Allegion Reports Q4, Full-Year 2024 Financial Results

Results showcase solid execution, margin expansion and balanced capital deployment

Allegion plc, a leading global security products and solutions provider, reported financial results for its fourth quarter (ended Dec. 31, 2024).

“Allegion delivered a record year in 2024 – a year marked by consistent, strong execution, solid margin expansion and balanced capital deployment,” said Allegion President and CEO John H. Stone.

“These results are a testament to our team of highly engaged experts who, together with our distribution and channel partners, solve complex problems for our end-user customers and work tirelessly to make the world safer.”

Quarterly Financial Highlights

(All comparisons against the fourth quarter of 2023, unless otherwise noted)

• Net earnings per share (EPS) of $1.65, up 23.1% compared with $1.34; Adjusted EPS of $1.86, up 10.7% compared with $1.68
• Revenues of $945.6 million, up 5.4% on a reported basis and up 3.5% on an organic basis
• Operating margin of 19.5%, compared with 17.8%; Adjusted operating margin of 22.1%, up 10 basis points compared with 22.0%

Full-Year Financial Highlights

(All comparisons against the full year of 2023, unless otherwise noted)

• EPS of $6.82, up 11.4% compared with $6.12; Adjusted EPS of $7.53, up 8.2% compared with $6.96
• Revenues of $3,772.2 million, up 3.3% on a reported basis and up 2.1% on an organic basis
• Operating margin of 20.7%, compared with 19.4%; Adjusted operating margin of 22.8%, up 70 basis points compared with 22.1%
• Available cash flow, which is defined as net cash from operating activities minus capital expenditures, was $582.9 million for 2024, an increase of 12.9%

2025 Full-Year Outlook Highlights

• Full-year reported revenue growth is estimated to be 1% to 3%, with organic revenue growth estimated to be 1.5% to 3.5%
• Full-year adjusted EPS is estimated to be $7.65 to $7.85
• Available cash flow is estimated to be 85% to 90% of adjusted net income

Q4 2024 Company Results

(All comparisons against the fourth quarter of 2023, unless otherwise noted)

Allegion reported fourth-quarter 2024 net revenues of $945.6 million and net earnings of $144.1 million, or $1.65 per share. Adjusted net earnings were $161.8 million, or $1.86 per share, up 10.7%, excluding items primarily related to restructuring, acquisition and integration expenses, as well as amortization expense related to acquired intangible assets.

Fourth-quarter 2024 net revenues increased 5.4%. On an organic basis, which excludes impacts of acquisitions, divestitures and foreign currency movements, net revenues increased 3.5%, led by the Americas region. The organic revenue increase was driven by price realization and volume growth. Reported revenue reflects a 2.0% positive impact from acquisitions and a slight headwind from foreign currency.

Fourth-quarter 2024 operating income was $184.6 million, an increase of $24.9 million or 15.6%. Adjusted operating income in fourth-quarter 2024 was $209.1 million, an increase of $11.9 million or 6.0%.

Fourth-quarter 2024 operating margin was 19.5%, compared with 17.8%. The adjusted operating margin in fourth-quarter 2024 was 22.1%, compared with 22.0%. The 10-basis-point increase in adjusted operating margin is attributable to favorable volume leverage and regional mix.

Q4 2024 Segment Results

(All comparisons against the fourth quarter of 2023, unless otherwise noted)

The Americas segment revenues were up 6.4% (up 4.6% on an organic basis). The organic revenue increase was driven by price realization as well as volume growth. The non-residential business was up mid-single digits, and the residential business grew high-single digits. The reported revenue reflects a 1.9% positive impact from acquisitions and a slight headwind from foreign currency. Adjusted operating margin in the region increased 70 basis points to 27.4%.

The International segment revenues increased 1.5% (down 0.7% on an organic basis). The organic revenue decrease was driven by volume decline offset partially by price realization. Reported revenue reflects a positive impact from acquisitions of 2.4% and a slight headwind from foreign currency. Adjusted operating margin in the region decreased 100 basis points to 15.8% on reduced volumes.

Full-Year 2024 Company Results

(All comparisons against the full year of 2023, unless otherwise noted)

Allegion reported full-year 2024 net revenues of $3,772.2 million and net earnings of $597.5 million, or $6.82 per share. Adjusted net earnings were $659.7 million, or $7.53 per share, up 8.2%, excluding items primarily related to restructuring, acquisition and integration expenses, as well as amortization expense related to acquired intangible assets.

Full-year 2024 net revenues increased 3.3%. Net revenues increased 2.1% on an organic basis, excluding impacts of acquisitions, divestitures and foreign currency movements. Favorable price was slightly offset by lower volumes, primarily in Allegion International. The reported revenue reflects a positive impact from acquisitions of 1.3% and a slight headwind from foreign currency.

Full-year 2024 operating income was $780.7 million, an increase of $72.3 million or 10.2%. Adjusted operating income for full-year 2024 was $860.8 million, an increase of $55.2 million or 6.9%.

Full-year 2024 operating margin was 20.7%, compared with 19.4%. The adjusted operating margin for full-year 2024 was 22.8%, compared with 22.1%. The 70-basis-point increase in adjusted operating margin is attributable to positive price and productivity net of inflation and investments. These increases were partially offset by lower volumes.

Additional Items

(All comparisons against the fourth quarter of 2023, unless otherwise noted)

Interest expense for fourth-quarter 2024 was $25.2 million, an increase of $2.3 million.

Other income, net for fourth-quarter 2024 was $2.9 million, compared to other income, net of $0.1 million.

The company’s effective tax rate for fourth-quarter 2024 was 11.2%, compared with 13.4%. The company’s adjusted effective tax rate for fourth-quarter 2024 was 13.1%, compared with 16.4%. The company’s adjusted effective tax rate for full-year 2024 was 15.6%, compared with 14.3% for full-year 2023.

Cash Flow and Liquidity

Year-to-date available cash flow for 2024 was $582.9 million, an increase of $66.5 million versus the prior-year period. The company ended fourth-quarter 2024 with cash and cash equivalents of $503.8 million, as well as total debt of $1,999.5 million.

Share Repurchase and Dividends

In the fourth quarter of 2024, the company repurchased approximately 0.7 million shares for approximately $100 million and paid quarterly dividends of $0.48 per ordinary share or $41.4 million.

2025 Full-Year Outlook

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

The company expects full-year 2025 revenues to increase 1% to 3% on a reported basis and increase 1.5% to 3.5% organically, when compared to 2024, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements.

Full-year 2025 reported EPS is expected to be in the range of $7.05 to $7.25, or $7.65 to $7.85 on an adjusted basis. The outlook assumes a full-year adjusted effective tax rate of approximately 17% to 18%.

Adjustments to 2025 EPS include estimated impacts of approximately $0.46 per share for acquisition-related amortization, as well as $0.14 per share for restructuring and M&A.

The outlook assumes an average diluted share count for the full year of approximately 86.7 million shares.

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

For full fourth quarter and full year 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