Allegion(US:ALLE)2025-10-23 10:03Financial Performance - Allegion reported Q3 2025 net revenues of $1,070.2 million, a 10.7% increase compared to Q3 2024, with organic growth of 5.9%[3][4] - Net earnings for Q3 2025 were $188.4 million, or $2.18 per share, representing a 9.5% increase in EPS compared to $1.99 in Q3 2024[6][24] - Operating income for Q3 2025 was $233.8 million, an 8.7% increase, with an operating margin of 21.8%[5][6] - Total net revenues for the nine months ended September 30, 2025, increased to $3,034.1 million, up from $2,826.6 million in the same period of 2024, representing a growth of 7.4%[28] - Net earnings for the nine months ended September 30, 2025, were $496.3 million, compared to $453.4 million in 2024, reflecting an increase of 9.5%[34] - Operating income for the nine months ended September 30, 2025, was $649.9 million, up from $596.1 million in 2024, indicating a growth of 9.0%[34] - Diluted earnings per share for the nine months ended September 30, 2025, increased to $5.73, up from $5.16 in 2024, a growth of 11.0%[34] - Allegion's net revenues for Q3 2025 reached $1,070.2 million, a 10.7% increase from $967.1 million in Q3 2024[38] Segment Performance - The Americas segment revenues increased by 7.9%, with organic growth of 6.4%, driven by non-residential business[7] - The International segment revenues rose by 22.5%, with organic growth of 3.6%, supported by acquisitions and favorable foreign currency impacts[8] - Allegion Americas segment reported net revenues of $2,423.3 million for the nine months ended September 30, 2025, up from $2,262.4 million in 2024, a growth of 7.1%[28] - Allegion International segment achieved net revenues of $610.8 million for the nine months ended September 30, 2025, compared to $564.2 million in 2024, marking an increase of 8.3%[28] - Allegion Americas reported net revenues of $844.0 million in Q3 2025, up from $782.4 million in Q3 2024, with an adjusted operating income margin of 29.9%[38] - Allegion International's net revenues increased to $226.2 million in Q3 2025 from $184.7 million in Q3 2024, with adjusted operating income rising to $32.3 million[38] Cash Flow and Financial Position - Year-to-date available cash flow for 2025 was $485.2 million, an increase of $97.2 million compared to the prior year[11] - Allegion ended Q3 2025 with cash and cash equivalents of $302.7 million and total debt of $2,087.7 million[11] - Cash and cash equivalents decreased to $302.7 million as of September 30, 2025, down from $503.8 million at the end of 2024, a decline of 40.0%[27] - Total assets increased to $5,225.3 million as of September 30, 2025, compared to $4,487.8 million at the end of 2024, reflecting a growth of 16.5%[26] - Long-term debt rose to $2,059.5 million as of September 30, 2025, compared to $1,977.6 million at the end of 2024, an increase of 4.1%[26] Outlook - The company raised its full-year 2025 revenue growth outlook to 7.0% to 8.0% on a reported basis, maintaining organic growth outlook of 3.5% to 4.5%[13] - Full-year EPS outlook was raised to a range of $7.45 to $7.55, or $8.10 to $8.20 on an adjusted basis[15] - The company expects tariff costs of approximately $40 million in 2025, which will be offset at the operating profit and EPS level primarily through pricing actions[14] Adjusted Metrics - Adjusted operating income for Q3 2025 was $257.4 million, representing a margin of 24.1%, compared to $233.7 million and 24.2% in Q3 2024[38] - Adjusted EBITDA for Q3 2025 was $274.1 million, maintaining a margin of 25.7%, consistent with the margin from Q3 2024[40] - Organic revenue growth for Allegion Americas was 6.4% in Q3 2025, compared to 4.1% in Q3 2024[42] - Allegion International experienced a GAAP revenue growth of 22.5% in Q3 2025, with organic growth at 3.6%[42] Taxation - The effective income tax rate for the nine months ended September 30, 2025, was 15.1%, compared to 15.5% in 2024[34]