Tomo Sano

Tomo Sano inquired about tariffs and pricing, specifically if Allegion is observing any signs of pricing fatigue or customer weakness, and how other market players are reacting to pricing.

Answer

President and CEO John Stone stated that Allegion's teams and customers have responded well to the inflationary impact of tariffs, and the industry as a whole has seen price realization. He affirmed Allegion's readiness to cover continued inflationary pressures with price. Given the healthy demand environment in non-residential markets, he has not observed any signs of pricing fatigue.

Tomo Sano asked about the residential outlook for Q4 in the Americas, noting the mid-single-digit improvement in Q3 and the lack of clear recovery signs for 2026. He sought insight into expected Q4 performance and the contribution of new electronic products. He also inquired about pricing power and agility in managing tariff-related costs, asking if there are signs of pricing fatigue or customer weakness, and how other market players are reacting.

Answer

SVP and CFO Mike Wagnes stated that overall residential market demand remains soft, and while Q3 benefited from new e-lock introductions (like the Arrive lock), Q4 is expected to align more with the softer market demand, not mid-single-digit positive growth. President and CEO John Stone affirmed that Allegion's teams and customers have responded well to tariff-related inflation, with the industry seeing price realization. He noted healthy non-residential demand and no signs of pricing fatigue, with Allegion ready to cover continued inflationary pressures with price.