Allegion Plc · NYSE:ALLE
Allegion — Q4 2024 Earnings Presentation
20 slides from Allegion's earnings presentation, Feb 18, 2025
Slide 1: Q4-2024 Earnings Call
Q4-2024 Earnings Call February 18, 2025
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This presentation contains "forward-looking statements," which are statements that are not historical facts, including, but not limited to, statements related to FY- 2025 Outlook, FY-2025 EPS Outlook Details and statements regarding market trends, ele
Slide 3: Solid Execution, Primed for Growth
Solid Execution, Primed for Growth MSD revenue growth in Q4 Solid 2024 margin expansion & cash flow >$500M of capital deployment 3 Q4-2024 Financial Results
Slide 4: 2024 Capital Allocation
2024 Capital Allocation Invest for Acquisitions Dividend Share Repurchase Organic Growth $137M $167M $220M FY 2024 FY 2024 FY 2024 4 Q4-2024 Financial Results
Slide 5: Q4-2024 Financial Summary
Q4-2024 Financial Summary Revenue Adjusted OI Adjusted EBITDA Adjusted ACF YTD $Millions Margin Margin EPS $Millions 5.4% +10 bps +10 bps +10.7% +12.9% $945.6 23.5% 23.6% $897.4 $1.86 $582.9 22.0% 22.1% $1.68 $516.4 Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 ▪ Organic growth of 3.5%
Slide 6: Q4-2024 Revenue Results
Q4-2024 Revenue Results $Millions 1,000.0 $966 $967 $946 950.0 $923 $913 $918 $897 $894 900.0 850.0 800.0 750.0 700.0 650.0 600.0 15.0% 5.6% -0.6% 2.6% -3.6% 5.2% 3.3% 3.5% 550.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Current Quarter Revenue Prior Quarter Revenue Organic Gro
Slide 7: Q4-2024 Allegion Americas Results
Q4-2024 Allegion Americas Results Revenue Adjusted OI% Adjusted EBITDA% $Millions +6.4% +70 bps +70 bps $704.6 $750.0 27.4% 28.0% 28.7% 26.7% Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 Q4 Revenue Performance Q4 Adjusted Margin Performance ▪ Organic revenue growth of 4.6% ▪ Price, productivity, inflation, i
Slide 8: Q4-2024 Allegion International Results
Q4-2024 Allegion International Results Revenue Adjusted OI% Adjusted EBITDA% $Millions +1.5% -100 bps -90 bps $192.8 $195.6 16.8% 19.0% 18.1% 15.8% Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 Q4 Revenue Performance Q4 Adjusted Margin Performance ▪ Organic revenue decline of 0.7% ▪ Price and productivity exc
Slide 9: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Available Cash Flow Working Capital Leverage $Millions % of Revenue +12.9% $582.9 $516.4 6.5% 2.3x 6.1% 2.2x 1.8x 1.6x Q4 YTD Q4 YTD Q4 2023 Q4 2024 Q4 2023 Q4 2024 2023 2024 Gross Debt/Adj EBITDA Capex $84.2M $92.1M Net Debt /Adj EBITDA ▪ Higher earnings and improved worki
Slide 10: Institutional Markets Review
Institutional Markets Review Strong Funding Activity Stable Demand Indicators US New Municipal Bond Issuance Dodge Institutional SF Starts (TTM) 400 20% 10% 300 $ Billions 0% 200 -10% 100 -20% 2014 2016 2018 2020 2022 2024 2014 2016 2018 2020 2022 2024 ▪ Robust bond issuance in 2024 followed histori
Slide 11: FY-2025 Outlook
FY-2025 Outlook Current Outlook Other Items Total Company Reported: Organic: ▪ Interest / Other Expense: ~$84M Revenue 1.0% to 3.0% 1.5% to 3.5% ▪ Tax Rate: 17-18% Segment Revenue Americas: International: ▪ Average Diluted Shares: ~86.7M Organic +LSD/MSD ~Flat ▪ Adjusted EPS excludes acquired Acquis
Slide 12: Pioneering Safety
Pioneering Safety TM Solid execution, primed for growth Resilient business model Accelerating capital deployment 12 Q4-2024 Financial Results
Slide 13: Q&A
Q&A
Slide 14: Appendix
Appendix
Slide 15: Q4-2024 Allegion EPS Performance
Q4-2024 Allegion EPS Performance Restructuring: ($0.09) Restructuring: $0.05 M&A: ($0.01) M&A: $0.09 Amortization: ($0.12) Amortization: $0.11 Other: $0.01 Impairment: $0.06 Investment loss: $0.03 15 Q4-2024 Financial Results See appendix for definitions and press release for non-GAAP reconciliation
Slide 16: FY-2024 Financial Summary
FY-2024 Financial Summary Revenue Adjusted OI Adjusted EBITDA Adjusted ACF YTD $Millions Margin Margin EPS $Millions 3.3% +70 bps +90 bps +8.2% +12.9% $3,650.8 $3,772.2 24.4% 23.5% $7.53 $582.9 $6.96 22.8% $516.4 22.1% FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 ▪ Organic growth of 2
Slide 17: FY-2024 Allegion EPS Performance
FY-2024 Allegion EPS Performance Restructuring: ($0.11) Restructuring: $0.11 M&A: ($0.10) M&A: $0.18 Amortization: ($0.48) Amortization: $0.46 Impairment: ($0.02) Impairment: $0.06 Investment loss: $0.03 17 Q4-2024 Financial Results See appendix for definitions and press release for non-GAAP reconci
Slide 18: FY-2025 EPS Outlook Details
FY-2025 EPS Outlook Details Tax Rate at Midpoint of 17% - 18% 18 Q4-2024 Financial Results See appendix for definitions and press release for non-GAAP reconciliations
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The company presents operating income, operating margin, earnings before income tax, effective tax rate, net debt, net earnings and diluted earnings per share (EPS) on both a U.S. GAAP basis and on an adjusted (non-GAAP) basis, revenue growth on a U.S. GAAP basis
Slide 20: About Allegion
About Allegion At Allegion (NYSE: ALLE), we design and manufacture innovative security and access solutions that help keep people safe where they live, learn, work and connect. We’re pioneering safety with our strong legacy of leading brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Vo