Slides
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Q3-2026 Earnings Call October 22, 2026
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2 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. Cautionary Statements Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are statements that are not historical facts, including, but not limited to, statements related to FY-2026 Outlook, 2027 Preview, FY-2026 Outlook Details, FY-2026 EPS Outlook and statements regarding market trends, electronics growth, global software solutions business, the company's financial performance in 2026 and future years, the company’s business plans, strategy and objectives of management for future operations, 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, the performance of the markets in which the company operates, projections of revenue, margins, expenses, tax rate and provisions, earnings, cash flows, benefit obligations, dividends, share purchases or other financial items, the expected development, performance or market share relating to our products and services, the future economic conditions or our performance, pending investigations, claims or disputes; and any statements of expectation or belief underlying any of the foregoing. 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 (SEC) 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 made only as of the date hereof and 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 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. Continued Momentum ▪ HSD organic revenue growth; Strength in Americas Non-Residential ▪ Low-teens Adj. EPS growth ▪ Raising 2026 full-year outlook
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4 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. Capital Allocation Invest for Organic Growth Dividend Share RepurchasesVentures & Acquisitions ~$120M In Q3 2026 ~$46M $0.55 per ordinary share of the company Q3 ventures investment Q4 acquisition Allegion Optimize
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5 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. Q3-2026 Financial Summary Adjusted OI Margin +60 bps 24.1% 24.7% Q3 25 Q3 26 Adjusted EBITDA Margin Q3 25 Q3 26 25.7% 26.3% EBITDA Margin +60 bps Revenue $Millions $1,070.2 $1,172.6 Q3 25 Q3 26 +9.6% ▪ Organic growth of 7.2%, driven by Americas region ▪ Price realization of 3.8%; Volume growth of 3.4% ▪ Acquisitions / divestiture of 2.6%; Currency headwind of -0.2% ▪ Price, productivity, inflation and investment (PPII) tailwind of $15.6M (inclusive of transactional FX headwind of ~$2M related to Mexican Peso); 50 bps tailwind to margin rate ▪ Acquisitions / divestiture headwind to margin rate 20 bps ▪ Volume / mix tailwind to margin rate Adjusted EPS $2.30 $2.60 Q3 25 Q3 26 +13.0% ▪ Operating income delivered $0.32 of Adj. EPS growth, inclusive of $0.04 from acquisitions ▪ $0.08 headwind from tax vs. prior year ▪ $0.06 tailwind from interest and share count ACF YTD $Millions $485.2 $539.4 Q3 25 Q3 26 +11.2% ▪ Available cash flow increase primarily due to higher earnings See appendix for definitions and press release for non-GAAP reconciliations
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6 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. $844.0 $942.4 Q3 25 Q3 26 Q3-2026 Allegion Americas Results See appendix for definitions and press release for non-GAAP reconciliations Revenue $Millions +11.7% Q3 Revenue Performance ▪ Organic revenue growth of 9.1% ▪ Non-Residential increase low-double digits ▪ Residential increase mid-single digits ▪ Low-double digit organic growth in electronics ▪ Price realization of 4.5%; Volume growth of 4.6%; Acquisitions of 2.6% Q3 Adjusted Margin Performance ▪ PPII tailwind of $13.5M (inclusive of transactional FX headwind of ~$2M related to Mexican Peso); 20 bps tailwind to margin rate ▪ Acquisitions headwind of 40 bps to margin rate ▪ Volume / mix tailwind to margin rate Adjusted EBITDA% Adjusted OI% +20 bps+20 bps 29.9% 30.1% Q3 25 Q3 26 31.2% 31.4% Q3 25 Q3 26
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7 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. Q3-2026 Allegion International Results Revenue $Millions +1.8% Q3 Revenue Performance ▪ Organic revenue decline of 0.2% ▪ Weakness in European markets ▪ Price realization of 1.3%; Volume decline of 1.5%; Acquisitions / divestiture of 2.5%; Currency headwind of 0.5% Q3 Adjusted Margin Performance ▪ PPII tailwind of $1.0M; 30 bps tailwind to margin rate ▪ Acquisitions / divestiture 20 bps tailwind to segment margin rate ▪ Volume / mix headwind to margin rate Adjusted EBITDA% Adjusted OI% -20 bps-40 bps See appendix for definitions and press release for non-GAAP reconciliations $226.2 $230.2 Q3 25 Q3 26 14.3% 13.9% Q3 25 Q3 26 16.6% 16.4% Q3 25 Q3 26
