organic growth in non-residential markets [18][19] Question: M&A pipeline and earnings accretion - The M&A pipeline remains strong across both reporting segments, with disciplined acquisition strategies in place [20][21] Question: Conversations with building owners and architects - Non-res project activity is healthy, with private finance returning to the market [27][28] Question: International volume growth and outlook - International segment showed volume growth after previous declines, with electronics businesses performing well [29][30] Question: Adjusted operating margins and corporate costs - Expectation of margin expansion in Q4, with corporate costs remaining consistent [32][34] Question: Residential outlook for Q4 - Residential market demand is soft, with expectations for Q4 aligning with market demand rather than mid-single-digit growth [49][53] Question: Pricing power and customer reactions - The company has not seen signs of pricing fatigue, with strong pricing power in response to inflationary pressures [54][55] Question: Spec content evolution - Increased adoption of electronics in specifications, with new product launches contributing positively [58][59]