Allegion plc: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 23 October 2025: press release. Guidance figures: 4 raised, 1 new, 6 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue up 10.7%, organic up 5.9%: Net revenues were $1,070.2 million. Acquisitions added 3.9 points and currency 0.9 points to reported growth; price and volume drove the organic increase. Source
• Diluted EPS up 9.5%, adjusted up 6.5%: Diluted EPS was $2.18 against $1.99. Adjusted EPS was $2.30 against $2.16, excluding restructuring, acquisition and integration costs, acquired-intangible amortization, a divestiture loss and a legislative tax benefit. Source
• Americas growth led by non-residential: Americas revenue rose 7.9%, or 6.4% organically. Non-residential and residential businesses both grew mid-single digits organically. Source
• International revenue up 22.5%: International revenue rose 22.5% reported but 3.6% organically, with acquisitions adding 13.6 points and currency 5.3 points. Source
• Margins slightly lower on corporate costs: Operating margin was 21.8% against 22.2%; adjusted margin was 24.1% against 24.2%. Both segments expanded margin, offset by the prior-year corporate expense comparable. Source
• Tariffs to be offset through pricing: Management expects to offset tariffs at operating profit and EPS for the full year, primarily through pricing actions. Source
• Available cash flow up $97.2 million: Year-to-date available cash flow was $485.2 million. Available cash flow is operating cash flow less capital expenditures; nine-month capex was $58.5 million. Source
• Acquisitions added 3.9 points to revenue: Acquisitions added 3.9 points to total reported growth: 1.5 points in the Americas and 13.6 points in International. Source

“With enterprise double-digit revenue growth led by our Americas non-residential business and accretive capital deployment, we’re raising our outlook for reported full-year 2025 revenue and adjusted EPS.”

Allegion President and CEO John H. Stone

Guidance

What changed from last quarter

• Guidance raised: Reported full-year revenue growth range raised; organic range kept. Source
• Guidance raised: Full-year reported and adjusted diluted EPS ranges raised. Source
• Guidance raised: Full-year available cash flow range raised to 85% to 95% of adjusted net income. Source
• Guidance kept: Organic growth range, tariff estimate, tax rate assumption and share count kept. Source
• New: Adjusted EPS now reflects an $8.5 million tax benefit from a legislative change. Source
• New: Quarter included a non-cash loss on divestiture, excluded from adjusted results. Source

Results and growth drivers

• Revenue up 10.7%, organic up 5.9%: Net revenues were $1,070.2 million. Acquisitions added 3.9 points and currency 0.9 points to reported growth; price and volume drove the organic increase. Source
• Price and volume drove organic growth: Management attributed the organic revenue increase to price realization and volume growth, led by the Americas region. Source
• Diluted EPS up 9.5%, adjusted up 6.5%: Diluted EPS was $2.18 against $1.99. Adjusted EPS was $2.30 against $2.16, excluding restructuring, acquisition and integration costs, acquired-intangible amortization, a divestiture loss and a legislative tax benefit. Source
• Operating income up 8.7%: Operating income was $233.8 million, up $18.8 million. Adjusted operating income was $257.4 million, up 10.1%. Source

Segments and regions

• Americas growth led by non-residential: Americas revenue rose 7.9%, or 6.4% organically. Non-residential and residential businesses both grew mid-single digits organically. Source
• Americas adjusted margin reached 29.9%: Americas adjusted operating margin rose 40 basis points to 29.9%. Reported Americas operating margin was 28.7%. Source
• International revenue up 22.5%: International revenue rose 22.5% reported but 3.6% organically, with acquisitions adding 13.6 points and currency 5.3 points. Source
• International adjusted margin up to 14.3%: International adjusted operating margin rose 70 basis points to 14.3%. Reported International operating margin was 8.7%. Source

“As we finish out 2025, we remain agile and are steadily delivering on our commitments to customers and shareholders.”

Allegion President and CEO John H. Stone

Costs and margins

• Margins slightly lower on corporate costs: Operating margin was 21.8% against 22.2%; adjusted margin was 24.1% against 24.2%. Both segments expanded margin, offset by the prior-year corporate expense comparable. Source
• Corporate unallocated expense rose: Corporate unallocated operating loss was $28.3 million against $24.0 million a year earlier; the nine-month loss was $87.6 million. Source
• Tariffs to be offset through pricing: Management expects to offset tariffs at operating profit and EPS for the full year, primarily through pricing actions. Source

Cash, capital and shareholder returns

• Available cash flow up $97.2 million: Year-to-date available cash flow was $485.2 million. Available cash flow is operating cash flow less capital expenditures; nine-month capex was $58.5 million. Source
• Cash lower, debt higher at quarter end: Cash was $302.7 million, down from $656.8 million at June 30; total debt was $2,087.7 million, up from $2,067.2 million. Source
• Acquisition cash outflow $594.0 million: Net cash paid for business acquisitions in the nine months was $594.0 million, against $121.2 million a year earlier. Source
• Quarterly dividend of $0.51 per share: Quarterly dividends of $0.51 per ordinary share, about $44 million, were paid in the third quarter. Source
• Nine-month share repurchases of $80.0 million: Repurchases of ordinary shares were $80.0 million in the nine months, against $120.0 million a year earlier. Dividends paid were $131.4 million. Source

Acquisitions and divestitures

• Acquisitions added 3.9 points to revenue: Acquisitions added 3.9 points to total reported growth: 1.5 points in the Americas and 13.6 points in International. Source
• Divestiture loss excluded from adjusted results: A $1.1 million loss on divestiture was excluded from adjusted earnings before income taxes for the quarter. Source

Tax and share count

• Reported tax rate 9.8%, adjusted 14.9%: The reported effective tax rate was 9.8%, against 10.5%. The adjusted effective tax rate was 14.9%, against 12.0%. Source
• Legislative tax benefit of $8.5 million: An $8.5 million tax benefit from a legislative change was excluded from the adjusted provision for income taxes. Source
• Diluted shares fell to 86.5 million: Third-quarter diluted share count was 86.5 million, against 87.6 million a year earlier. Source
• Interest expense down $2.2 million: Interest expense was $26.6 million in the quarter, down $2.2 million. Other income, net was $1.7 million. Source

Risks management discussed

• External: Management estimates about $40 million of tariff costs in 2025, which are included in the revenue growth figures and offset at operating profit and EPS through pricing. Source

Earlier plans management reported on

• Not stated: Management says it is steadily delivering on its commitments as 2025 closes, without stating a specific status. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.