Allegion (ALLE) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong revenue growth and margin expansion, with net revenues up 5.4% to $967.1 million and adjusted EPS increasing 11.3% to $2.16; growth was driven by stable institutional demand, favorable pricing, volume, and acquisitions.

• Capital deployment accelerated through cash returns to shareholders, accretive acquisitions, and new product launches, including the Von Duprin 70 Series and SOSS Door Hardware acquisition.

• Four acquisitions completed in 2024 expanded both Americas and International segments.

• Resilient business model and healthy balance sheet supported ongoing M&A and shareholder returns.

Financial highlights

• Q3 2024 revenue was $967.1 million, up 5.4% year-over-year; organic revenue grew 3.3%.

• Adjusted operating margin and adjusted EBITDA margin both increased by 100 basis points; Q3 gross margin was 44.7%.

• Adjusted EPS was $2.16, up 11.3% from the prior year; diluted EPS was $1.99, up 12.4%.

• Year-to-date available cash flow reached $388 million, a 21.1% increase year-over-year.

• Net earnings for Q3 2024 were $174.2 million, up from $156.3 million in Q3 2023.

Outlook and guidance

• Full-year adjusted EPS guidance raised to $7.35–$7.45; GAAP EPS expected at $6.70–$6.80.

• Affirmed total reported revenue growth outlook of 2.5%–3.5% and organic revenue growth of 1.5%–2.5%.

• Available cash flow outlook affirmed at $540–$570 million.

• 2025 expected to see continued organic growth, with stable institutional markets and improving residential markets.

• Outlook assumes a headwind of ~$0.25 per share from a higher adjusted effective tax rate (16.5%–17.5%) due to global minimum tax.