Allegion(US:ALLE)2025-07-24 10:02Financial 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]