Allegion plc SEC 10-Q Report

Allegion plc, a leading global provider of security products and solutions, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's robust financial performance and operational achievements, driven by strategic pricing, acquisitions, and favorable market conditions.

Financial Highlights

Net Revenues: Allegion plc reported net revenues of $1,022.0 million, marking a 5.8% increase compared to the same period in 2024. This growth was fueled by improved pricing, favorable impacts from acquisitions, favorable foreign currency exchange rate movements, and higher volumes.

Cost of Goods Sold: The cost of goods sold amounted to $555.5 million, representing 54.4% of net revenues. This is a slight decrease in percentage from 55.7% in 2024, indicating improved cost efficiency.

Operating Income: Operating income increased by $10.7 million to $219.7 million, with an operating margin of 21.5%, slightly down from 21.6% in 2024 due to inflation and investment spending in excess of pricing and productivity.

Net Earnings: Net earnings were $159.7 million, reflecting a solid performance with a slight increase from $155.4 million in 2024.

Diluted Net Earnings Per Share: Diluted net earnings per share rose to $1.85, up from $1.77 in 2024, indicating improved profitability per share.

Business Highlights

Revenue Segments: The Allegion Americas segment reported a 6.6% increase in net revenues for the three months ended June 30, 2025, driven by improved pricing, favorable impact of acquisitions, and higher volumes. The Allegion International segment saw a 2.9% increase in net revenues, primarily due to favorable foreign currency exchange rate movements and acquisitions.

Geographical Performance: The Allegion Americas segment experienced high-single digit growth in non-residential product revenues, indicating strong demand. However, residential product revenues decreased by mid-single digits due to softer market conditions. In the Allegion International segment, revenue growth was supported by favorable currency exchange rates and acquisitions, despite a decline in volume.

Sales Units: The Allegion Americas segment reported a low double-digit percentage increase in net revenues from electronic products, reflecting strong demand for electronic security solutions.

Future Outlook: The company anticipates continued growth in non-residential product revenues for the remainder of 2025, driven by healthy demand. However, the residential market is expected to remain soft. Growth in electronic security products is expected to continue, supported by strong demand across both residential and non-residential solutions.

SEC Filing: Allegion plc [ ALLE ] - 10-Q - Jul. 24, 2025