Slides
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Welcome to Our Webcast Our Event Will Start Soon
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Creating a Safer & More Accessible World Investor & Analyst Day May 6, 2025
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3 2025 Allegion Investor & Analyst Day Cautionary Statements Forward-Looking Statements This presentation contains "forward-looking statements," which are statements that are not historical facts. These forward-looking statements generally are identified by the words “believe,” “aim,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements. Undue reliance should not be placed on any forward-looking statements, as these statements are based on the company's currently available information and our current assumptions, expectations and projections about future events. They are subject to future events, risks and uncertainties - many of which are beyond the company’s control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Important factors and other risks that may affect the company's business or that could cause actual results to differ materially are included in filings the company makes with the Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q and in its other SEC filings. All forward-looking statements in this presentation are expressly qualified by such cautionary statements and by reference to the underlying assumptions. The company undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Measures This presentation also includes non-GAAP financial information which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information are included as an appendix in our presentation. These non-GAAP measures may not be defined and calculated the same as similar measures used by other companies. Reconciliations of the non-GAAP measures used to their most directly comparable GAAP measure are presented as supplemental schedules in the earnings release that can be found at www.allegion.com.
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4 2025 Allegion Investor & Analyst Day Be Safe, Be Healthy An Allegion Core Value ▪ NYSE has safety staff assigned to our floor ▪ In emergency, use closest exit (Fire Tower Stair A) ▪ In severe weather, shelter in place here (Freedom Hall) ▪ No smoking; NYSE is tobacco free ▪ Mid-presentation break will be provided
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5 2025 Allegion Investor & Analyst Day Agenda 1 Company & Strategy Overview John H. Stone 2 3 4 The Allegion Model Dave Ilardi Optimizing Performance & Growth Opportunities Tim Eckersley Driving Outgrowth Through Electronics John H. Stone, Vince Wenos 5 Financials & Capital Deployment Mike Wagnes
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Company & Strategy Overview John H. Stone, President & CEO
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7 2025 Allegion Investor & Analyst Day What You’ll Hear Today Allegion is uniquely advantaged, executing at a high level, and we’re primed to grow faster.
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8 2025 Allegion Investor & Analyst Day Creating a safer and more accessible world Our Vision
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9 2025 Allegion Investor & Analyst Day Our Team of Experts We Are Many. We Are One. We Are Allegion. 30+ 25+ 1,000+12,000+ Two-Time Winner | 2024-2025 full-time global employees trusted brands countries where we work global active patents
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10 2025 Allegion Investor & Analyst Day Global Business Profile ▪ Pure-play provider of security and access with iconic brands ▪ Proven ability to expand margins over the cycle and deploy capital consistently ▪ Primed for accelerated growth $3.8 Billion in 2024 Revenue | 24.4% Adjusted EBITDA Margin See appendix for definitions and reconciliations of GAAP to non-GAAP financial measures. Revenue by Geographic Segment International 20% Americas 80% Electronics 25% Mechanical 68% Software & Services 7% Revenue by Product Category
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11 2025 Allegion Investor & Analyst Day Our Markets U.S. Non-Residential ▪ Lead in school safety ▪ Grow and leverage our large installed base, specification writing expertise and end user relationships ▪ Drive electronics growth through partnership and tailored market solutions
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12 2025 Allegion Investor & Analyst Day Our Markets U.S. Residential ▪ Lead in electronics and industry-first technologies ▪ Leverage innovation and brand strength to grow and gain share ▪ Partner with megatechs and industry organizations on standards and ecosystems U.S. Non-Residential ▪ Lead in school safety ▪ Grow and leverage our large installed base, specification writing expertise and end user relationships ▪ Drive electronics growth through partnership and tailored market solutions
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13 2025 Allegion Investor & Analyst Day Our Markets International ▪ Grow electronics hardware and software ▪ Expand specification capabilities ▪ Continue adding accretive bolt-on acquisitions U.S. Residential ▪ Lead in electronics and industry-first technologies ▪ Leverage innovation and brand strength to grow and gain share ▪ Partner with megatechs and industry organizations on standards and ecosystems U.S. Non-Residential ▪ Lead in school safety ▪ Grow and leverage our large installed base, specification writing expertise and end user relationships ▪ Drive electronics growth through partnership and tailored market solutions
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14 2025 Allegion Investor & Analyst Day Leveraging Our Advantages Unique Front-End Critical Solutions, Configured to Order Technology Fuels Growth Creating Value Through Capital Deployment Diverse, Locally-Driven Markets
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15 2025 Allegion Investor & Analyst Day Creating Long-Term Shareholder Value Double-Digit Adjusted EPS Growth Over the Cycle Accelerate Organic Growth Improve Operating Margin Drive High Cash Flow Conversion Deploy Capital Effectively % See appendix for definitions of GAAP to non-GAAP financial measures.
