Allegion plc is a leading global provider of security products and solutions, operating in two segments: Allegion Americas and Allegion International. The company offers a wide range of security products and solutions for commercial, institutional, and residential facilities worldwide, including education, healthcare, government, hospitality, retail, commercial office, and residential markets . Their product lines include mechanical products such as locks, locksets, portable locks, key systems, door controls, and exit devices, as well as electronic security products and access control systems, which encompass electrified locks, access control systems, and electronic door controls . Allegion's business strategy includes leveraging its strong brand portfolio, which includes well-known names like Schlage, Von Duprin, and LCN, to maintain a leading position in the security products industry .
- Mechanical Products - Offers a variety of security solutions including locks, locksets, portable locks, key systems, door controls, and exit devices for various markets.
- Electronic Security Products and Access Control Systems - Provides electrified locks, access control systems, and electronic door controls, catering to both residential and non-residential categories.
- Services and Software - Includes inspection, maintenance, repair, and SaaS offerings to support and enhance security product functionality.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
John H. Stone ExecutiveBoard | President and Chief Executive Officer | Board Member at Cummins Inc. (NYSE: CMI) | CEO since July 2022, previously held senior leadership roles at Deere & Company, driving innovation and sustainability in agriculture and construction. | View Report → |
Jeffrey N. Braun Executive | Senior Vice President and General Counsel | None | General Counsel since 2014, also served as Secretary during multiple periods; oversees legal and compliance functions at Allegion. | |
Jennifer L. Hawes Executive | Senior Vice President \u2013 Chief Human Resources Officer | None | CHRO since February 2023, previously VP of HR roles at Allegion, including Total Rewards and Global Talent. | |
Michael J. Wagnes Executive | Senior Vice President and Chief Financial Officer | None | CFO since March 2022, previously VP and General Manager, Commercial Americas, and VP of Investor Relations and Treasury at Allegion. | |
Tracy L. Kemp Executive | Senior Vice President \u2013 Chief Information and Digital Officer | None | Chief Information and Digital Officer since December 2020, previously held roles as Chief Customer and Digital Officer and Chief Information Officer at Allegion. | |
Vincent M. Wenos Executive | Senior Vice President \u2013 Chief Technology Officer | None | CTO since June 2019, previously VP of Global Technology and Engineering, and VP of Americas Engineering at Allegion. | |
Ellen Rubin Board | Director | Founder and CEO of Causely, Inc.; Board Member at Chase Corp (NYSE: CCF) | Director since April 2023, recognized entrepreneur in IT, founder of multiple software companies, and expert in innovation and digital transformation. | |
Gregg Sengstack Board | Director | Executive Chairperson of Franklin Electric Co., Inc.; Board Member at Woodward, Inc. | Director since December 2024, former CEO of Franklin Electric with over 30 years of leadership experience in international markets and finance. | |
Kirk S. Hachigian Board | Chairman of the Board | Board Member at NextEra Energy (NYSE: NEE) and Paccar Inc. (NASDAQ: PCAR) | Chairman since January 2023, extensive leadership experience including as CEO of Cooper Industries and Chairman of JELD-WEN Holding. | |
Lauren B. Peters Board | Director | Board Member at La-Z-Boy Inc. (NYSE: LZB) and Victoria's Secret & Co. (NYSE: VSCO) | Director since 2021, former CFO of Foot Locker, with expertise in financial planning, M&A, and investor relations. | |
Nicole Parent Haughey Board | Director | None | Director since 2017, brings expertise in finance, strategic planning, and M&A; previously served as a director at Altra Industrial Motion Corp. | |
Steven C. Mizell Board | Director | Board Member at Group 1 Automotive (NYSE: GPI) | Director since 2020, former CHRO at Merck & Co. and Monsanto, with expertise in HR, talent acquisition, and diversity initiatives. | |
Susan L. Main Board | Director | Board Member at Ashland Inc. (NYSE: ASH) | Director since September 2023, former CFO of Teledyne Technologies with extensive experience in M&A and financial leadership. |
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Given the expected softness in the multifamily segment and potential weaknesses in the healthcare vertical within institutional markets, how confident are you in your non-residential growth projections for the next 12 months, and what specific strategies are you employing to mitigate these challenges?
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With customers potentially experiencing fatigue from continuous price increases in an inflationary environment, how sustainable is your pricing strategy to cover inflationary pressures without adversely affecting demand or market share?
