Allegion(ALLE) - 2024 Q4 - Annual Results

Financial Performance - Allegion reported Q4 2024 net revenues of $945.6 million, a 5.4% increase compared to Q4 2023, with organic revenue growth of 3.5%[2][3] - Net earnings for Q4 2024 were $144.1 million, or $1.65 per share, representing a 23.1% increase in EPS compared to $1.34 in Q4 2023[3][4] - Full-year 2024 net revenues reached $3,772.2 million, up 3.3% from 2023, with organic growth of 2.1%[7][8] - Operating income for Q4 2024 was $184.6 million, compared to $159.7 million in Q4 2023, reflecting a 15.6% increase[25] - Net earnings attributable to Allegion plc for Q4 2024 were $144.1 million, a 21.5% increase from $118.6 million in Q4 2023[25] - Full-year net revenues for 2024 were $3,772.2 million, up 3.3% from $3,650.8 million in 2023[25] - Operating income for 2024 was $780.7 million, with an operating margin of 20.7%, compared to $708.4 million and a margin of 19.4% in 2023[35] - Adjusted EBITDA for the year ended December 31, 2024, was $919.1 million, representing a margin of 24.4%, up from $858.5 million and a margin of 23.5% in 2023[40] - Net earnings attributable to Allegion plc for 2024 were $597.5 million, compared to $540.6 million in 2023, reflecting a growth of 10.5%[35] - Diluted earnings per share for 2024 were $6.82, an increase from $6.12 in 2023, marking a growth of 11.4%[35] Cash Flow and Assets - Available cash flow for 2024 was $582.9 million, a 12.9% increase year-over-year[13] - Cash flow from operating activities for 2024 was $675.0 million, up from $600.6 million in 2023, indicating a 12.4% increase[42] - Total assets as of December 31, 2024, were $4,487.8 million, an increase from $4,311.5 million as of December 31, 2023[26] - Cash and cash equivalents at the end of 2024 were $503.8 million, up from $468.1 million at the end of 2023[28] - Net cash provided by operating activities for 2024 was $675.0 million, compared to $600.6 million in 2023, indicating a strong operational performance[28] Segment Performance - The Americas segment saw a revenue increase of 6.4% in Q4 2024, driven by price realization and volume growth[5] - Allegion Americas segment reported Q4 2024 net revenues of $750.0 million, a 6.5% increase from $704.6 million in Q4 2023[29] - Allegion International segment net revenues for Q4 2024 were $195.6 million, a 1.5% increase from $192.8 million in Q4 2023[29] - The International segment's revenues increased by 1.5%, but organic revenue decreased by 0.7% due to volume decline[6] - Adjusted operating income for Allegion Americas in 2024 was $859.6 million, with a margin of 28.5%, compared to $803.0 million and a margin of 27.5% in 2023[40] - Allegion International reported adjusted operating income of $99.1 million in 2024, slightly up from $96.6 million in 2023, with a margin of 13.0%[40] Future Outlook - Allegion expects 2025 revenues to grow by 1% to 3% on a reported basis and 1.5% to 3.5% organically compared to 2024[15][16] - Full-year 2025 adjusted EPS is projected to be between $7.65 and $7.85, with an effective tax rate of approximately 17% to 18%[16][17] Shareholder Returns - Allegion repurchased approximately 0.7 million shares for about $100 million in Q4 2024 and paid dividends of $0.48 per share[14] Tax and Charges - The effective income tax rate for 2024 was 14.5%, compared to 12.4% in 2023, reflecting an increase in tax expenses[35] - The company incurred $22.1 million in restructuring charges and acquisition costs in 2024, compared to $33.8 million in 2023[35] Revenue Growth Analysis - Total GAAP revenue growth for Allegion was 5.4% in Q4 2024, an increase from 4.2% in Q4 2023[43] - Total organic growth (non-GAAP) for Allegion was 3.5% in Q4 2024, compared to 2.6% in Q4 2023[43] - For the full year 2024, Allegion's total GAAP revenue growth was 3.3%, down from 11.6% in 2023[43] - Allegion's total organic growth (non-GAAP) for the full year 2024 was 2.1%, compared to 5.2% in 2023[43]