Total Revenue

+5.4% (from $893.9M to $941.9M)

Total Revenue increased primarily because of improved pricing and volume trends in Allegion Americas, which drove a 6.8% rise in its revenue; the growth reflects a broad-based recovery from last year’s softer performance. " "

Allegion Americas Revenue

+6.8% (from $709.3M to $757.8M)

The Americas segment outperformed due to robust non-residential demand, improved pricing strategies, and positive acquisition contributions, which offset softness in residential markets. " " " "

Allegion International Revenue

Essentially flat (from $184.6M to $184.1M)

International revenue remained stable as positive pricing adjustments and acquisitions were balanced by macroeconomic softness and limited organic volume growth across key markets. " " " "

Operating Income

+14% (from $172.1M to $196.4M)

Operating Income improved due to favorable volume/product mix, with contributions such as a $17.5M boost from a better mix and an extra $5.1M from acquisitions, further enhanced by favorable currency exchange movements. " "

Net Earnings

+20% (from $123.8M to $148.2M)

Net Earnings grew significantly as a result of the operating income improvements, coupled with operational efficiencies and a more favorable effective tax rate, reflecting strong profitability enhancements compared to Q1 2024. " "

Cash Flow from Operations

100% increase (from $51.1M to $104.5M)

The more than doubling in operating cash flow was driven by higher net earnings and notable improvements in working capital management (e.g., better accounts receivable dynamics), significantly enhancing operating liquidity compared to last year. " "

Total Assets

+$76.3M increase (from $4,487.8M to $4,564.1M)

The asset base grew due to increases in accounts and notes receivable (+$48.3M), inventories (+$20.6M), and continued investment in property, plant, and equipment, partly offset by a minor decline in cash and cash equivalents. " "

Long-Term Debt

+23% increase (from $1,600.1M to $1,972.0M)

Long-term debt rose markedly as the company increased its leverage, reflecting new debt issuance and funding measures to support acquisitions and capital investments, while regular principal repayments contributed less than the overall growth in borrowings. " "

Adjusted EPS

FY 2025

$7.65 to $7.85 "

$7.65 to $7.85 "

no change

Full-Year Tax Rate

FY 2025

17.5% "

17% to 18% "

no change

Available Cash Flow Conversion

FY 2025

85% to 90% "

85% to 90% of adjusted net income "

no change

Nonresidential Business Performance

In Q2–Q4, discussed mid-single‐digit organic growth, margin expansion driven by nonresidential strength, and resilient institutional markets. " " " " " "

Q1 2025 continued to report solid mid-single-digit organic growth and robust margin expansion driven by nonresidential performance. " " " "

Consistent strength with sustained growth and conviction.

Residential Market Weakness

Q2 showed modest recovery; Q3 reported low-single digit growth from an aftermarket focus; Q4 noted temporary pull-ahead but underlying softness. " " " "

Q1 2025 described continued softness with mid-single-digit declines, citing high mortgage rates, tariff uncertainty, and rising construction costs. " "

Worsening sentiment with increased focus on affordability and external cost pressures.

Pricing Strategy and Margin Expansion

Across Q2–Q4, management highlighted consistent pricing increases, productivity improvements, and margin gains (increases of 70 to 150 basis points, supported by tactical pricing actions). " " " " "

Q1 2025 maintained focus on accelerating price realization and delivered a 150 basis point increase in adjusted operating margin. " " "

Steady strategy with continued refinement and effective execution.

Tariff Uncertainty and Margin Pressure

Q2 detailed near-shoring benefits and cautious monitoring; Q4 mentioned a mid-single-digit pull-forward due to tariffs and modest margin headwinds; Q3 did not address this topic. " " "

Q1 2025 emphasized a complex, volatile tariff environment with efforts to offset costs at the operating profit and EPS levels. " "

Cautious tone persists with management actively offsetting tariff-related pressures.

Electronics Segment Performance and Digital Innovation

Q2 reported strong demand with over 30% two‐year growth, Q3 noted a temporary high single-digit decline but optimism for long-term growth, and Q4 saw low single-digit growth with key product launches. " " " " " "

Q1 2025 saw electronics revenue up in the low double digits and introduced breakthrough smart lock innovations, reinforcing leadership in digital innovation. " " "

Improved performance with heightened innovation and optimistic growth prospects.

Innovative Product Pipeline and Smart Lock Solutions

Q2 emphasized the launch of Schlage indication solutions for schools; Q3 mentioned the Von Duprin 70 series; Q4 highlighted several product launches including smart lock integrations and Wear OS support. " " "

Q1 2025 unveiled ultra-wideband smart lock solutions (Schlage Sense Pro and Arrive Smart WiFi Deadbolt) expected to launch later in 2025. "

Acceleration in innovative products and smart lock offerings, reinforcing a leadership narrative.

Capital Deployment and Acquisition Activity

Q2–Q4 covered a disciplined approach with share repurchases, steady cash generation, and multiple bolt-on acquisitions (including significant M&A activity). " " " " " "

Q1 2025 reported strong cash flow generation, increased dividends, share repurchases, and the closing of three bolt-on acquisitions. "

Consistent and even enhanced capital allocation and acquisition activity.

International Segment Performance and Restructuring

Q2 and Q3 demonstrated moderate revenue and margin improvements with acquisitions bolstering results; Q4 noted headwinds from macro challenges (especially in Germany) and restructuring moves in China. " " " "

Q1 2025 saw international revenue nearly flat (organic up slightly) but with a 20 basis point margin decline and no specific restructuring updates. "

Mixed performance with steady organic growth but pressure on margins continuing.

Earnings Guidance and Operating Performance

Q2, Q3, and Q4 all provided robust EPS and revenue guidance, with improvements in operating margins, strong cash flow, and effective execution across segments. " " " " "

Q1 2025 reaffirmed full-year EPS guidance (at $7.65–$7.85), with solid revenue growth, exceptional cash flow gains, and notable margin expansion. " "

Optimistic and robust, reinforcing confidence in operational execution.

Market Uncertainty and Project/Order Flow Delays

Q2 mentioned a stable demand environment with normalized lead times; Q3 recognized some project delays along with mixed activity across sectors; Q4 offered indirect commentary through pull-forward behavior. " " " "

Q1 2025 acknowledged project paralysis in some privately financed projects, cautioning about delays despite resilient nonresidential activity. " " "

Heightened caution with a focus on potential delays amid fluctuating financing conditions.

Commercial Office and Multifamily Sector Softness

Q2 noted slight softness while Q3 and Q4 provided detailed discussions: Q3 cited persistent softness in multifamily and muted commercial office activity; Q4 detailed soft new construction in multifamily and challenges in major metros. " " " "

Q1 2025 does not mention commercial office or multifamily sector softness, suggesting it is not a current focus in the discussion.

Omission in Q1 may indicate a reduced emphasis or less immediate concern compared to previous periods.