Allegion (NYSE:ALLE) Issues Earnings Results

Key Points

• Allegion missed Q1 estimates with adjusted EPS of $1.80 vs. consensus ~$1.88 and revenue of $1.03B vs. ~$1.10B, though reported revenue was up 9.7% YoY (2.6% organic) and the company reaffirmed FY2026 EPS guidance of $8.70–$8.90.
• An ERP implementation in a legacy international mechanical business drove a −5.3% international organic decline and roughly a 220bps margin hit; management says production is improving and expects to recover the Q1 shortfall over the rest of 2026.
• Shareholder-friendly capital allocation continues: Allegion closed the DCI acquisition, announced a $500M share repurchase program, paid $47M in dividends and $40M in buybacks in Q1, with net debt/EBITDA around 1.7x supporting further buybacks and bolt‑on M&A.

Allegion (NYSE:ALLE - Get Free Report) posted its earnings results on Tuesday. The scientific and technical instruments company reported $1.80 earnings per share for the quarter, missing the consensus estimate of $1.88 by ($0.08), FiscalAI reports. The company had revenue of $1.03 billion for the quarter, compared to analysts' expectations of $1.10 billion. Allegion had a net margin of 15.83% and a return on equity of 38.06%. The business's revenue was up 9.7% on a year-over-year basis. During the same period in the previous year, the business posted $1.86 earnings per share. Allegion updated its FY 2026 guidance to 8.700-8.900 EPS.

Here are the key takeaways from Allegion's conference call:

• Allegion reported Q1 revenue of just over $1 billion, up 9.7% reported / 2.6% organic, while adjusted operating margin fell 150 bps to 21.2% and adjusted EPS was $1.80 (down 3.2% YoY).
• An ERP implementation in a legacy international mechanical business drove most of the International organic decline (‑5.3%) and a 220 bps margin hit, though management says production is improving and expects to recover the Q1 shortfall over the rest of 2026.
• Allegion closed the DCI acquisition to bolster West Coast hollow-metal door capacity, raised reported revenue guidance to 6%–8% (to include DCI), and expects the deal to improve competitiveness and long‑term profitability despite limited near‑term EPS accretion.
• Capital allocation remains shareholder friendly — $47M in dividends, $40M of repurchases in Q1, a newly approved $500M share repurchase program, and a healthy net debt/EBITDA of 1.7x supporting continued buybacks and bolt‑on M&A.

Allegion Price Performance

Shares of ALLE opened at $138.06 on Wednesday. The company has a 50 day moving average of $148.25 and a two-hundred day moving average of $159.80. The company has a quick ratio of 1.16, a current ratio of 1.84 and a debt-to-equity ratio of 0.96. Allegion has a twelve month low of $134.67 and a twelve month high of $183.11. The company has a market cap of $11.86 billion, a price-to-earnings ratio of 18.56, a price-to-earnings-growth ratio of 2.79 and a beta of 1.02.

Allegion Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be given a dividend of $0.55 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $2.20 dividend on an annualized basis and a yield of 1.6%. Allegion's dividend payout ratio is presently 29.57%.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Wells Fargo & Company lowered their target price on Allegion from $175.00 to $155.00 and set an "equal weight" rating for the company in a research report on Wednesday, April 1st. Bank of America lowered their price target on Allegion from $185.00 to $157.00 and set a "neutral" rating for the company in a research report on Monday, April 20th. Barclays reduced their target price on shares of Allegion from $176.00 to $165.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 1st. JPMorgan Chase & Co. decreased their price target on Allegion from $190.00 to $180.00 and set an "overweight" rating for the company in a research note on Wednesday, February 18th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Allegion in a report on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $168.88.

More Allegion News

Here are the key news stories impacting Allegion this week:

• Positive Sentiment: Revenue growth and segment strength — Q1 revenue rose ~9.7% year-over-year to about $1.03B, driven by strong Americas non-residential and electronics performance, which management highlighted as the growth engines this quarter. Business Wire: Q1 Results
• Positive Sentiment: FY‑2026 guidance largely intact — Allegion set EPS guidance of $8.70–$8.90 and revenue guidance of $4.3–$4.4B, which sits roughly in line with street expectations and limits longer‑term downside from the print. MarketBeat: Guidance
• Neutral Sentiment: Longer-term bull case remains cited — some analysts and commentary reiterate Allegion's durable market position, strong dividend growth history and attractive valuation, arguing this is a buying opportunity for long-term investors. Seeking Alpha: Thesis
• Negative Sentiment: EPS miss and revenue shortfall vs. some expectations — Allegion reported $1.80 EPS for Q1, missing several consensus figures (widely reported comparisons range from $1.88 to ~$2.27), and revenue of $1.03B fell short of some analyst estimates (~$1.10B), triggering downside reaction. MSN: Misses Profit Estimates
• Negative Sentiment: Margin pressure and rising costs — coverage and company commentary note higher input costs and margin compression despite revenue growth, which reduced profitability versus expectations. Zacks: Margin Pressure
• Negative Sentiment: Soft residential demand — management and reporters pointed to weakness in residential security demand, which weighed on the top line in that end market and contributed to the mixed quarter. Kalkine Media: Market Attention

Insiders Place Their Bets

In other news, Director Steven Mizell sold 1,000 shares of the firm's stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $161.51, for a total value of $161,510.00. Following the completion of the sale, the director owned 4,915 shares of the company's stock, valued at $793,821.65. This trade represents a 16.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Sue Main acquired 2,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The stock was bought at an average cost of $149.61 per share, with a total value of $299,220.00. Following the completion of the transaction, the director directly owned 2,000 shares in the company, valued at $299,220. The trade was a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.23% of the company's stock.

Institutional Investors Weigh In On Allegion

Several institutional investors and hedge funds have recently made changes to their positions in ALLE. CYBER HORNET ETFs LLC purchased a new position in Allegion in the 2nd quarter worth $33,000. Caitong International Asset Management Co. Ltd acquired a new stake in Allegion during the 3rd quarter worth about $36,000. MUFG Securities EMEA plc purchased a new stake in Allegion during the 2nd quarter valued at about $37,000. Quarry LP acquired a new position in shares of Allegion in the third quarter valued at about $64,000. Finally, Transamerica Financial Advisors LLC increased its holdings in shares of Allegion by 53,300.0% in the second quarter. Transamerica Financial Advisors LLC now owns 534 shares of the scientific and technical instruments company's stock valued at $77,000 after purchasing an additional 533 shares during the period. 92.21% of the stock is currently owned by institutional investors and hedge funds.

Allegion announced that its Board of Directors has authorized a stock buyback plan on Tuesday, April 28th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the scientific and technical instruments company to repurchase up to 3.9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Allegion Company Profile

Allegion plc NYSE: ALLE is a global provider of security products and solutions focused on ensuring the safety and security of people and property. The company was formed in December 2013 through a corporate spin-off from Ingersoll Rand and is head­quartered in Dublin, Ireland. Allegion's core mission is to deliver innovative mechanical and electronic access control systems for a wide range of end markets, including commercial buildings, residential properties, institutional facilities, and industrial sites.

The company's product portfolio spans mechanical locksets, door closers, exit devices, key systems and cylinders, as well as a growing suite of electronic and smart access control offerings.