Allegion (NYSE:ALLE) FY Conference Summary Company Overview - **Company**: Allegion - **Date of Conference**: February 19, 2026 - **Speakers**: John Stone (President and CEO), Josh Pokrzywinski (Investor Relations) Key Points Industry and Market Outlook - **Non-Residential Business**: Expected volume growth in 2026 will be similar to 2025, which is the largest segment of Allegion's business [3][5] - **International Growth**: Organic growth anticipated from a mix of price and volume, with a focus on institutional markets [5][10] - **Residential Market**: A cautious outlook for the residential side, expecting continued softness [5][24] Institutional and Commercial Markets - **Institutional Markets**: Allegion is well-positioned with broad end-market exposure; however, federal budget pressures may impact higher education [10][13] - **Commercial Markets**: Office demand is showing signs of recovery, particularly in Class A spaces, with New York experiencing a 20-year high in demand [16][19] - **Multifamily Sector**: New builds have been soft, but there are signs of recovery in various regions [21] Pricing and Cost Dynamics - **Pricing Power**: Strong pricing power in the non-residential sector due to the nature of products and established relationships [47][50] - **Residential Pricing**: Less pricing power compared to non-residential, with volume-related pressure impacting margins [52][56] Financial Performance and Margins - **Operating Margins**: Expected to face pressure in the first half of the year, with a potential recovery in the second half as volume growth improves [56][61] - **Chip Supply Issues**: Allegion has learned from past supply chain issues and feels prepared for potential chip constraints in 2026 [62][65] Electronics and Software Growth - **Electronics Revenue**: Electronics, software, and services account for about 33% of total revenue, with double-digit growth expected to continue [66][67] - **M&A Activity**: Allegion plans to grow through acquisitions, particularly in electronics and complementary software [71][72] International Business Strategy - **Growth Strategy**: Focus on profitable growth in existing markets, with selective pruning of non-core businesses [88][94] - **Geographic Focus**: Concentration on Australia, New Zealand, and Western Europe, avoiding new emerging markets due to higher risks [104][106] Data Center Market - **Data Center Exposure**: Growing segment with high security needs, providing a rich product mix for Allegion [109][111] Audience Insights - **Market Sentiment**: Neutral bias towards Allegion, with concerns about organic growth being the primary valuation headwind [116][119] Additional Insights - **Installed Base Stability**: The aftermarket segment benefits from a stable installed base, providing resilience against market volatility [15] - **Product Innovation**: Allegion is focusing on connected locks that reduce installation costs and enhance functionality [76][80] - **Recurring Revenue Models**: Some acquisitions have introduced recurring revenue streams, which are expected to grow [82][84]

Group 1 - The core viewpoint of the news is that Wangli Security has shown a positive stock performance and financial growth, with significant increases in revenue and net profit year-on-year [1][2]. - As of January 16, Wangli Security's stock price increased by 2.03%, reaching 11.05 CNY per share, with a total market capitalization of 4.932 billion CNY [1]. - The company has a diverse revenue structure, with steel security doors accounting for 61.88% of its main business income, followed by other doors at 29.38%, smart locks at 4.39%, and other products at 4.35% [1]. Group 2 - As of September 30, the number of shareholders for Wangli Security decreased by 12.67% to 17,700, while the average circulating shares per person increased by 14.51% to 24,685 shares [2]. - For the period from January to September 2025, Wangli Security achieved an operating income of 2.326 billion CNY, representing a year-on-year growth of 11.44%, and a net profit attributable to shareholders of 119 million CNY, up 47.66% year-on-year [2]. - The company has distributed a total of 446 million CNY in dividends since its A-share listing, with 309 million CNY distributed over the past three years [3].

Group 1 - Wangli Security fell by 5.02% on September 18, trading at 10.22 CNY per share, with a transaction volume of 118 million CNY and a turnover rate of 2.57%, resulting in a total market capitalization of 4.561 billion CNY [1] - Wangli Security Technology Co., Ltd. is located in Yongkang City, Zhejiang Province, established on March 29, 2005, and listed on February 24, 2021. The company's main business includes the research, design, production, and sales of security doors and locks [1] - The revenue composition of Wangli Security is as follows: 61.88% from steel security doors, 29.38% from other doors, 4.39% from smart locks, and 4.35% from other supplementary products [1] Group 2 - Nanhua Fund has one fund heavily invested in Wangli Security, specifically Nanhua Fenghui Mixed A (015245), which held 363,800 shares in the second quarter, accounting for 1.94% of the fund's net value, ranking as the sixth-largest holding [2] - The estimated floating loss for Nanhua Fenghui Mixed A today is approximately 196,500 CNY [2] - Nanhua Fenghui Mixed A was established on February 28, 2022, with a current scale of 116 million CNY. Year-to-date returns are 43.35%, ranking 1418 out of 8172 in its category; the one-year return is 85.61%, ranking 989 out of 7980; and since inception, the return is 84.4% [2] Group 3 - The fund manager of Nanhua Fenghui Mixed A is Huang Zhigang, who has a cumulative tenure of 13 years and 183 days, with total fund assets of 516 million CNY [3] - During his tenure, the best fund return was 196.59%, while the worst return was -28.86% [3]

Group 1 - The stock price of Wangli Security closed at 11.55 yuan on July 31, 2025, down 1.70% from the previous trading day [1] - The stock experienced a trading range of 17.70% on that day, with a trading volume of 444,000 hands and a transaction amount of 530 million yuan [1] - Wangli Security primarily engages in the research and production of security products such as security doors and locks, covering categories like mechanical locks and smart locks [1] Group 2 - On July 31, Wangli Security recorded 41,031 transactions, a month-on-month increase of 3,496.06%, ranking among the top three in A-share transaction growth [1] - The net outflow of main funds on that day was 138 million yuan, accounting for 2.72% of the circulating market value [1]