Allegion (ALLE) came out with quarterly earnings of $2.04 per share, beating the Zacks Consensus Estimate of $2 per share. This compares to earnings of $1.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +2.00%. A quarter ago, it was expected that this security device maker would post earnings of $1.68 per share when it actually produced earnings of $1.86, delivering a surprise of +10.71%.Over the last four quarters, the com ...

Financial Performance - Revenue increased by 5.8% to $1,022.0 million in Q2 2025, compared to $965.6 million in Q2 2024[18] - Adjusted EPS increased by 4.1% to $2.04 in Q2 2025, compared to $1.96 in Q2 2024[18] - Available Cash Flow (ACF) increased significantly by 56.5% to $275.4 million YTD Q2 2025, compared to $176.0 million YTD Q2 2024[21, 44] - The company is raising FY-2025 Adjusted EPS outlook to $8.00-$8.15[10, 55] Segment Performance - Allegion Americas revenue increased by 6.6% to $821.5 million in Q2 2025, compared to $770.7 million in Q2 2024[29] - Allegion International revenue increased by 2.9% to $200.5 million in Q2 2025, compared to $194.9 million in Q2 2024[36] - Americas organic revenue growth was 4.5% in Q2 and 4.7% YTD[26] - International organic revenue declined by 2.2% in Q2 and 0.7% YTD[26] Capital Allocation and Acquisitions - The company is accelerating capital deployment[10, 55] - Approximately $44 million was allocated for dividends, equating to $0.51 per ordinary share[12] - The company spent $40 million on share repurchases in Q2 2025[13] - The company announced acquisitions with a combined purchase price of approximately $525 million (€330M purchase price (~$390M) for technology & electronics acquisitions, ~$55M for mechanical portfolio expansion, and ~$80M for complementary software & services)[16] Outlook - The company updated its FY-2025 organic revenue growth outlook to 3.5% to 4.5%[50] - The company expects approximately $40 million of surcharge revenue in the Americas related to tariff mitigation, which is neutral to EPS[49]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number 001-35971 ALLEGION PUBLIC LIMITED COMPANY (Exact name of registrant as specified in its charter) _______________________________ FORM 10-Q _______________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

Allegion (NYSE: ALLE) Reports Q2-2025 Financial Results Americas Non-Residential Business Leads with HSD Growth; Company Raises Full-Year Revenue and EPS Outlook Quarterly Financial Highlights "We are steadily delivering on the long-term commitments we shared recently at our Investor Day. Allegion is driving strong organic growth in our non-residential Americas business, improving portfolio quality and margins in International, and complementing this with accretive acquisitions." Company Results (All compar ...

Core Viewpoint - Allegion plc (ALLE) is expected to report second-quarter 2025 results on July 24, with projected revenues of $1 billion, reflecting a 3.7% year-over-year growth, and earnings per share (EPS) estimated at $2, indicating a 2% increase from the previous year [1][10]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for ALLE's second-quarter revenues is $1 billion, showing a growth of 3.7% from the prior-year quarter [1]. - The consensus estimate for earnings is $2 per share, which has increased by a penny in the past 30 days, indicating a growth of 2% from the year-ago quarter [1]. - ALLE has consistently delivered better-than-expected results in the past four quarters, with an average earnings surprise of 10.1% [2]. Group 2: Segment Performance Insights - The Allegion Americas segment is expected to see a revenue increase of 4.1% year-over-year to $801.9 million, driven by stable demand across various end markets [3]. - The Allegion International segment is anticipated to experience a revenue decline of 4.5% from the year-ago quarter to $186.2 million, impacted by challenges in some European regions despite increased demand for electronic security products [4]. Group 3: Strategic Acquisitions - Allegion has focused on expanding its product offerings through acquisitions, including Lemaar Pty Ltd in March 2025, Next Door Company in February 2025, and Krieger Specialty Products in June 2024, which are expected to enhance its top-line performance [5]. Group 4: Cost and Margin Considerations - Rising operating costs due to increased material costs and investments in new products are likely to impact the bottom line, with cost of sales expected to rise 2.4% year-over-year to $550.2 million [6]. - The adjusted operating margin is projected to decline by 50 basis points to 23.2% in the second quarter [6]. Group 5: Foreign Exchange Impact - Allegion's extensive geographic presence exposes it to foreign exchange headwinds, with a stronger U.S. dollar likely to negatively affect its overseas business [7].

