Core Insights - Allegion US has launched the Schlage® L Series Motorized Latch Retraction mortise locks, enhancing security and accessibility while providing quiet operation for environments like healthcare and education [1][2]. Product Features - The L Series locks feature quiet control, utilizing an ultra-quiet stepper motor with 24V DC to deliver high torque at low speeds, available in six functions including keyed, non-keyed, and lever control options [3]. - The locks offer both request-to-exit (RX) and latchbolt (LX) monitoring, with a patent-pending feature that detects binding conditions and adjusts the motor accordingly [3]. Application Versatility - These locks can be retrofitted into existing L Series mortise pockets, allowing for hands-free operation in various settings such as accessible restrooms, clean rooms, and high-security data centers [4]. - The locks are suitable for K-12 schools, providing controlled access for visitor entrances, administration offices, and classroom doors, while maintaining the strength and reliability of Schlage's electrified mortise line [4].

Core Insights - The article discusses the journey to financial independence through disciplined living and strategic investing, highlighting the transition from financial struggle to freedom within a six-year period [2]. Group 1: Financial Independence Journey - The individual began blogging in 2011 about achieving financial independence by living below means and investing wisely [2]. - Achieved financial freedom at the age of 33 after starting from a position of being "below broke" at age 27 [2]. Group 2: Investment Focus - The content created focuses on dividend growth investing, emphasizing the importance of living off dividends and identifying undervalued high-quality dividend growth stocks [2]. - The strategy includes exploring high-yield investment opportunities and other long-term investment prospects [2].

Core Insights - Allegion plc's second-quarter 2025 adjusted earnings per share (EPS) were $2.04, exceeding the Zacks Consensus Estimate of $2, marking a 4.1% year-over-year increase [1][8] - The company's revenues reached $1.02 billion, reflecting a 5.8% 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 3.2%, with acquired assets contributing 1.9% and foreign currency effects adding 0.7% [2] - Revenues from Allegion Americas rose 6.6% year over year to $821.5 million, accounting for 80.4% of total revenues, surpassing estimates [2] - Allegion International revenues were $200.5 million, up 2.9% year over year, but organic revenues declined by 2.2% [3] Margin Profile - Cost of revenues increased by 3.4% year over year to $555.5 million, while gross profit rose 8.9% to $466.5 million, resulting in a gross margin increase of 120 basis points to 45.6% [4] - Selling and administrative expenses increased by 12.5% to $246.8 million, with adjusted EBITDA at $258.1 million, reflecting a 5.9% year-over-year increase [4][5] Balance Sheet and Cash Flow - At the end of Q2 2025, Allegion had cash and cash equivalents of $656.8 million, up from $503.8 million at the end of 2024, while long-term debt increased to $2.04 billion [6] - In the first half of 2025, net cash generated from operating activities was $314.2 million, a 40.2% increase year over year, with available cash flow at $275.4 million [7] 2025 Outlook - Allegion raised its 2025 revenue growth forecast to 6.5-7.5%, up from the previous 1-3% estimate, and adjusted EPS outlook to $8.00-$8.15 from $7.65-$7.85 [10] - The company expects organic revenue growth to be in the range of 3.5-4.5%, compared to the earlier expectation of 1.5-3.5% [10][11] Shareholder Returns - Allegion repurchased shares worth $80.0 million and paid dividends totaling $87.8 million, reflecting a 4.8% year-over-year increase [9]

Financial Data and Key Metrics Changes - Q2 revenue exceeded $1,000,000,000, marking a 5.8% increase compared to 2024 [15] - Organic revenue increased by 3.2%, driven by favorable pricing and volume in the Americas non-residential business [16] - Adjusted earnings per share (EPS) for Q2 was $2.04, up 4.1% year-over-year [18] - Year-to-date available cash flow reached $275,400,000, a 56.5% increase [18][25] Business Line Data and Key Metrics Changes - Americas segment revenue was $821,500,000, up 6.6% reported and 4.5% organically [20] - Non-residential business in the Americas saw high single-digit organic growth, while residential business declined mid-single digits [21] - International segment revenue was $200,500,000, up 2.9% reported but down 2.2% organically [23] Market Data and Key Metrics Changes - The Americas non-residential markets remain resilient, with strong demand and project activity [27] - International markets are expected to remain roughly flat in organic performance [29] Company Strategy and Development Direction - Allegion is focused on capital allocation strategies that include organic growth investments and accretive acquisitions [6][10] - Recent acquisitions include companies that enhance Allegion's electronics and software offerings, supporting long-term growth [12][13] - The company aims to leverage its strong cash generation to return value to shareholders while pursuing growth opportunities [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year performance, raising the 2025 adjusted EPS outlook to $8 to $8.15 [30] - The company noted that project activity in non-residential markets is strong, with no evidence of pull-ahead ordering due to tariffs [35][36] - Management highlighted that while some markets are soft, institutional sectors like healthcare and education remain robust [50][51] Other Important Information - Allegion announced four additional acquisitions, including NovaS, Elletek, Gatewise, and Waitwhile, enhancing its portfolio [9][11] - The company plans to divest its API business in Australia, which had approximately $6,000,000 in revenue for the first half of 2025 [25] Q&A Session Summary Question: Activity levels in non-residential markets and tariff impacts - Management indicated no signs of pull-ahead ordering due to tariffs, with project demand remaining strong [35][36] Question: Margin performance and pricing actions - Management discussed the timing of price-cost dynamics related to tariffs, noting that the company expects to recover tariff-related revenue throughout the year [38][39] Question: Market conditions and share gain - Management suggested that Allegion is likely gaining market share, particularly at the expense of smaller competitors, due to better operational performance [51] Question: EPS guidance increase - The increase in EPS guidance was attributed to strong first-half performance, favorable currency impacts, and contributions from acquisitions [56] Question: International business outlook - Management expects the international segment to remain flat, with the fourth quarter typically being the strongest [76][78]

