Allegion (ALLE) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 results with strong execution, margin expansion, and balanced capital deployment, particularly in the Americas segment.

• Q4 2024 net revenues grew 5.4% year-over-year to $945.6M; full-year revenues up 3.3% to $3,772.2M.

• Adjusted EPS for Q4 was $1.86, up 10.7% from the prior year; full-year adjusted EPS up 8.2% to $7.53.

• Over $500M deployed in capital investments, including organic growth, acquisitions, dividends, and share repurchases.

• Launched several innovative products and expanded digital and electronic offerings.

Financial highlights

• Q4 revenue was $945.6 million, up 5.4% year-over-year; organic revenue grew 3.5%.

• Adjusted EPS for Q4 was $1.86, up 10.7%; adjusted EBITDA margin up 10 bps to 23.6%.

• Full-year available cash flow reached $582.9 million, a 12.9% increase year-over-year.

• Q4 operating income increased 15.6% to $184.6M; adjusted operating income up 6.0% to $209.1M.

• Full-year operating margin increased to 20.7% (adjusted: 22.8%).

Outlook and guidance

• 2025 total revenue growth expected at 1%-3%, with organic growth of 1.5%-3.5%.

• Adjusted EPS guidance for 2025 is $7.65-$7.85, representing 1.5%-4% growth.

• Available cash flow projected at 85%-90% of adjusted net income.

• 2025 adjusted effective tax rate projected at 17%-18%.

• Guidance includes current China tariffs but not potential Mexico tariffs; pricing actions planned if new tariffs are enacted.