Allegion (ALLE) Company Report

Allegion reported $3.8 billion in 2024 revenue, with an 80/20 split between the Americas and international segments.
Since 2022, management has expanded operating margins by over 200 basis points while increasing R&D investment from 2.5% to over 3% of sales and completing 14 bolt-on acquisitions.
The company sees continued mid-single-digit growth in non-residential markets, flat residential demand, and stable institutional segments, with commercial office showing early signs of recovery into 2026.
Allegion’s unique spec-writing capability—one of only three global players—leverages an apprenticeship program and AI-enhanced tools to drive end-user demand, with 10-day lead times and revenue recognition spanning 9 months to 3 years post-specification.
Adoption of electronic locks is accelerating in both residential and commercial sectors through partnerships with smartphone platforms and the launch of real-time connected locks enabling system integration in hours vs. months.

Nov 12, 2025, 8:55 PM

Transcript

Allegion outlines growth strategy at Morgan Stanley Laguna Conference

ALLE

M&A

Allegion reinforced its pricing power and moat through specification-writing and consultative relationships with architects and end users, sustaining premium margins in North America.
Non-residential demand is improving and expected to drive growth, with data center and institutional segments showing stability, while residential aftermarket remains flat amid rate headwinds.
Americas operating margins have expanded by about 100 bps annually over the past three years via volume leverage and pricing actions, even as R&D investments rose 1.5× in absolute dollars.
The company accelerated its bolt-on M&A activity—completing deals like ELA Tech to bolster its electronic access control portfolio—targeting roughly 2% annual revenue contribution from acquisitions.
Long-term tailwinds include the shift to electronic locks—which carry up to 2× higher ASPs and shorter life cycles—and rising data center security needs, supporting sustained outgrowth versus mechanical hardware.

Sep 10, 2025, 9:35 PM

Transcript

Allegion details competitive moat and growth strategy at Morgan Stanley Laguna Conference

ALLE

M&A

Allegion’s moat is driven by a spec-writing engine that embeds its premium door hardware in building codes, backed by sticky end-user and architect relationships, limiting competition to only one other major player.
Americas margins have expanded ~100 bps per year over the past three years, fueled by high variable contribution margins, volume leverage, rigorous pricing to offset inflation, and concurrent increases in R&D spend.
M&A activity has accelerated, with a focus on bolt-on acquisitions like ELA Tech (~$400 M) to leverage Allegion’s 600-person sales force, while transformational deals remain modest (largest ~ $900 M).
North American non-residential market shows renewed growth, led by institutional (K-12) funded via robust municipal bond issuance, stabilized commercial, and emerging data center demand; residential stays subdued until mortgage rates ease.
Tariff pressures are managed through dynamic surcharges, rapidly passed through to customers to maintain operating income neutrality amid ongoing U.S. 232 metal tariff volatility.

Sep 10, 2025, 9:35 PM

Transcript

Allegion discusses competitive moat and growth strategy at Morgan Stanley Laguna Conference

ALLE

M&A

Allegion’s competitive moat is driven by its specification-writing “spec engine” and broad premium product suite, securing sticky end-user relationships and strong pricing power.
The non-residential market has turned positive and is the primary growth driver for 2025, while institutional (notably K–12) remains stable due to healthy local municipal funding and a large installed base.
Americas segment margins have expanded by about 100 basis points per year over the past three years through volume leverage and disciplined input management, even as R&D spending rose 1.2× in absolute terms.
M&A strategy focuses on bolt-on deals contributing ~~2 points of annual growth, with major transactions including Access Tech (~~$900 M) and ELATEC (~$400 M) to complement core portfolios.
Metal tariff impacts are being passed through via surcharges to neutralize operating-income effects, with agile pricing adjustments as rates evolve.

Sep 10, 2025, 9:35 PM

Transcript

Allegion acquires UK security hardware provider Brisant

ALLE

M&A

Allegion plc (NYSE: ALLE) has acquired Brisant Secure Limited, a Dewsbury, UK–based provider of residential security solutions.
Brisant, founded in 2011, offers mechanical and electronic locks under its premium Ultion brand and related door accessories.
The business will report into Allegion’s International segment, enhancing its UK non-residential portfolio and complementing the recent UAP Limited acquisition.
Kevin Harvey, Brisant’s managing director, will join Allegion to oversee integration and support regional growth.