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8 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. Balance Sheet & Cash Flow See appendix for definitions and press release for non-GAAP reconciliations Available Cash Flow $Millions $485.2 $539.4 Q3 YTD 25 Q3 YTD 26 Capex $58.5M $64.6M Working Capital % of Revenue Leverage ▪ Available cash flow increase due to higher earnings ▪ Affirming full-year outlook of 85% to 95% of adjusted net income ▪ Working capital as a % of revenue consistent with prior year +11.2% ▪ Healthy balance sheet supports continued capital deployment 2.1x 1.9x 1.8x 1.5x Q3 25 Q3 26 Gross Debt/Adj EBITDA Net Debt /Adj EBITDA 7.9% 7.9% Q3 25 Q3 26
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9 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. FY-2026 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: 9.5% - 10.5% Organic: 5.0% - 6.0% Americas: +7.0% - 8.0% ~+2.5% - 3.0% ~Flat International: -LSD ~+7.5% ~+3.0% Reported: $8.35 - $8.40 Adjusted: $9.05 - $9.10 85% - 95% of Adj. Net Income Prior Outlook Reported: 7.5% - 8.5% Organic: 3.5% - 4.5% Americas: +MSD+ ~+2.0% ~Flat International: -LSD ~+7.5% ~+3.5% Reported: $7.95 - $8.10 Adjusted: $8.85 - $9.00
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10 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. 2027 Preview Market Assumptions Margin Drivers Americas ▪ Broad-based strength in Non-Residential demand ▪ Residential growth driven by pricing International ▪ Continued market softness Americas ▪ Assumes price and inflation remain elevated; Will continue protecting OI dollars ▪ Organic incremental margins in line with long-term framework1 International ▪ Carryover cost savings from 2026 restructuring activities 1 As presented in May 2025 Investor Day
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11 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. Continued Momentum ▪ HSD organic revenue growth; Strength in Americas Non-Residential ▪ Low-teens Adj. EPS growth ▪ Raising 2026 full-year outlook
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Appendix
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13 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. Q3-2026 Allegion EPS Performance See appendix for definitions and press release for non-GAAP reconciliations Restructuring: $0.01 M&A: $0.03 Amortization: $0.17 Loss on sale: $0.01 Tax Benefit: ($0.10) Restructuring: ($0.05) M&A: ($0.02) Amortization: ($0.16) IEEPA tariff refunds: 0.18 Other: $0.04
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14 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. FY-2026 Outlook Details 2026 Other Items ▪ Corporate: H2 approximates H1 ▪ Interest / Other Expense: H2 approximates H1 ▪ Tax Rate: 18.0% - 19.0% ▪ Average Diluted Shares: ~85.6M ▪ Adjusted EPS excludes: ▪ Acquired intangible asset amortization ~$0.60 ▪ Restructuring, M&A and other adjustments ~$0.28 ▪ IEEPA tariff refunds ~($0.18)
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15 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. FY-2026 EPS Outlook See appendix for definitions and press release for non-GAAP reconciliations Restructuring: $0.01 M&A: $0.01 Amortization: $0.13 Restructuring: ($0.04) M&A: ($0.02) Amortization: ($0.15) Inclusive of ~$0.20 - $0.25 from Acquisitions
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16 Q3-2026 Financial Results Use this Allegion Brand color palette to quickly change the color of text and shapes. Select the text or shape, go to the Font Color (for text) or Shape Fill (for shapes) drop-down menu, and click on the Eyedropper tool. Then, hover over the palette above and click the color you want to apply. 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, non-operating investment gains or losses, non-cash pension settlement charges and IEEPA tariff refunds. ▪ 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 $4.1 billion in revenue in 2025. About Allegion © 2026 Allegion plc. All rights reserved. AD SYSTEMS, AUSTRAL LOCK, AXA, BOSS DOORS, BRICARD, BRIO, BRISANT SECURE, BRITON, CISA, DCI HOLLOW METAL ON DEMAND, DEXTER, DORCAS, ELATEC, FALCON, FSH, GAINSBOROUGH, GATEWISE, GLYNN-JOHNSON, INTERFLEX, ISONAS, IVES, KRIEGER SPECIALTY PRODUCTS, KRYPTONITE, LCN, LEMAAR, LOCKNETICS, NEXT DOOR COMPANY, NORMBAU, NOVAS, OVERLY DOOR COMPANY, OVERTUR, 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