Allegion (NYSE:ALLE) Releases Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Allegion beat quarterly expectations, reporting adjusted EPS of $2.60 versus the $2.50 consensus and revenue of approximately $1.17 billion, up 9.6% year over year.
• The company raised its 2026 outlook, projecting 9.5%–10.5% reported revenue growth, 5%–6% organic growth, and adjusted EPS of $9.05–$9.10.
• Americas demand remained strong, particularly in non-residential and electronic products, while weak Western European markets pressured international results and are expected to remain soft into 2027.

Allegion (NYSE:ALLE - Get Free Report) posted its quarterly earnings data on Thursday. The scientific and technical instruments company reported $2.60 earnings per share for the quarter, beating analysts' consensus estimates of $2.50 by $0.10, FiscalAI reports. Allegion had a net margin of 15.36% and a return on equity of 35.41%. The business had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same quarter in the previous year, the business posted $2.30 earnings per share. The company's revenue was up 9.6% on a year-over-year basis.

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

• Allegion raised its 2026 outlook, increasing reported revenue growth guidance to 9.5%–10.5%, organic revenue growth to 5%–6%, and adjusted EPS to $9.05–$9.10, implying low-double-digit EPS growth.
• Third-quarter revenue rose 9.6% to approximately $1.2 billion, while adjusted EPS increased 13% to $2.60 and adjusted operating margin expanded 60 basis points to 24.7%; year-to-date available cash flow rose 11.2% to $539.4 million.
• The Americas delivered 9.1% organic growth, led by low-double-digit non-residential growth, healthy specification activity, and strong electronics demand. Management expects non-residential momentum to continue into 2027, although residential growth remains primarily price-driven.
• International organic revenue declined slightly as weak Western European demand, particularly in Germany, reduced volumes and pressured margins; management expects international markets to remain soft in 2027.
• Allegion completed its approximately $90 million acquisition of Overly Door Company, invested another $40 million in Ambient.ai, launched its connected-product Optimize app, and returned $166 million to shareholders through dividends and share repurchases.

Allegion Trading Up 7.3%

Shares of NYSE ALLE opened at $170.61 on Thursday. The company has a quick ratio of 1.23, a current ratio of 1.93 and a debt-to-equity ratio of 0.96. Allegion has a 12 month low of $125.00 and a 12 month high of $183.11. The company has a market cap of $14.51 billion, a price-to-earnings ratio of 22.43, a P/E/G ratio of 3.19 and a beta of 0.81. The business has a fifty day simple moving average of $155.84 and a 200-day simple moving average of $145.88.

Allegion Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date was Tuesday, September 15th. Allegion's payout ratio is presently 28.87%.

Insider Buying and Selling at Allegion

In other Allegion news, SVP Vincent Wenos sold 1,000 shares of the business's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $168.25, for a total value of $168,250.00. Following the transaction, the senior vice president owned 12,096 shares in the company, valued at $2,035,152. The trade was a 7.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Timothy Eckersley sold 6,417 shares of the stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $157.26, for a total value of $1,009,137.42. Following the completion of the transaction, the senior vice president owned 29,919 shares in the company, valued at $4,705,061.94. This represents a 17.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.64% of the company's stock.

Analysts Set New Price Targets

ALLE has been the topic of a number of recent research reports. JPMorgan Chase & Co. boosted their target price on shares of Allegion from $150.00 to $170.00 and gave the stock a "neutral" rating in a research report on Friday, July 24th. Robert W. Baird set a $170.00 price target on shares of Allegion in a research report on Friday, July 24th. Weiss Ratings upgraded Allegion from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Finally, Evercore reiterated an "outperform" rating and issued a $180.00 target price on shares of Allegion in a research report on Tuesday, September 22nd. Three investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $162.50.

Allegion Company Profile

Allegion plc NYSE: ALLE is a global security products and solutions company focused on protecting people and property. Its portfolio includes mechanical and electronic locks, access control systems, door closers, exit devices, door controls, and commercial doors and frames.

The company serves commercial, institutional, industrial, and residential customers through well-known brands including Schlage, Von Duprin, LCN, Steelcraft, Briton, and aptiQ. Its offerings range from traditional hardware to connected and electronic access solutions designed for offices, schools, healthcare facilities, multifamily properties, and homes.

Allegion was established as an independent public company in 2013 following its separation from Ingersoll Rand.

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