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16 2025 Allegion Investor & Analyst Day 3.9% 1.5% 2.0% 2014-2019 Avg. Organic Growth (Price + Volume) Avg. M&A Contribution 7.4% ▪ Strong growth in Americas Non-Residential post-Great Financial Crisis ▪ Low inflation ▪ Limited market volume growth ▪ Supply chain disruption ▪ Higher inflation ▪ MSD-HSD growth potential with market / M&A upside -1.0% 4.5% 2.6% 2020-2024 6.1% MSD 3%+ Over the Cycle 7%+ Primed to Grow Faster Over the Cycle Revenue Growth, Excluding FX See appendix for definitions of GAAP to non-GAAP financial measures.
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17 2025 Allegion Investor & Analyst Day Driving Growth & Value Through Capital Deployment Historical Deployment 2014-2024 Targeted ACF Deployment Over the Cycle ▪ Historically balanced ▪ M&A more episodic ▪ Deploy ~100% of available cash flow, ~$2B over next 3 years ▪ Additional balance sheet capacity available for M&A ▪ Target bolt-ons at 3+ points of annual acquired growth ▪ Remain balanced and disciplined; Additional share repurchase as appropriate Share Repurchase 32% M&A 45% Dividend 23% M&A 50% Dividend 30% Additional Strategic Deployment 20% See appendix for definitions of GAAP to non-GAAP financial measures.
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18 2025 Allegion Investor & Analyst Day Focused Approach to M&A Key Criteria ▪ Leverages Allegion’s strengths ▪ Clear synergy opportunities ▪ Enhances financial profile ▪ ROIC to exceed WACC ▪ Accelerates organic growth Top Priorities Mechanical Portfolio Expansion Technology & Electronics Complementary Software & Services
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19 2025 Allegion Investor & Analyst Day Electronics Readers, panels, e-locks, touchless actuators Less Consolidated Less Consolidated Locks $5B TAM Consolidated Exits, Closers & Automatic Doors Panic bar devices, door control hardware, auto doors and services Accessories Kick plates, door pulls, hinges, thresholds Fragmented Hollow Metal & Technical Glass Doors, frames, specialty window systems Fragmented Primed to Grow Faster: M&A in the Core Americas Total Addressable Market (TAM): ~$20B, Including ~$3B Residential Company estimates
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20 2025 Allegion Investor & Analyst Day Recent Mechanical M&A ▪ High margin ▪ Specifiable ▪ Rapidly integrated ▪ Expands presence in fast-growing specialty applications
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21 2025 Allegion Investor & Analyst Day M&A Strategy: Electronics & Software Fill electronic hardware gaps in core markets; Leverage specification leadership Technology & Electronics Complementary Software & Services Accelerate electronics adoption; Leverage expertise in complex environments
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The Allegion Model Dave Ilardi, SVP & President, Allegion Americas
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23 2025 Allegion Investor & Analyst Day Accelerating Growth with Our Differentiated Model Unique Front-End ▪ Highly skilled consultants and specification team generate non- residential demand and pull product through the channel Technology Fuels Growth ▪ Connectivity and electronic solutions drive growth ▪ Allegion drives standards and scale through leading industry organizations and megatech partnerships
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24 2025 Allegion Investor & Analyst Day Demand Generation Through Building Lifecycle Design Construct Own ▪ Facilities Managers ▪ Information Technology ▪ Tenants ▪ Security and Access Administrators ▪ General Contractors ▪ Integrators ▪ Software Providers (PACS) ▪ Distribution Channel ▪ Project Architects ▪ Architectural Designers ▪ Security Consultants ▪ Project Managers Building Strong Relationships
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25 2025 Allegion Investor & Analyst Day The Partner of Choice for New Construction Architectural Consulting ▪ Local expertise in building codes and standards ▪ Support design integrity, compliance and security ▪ Tailor our solutions to meet diverse project needs ▪ Maximize building functionality and efficiency All brand names, product names or trademarks are the property of their respective owners. Design Construct Own
