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Dec 31, 2023
Allegion Q4 2023 Earnings Report
Allegion reported solid Q4 execution and record full-year results.
Key Takeaways
Allegion's Q4 2023 reflected strong execution, margin expansion and cash generation. Net revenues increased by 4.2% to $897.4 million, and net earnings were $118.6 million, or $1.34 per share. Adjusted EPS was $1.68, down 0.6%. The adjusted operating margin was 22.0%, compared to 20.7% in the prior year.
Net revenues increased 4.2% on a reported basis and 2.6% on an organic basis.
Net earnings per share (EPS) of $1.34, down 12.4% compared with $1.53; Adjusted EPS of $1.68, down 0.6% compared with $1.69.
Operating margin of 17.8%, compared with 18.5%; Adjusted operating margin of 22.0%, up 130 basis points compared with 20.7%.
Solid growth in the company’s non-residential Americas business was partially offset by declines in its residential and Allegion International businesses.
Allegion
Allegion
Allegion Revenue by Segment
Revenue by Segment
Allegion Americas Revenue
CapyFin.comAllegion International Revenue
CapyFin.com Forward Guidance
The company expects full-year 2024 revenues to increase 1.5% to 3.5% on a reported basis and increase 1% to 3% organically, when compared to 2023. Full-year 2024 reported EPS is expected to be in the range of $6.45 to $6.60, or $7.00 to $7.15 on an adjusted basis. The company expects full-year available cash flow of approximately $540 to $570 million.
Positive Outlook
- Full-year reported revenue growth is estimated to be 1.5% to 3.5%.
- Organic revenue growth is estimated to be 1% to 3%.
- Full-year adjusted EPS is estimated to be $7.00 to $7.15.
- Available cash flow is estimated to be $540 to $570 million.
- The outlook assumes an average diluted share count for the full year of approximately 88 million shares.
Challenges Ahead
- The outlook assumes a headwind of approximately $0.37 based on a full-year adjusted effective tax rate of 18% to 19%, inclusive of the estimated impacts of global minimum tax.
- Adjustments to 2024 EPS include estimated impacts of approximately $0.46 per share for acquisition-related amortization.
- Adjustments to 2024 EPS include estimated impacts of approximately $0.09 per share for restructuring and M&A.
- Unspecified risks and uncertainties could cause actual results to differ materially.
- The company undertakes no obligation to update these forward-looking statements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income