Aug 13, 2025, 12:30 PM

Press Release

Allegion acquires UAP to expand core mechanical portfolio

ALLE

M&A

Management Change

Allegion plc has acquired UAP Group Limited, a UK residential door hardware provider founded in 1996 with nearly 200 patents, trademarks and registered designs.
UAP will report into Allegion’s International segment, complementing the UK non-residential portfolio and broadening solutions for combined customers.
David Jennings, CEO of UAP, will join Allegion to facilitate integration and support accelerated growth.
Terms of the transaction were not disclosed.

Aug 4, 2025, 12:30 PM

Press Release

Allegion reports Q2 2025 earnings

ALLE

Earnings

Guidance Update

M&A

Allegion reported Q2 revenue of over $1 billion, its first quarter above that threshold, up 5.8% Y/Y; organic revenue grew 3.2%, driven by Americas non-residential demand.
Adjusted EPS was $2.04, a 4.1% increase, with YTD available cash flow of $275.4 million (up 56.5%); returned $44 million in dividends and repurchased $40 million of shares.
Completed acquisitions of Trimco (Americas), NovaS (International), Elletech, Gatewise and Waitwhile, expanding mechanical, electronic and SaaS offerings; expect accretion to 2026 EPS.
Raised 2025 adjusted EPS guidance to $8.00–$8.15, reflecting strong non-residential execution, accretive M&A and favorable FX, with tariffs neutral to EPS.

Jul 24, 2025, 2:25 PM

Allegion plc Holds 2025 AGM in Dublin

ALLE

Proxy Vote Outcomes

Executive Compensation

Auditor Change

Allegion plc held its 2025 Annual General Meeting on June 5, 2025 in Dublin, Ireland, where shareholders voted on multiple key proposals.
The meeting included votes on the election of eight director nominees, advisory approval of executive compensation, ratification of PricewaterhouseCoopers as the independent auditor, and the renewal of board authority to issue shares.

Jun 9, 2025, 12:00 AM

8-K

Allegion Reports Q1 2025 Financial Results & Strategic Developments

ALLE

Earnings

M&A

Dividends

Share Buyback

Revenue Acceleration/Inflection

Reported net revenues of $941.9M in Q1 2025, up 5.4% YoY driven by strong operating leverage and performance in the Americas .
Delivered robust EPS performance with adjusted EPS growing 20% to $1.86 (from $1.55) and diluted EPS increasing 21.3% to $1.71, alongside an improved operating margin of 20.9% .
Generated available cash flow that surged 249% to $83.4M, underpinning dividends, share repurchases, and overall capital allocation .
Executed multiple bolt-on acquisitions to expand its product portfolio and market reach, underscoring strategic execution .
Launched innovative products including the Schlage Sense Pro Smart Deadbolt and Schlage Arrive Smart WiFi Deadbolt .
Implemented capital allocation measures with a dividend of $44M and approximately $40M in share repurchases, reinforcing shareholder commitment .

Apr 24, 2025, 12:01 PM

Transcript Presentation 8-K

Allegion PLC Updates 2025 Guidance and Strategic Initiatives

ALLE

Guidance Update

M&A

Revenue Acceleration/Inflection

2025 Guidance and Revenue Focus: The management highlighted an expectation for low to mid-single digit organic growth in the Americas, with nonresidential revenue—especially in institutional verticals (K-12, higher ed, healthcare)—driving the outlook, while residential growth remains challenged by high mortgage rates.
Resilient Operations & Competitive Recovery: The company has overcome earlier supply chain issues from the COVID period and is regaining market share lost to larger competitors, signaling a stable operational footing.
Accelerating M&A and International Strategy: Allegion is boosting its bolt-on acquisition strategy—citing recent acquisitions in Western Europe—to strengthen its position across key international markets including Germany, Southern Europe, and the APAC region.
Electronics and Digital Credential Innovation: Long-term growth is further supported by expanding its electronics portfolio and digital credential platforms, which offer higher per-unit margins and faster replacement cycles.

Mar 19, 2025, 9:41 AM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Allegion.

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