Allegion PLC Reports Record Q2 Revenue Growth: $1.022 Billion

Allegion PLC reported record Q2 revenue growth of 5.8% to $1.022 billion, with the Americas segment leading the growth at 6.6%. Adjusted earnings per share rose 4.1% to $2.04. The company raised its full-year revenue growth outlook to 6.5% to 7.5% and maintained its adjusted EPS outlook of $8.00 to $8.15. Allegion PLC expects to offset tariff costs through pricing actions and remains optimistic about its growth prospects.

Allegion PLC (NYSE: ALLE), a leading global security products and solutions provider, reported its second-quarter (Q2) 2025 financial results, showcasing robust revenue growth and an optimistic outlook for the remainder of the year. The company's Q2 net earnings per share (EPS) rose to $1.85, up 4.5% from the previous year's $1.77. Adjusted EPS increased by 4.1% to $2.04, reflecting a strong performance in the dynamic market environment.

The company's reported revenues for Q2 2025 totaled $1,022.0 million, marking a 5.8% increase from the same period last year. This growth was primarily driven by the Americas segment, which led the charge with a 6.6% increase, including a 4.5% organic growth rate. The Americas segment's performance was bolstered by price realization and volume growth, particularly in the non-residential business, which saw high-single-digit growth. The residential business, however, declined by mid-single digits. The International segment also contributed to the overall revenue growth, increasing by 2.9% (down 2.2% on an organic basis) due to a combination of volume and price changes.

Allegion's operating margin for Q2 2025 was 21.5%, compared to 21.6% in the same period last year. The adjusted operating margin increased to 23.7%, remaining flat with the prior year. The company's effective tax rate for Q2 2025 was 20.3%, primarily due to the timing of discrete items, compared to 17.8% in the same period last year. The adjusted effective tax rate was 20.7%, compared to 18.2% in the prior year.

The company's cash flow and liquidity remained strong, with year-to-date available cash flow increasing by $99.4 million to $275.4 million. Allegion ended Q2 2025 with cash and cash equivalents of $656.8 million and total debt of $2,067.2 million.

Allegion's President and CEO, John H. Stone, expressed pride in the team's performance and highlighted the company's commitment to long-term growth. "We are steadily delivering on the long-term commitments we shared recently at our Investor Day," Stone said. "Allegion is driving strong organic growth in our non-residential Americas business, improving portfolio quality and margins in International, and complementing this with accretive acquisitions."

Looking ahead, Allegion raised its full-year revenue growth outlook to 6.5% to 7.5% on a reported basis and 3.5% to 4.5% organically. The company expects to offset the estimated $40 million in tariff costs through pricing actions, maintaining its full-year adjusted EPS outlook of $7.25 to $7.40, or $8.00 to $8.15 on an adjusted basis. The outlook assumes an average diluted share count for the full year of approximately 86.5 million shares and expects full-year available cash flow to be 85% to 90% of adjusted net income.

A conference call is scheduled for Thursday, July 24, 2025, at 8 a.m. ET, to discuss the company's results in more detail.

References:
[1] https://www.businesswire.com/news/home/20250724373549/en/Allegion-NYSE-ALLE-Reports-Q2-2025-Financial-Results