Allegion Plc · NYSE:ALLE
Allegion — Q2 2025 Earnings Presentation
20 slides from Allegion's earnings presentation, Jul 24, 2025
Slide 1: Q2-2025 Earnings Call
Q2-2025 Earnings Call July 24, 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, elec
Slide 3: Solid Execution, Staying Agile
Solid Execution, Staying Agile ▪ HSD organic growth in Americas Non-Residential ▪ Accelerating capital deployment ▪ Raising FY-2025 Adj. EPS outlook to $8.00-$8.15 3 Q2-2025 Financial Results
Slide 4: Capital Allocation
Capital Allocation Invest for Acquisitions Dividend Share Repurchases Organic Growth ~$44M $40M $0.51 per ordinary share In Q2 2025 of the company 4 Q2-2025 Financial Results Acquisitions of ELATEC, Gatewise and Waitwhile entities completed in July 2025 (third quarter).
Slide 5: Recently Announced Acquisitions
Recently Announced Acquisitions Mechanical Technology Complementary Portfolio Expansion & Electronics Software & Services ▪ Bolt-ons strengthen core ▪ Expands offering in readers and ▪ SaaS models in complementary mechanical portfolio, leverage credentials, creating global #2 player multifamily, vis
Slide 6: Q2-2025 Financial Summary
Q2-2025 Financial Summary Revenue Adjusted OI Adjusted EBITDA Adjusted ACF YTD $Millions Margin Margin EPS $Millions +5.8% Flat Flat +4.1% +56.5% 25.3% 25.3% $2.04 $275.4 $1,022.0 23.7% 23.7% $1.96 $965.6 $176.0 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 ▪ Organic growth of 3.2%, ▪
Slide 7: Q2-2025 Revenue Results
Q2-2025 Revenue Results $Millions 1,050.0 1,000.0 950.0 900.0 850.0 800.0 $1,022 750.0 $966 $967 $946 $942 700.0 650.0 600.0 5.2% 3.3% 3.5% 4.0% 3.2% 550.0 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Current Quarter Revenue Prior Quarter Revenue Organic Growth % noted Price Volume Organic Acq/Div Curren
Slide 8: Q2-2025 Allegion Americas Results
Q2-2025 Allegion Americas Results Revenue Adjusted Adjusted $Millions OI% EBITDA% +6.6% +50 bps +60 bps $770.7 $821.5 29.4% 29.9% 30.7% 31.3% Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 Revenue Performance Q2 Adjusted Margin Performance ▪ Organic revenue growth of 4.5% ▪ Volume leverage and strong mix ▪
Slide 9: Q2-2025 Allegion International Results
Q2-2025 Allegion International Results Revenue Adjusted Adjusted $Millions OI% EBITDA% +2.9% +100 bps +90 bps $194.9 $200.5 12.1% 13.1% 14.5% 15.4% Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 Revenue Performance Q2 Adjusted Margin Performance ▪ Organic revenue decline of 2.2% ▪ Price, productivity, infla
Slide 10: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Available Cash Flow Working Capital Leverage $Millions % of Revenue +56.5% 2.7x 2.2x $275.4 9.1% $176.0 7.9% 1.9x 1.5x Q2 YTD 24 Q2 YTD 25 Q2 24 Q2 25 Q2 24 Q2 25 Capex $48M $39M Gross Debt/Adj EBITDA Net Debt /Adj EBITDA ▪ Higher earnings, improved working ▪ Working capita
Slide 11: FY-2025 Outlook
FY-2025 Outlook Prior Outlook Current Outlook1 Total Company Reported: Organic: Reported: Organic: Revenue 1.0% to 3.0% 1.5% to 3.5% 6.5% to 7.5% 3.5% to 4.5% Segment Revenue Americas: International: Americas: International: Organic +LSD/MSD ~Flat +MSD ~Flat Acquisitions/Divestitures ~+1% ~+1% ~+1.5
Slide 12: Solid Execution, Staying Agile
Solid Execution, Staying Agile ▪ HSD organic growth in Americas Non-Residential ▪ Accelerating capital deployment ▪ Raising FY-2025 Adj. EPS outlook to $8.00-$8.15 12 Q2-2025 Financial Results
Slide 13: Allegion Pioneering Safety
ALLEGION’ PIONEERING SAFETY”
Slide 14: Appendix
ALLEGION’ PIONEERING SAFETY” Appendix
Slide 15: Key Outlook Dynamics
Key Outlook Dynamics Allegion Sourcing Markets into U.S. U.S. Non-Residential EPS outlook includes enacted tariffs ▪ Late-cycle resiliency estimated at ~$40M for FY 2025 ▪ Specifications grew in 2024 and YTD 2025 Mexico ▪ Broad end market exposure ▪ ~20-25% enterprise COGS ▪ Vast majority USMCA comp
Slide 16: FY-2025 Outlook
FY-2025 Outlook Other Items ▪ Interest / Other Expense: ~$90M ▪ Tax Rate: 17-18% ▪ Average Diluted Shares: ~86.5M ▪ Adjusted EPS excludes acquired intangible asset amortization ($0.60) and other adjustments ($0.15) ▪ 2025 transactions included in outlook: ▪ Q1: Next Door Company; Lemaar ▪ Q2: Trimco
Slide 17: Q2-2025 Allegion EPS Performance
Q2-2025 Allegion EPS Performance M&A: $0.04 Inclusive of $0.04 from M&A: ($0.06) Amortization: $0.14 Acquisitions Amortization: ($0.13) Impairment: $0.01 17 Q2-2025 Financial Results See appendix for definitions and press release for non-GAAP reconciliations
Slide 18: FY-2025 EPS Outlook Details
FY-2025 EPS Outlook Details Inclusive of Tax Rate at Midpoint ~$0.15 - $0.20 of 17% - 18% from Acquisitions 18 Q2-2025 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