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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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