Financial Performance - Second-quarter 2025 net revenues reached $1,022.0 million, a 5.8% increase compared to Q2 2024, with organic growth of 3.2%[3] - Net earnings for Q2 2025 were $159.7 million, or $1.85 per share, reflecting a 4.5% increase in EPS compared to $1.77 in Q2 2024[6] - The Americas segment reported a revenue increase of 6.6%, with organic growth of 4.5%, driven by price realization and volume growth[7] - The International segment's revenues increased by 2.9%, but organic revenues decreased by 2.2%, impacted by volume decline[8] - Total net revenues for the six months ended June 30, 2025, increased to $1,963.9 million, up from $1,859.5 million in the same period of 2024, representing a growth of 5.6%[28] - Net earnings for the six months ended June 30, 2025, were $307.9 million, compared to $279.2 million in 2024, reflecting an increase of 10.3%[27] - Operating income for the six months ended June 30, 2025, rose to $416.1 million, up from $381.1 million in 2024, marking a growth of 9.2%[28] - Allegion's net revenues for Q2 2025 reached $1,022.0 million, a 5.8% increase compared to $965.6 million in Q2 2024[40] - Allegion Americas reported net revenues of $821.5 million in Q2 2025, up from $770.7 million in Q2 2024, reflecting a 6.6% GAAP revenue growth[40] - Allegion International's net revenues for Q2 2025 were $200.5 million, compared to $194.9 million in Q2 2024, showing a 2.9% GAAP revenue growth[40] Earnings and Outlook - The company raised its full-year revenue growth outlook to 6.5% to 7.5% on a reported basis and 3.5% to 4.5% organically[13] - Full-year EPS outlook is now projected to be in the range of $7.25 to $7.40, or $8.00 to $8.15 on an adjusted basis[15] - Adjusted operating income for Q2 2025 was $241.9 million, a 5.8% increase from the previous year[5] - The effective tax rate for Q2 2025 was 20.3%, up from 17.8% in Q2 2024[10] - The effective income tax rate for the six months ended June 30, 2025, was 18.0%, compared to 18.3% in 2024, showing a slight improvement[36] - Diluted earnings per share for the six months ended June 30, 2025, were $3.56, an increase from $3.18 in 2024, representing a growth of 11.9%[36] Cash Flow and Capital Management - Year-to-date available cash flow for 2025 was $275.4 million, an increase of $99.4 million compared to the prior-year period[11] - The company repurchased approximately 0.3 million shares for about $40 million in Q2 2025[12] - Cash and cash equivalents at the end of the period increased to $656.8 million from $503.8 million at the beginning of the period, representing a growth of 30.3%[27] - For the first half of 2025, Allegion's net cash provided by operating activities was $314.2 million, an increase from $224.1 million in the same period of 2024[42] - Allegion's available cash flow for the first half of 2025 was $275.4 million, compared to $176.0 million in the first half of 2024[42] Segment Performance - Allegion Americas segment reported net revenues of $1,579.3 million for the six months ended June 30, 2025, an increase of 6.7% from $1,480.0 million in 2024[28] - Allegion International segment net revenues reached $384.6 million for the six months ended June 30, 2025, a slight increase from $379.5 million in 2024, showing a growth of 1.4%[28] - The organic revenue growth for Allegion Americas in Q2 2025 was 4.5%, down from 5.7% in Q2 2024[43] - Allegion International experienced an organic revenue decline of 2.2% in Q2 2025, contrasting with a 3.1% growth in Q2 2024[43] Balance Sheet Highlights - Total assets as of June 30, 2025, amounted to $4,914.8 million, up from $4,487.8 million at the end of 2024, indicating an increase of 9.5%[26] - Long-term debt increased to $2,042.3 million as of June 30, 2025, compared to $1,977.6 million at the end of 2024, reflecting a rise of 3.3%[26] - The total adjusted operating income for the first half of 2025 was $455.3 million, with a margin of 23.2%, compared to $417.9 million and 22.5% in the first half of 2024[41]

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]

Core Viewpoint - Allegion (ALLE) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that could lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock prices [2][4]. - Changes in future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly due to institutional investors' actions [4]. Allegion's Earnings Outlook - Allegion is expected to earn $7.77 per share for the fiscal year ending December 2025, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Allegion has increased by 0.5%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks generating an average annual return of +25% since 1988 [7]. - Allegion's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Allegion plc (ALLE) is experiencing stable demand across various end markets, including education, healthcare, government, hospitality, and retail, supported by recent acquisitions [1] - The company anticipates a revenue increase of 1-3% year over year in 2025, with organic sales expected to rise by 1.5-3.5% [1][6] Acquisitions and Expansion - In June 2025, Allegion completed the acquisition of ELATEC to enhance its global electronics portfolio in non-residential markets [2] - The acquisition of Novas in June 2025 is aimed at augmenting Allegion's door hardware portfolio [2] - Allegion acquired Trimco Hardware in April 2025, which strengthens its door and frame offerings in the Americas [2] - The acquisition of Lemaar Pty Ltd in March 2025 boosted Allegion's security and accessibility portfolio in Australia [3] Financial Performance and Shareholder Returns - Allegion paid dividends totaling $43.6 million in Q1 2025, marking a 3.6% year-over-year increase, and repurchased shares worth $40 million [4] - The company announced a 6% increase in its quarterly dividend rate, now at 51 cents per share [4] Cost Pressures and Profitability - Allegion faced a 3.4% year-over-year increase in the cost of sales in Q1 2025 due to high raw material costs [8] - Selling and administrative expenses rose by 3.1% year over year, attributed to investments in new products and growth initiatives [8] - The company is exposed to risks from adverse currency fluctuations, with a 0.8% negative impact from forex issues in Q1 [9]

Core Insights - Innovation is a fundamental aspect of Schlage's identity, with a focus on delivering trusted experiences and reflecting consumer style preferences [1] - The launch of Pin & Tumbler Studio continues Schlage's legacy of innovation, introducing customizable design options through the Mosaic Trim Collections [1] Product Offerings - The Mosaic Trim Collections consist of two distinct lines: - The Natural Collection, which emphasizes calming hues and natural textures for a serene atmosphere [2] - The Bold Collection, characterized by vibrant colors and statement patterns that add drama and character [3] Pricing and Availability - The Mosaic Trim Collection trim inserts are available for purchase at a price of $99 [4] - Additional information about Pin & Tumbler Studio can be found on Schlage's official website [4] Company Background - Allegion, the parent company of Schlage, is recognized as a global leader in security and access solutions, focusing on innovative products that enhance safety and convenience [5] - Schlage has been rated as the most trusted door lockset brand according to the Lifestory Research 2025 study, based on consumer experiences and perceptions [6]