Allegion Reports Q2-2025 Financial Results

Americas Non-Residential Business Leads with HSD Growth; Company Raises Full-Year Revenue and EPS Outlook

Allegion plc, a leading global security products and solutions provider, reported financial results for its second quarter (ended June 30, 2025).

Quarterly Financial Highlights

(All comparisons against the second quarter of 2024, unless otherwise noted)

• Net earnings per share (EPS) of $1.85, up 4.5% compared with $1.77; Adjusted EPS of $2.04, up 4.1% compared with $1.96
• Revenues of $1,022.0 million, up 5.8% on a reported basis and up 3.2% on an organic basis
• Operating margin of 21.5%, compared with 21.6%; Adjusted operating margin of 23.7%, flat compared with prior year

“We’re excited to share strong second-quarter results that demonstrate the agility of our team in navigating today’s dynamic environment. Quarterly revenue exceeded $1 billion for the first time in our company’s history, and I couldn’t be prouder of our team’s performance,” Allegion President and CEO John H. Stone said.

“We are steadily delivering on the long-term commitments we shared recently at our Investor Day. Allegion is driving strong organic growth in our non-residential Americas business, improving portfolio quality and margins in International, and complementing this with accretive acquisitions.”

Company Results

(All comparisons against the second quarter of 2024, unless otherwise noted)

Allegion reported second-quarter 2025 net revenues of $1,022.0 million and net earnings of $159.7 million, or $1.85 per share. Adjusted net earnings were $176.6 million, or $2.04 per share, up 4.1%, excluding items primarily related to restructuring, acquisition and integration expenses, as well as amortization expense related to acquired intangible assets.

Second-quarter 2025 net revenues increased 5.8%. On an organic basis, which excludes impacts of acquisitions, divestitures and foreign currency movements, net revenues increased 3.2%, led by the Americas region. The organic revenue increase was driven by price realization and volume growth. Reported revenue reflects a 1.9% positive impact from acquisitions and a 0.7% tailwind from foreign currency.

Second-quarter 2025 operating income was $219.7 million, an increase of $10.7 million or 5.1%. Adjusted operating income in second-quarter 2025 was $241.9 million, an increase of $13.3 million or 5.8%.

Second-quarter 2025 operating margin was 21.5%, compared with 21.6%. The adjusted operating margin in second-quarter 2025 was 23.7%, flat with prior year. Operating margin performance resulted from volume leverage and mix offset by higher incentive compensation.

Segment Results

(All comparisons against the second quarter of 2024, unless otherwise noted)

The Americas segment revenues were up 6.6% (up 4.5% on an organic basis). The organic revenue increase was driven by price realization as well as volume growth. The non-residential business was up high-single digits, and the residential business declined mid-single digits. The reported revenue reflects a 2.1% positive impact from acquisitions. Adjusted operating margin in the region increased 50 basis points to 29.9%.

The International segment revenues increased 2.9% (down 2.2% on an organic basis). The organic revenue decrease was driven by volume and offset partially by price. Reported revenue reflects a positive impact from acquisitions of 1.1% and a 4.0% tailwind from foreign currency. Adjusted operating margin in the region increased 100 basis points to 13.1%.

Additional Items

(All comparisons against the second quarter of 2024, unless otherwise noted)

Interest expense for second-quarter 2025 was $24.6 million, a decrease of $0.5 million.

Other income, net for second-quarter 2025 was $5.3 million, compared to other income, net of $5.1 million.

The company’s effective tax rate for second-quarter 2025 was 20.3% primarily due to the timing of discrete items, compared with 17.8%. The company’s adjusted effective tax rate for second-quarter 2025 was 20.7%, compared with 18.2%.

Cash Flow and Liquidity

Year-to-date available cash flow for 2025 was $275.4 million, an increase of $99.4 million versus the prior-year period. The company ended second-quarter 2025 with cash and cash equivalents of $656.8 million, as well as total debt of $2,067.2 million.

Share Repurchase and Dividends

In the second quarter of 2025, the company repurchased approximately 0.3 million shares for approximately $40 million and paid quarterly dividends of $0.51 per ordinary share or approximately $44 million.

2025 Full-Year Outlook

(All comparisons against full-year 2024, unless otherwise noted)

The company is raising its 2025 full-year revenue growth outlook, which is expected to be 6.5% to 7.5% on a reported basis and 3.5% to 4.5% organically, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements.

The company estimates tariff costs of approximately $40 million in 2025, which are included in the reported and organic revenue growth outlook. The company expects to offset tariffs at the operating profit and EPS level on a full-year basis, primarily through pricing actions. Accordingly, the company’s 2025 full-year EPS outlook includes the impact from tariffs enacted as of July 22, 2025.

The company is raising the outlook for 2025 full-year EPS and expects it to be in the range of $7.25 to $7.40, or $8.00 to $8.15 on an adjusted basis. The outlook continues to assume a full-year adjusted effective tax rate of approximately 17% to 18%.

Adjustments to 2025 EPS include estimated impacts of approximately $0.60 per share for acquisition-related amortization, as well as $0.15 per share for restructuring and M&A.

The outlook assumes an average diluted share count for the full year of approximately 86.5 million shares.

The company expects full-year available cash flow to be 85% to 90% of adjusted net income.

For full results click here.

About Allegion

Allegion (NYSE: ALLE) is a global pioneer in seamless access, with leading brands like CISA^®, Interflex^®, LCN^®, Schlage^®, SimonsVoss^® and Von Duprin^®. Focusing on security around the door and adjacent areas, Allegion secures people and assets with a range of solutions for homes, businesses, schools and institutions. Allegion had $3.7 billion in revenue in 2023, and its security products are sold around the world. For more, visit www.allegion.com.

Contact:

Whitney Moorman – Director, Global Communications – Whitney.Moorman@allegion.com – (317) 810-3241

Source: Allegion plc