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Q3-2025 Earnings Call October 23, 2025
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2 Q3-2025 Financial Results 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, electronics growth, global software solutions business, the company's financial performance in 2025 and future years, including the 2026 Preview, the company’s business plans and strategy, the company’s growth strategy, the company’s capital allocation strategy, competition, the company’s ability to successfully complete and integrate acquisitions and achieve anticipated strategic and financial benefits, and the performance of the markets in which the company operates. These forward-looking statements generally are identified by the words “believe,” “aim,” “projected,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “intend,” “scheduled,” “targets,” “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 adjusted 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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3 Q3-2025 Financial Results Solid Execution, Staying Agile ▪ Double-digit revenue growth for the enterprise ▪ Accelerated capital deployment ▪ Raising FY-2025 Adj. EPS outlook to $8.10-$8.20
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4 Q3-2025 Financial Results Capital Allocation ~$44M $0.51 per ordinary share of the company $80M YTD 2025 Invest for Organic Growth Dividend Share RepurchasesAcquisitions Schlage Performance SeriesTM ~$110M combined purchase price
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5 Q3-2025 Financial Results Q3-2025 Financial Summary Adjusted OI Margin -10 bps 24.2% 24.1% Q3 24 Q3 25 Adjusted EBITDA Margin Q3 24 Q3 25 25.7% 25.7% Flat Revenue $Millions $967.1 $1,070.2 Q3 24 Q3 25 +10.7% ▪ Organic growth of 5.9%, led by Non-Residential Americas ▪ Price realization of 4.0%; Volume growth of 1.9% ▪ Acquisitions / divestiture of 3.9%; Currency tailwind of 0.9% ▪ Margin expansion in both segments ▪ Price, productivity, inflation, investment tailwind of $2.2M ▪ Margin headwind primarily due to prior-year comparable in corporate expenses Adjusted EPS $2.16 $2.30 Q3 24 Q3 25 +6.5% ▪ Operating income delivered $0.23 of adjusted EPS growth, inclusive of $0.06 of acquisitions ▪ $0.07 headwind from tax vs. prior year ▪ $0.05 headwind from higher interest / other, partially offset by $0.03 tailwind from lower share count ACF YTD $Millions $388.0 $485.2 Q3 24 Q3 25 +25.1% ▪ Higher earnings, improved working capital and lower capital expenditures contributed to higher ACF See appendix for definitions and press release for non-GAAP reconciliations
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6 Q3-2025 Financial Results Q3-2025 Allegion Americas Results See appendix for definitions and press release for non-GAAP reconciliations Revenue $Millions +7.9% Q3 Revenue Performance ▪ Organic revenue growth of 6.4% ▪ Non-Residential increase mid-single digits ▪ Residential increase mid-single digits ▪ Mid-teens organic growth in electronics ▪ Price realization of 4.6%; Volume growth of 1.8%; Acquisitions of 1.5% Q3 Adjusted Margin Performance ▪ Volume leverage and favorable mix supporting margin expansion ▪ Price, productivity, inflation, investment tailwind of $10.2M Adjusted EBITDA% Adjusted OI% +40 bps+40 bps $782.4 $844.0 Q3 24 Q3 25 29.5% 29.9% Q3 24 Q3 25 30.8% 31.2% Q3 24 Q3 25
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7 Q3-2025 Financial Results Q3-2025 Allegion International Results Revenue $Millions +22.5% Q3 Revenue Performance ▪ Organic revenue growth of 3.6%, led by electronics ▪ Price realization of 1.3%; Volume growth of 2.3%; Acquisitions / divestiture of 13.6%; Currency tailwind of 5.3% Q3 Adjusted Margin Performance ▪ Volume leverage and favorable mix supporting margin expansion ▪ Acquisitions accretive to segment margin rates ▪ Price, productivity, inflation, investment headwind of $3.6M Adjusted EBITDA% Adjusted OI% +60 bps+70 bps See appendix for definitions and press release for non-GAAP reconciliations $184.7 $226.2 Q3 24 Q3 25 13.6% 14.3% Q3 24 Q3 25 16.0% 16.6% Q3 24 Q3 25
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8 Q3-2025 Financial Results Balance Sheet & Cash Flow See appendix for definitions and press release for non-GAAP reconciliations Available Cash Flow $Millions $388.0 $485.2 Q3 YTD 24 Q3 YTD 25 Capex $68M $58.5M Working Capital % of Revenue Leverage ▪ Higher earnings, improved working capital and lower capital expenditures contributed to higher ACF ▪ Raising FY-2025 cash conversion outlook to 85-95% of Adj. Net Income ▪ Working capital as a % of revenue increased due to acquired working capital partially offset by decreases in organic working capital +25.1% ▪ Healthy balance sheet supports continued capital deployment ▪ Higher gross debt and cash in prior year due to timing of senior note refinancing in 2024 7.7% 7.9% Q3 24 Q3 25 2.7x 2.1x 1.7x 1.8x Q3 24 Q3 25 Gross Debt/Adj EBITDA Net Debt /Adj EBITDA