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Historically, international specification has not been a strength for Allegion; can you elaborate on the progress you've made in building out this capability and how the acquisition of Boss Door Controls is enhancing your competitive position in international markets?
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Considering that ESSER funding did not significantly benefit your education vertical and municipal bond issuance might not remain as strong, how do you plan to sustain growth in the education sector amid these funding challenges?
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In light of past supply chain issues affecting your electronics business and the unusual comparables in 2023, what concrete measures are you taking to stabilize this segment, and how realistic is your expectation of achieving high single to low double-digit growth in electronics moving forward?
Research analysts who have asked questions during Allegion earnings calls.
Joseph O'Dea
Wells Fargo & Company
4 questions for ALLE
Julian Mitchell
Barclays Investment Bank
4 questions for ALLE
Brett Linzey
Mizuho Securities
3 questions for ALLE
Jeffrey Sprague
Vertical Research Partners
3 questions for ALLE
Christopher Snyder
Morgan Stanley
2 questions for ALLE
Timothy Wojs
Robert W. Baird & Co.
2 questions for ALLE
Andrew Obin
Bank of America
1 question for ALLE
Chris Snyder
Morgan Stanley
1 question for ALLE
Joseph Nolan
Longbow Research
1 question for ALLE
Joseph Ritchie
Goldman Sachs
1 question for ALLE
Peter Costa
Mizuho Financial Group
1 question for ALLE
Robert Schultz
Baird
1 question for ALLE
Tomohiko Sano
JPMorgan Chase & Co.
1 question for ALLE
Vivek Srivastava
Wolfe Research
1 question for ALLE
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Assa Abloy AB | The company is considered a principal global competitor in the highly competitive and fragmented security products markets worldwide, which include a number of large multi-national companies and thousands of smaller regional and local companies. This high degree of fragmentation primarily reflects local regulatory requirements and highly variable end-user needs. |
dormakaba Group | The company is identified as a principal global competitor in the security products markets, which are characterized by a high degree of competition and fragmentation due to local regulatory requirements and diverse end-user needs. |
The company is mentioned as a competitor in the North American residential market, indicating the competitive landscape in various markets and product categories throughout the world. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Unicel Architectural Corp. (Unicel) | 2024 | Allegion completed its acquisition of Unicel on June 10, 2024, to add advanced glass, timber, and aluminum building solutions that enhance privacy, safety, and energy efficiency in its Americas segment. The deal, funded with available cash, forms part of a combined valuation (with Krieger) of approximately 10x 2024 EBITDA, reinforcing Allegion’s strategic focus on niche markets. |
Krieger Specialty Products, LLC (Krieger) | 2024 | Acquired on June 3, 2024, Krieger adds high-performance special purpose doors and windows—targeting applications in government, data centers, and healthcare—to Allegion’s portfolio, complementing its hollow metal offerings. The acquisition, also valued at approximately 10x 2024 EBITDA and funded as an accretive bolt-on, leverages Allegion’s specification expertise and national sales reach. |
Montajes electronicos Dorcas S.L. (Dorcas) | 2024 | Finalized on March 4, 2024, the acquisition of Dorcas strengthens Allegion’s international access control solutions by incorporating electromechanical products (electric strikes and locks) into its portfolio for education and healthcare verticals in Europe. The deal, valued (with Boss Door Controls) at approximately $19.3 million net, allocates purchase price among intangible assets, goodwill, and net tangible assets and was funded with available cash. |
Boss Door Controls | 2024 | Completed on February 1, 2024, this acquisition bolsters Allegion’s UK presence by integrating a door solutions provider with a strong architectural channel and flexible supply chain into its International segment, thus supporting a spec-driven business strategy. |
plano. group | 2023 | Acquired on January 3, 2023, plano. group is a German SaaS workforce management solution business purchased for an initial cash consideration of $36.6 million, with additional earnout potential. The acquisition supports Allegion’s expansion into software and service offerings within the International segment, with purchase price allocation covering net working capital, finite-lived intangible assets, and goodwill. |
Stanley Access Technologies LLC and assets from Stanley Black & Decker, Inc. | 2022 | Completed on July 5, 2022, this acquisition was executed for a total price of $923.1 million (effectively $810 million after tax benefits) and financed partly through 5.411% Senior Notes due 2032. It integrated a leading automatic doors business into the Americas segment, significantly enhancing Allegion’s seamless access strategy with products generating about $340 million in net revenues. |
Recent press releases and 8-K filings for ALLE.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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 .
- 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.