Allegion (ALLE) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenues rose 9.7% year-over-year to $1,033.6 million, led by Americas non-residential, electronics, and acquisitions, with organic growth of 2.6%.

• Adjusted EPS was $1.80, down 3.2% from $1.86; reported EPS was $1.59, down 7.0%, reflecting margin pressures from mix, ERP issues, and higher tax and interest.

• Affirmed organic revenue growth outlook of 2%-4% and adjusted EPS of $8.70-$8.90; raised reported revenue outlook to 6%-8% for 2026, including DCI acquisition.

• Electronics business and electronic security products remain long-term growth drivers, with mid-single digit growth in Q1.

• Awarded Gallup Exceptional Workplace Award for the third consecutive year.

Financial highlights

• Q1 2026 revenue reached $1,033.6 million, up 9.7% year-over-year; organic growth was 2.6%.

• Adjusted operating margin was 21.2%, down 150 basis points year-over-year; operating margin was 18.9%, down from 20.9%.

• Adjusted EPS was $1.80, down 3.2% from prior year; net earnings were $138.1 million, down from $148.2 million.

• Available cash flow was $80.3 million, consistent with prior year.

• Cash and cash equivalents at quarter end were $308.9 million; total debt was $2,030.7 million.

Outlook and guidance

• Full-year 2026 reported revenue growth outlook raised to 6%-8%, including DCI acquisition; organic growth outlook affirmed at 2%-4%.

• Adjusted EPS guidance for FY 2026 is $8.70–$8.90; reported EPS expected at $7.95–$8.15.

• Available cash flow for 2026 expected at 85%-95% of adjusted net income.

• International segment expects to recover ERP-related shortfall over the remainder of 2026.

• Expect to offset 1% COGS headwind from tariffs and inflation through price and cost actions.