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26 2025 Allegion Investor & Analyst Day Tailored Support for Contractors, Distributors & Integrators Design Construct Own ▪ General Contractors ▪ Pre-construction planning and training ▪ Installation readiness / post-install walk-throughs ▪ Distribution Channel ▪ Robust distribution channel and product availability ▪ Expert product knowledge and support ▪ Integrators and PACS ▪ Advanced access control and integration support ▪ Comprehensive solution portfolio Channel Excellence
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27 2025 Allegion Investor & Analyst Day Optimizing Building Portfolios Design Construct Own ▪ Establish ongoing owner standards for facilities and construction teams ▪ Provide product training for maintenance technicians and service providers ▪ Consult across departments to ensure long-term performance of our solutions End-User Consultation
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28 2025 Allegion Investor & Analyst Day Leveraging Our Advantage: Vertical Markets Complex, Dense Content Mix Americas Non-Residential Estimated $/SF Commercial Multifamily Institutional ▪ Institutional ▪ High content, leverage our leadership in a stable, premium market ▪ Multifamily ▪ Increase content through technology ▪ Commercial ▪ Focus on core markets and growth opportunities
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29 2025 Allegion Investor & Analyst Day Accelerating Growth with Our Differentiated Model Unique Front-End ▪ Highly skilled consultants and specification team generate non- residential demand and pull product through the channel Technology Fuels Growth ▪ Connectivity and electronic solutions drive growth ▪ Allegion drives standards and scale through leading industry organizations and megatech partnerships
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Optimizing Performance & Growth Opportunities Tim Eckersley, SVP & President, Allegion International
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31 2025 Allegion Investor & Analyst Day Leveraging Our Advantages, Driving Profitable Growth Diverse, Locally Driven Markets ▪ Share best practices and technology globally, optimize locally ▪ Enhance business quality through local portfolio management Critical Solutions, Configured to Order ▪ Increase safety, quality and efficiency through automation ▪ Millions of SKUs, protecting where we live, learn, work and connect Allegion Has a High Operating Leverage Business Model
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32 2025 Allegion Investor & Analyst Day Global Best Practices, Local Optimization Electronics / Software ▪ Digital platforming ▪ Long-term local integrations ▪ SaaS revenue opportunities Processes / Strategy Hardware / Devices ▪ Core component platforming ▪ Customized to meet country-specific standards and local market needs ▪ Channel relationships ▪ Solutions development and testing ▪ Commercialization and go-to-market capabilities
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33 2025 Allegion Investor & Analyst Day Investing in Automation Long-Term Improvements in Innovation, Safety, Quality and Productivity Pin drops on map represent a sampling of 2023-2025 automation investments InternationalAmericas Princeton, IL, USA Greenfield, IN, USA Osterfeld, Germany Auckland, New Zealand Asia Pacific
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34 2025 Allegion Investor & Analyst Day Driving Profitability Through Differentiated Growth Global long-term growth trend in electronics Solutions approach and interoperability Cloud-based infrastructure | Flexible platforming Annual recurring revenue
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35 2025 Allegion Investor & Analyst Day Enhanced Business Quality Primed for Additional Profitable Growth Opportunities Business Transformation Strategic Acquisitions Portfolio Management ▪ Disciplined approach to simplification and efficiencies ▪ Component standardization and supply chain efficiency ▪ Opportunities to accelerate growth ▪ Leveraging technology investments and channel across the enterprise ▪ Focusing on profitable growth opportunities ▪ Exiting underperforming businesses
