Allegion beats Q2 expectations on strong non-residential demand

Published 24/07/2025, 11:26
 Allegion beats Q2 expectations on strong non-residential demand

DUBLIN - Allegion plc (NYSE:ALLE) reported second-quarter earnings that exceeded analyst expectations on Thursday.

The company’s shares rose 1.13% in pre-market trading following the announcement.

The global security products provider posted adjusted earnings per share of $2.04, beating the analyst consensus of $1.99, while revenue reached $1.02 billion, surpassing estimates of $1 billion. The 5.8% revenue growth was driven by a 2.6% increase in pricing, 1.9% from acquisitions, 0.7% from favorable currency exchange rates, and 0.6% from higher volumes.

Allegion’s Americas segment, which accounts for the bulk of the company’s business, saw revenues increase 6.6% to $821.5 million, with non-residential product sales growing by high-single digits compared to the same period last year. The International segment posted a 2.9% revenue increase to $200.5 million.

"Demand for our non-residential products remains healthy," said John H. Stone, CEO of Allegion. "We delivered mid-single digit revenue growth compared to the same period in 2024, driven by the Allegion Americas segment."

Operating income rose to $219.7 million from $209 million in the year-ago quarter, though operating margin slightly decreased to 21.5% from 21.6%. The company noted that electronic security products, a key growth driver, saw low double-digit revenue growth in the Americas segment.

Allegion has been active in expanding its portfolio, completing four acquisitions during the first half of 2025 and three more in July, including ELATEC, a German security and access technology manufacturer acquired for approximately $389 million.

The company maintained a strong cash position with $656.8 million in cash and cash equivalents at the end of the quarter, up from $503.8 million at the end of 2024. During the first half of 2025, Allegion paid dividends of $1.02 per share and repurchased approximately 0.6 million shares for $80 million.

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