Acquisition Overview - Allegion plc (ALLE) has completed the acquisition of Waitwhile Inc., a privately owned company, through one of its subsidiaries, with financial terms undisclosed [1] - Waitwhile, based in San Francisco, CA, provides cloud-based solutions for appointment scheduling and queue management, enhancing operational efficiency and reducing wait times [2] Strategic Rationale - The acquisition aligns with Allegion's strategy to expand its market share and customer base, particularly in non-residential markets such as education, healthcare, government, commercial, and retail [3] - Waitwhile's solutions will enhance Allegion's software capabilities and digital access solutions portfolio, offering improved crowd management and real-time updates [3][8] Growth Strategy - Acquisitions are a key component of Allegion's growth strategy, focusing on strategic buyouts and innovations to improve long-term results [4] - Recent acquisitions include Gatewise, ELATEC, Novas, Trimco, Lemaar, and Next Door Company, each contributing to various segments of Allegion's portfolio [4][5][6] Market Performance - Allegion is experiencing growth in its Americas segment, driven by increased demand for non-residential products, and the International segment is benefiting from heightened awareness of security and safety [7] - The company's stock has gained 13.6% year-to-date, outperforming the industry growth of 8.7% [7]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings and sales [5] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [6] - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum [7] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential to utilize Style Scores for effective stock selection [9] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks (4 or 5) may still have good Style Scores but are likely to face declining earnings forecasts [11] Company Spotlight: Allegion plc - Allegion plc, based in Dublin, Ireland, specializes in security products and solutions, established as a standalone public company in December 2013 [12] - Allegion holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [12] - The company has a Momentum Style Score of A, with shares increasing by 6.4% over the past four weeks, and upward revisions in earnings estimates for fiscal 2025 [13]

Group 1 - Allegion plc (ALLE) has completed the acquisition of Gatewise Incorporated, a software-as-a-service company that provides modern gate entry systems for multifamily communities [1][7] - The acquisition aligns with ALLE's strategy to expand its market share and customer base, enhancing its electronic locks and the Zentra multifamily access portfolio [2][7] - Gatewise's mobile app and cloud-based management portal will improve user experience for property owners and residents by simplifying access management [2][7] Group 2 - Acquisitions are a key component of Allegion's growth strategy, with recent acquisitions including ELATEC, Novas, Trimco Hardware, Lemaar Pty Ltd, and Next Door Company, all aimed at enhancing various product portfolios [3][4][5] - The Allegion Americas segment is experiencing growth due to increased demand for non-residential products in sectors such as education, hospitality, and retail, while the International segment benefits from heightened security awareness [6] - ALLE currently holds a Zacks Rank of 2 (Buy) and has seen a year-to-date stock gain of 13.3%, outperforming the industry growth of 8.2% [6]

Industry Overview - The U.S. manufacturing sector is showing signs of recovery after a prolonged downturn, with new orders for manufactured goods increasing by 8.2% in May compared to a revised 3.9% decline in April, and a year-over-year increase of 3.2% [3][4] - The rebound in manufacturing activity is supported by easing inflationary pressures and expectations of Federal Reserve rate cuts, which are anticipated to boost demand [1][6][11] Manufacturing Activity - The Institute of Supply Management's manufacturing PMI rose to 49 in June from 48.5 in May, indicating a continued contraction but a rebound from a six-month low [5][6] - Manufacturing activity accounts for 10.2% of the U.S. economy, highlighting its significance [5] Stock Recommendations - Four stocks from the manufacturing sector are recommended for investment: Allegion plc (ALLE), AptarGroup, Inc. (ATR), Broadwind, Inc. (BWEN), and DXP Enterprises, Inc. (DXPE), all of which have strong earnings growth prospects and Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2][11] Allegion plc (ALLE) - Allegion is a global provider of security products and solutions, with an expected earnings growth of 3.9% for the current year and a Zacks Rank 2 [8][9] AptarGroup, Inc. (ATR) - AptarGroup specializes in innovative dispensing and packaging solutions, with an expected earnings growth of 4.1% for the current year and a Zacks Rank 2 [12][13] Broadwind, Inc. (BWEN) - Broadwind is a precision manufacturer focused on clean tech, particularly in the U.S. wind energy sector, with an expected earnings growth of 60% for the current year and a Zacks Rank 2 [14][15] DXP Enterprises, Inc. (DXPE) - DXP Enterprises is a distributor providing innovative solutions to industrial customers, with an expected earnings growth rate of 17.5% for the current year and a Zacks Rank 2 [16][17]

Core Insights - Allegion plc (ALLE) has completed the acquisition of ELATEC for €330 million (approximately $379.1 million) on a cash and debt-free basis [1][8] - ELATEC specializes in security and access technology, particularly in RFID credentials and reader solutions, with a portfolio supporting nearly 100 credential types [2] - The acquisition aligns with ALLE's strategy to expand its market share and customer base, particularly in non-residential markets such as education, healthcare, hospitality, and industrial sectors [3][8] Acquisition Details - ELATEC will be integrated into the Allegion International segment, led by senior vice president Tim Eckersley [4] - The company anticipates that ELATEC will generate net sales of approximately €60-€65 million (approximately $69-$75 million) in 2026 and positively impact adjusted earnings per share in the same year [4][8] Previous Acquisitions - In June 2025, ALLE acquired Novas to enhance its door hardware portfolio, which has been incorporated into the Allegion International segment [5] - ALLE also acquired Trimco Hardware in April 2025, boosting its door and frame portfolio within the Allegion Americas segment [5] - Other acquisitions include Lemaar Pty Ltd in March 2025 and Next Door Company in February 2025, both aimed at enhancing ALLE's security and accessibility offerings [6] Market Performance - Allegion is experiencing growth in the Allegion Americas segment, driven by increased demand for non-residential products across various end markets [7] - The company currently holds a Zacks Rank 2 (Buy) and has seen its stock gain 13% year-to-date, outperforming the industry growth of 7.7% [7]