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36 2025 Allegion Investor & Analyst Day Leveraging Our Advantages Our Business is Primed for Growth ▪ High operating leverage business model ▪ High-quality business portfolio We’re Accelerating Momentum and Increasing Profitability ▪ Automation driving safety, quality, efficiency ▪ Global best practices optimized for local products and processes +280 bps Enterprise Adj. EBITDA Margins 2021-2024 Diverse, Locally Driven Markets Critical Solutions, Configured to Order Technology Fuels Growth See appendix for definitions and reconciliations of GAAP to non-GAAP financial measures.
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Please Enjoy a Short Break Our Event Will Resume Soon
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Driving Outgrowth Through Electronics John H. Stone, President & CEO Vince Wenos, SVP & Chief Technology Officer
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39 2025 Allegion Investor & Analyst Day Innovating with Electronics & Software Guiding Standards, Creating Open Ecosystems HSD ~1+ pt ~2-2.5x~30% of 2024 revenue electronics growth over the cycle average annual revenue outgrowth since spin ASP vs. mechanical products at similar margin rate All brand names, product names or trademarks are the property of their respective owners.
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40 2025 Allegion Investor & Analyst Day Driving Adoption in Key Verticals K-12 Higher Ed Multifamily Enterprise ▪ Increasing safety from the perimeter through to the classroom ▪ Creating efficiencies for facilities managers and administration ▪ Modernizing student experiences ▪ Increasing security and accessibility ▪ Creating competitive edge with improved tenant experiences ▪ Delivering valuable data and productivity for property managers ▪ Leveraging core spec- writing strength ▪ Expanding software offerings with Interflex
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41 2025 Allegion Investor & Analyst Day Electronics Growth Driven by Significant ROI and Improved Tenant Experiences ▪ Flexible, easy to deploy, mobile credentials ▪ Significant savings and potential revenue source ~75% ~25% U.S. Multifamily Market ~25 Million Units Class A Class B & C Electronics Adoption Higher Lower Source: Yardi
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42 2025 Allegion Investor & Analyst Day Improved Tenant Experience Leasing Office Expense Reduction Maintenance and Vendor Access Cost Savings Reduced Time-to-Turn, Higher Rent Potential Attract Tenants Manage Costs Increase Revenue A Value Proposition Tailored to Meet Multifamily Market Needs
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43 2025 Allegion Investor & Analyst Day Productivity Through Platforming Prior to Platforming With Platforming ▪ Unique, independent product designs requiring significant time, investment and resources ▪ Ever-increasing resources to maintain product offerings ▪ Reuse of common platforms – electronics, software and hardware ▪ Improved efficiency – lower risk, optimized resources, accelerated development / time to market ▪ Enhanced outcomes – higher product quality and enterprise-wide benefits
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44 2025 Allegion Investor & Analyst Day Allegion’s Platforming in Action Efficiency gains ▪ Over 45% reduction in development time Resource optimization ▪ Reduced development effort by ~225 person months Global impact ▪ Shared assets across regions enhance global development efficiency Pre-2025 2025 2026 2027+ Cumulative Assets Deployed ▪ Initial focus on embedded software and electrical hardware ▪ Growing number of mechanical hardware assets over the planning horizon ▪ Early in journey of platforming concepts for software products and development
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45 2025 Allegion Investor & Analyst Day Ongoing History of Innovation in Electronics Schlage NDE with Engage Schlage Sense Bluetooth – 1st Apple HomeKit Compatible Deadbolt Schlage Control SimonsVoss Acquisition Schlage Sense Schlage LE with Engage Von Duprin Exits with Engage SimonsVoss Smart Handle AX Schlage CTE Schlage Encode – 1st Battery Powered Integrated Wi-Fi Gainsborough Freestyle Electronic Trilock Schlage Mobile Access Schlage NDE-B, LE-B, Control-B Schlage Encode Plus – 1st Apple Home Key Compatible Deadbolt LCN COMPACT Schlage Encode Lever Lock Schlage XE360 2014 2015 2016 2017 2018 2020 20212019 2022 2024 2025 Schlage Sense Pro Schlage Arrive SimonsVoss FORTLOX All brand names, product names or trademarks are the property of their respective owners.