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9 Q3-2025 Financial Results FY-2025 Outlook See appendix for definitions and press release for non-GAAP reconciliations Total Company Revenue Segment Revenue Organic Acquisitions / Divestitures FX EPS ACF 85% - 95% of Adj. Net Income Current Outlook Reported: 7.0% - 8.0% Organic: 3.5% - 4.5% Americas: +MSD +1.5 - 2.0% ~Flat International: ~Flat ~+7.5% ~+3.5% Reported: $7.45 - $7.55 Adjusted: $8.10 - $8.20 85% - 90% of Adj. Net Income Prior Outlook Reported: 6.5% - 7.5% Organic: 3.5% - 4.5% Americas: +MSD ~+1.5% ~Flat International: ~Flat ~+5% ~+3% Reported: $7.25 - $7.40 Adjusted: $8.00 - $8.15
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10 Q3-2025 Financial Results 2026 Preview ▪ Broad end market exposure supports non-residential growth ▪ Residential markets remain soft ▪ Tariff environment remains dynamic; Continue to expect price actions to cover inflation ▪ Markets remain sluggish ▪ Acquisitions driving growth and margin expansion ▪ Carryover M&A revenue contribution of ~2pt based on completed transactions ▪ Expect tax rate to continue migrating up within high teens Global Allegion International Americas
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11 Q3-2025 Financial Results Solid Execution, Staying Agile ▪ Double-digit revenue growth for the enterprise ▪ Accelerated capital deployment ▪ Raising FY-2025 Adj. EPS outlook to $8.10-$8.20
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Q&A
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Appendix
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14 Q3-2025 Financial Results Key 2025 Outlook Dynamics Allegion Sourcing into U.S. EPS outlook includes enacted tariff costs and associated pricing estimated at ~$40M for FY- 2025; EPS neutral; Limited impact from section 232 scope expansion on Aug. 18, 2025 Mexico ▪ ~20-25% enterprise COGS ▪ Vast majority USMCA compliant China ▪ ~<5% enterprise COGS All Other Countries of Import ▪ ~5-10% enterprise COGS 2025 Other Items ▪ Interest / Other Expense: ~$90M ▪ Tax Rate: 17-18% ▪ Average Diluted Shares: ~86.5M ▪ Adjustments to reported EPS of $0.65 ▪ Acquired intangible asset amortization $0.60 ▪ Other adjustments $0.15 ▪ Tax benefit of ($0.10)
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15 Q3-2025 Financial Results $967 $946 $942 $1,022 $1,070 300.0 400.0 500.0 600.0 700.0 800.0 900.0 1,000.0 1,100.0 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3-2025 Revenue Results See appendix for definitions and press release for non-GAAP reconciliations Current Quarter Revenue Prior Quarter Revenue Organic Growth % noted $Millions 3.3% 4.0%3.5% 3.2% Price 4.0% 2.6% Volume 1.9% 1.8% Organic +5.9% +4.4% Acq/Div 3.9% 2.6% Currency 0.9% 0.3% Total +10.7% +7.3% Q3 YTD 5.9%
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16 Q3-2025 Financial Results Q3-2025 Allegion EPS Performance See appendix for definitions and press release for non-GAAP reconciliations Restructuring: $0.01 M&A: $0.02 Amortization: $0.13 Impairment: $0.01 Inclusive of $0.06 from Acquisitions/divestiture Restructuring: ($0.01) M&A: ($0.03) Amortization: ($0.17) Loss on sale: ($0.01) Tax benefit: $0.10
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17 Q3-2025 Financial Results FY-2025 EPS Outlook Details See appendix for definitions and press release for non-GAAP reconciliations Tax rate at midpoint of 17% - 18%Inclusive of ~$0.20 from acquisitions
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18 Q3-2025 Financial Results 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. ▪ Working capital defined as accounts receivable plus inventories less accounts payable and other accrued expenses; Working capital % of revenue calculated by dividing the period ending working capital balance by annualized quarterly revenue for the period. 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, 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 and organic revenue growth on a non-GAAP basis, EBITDA, adjusted EBITDA and adjusted EBITDA margin (all non-GAAP measures), working capital as a percentage of revenue (a non-GAAP measure) and Available Cash Flow (“ACF ,” a non-GAAP measure), including in certain cases, on a segment basis. 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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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, BRISANT SECURE, BRITON, CISA, DEXTER, DORCAS, ELATEC, FALCON, FSH, GAINSBOROUGH, GATEWISE, GLYNN-JOHNSON, INTERFLEX, ISONAS, IVES, KRIEGER SPECIALTY PRODUCTS, KRYPTONITE, LCN, LEMAAR, LOCKNETICS, NEXT DOOR COMPANY, NORMBAU, NOVAS, PLANO, REPUBLIC, SCHLAGE, SIMONSVOSS, STANLEY ACCESS TECHNOLOGIES, SOSS DOOR HARDWARE, STEELCRAFT, TGP, TRELOCK, TRIMCO, UAP, UNICEL ARCHITECTURAL, VON DUPRIN,, WAITWHILE, 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