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Sep 30, 2024

Allegion Q3 2024 Earnings Report

Allegion reported strong Q3 2024 results marked by revenue growth and margin expansion.

Key Takeaways

Allegion reported a strong third quarter with revenue growth of 5.4% and an increase in adjusted EPS of 11.3%. The company is raising its full-year guidance for adjusted EPS and affirming its total revenue and available cash flow outlook.

Net earnings per share (EPS) of $1.99, up 12.4% compared with $1.77; Adjusted EPS of $2.16, up 11.3% compared with $1.94

Revenues of $967.1 million, up 5.4% on a reported basis and up 3.3% on an organic basis

Operating margin of 22.2%, compared with 21.0%; Adjusted operating margin of 24.2%, up 100 basis points compared with 23.2%

Raising full-year adjusted EPS outlook to a range of $7.35 to $7.45

Total Revenue
$967M
Previous year: $918M
+5.4%
EPS
$2.16
Previous year: $1.94
+11.3%
Operating Margin
22.2%
Previous year: 21%
+5.7%
Adjusted Operating Margin
24.2%
Previous year: 23.2%
+4.3%
Interest Expense
$28.8M
Previous year: $22.9M
+25.8%
Gross Profit
$432M
Previous year: $403M
+7.1%
Cash and Equivalents
$879M
Previous year: $364M
+141.3%
Free Cash Flow
$217M
Previous year: $131M
+65.3%
Total Assets
$4.97B
Previous year: $4.18B
+18.9%

Allegion

Allegion

Allegion Revenue by Segment

Forward Guidance

The company is affirming its reported revenue growth for full-year 2024, which is expected to be 2.5% to 3.5%. The company is also affirming expected organic revenue growth of 1.5% to 2.5%, which excludes the impacts of acquisitions, divestitures and foreign currency movements. The company is raising the outlook for full-year 2024 EPS and expects it to be in the range of $6.70 to $6.80, or $7.35 to $7.45 on an adjusted basis. The outlook assumes an average diluted share count for the full year of approximately 87.6 million shares. The company affirms expected full-year available cash flow of approximately $540 to $570 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income