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Sep 30, 2023

Allegion Q3 2023 Earnings Report

Allegion's third-quarter results were driven by outstanding operational execution, margin expansion, strengthened balance sheet, and increased year-to-date cash flow.

Key Takeaways

Allegion reported Q3 2023 results with net revenues of $917.9 million and net earnings of $156.3 million, or $1.77 per share. Adjusted EPS was $1.94, up 12.1%. The company is raising its full-year adjusted EPS outlook.

Net earnings per share (EPS) of $1.77, up 36.2% compared with $1.30; Adjusted EPS of $1.94, up 12.1% compared with $1.73

Revenues of $917.9 million, up 0.5% on a reported basis and down 0.6% on an organic basis

Operating margin of 21.0%, compared with 17.8%; Adjusted operating margin of 23.2%, up 110 basis points compared with 22.1%

Mid-teens organic growth for electronics and software solutions

Total Revenue
$918M
Previous year: $914M
+0.5%
EPS
$1.94
Previous year: $1.64
+18.3%
Operating Margin
21%
Previous year: 17.8%
+18.0%
Adjusted Operating Margin
23.2%
Previous year: 21%
+10.5%
Interest Expense
$22.9M
Previous year: $23.1M
-0.9%
Gross Profit
$403M
Previous year: $368M
+9.6%
Cash and Equivalents
$364M
Previous year: $282M
+29.1%
Free Cash Flow
$131M
Total Assets
$4.18B
Previous year: $3.94B
+6.1%

Allegion

Allegion

Allegion Revenue by Segment

Forward Guidance

The company affirms its revenue growth for full-year 2023, which is expected to be 11.5% to 12.5%, with organic revenue growth expected to be 5.5% to 6.5%. The company is raising the outlook for full-year 2023 adjusted EPS and expects it to be in the $6.80 to $6.90 range. The company affirms its full-year 2023 available cash flow outlook, which is expected to be approximately $500 to $520 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income