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Financials & Capital Deployment Mike Wagnes, SVP & Chief Financial Officer
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47 2025 Allegion Investor & Analyst Day Creating Long-Term Shareholder Value Double-Digit Adjusted EPS Growth Over the Cycle Accelerate Organic Growth Improve Operating Margin Drive High Cash Flow Conversion Deploy Capital Effectively % See appendix for definitions of GAAP to non-GAAP financial measures.
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48 2025 Allegion Investor & Analyst Day Strong Organic Growth, Industry-Leading Margins $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 $3,000.0 $3,500.0 $4,000.0 2021 2024 $2,867M 21.6% 24.4% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 24.00% 26.00% 2021 2024 $5.43 $7.53 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 2021 2024 $443M $583M $0 $100 $200 $300 $400 $500 $600 2021 2024 $618M $919M $3,772M Adjusted EBITDA Adjusted EPSRevenue Growth Available Cash Flow +9.6% CAGR +6% Avg. Organic Growth +14.1% CAGR +280 bps +11.5% CAGR +9.6% CAGR See appendix for definitions and reconciliations of GAAP to non-GAAP financial measures.
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49 2025 Allegion Investor & Analyst Day Resilient Margins Through Cycles See appendix for definitions and reconciliations of GAAP to non-GAAP financial measures.
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50 2025 Allegion Investor & Analyst Day Bending the Curve on Growth Investments R&D CapEx 21.6% 24.4% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 24.00% 26.00% 2021 2024 $618M $919M Adjusted EBITDA +280 bps $443M $583M $0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 2021 2024 Available Cash Flow +9.6% CAGR ~1.5x Spend (2021-2024) From 2.6% of Sales (2021) to 3.0% of Sales (2024) ~2x Spend (2021-2024) From 1.6% of Sales (2021) to 2.4% of Sales (2024) See appendix for definitions and reconciliations of GAAP to non-GAAP financial measures.
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51 2025 Allegion Investor & Analyst Day Driving Profitable Growth +230 bps; on track for top half of 2025 range +150-300 bps Adj. EBITDA margins in 2025 22.1% Adj. EBITDA Margin 24.4% Adj. EBITDA Margin Investor Day ~35% Core Incremental Margins 20232022 2024 Over the Cycle See appendix for definitions and reconciliations of GAAP to non-GAAP financial measures.
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52 2025 Allegion Investor & Analyst Day Driving Growth & Value Through Capital Deployment Historical Deployment 2014-2024 Targeted ACF Deployment Over the Cycle ▪ Historically balanced ▪ M&A more episodic ▪ Deploy ~100% of available cash flow, ~$2B over next 3 years ▪ Additional balance sheet capacity available for M&A ▪ Target bolt-ons at 3+ points of annual acquired growth ▪ Remain balanced and disciplined; Additional share repurchase as appropriate Share Repurchase 32% M&A 45% Dividend 23% M&A 50% Dividend 30% Additional Strategic Deployment 20% See appendix for definitions of GAAP to non-GAAP financial measures.
