Allegion's Q4 Earnings & Revenues Surpass Estimates, Increase Y/Y

Core Insights - Allegion plc reported fourth-quarter 2024 adjusted earnings of $1.86 per share, surpassing the Zacks Consensus Estimate of $1.74, marking a year-over-year increase of 10.7% [1] - The company's revenues reached $945.6 million, reflecting a 5.4% year-over-year growth, and exceeded the Zacks Consensus Estimate of $939 million [2] Revenue Details - Revenues from Allegion Americas increased by 6.4% year over year to $750 million, accounting for 79.3% of total revenues, with organic revenues up 4.6% [2] - Allegion International's revenues were $195.6 million, a 1.5% year-over-year increase, but organic revenues decreased by 0.7% due to lower volume [3] Margin Profile - Allegion's cost of revenues rose by 3.3% year over year to $528.9 million, while gross profit increased by 8.1% to $416.7 million, resulting in a gross margin of 44.1% [4] - Adjusted operating income grew by 6% year over year to $209.1 million, with an adjusted margin of 22.1% [5] Balance Sheet and Cash Flow - At the end of Q4 2024, Allegion had cash and cash equivalents of $503.8 million, up from $468.1 million at the end of 2023, while long-term debt increased to $1.98 billion [6] - The company generated net cash of $675 million from operating activities, a 12.3% increase year over year, with available cash flow for the year at $582.9 million [6] Shareholder Returns - Allegion repurchased shares worth $220 million and paid dividends totaling $166.9 million, reflecting a 5.2% year-over-year increase [7] 2025 Outlook - The company anticipates revenue growth of 1-3% year-over-year, with organic revenues expected to rise by 1.5-3.5% [9] - Adjusted earnings are projected to be in the range of $7.65-$7.85 per share, with available cash flow estimated at 85-90% of adjusted net income [9]