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Sep 30
Allegion Q3 2025 Earnings Report
Delivered strong third-quarter results with double-digit revenue growth and raised full-year revenue and EPS outlook.
Key Takeaways
Allegion reported a robust Q3 2025, highlighted by 10.7% reported revenue growth and strong performance in the Americas segment. Adjusted EPS rose 6.5% to $2.30, and operating income increased by 8.7%. The company also raised its full-year 2025 revenue and EPS guidance, supported by continued execution and favorable pricing and volume trends.
Revenue increased 10.7% year-over-year to $1,070.2 million.
Adjusted EPS rose 6.5% to $2.30, with GAAP EPS of $2.18.
Operating margin reached 21.8%, and adjusted operating margin was 24.1%.
Strong growth in Americas and International segments led to improved overall profitability.
Allegion
Allegion
Allegion Revenue by Segment
Allegion Revenue by Geographic Location
Revenue by Segment
Allegion Americas Revenue
CapyFin.comAllegion International Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Allegion raised its full-year 2025 outlook, projecting reported revenue growth of 7% to 8% and adjusted EPS between $8.10 and $8.20. The company expects to offset tariff costs through pricing and operational efficiencies, maintaining a strong adjusted tax rate and cash flow conversion.
Positive Outlook
- Raised full-year reported revenue growth outlook to 7.0%–8.0%.
- Maintained organic growth guidance at 3.5%–4.5%.
- Increased full-year adjusted EPS guidance to $8.10–$8.20.
- Strong pricing actions expected to offset tariff impacts.
- Raised available cash flow outlook to 85%–95% of adjusted net income.
Challenges Ahead
- Tariff costs estimated at approximately $40 million for 2025.
- Slight decline in GAAP operating margin versus prior year.
- Foreign currency headwinds may persist in international markets.
- Higher acquisition-related amortization affecting adjusted results.
- Potential macroeconomic uncertainty impacting non-residential demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income