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53 2025 Allegion Investor & Analyst Day Proven Track Record of Leverage Management See appendix for definitions and reconciliations of GAAP to non-GAAP financial measures. Supporting Growth While Maintaining Investment Grade Rating
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54 2025 Allegion Investor & Analyst Day Market 35% Incremental Margins Core Adj. EPS Growth ~3% Adj. EPS Growth Before Borrowing Additional B/S Capacity Adj. EPS CAGR Electronics +1% Organic Revenue Growth Adj. OI Growth Capital Deployment MSD HSD Price: 1.5-2% LDD ~10% See appendix for definitions of GAAP to non-GAAP financial measures. Long-Term Value Framework
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Closing & Q&A John H. Stone, President & CEO
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56 2025 Allegion Investor & Analyst Day What You Heard Today Allegion is uniquely advantaged, executing at a high level, and we’re primed to grow faster.
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Appendix
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58 2025 Allegion Investor & Analyst Day Allegion Americas Revenue by Market Non-Res Vertical Markets Institutional: ~50-60% K-12, Higher Ed, Healthcare, etc. Commercial: ~30-35% Office, Industrial, Data Centers, etc. Multifamily: ~10-15% Apartment Complexes Residential: ~20% Brand strength led by technology innovation Non-Residential: ~80% Demand generation throughout building lifecycle Estimated as of fiscal year 2024.
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59 2025 Allegion Investor & Analyst Day Electronics & Software: ~40% Growing portfolio of connected hardware and cloud-based software capabilities Mechanical: ~60% High-quality portfolio of market-leading brands Allegion International Revenue by Product Category Estimated as of fiscal year 2024.
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60 2025 Allegion Investor & Analyst Day Resilient EBITDA Margins Through Cycles (1) EBITDA defined as operating income plus depreciation and amortization. (2) EBITDA Margin for 2008-2013 calculated using revenue adjusted for Asia joint venture order flow change 2000-2007 represents the Security & Safety or Security Technologies segment as reported in Ingersoll Rand's 10K 2009-2013 revenues are adjusted for the UK Door Business 2008-2013 net income is adjusted for LIFO to FIFO conversion 2013-2018 represent Allegion post spin Pension accounting change is not reflected prior to 2013 1 2
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61 2025 Allegion Investor & Analyst Day STANLEY ACCESS TECHNOLOGIES is used with permission. STANLEY is the property of Stanley Logistics L.L.C.
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62 2025 Allegion Investor & Analyst Day Our Leadership John H. Stone President and Chief Executive Officer Board of Directors Geographical and Functional Leaders Tim Eckersley Senior Vice President, Allegion International Jen Hawes Senior Vice President, Chief Human Resources Officer Tracy Kemp Senior Vice President, Chief Information & Digital Officer Jeff Braun Senior Vice President, General Counsel, Corporate Secretary Rob Martens Senior Vice President, Chief Innovation & Design Officer Dave Ilardi Senior Vice President, Allegion Americas Mike Wagnes Senior Vice President, Chief Financial Officer Vince Wenos Senior Vice President, Chief Technology Officer Kirk S. Hachigian Former Chairman of JELD-WEN Holding, Inc. Susan L. Main Former Senior Vice President and Chief Financial Officer of Teledyne Technologies Incorporated Steven C. Mizell Former Executive Vice President and Chief Human Resources Officer of Merck & Co., Inc. Nicole Parent Haughey Former Chief Operating Officer of Island Creek Oysters Lauren B. Peters Chair Former Executive Vice President and Chief Financial Officer of Foot Locker, Inc. Ellen Rubin Founder and Former CEO of Causely, Inc. Gregg Sengstack Executive Chairperson of Franklin Electric Company, Inc. Dev Vardhan Former Senior Partner of McKinsey & Company