Financial Data and Key Metrics Changes - Q2 revenue exceeded $1,000,000,000 for the first time, marking a 5.8% increase compared to 2024 [5][15] - Organic revenue grew by 3.2%, driven by favorable pricing and volume, particularly in the Americas non-residential business [16][18] - Adjusted earnings per share (EPS) for Q2 was $2.04, an increase of 4.1% year-over-year [17] - Year-to-date available cash flow reached approximately $275,400,000, up 56.5% compared to the previous year [24][25] Business Line Data and Key Metrics Changes - Americas segment revenue was $821,500,000, up 6.6% reported and 4.5% organically, with high single-digit growth in non-residential business [19][20] - Residential business saw a decline of mid-single digits due to a soft market environment [20] - Electronics revenue in the Americas increased by low double digits, continuing to be a long-term growth driver [21] Market Data and Key Metrics Changes - International segment revenue was $200,500,000, up 2.9% reported but down 2.2% organically, with acquisitions contributing 1.1% to revenue [22] - Currency fluctuations positively impacted reported revenue by 4% in the international segment [23] Company Strategy and Development Direction - The company is focused on capital allocation for growth, including organic investments and strategic acquisitions [7][10] - Recent acquisitions include Trimco, Elletech, Gatewise, and Waitwhile, aimed at enhancing the electronics portfolio and expanding market reach [11][13] - The company aims to leverage its strong cash generation to return value to shareholders while pursuing accretive acquisitions [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year performance, raising the adjusted EPS outlook to $8 to $8.15 based on strong operational execution and demand in non-residential markets [6][29] - The non-residential markets, particularly institutional verticals, remain resilient, while residential markets are soft due to high interest rates [26][30] Other Important Information - The company announced the divestiture of its API business in Australia, expected to close in early August [24] - The balance sheet remains strong with a net debt to adjusted EBITDA ratio of 1.5 times [25] Q&A Session Summary Question: Activity levels in non-residential markets and tariff impacts - Management noted no evidence of pull-forward ordering due to tariffs, with project demand remaining strong [34][35] Question: Margin performance and pricing actions - Management indicated that pricing actions are expected to offset inflationary pressures, with a slight tailwind from transactional FX [37][40] Question: Market conditions and share gain - Management believes Allegion is gaining share, particularly at the expense of smaller competitors, due to better operational performance [52] Question: EPS guidance increase - The increase in EPS guidance is attributed to favorable FX impacts, strong first-half performance, and contributions from acquisitions [56][57] Question: International business outlook - The international segment is expected to remain flat, with the fourth quarter typically being the strongest [78] Question: Pricing and tariff surcharges - Management clarified that the tariff revenue is expected to be neutral at the EPS level, with surcharges adjusted to offset inflation [63][84]

Core Insights - Allegion (ALLE) reported quarterly earnings of $2.04 per share, exceeding the Zacks Consensus Estimate of $2 per share, and up from $1.96 per share a year ago, representing an earnings surprise of +2.00% [1] - The company achieved revenues of $1.02 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.03% and increasing from $965.6 million year-over-year [2] - Allegion has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +10.71%, with actual earnings of $1.86 per share compared to an expected $1.68 [1] - The current consensus EPS estimate for the upcoming quarter is $2.10, with projected revenues of $1 billion, and for the current fiscal year, the EPS estimate is $7.87 on revenues of $3.92 billion [7] Stock Performance - Allegion shares have increased approximately 18.1% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Security and Safety Services industry, to which Allegion belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

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]