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63 2025 Allegion Investor & Analyst Day Values-Led Culture Serve others, not yourself Enjoy what you do and celebrate who we are Do the right thing Be safe, be healthy Be curious beyond the obvious Be empowered and accountable This is your business, run with it Have a passion for excellence Our Core Values Date Back to Our Founding
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64 2025 Allegion Investor & Analyst Day Global Reach & Manufacturing Footprint 12,000+ Employees | 15,000+ Channel Partners | 120 Countries Where Products Sold Corporate headquarters Dublin, Ireland Global technology center Bangalore, India Allegion Corporate Allegion International Allegion Americas
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65 2025 Allegion Investor & Analyst Day Reconciliation of Non-GAAP Measures The company defines the presented non-GAAP measures as follows: ▪ Adjustments to operating income, operating margin, earnings before income taxes, effective tax rate, net earnings, EPS and EBITDA include items such as goodwill, indefinite-lived trade name and other asset impairment charges, restructuring charges, acquisition and integration costs, amortization expense related to acquired intangible assets, debt financing costs, gains or losses related to the divestiture of businesses or equity method investments and non-operating investment gains or losses. ▪ Organic revenue growth is defined as U.S. GAAP revenue growth excluding the impact of acquisitions, divestitures and currency effects. ▪ Available cash flow is defined as U.S. GAAP net cash from operating activities less capital expenditures. ▪ Net Debt is defined as total long-term and short-term debt less cash and cash equivalents. These non-GAAP measures may not be defined and calculated the same as similar measures used by other companies. Reconciliations of the non-GAAP measures used to their most directly comparable GAAP measure are presented as supplemental schedules in the earnings release that can be found at www.allegion.com. The company presents operating income, operating margin, 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 and organic revenue growth on a non-GAAP basis, EBITDA, adjusted EBITDA and adjusted EBITDA margin (all non-GAAP measures), and Available Cash Flow (“ACF,” a non-GAAP measure). The company presents these non-GAAP measures because management believes they provide management and investors useful perspective of the company’s underlying business results and trends and a more comparable measure of period-over-period results. These measures are also used to evaluate senior management and are a factor in determining at-risk compensation. Investors should not consider non-GAAP measures as alternatives to the related U.S. GAAP measures.
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66 2025 Allegion Investor & Analyst Day Consolidated Operating Income & EBITDA Reconciliation
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67 2025 Allegion Investor & Analyst Day Consolidated Net Income & EPS Reconciliation
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68 2025 Allegion Investor & Analyst Day Consolidated Reconciliation of Available Cash Flow
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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 Von Duprin®. Our comprehensive portfolio of hardware, software and electronic solutions is sold around the world and spans residential and commercial locks, door closer and exit devices, steel doors and frames, access control and workforce productivity systems. Allegion had $3.8 billion in revenue in 2024. About Allegion © 2025 Allegion plc. All rights reserved. AD SYSTEMS, API, AUSTRAL LOCK, AXA, BOSS DOORS, BRICARD, BRIO, BRITON, CISA, DEXTER, DORCAS, FALCON, FSH, GAINSBOROUGH, GLYNN- JOHNSON, INTERFLEX, ISONAS, IVES, KRIEGER SPECIALTY PRODUCTS, KRYPTONITE, LCN, LEMAAR, LOCKNETICS, NEXT DOOR COMPANY, NORMBAU, PLANO, REPUBLIC, SCHLAGE, SIMONSVOSS, STANLEY ACCESS TECHNOLOGIES, SOSS DOOR HARDWARE, STEELCRAFT, TGP, TRELOCK, TRIMCO, UNICEL ARCHITECTURAL, VON DUPRIN, YONOMI, ZENTRA and ZERO are the property of Allegion plc. or its respective subsidiaries. All other brand names, product names or trademarks are the property of their respective owners. STANLEY ACCESS TECHNOLOGIES is used with permission. STANLEY is the property of Stanley Logistics L.L.C. For more, visit www.allegion.com