Financial Performance - Net revenues for Q2 2025 were $1,022.0 million, a 5.8% increase from $965.6 million in Q2 2024[10] - Operating income for the first half of 2025 reached $416.1 million, up 9.2% from $381.1 million in the same period of 2024[10] - Net earnings for the first six months of 2025 were $307.9 million, compared to $279.2 million in 2024, reflecting a 10.3% increase[14] - The company reported a total comprehensive income of $250.4 million for Q2 2025, compared to $150.3 million in Q2 2024[10] - Allegion's basic net earnings per share for the first half of 2025 were $3.57, compared to $3.19 in the same period of 2024, marking a 11.9% increase[10] - Net earnings for the six months ended June 30, 2025, were $307.9 million, compared to $279.2 million in 2024, reflecting a strong performance[106] - For the six months ended June 30, 2025, net revenues increased by 6.7%, or $99.3 million, compared to the same period in 2024, driven by higher volumes, acquisitions, and improved pricing[121] Assets and Liabilities - Total assets as of June 30, 2025, were $4,914.8 million, an increase from $4,487.8 million at the end of 2024[12] - Allegion's long-term debt stood at $2,042.3 million as of June 30, 2025, up from $1,977.6 million at the end of 2024[12] - The total debt as of June 30, 2025, was $2,086.1 million, reflecting the company's financial obligations[56] - The Company had $2,079.1 million in total borrowings outstanding as of June 30, 2025, compared to $2,012.5 million at December 31, 2024[40] - Total current assets for Allegion US Hold Co decreased from $954.9 million as of December 31, 2024, to $715.4 million as of June 30, 2025[154] - Total noncurrent liabilities for Allegion US Hold Co decreased from $4,145.8 million as of December 31, 2024, to $3,775.6 million as of June 30, 2025[154] Acquisitions and Investments - The company completed acquisitions totaling approximately $65.0 million during the first half of 2025, including Next Door and Lemaar[20][21][24] - The company plans to expand its global electronics portfolio through the acquisition of ELATEC for approximately $389.0 million[27] - The total net assets acquired and liabilities assumed from the 2024 acquisitions amounted to $130.1 million, including $62.5 million in goodwill and $68.4 million in intangible assets[35] - The company completed several acquisitions in 2025, including ELATEC for €330.0 million (approximately $389.0 million), enhancing its global electronics portfolio[91] Cash Flow and Liquidity - Cash and cash equivalents increased to $656.8 million as of June 30, 2025, from $503.8 million at the end of 2024[12] - Net cash provided by operating activities during the six months ended June 30, 2025, increased by $90.1 million compared to the same period in 2024, totaling $314.2 million[138] - The company expects cash flows from operations to be sufficient to maintain a sound financial position and liquidity for at least the next 12 months[136] Shareholder Returns - The company repurchased $80.0 million of ordinary shares during the six months ended June 30, 2025, with approximately $160.0 million remaining under the share repurchase authorization[62] - The company repurchased approximately 0.6 million shares for $80.0 million during the six months ended June 30, 2025[94] - The Board of Directors reauthorized a share repurchase program allowing for the repurchase of up to $500 million of the company's ordinary shares[168] Tax and Compliance - The effective income tax rate for the six months ended June 30, 2025, was 18.0%, a slight decrease from 18.3% in 2024[72] - The effective income tax rate for the three months ended June 30, 2025, was 20.3%, up from 17.8% in 2024, mainly due to legislative changes and income mix[105] - The company has maintained its assertion of permanent reinvestment of earnings in jurisdictions where substantial investments are made, with no material changes required as of June 30, 2025[145] - The company’s management has concluded that disclosure controls and procedures are effective as of June 30, 2025[162] Market and Operational Insights - Demand for electronic security products remains strong, contributing to mid-single digit revenue growth in the second quarter of 2025 compared to the same period in 2024[86] - The company anticipates continued growth in revenues from non-residential products for the remainder of 2025, while residential product revenues are expected to remain soft[118] - The company estimates that approximately 20-25% of its cost of goods sold is sourced from Mexico, with less than 5% from China[87] Other Financial Metrics - The company reported an intangible asset amortization expense of $32.5 million for the six months ended June 30, 2025, compared to $31.8 million for the same period in 2024[39] - The warranty liability balance at the end of June 2025 was $23.5 million, slightly up from $22.5 million at the end of June 2024[81] - The foreign currency exchange gain for the six months ended June 30, 2025, was $1.5 million, compared to a gain of $0.8 million in 2024[70] - Allegion plc's total equity increased from $1,500.7 million at December 31, 2024, to $1,786.5 million at June 30, 2025, reflecting a growth of approximately 18.9%[62] - Allegion plc's accumulated other comprehensive loss decreased from $(331.6) million at December 31, 2024, to $(204.3) million at June 30, 2025, indicating a reduction of approximately 38.3%[64]

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].