Allegion 2023 Annual Report & More
“Allegion has much to be proud of – but the future is even more exciting... Technology will fuel our growth.”
John H. Stone
President & CEO, Allegion plc
In 2023, Allegion delivered record total revenue, record adjusted operating income and record adjusted earnings per share. Explore below to see key performance metrics from the year and learn more about our company's achievements.
Allegion is a global provider of security solutions enabling seamless access and a safer world. Our footprint spans 120 countries with more than 12,000 employees who are committed to protecting places that matter — where you live, learn, work and connect. We’re also committed to advancing our culture of safety, equity, inclusion, employee engagement and sustainability. In all we do, and through a set of core values, we remain true to our mission of pioneering safety.
In alignment with our vision, enabling seamless access and a safer world, Allegion’s strategic growth pillars are:
Build on Our Legacy | Deliver New Value in Access | Be the Partner of Choice | Operate with Excellence
Two of our operations employees discuss how an unexpected path to a career in manufacturing changed their lives.
Four employees from different parts of the business discuss their manufacturing career journeys.
Employees describe their hopes for the future of the manufacturing industry.
In December 2023, Allegion celebrated 10 years as a standalone company. Built on the strength of centuries-old brands known for inventing their product categories, our company is committed to this mission: pioneering safety. That commitment comes with more than 1,000 active patents globally, 15,000 channel partners worldwide and the promise that our innovators and makers are continually improving, enhancing and scaling our hardware and software solutions to both build on our legacy and secure the future.
Being a trusted industry partner and leader is crucial to what we do. In 2023, we leaned in as trusted advisors in K-12 school security through the launch of a podcast, the Changing Face of School Security, and our budding partnership with The "I Love U Guys" Foundation, a nonprofit that’s developed crisis response protocols used around the world.
At the forefront of fire safety and hardware already, our U.K. door controls and exit hardware brand, Briton, launched a new set of best practice guides designed to provide a broader understanding of fire door safety in commercial, education and healthcare environments.
In addition to the contributions our company makes to safety around the world, we’re committed to giving back to our communities. Our communities — and the impact we have on them — matter to us. Each year, Allegion employees dedicate resources and volunteer hours to support local Habitat for Humanity chapters. Allegion Americas is in a $1 million partnership with Habitat for Humanity Mexico through 2027. As long-term partners with the Greater Indianapolis Habitat, too, we’ve given a total of $1.6 million, completed 15 homes and provided hardware for 367 more.
Allegion is committed to giving back. Our communities — and the impact we have on them — matter to us.
Last October also marked the ninth year Allegion has participated in National Manufacturing Month in the U.S., opening our doors to students, teachers and local government officials with the intention of inspiring the next generation of manufacturers. We hosted events at seven of our U.S. manufacturing facilities, offering plant tours, guest speakers, panel discussions and hands-on activities to help foster an understanding of modern manufacturing while dispelling outdated notions about the industry. We believe manufacturing matters, and in 2023 made technology and sustainability investments in many of our production facilities across the globe.
As a pureplay provider of security and access, the Allegion team is continually innovating to build hardware, software and service solutions that protect people and their property. With market-leading brands in safety, we use insights gained to deliver new value in access for our customers and end users.
As of 2023, we have more than doubled our engineering team since we started in 2013, with more than 70% of that key talent working in electronics, software and cybersecurity. In addition, we’re approaching software solutions as a business opportunity at a global scale, and we’re focused on driving enhanced access solutions that are connected and interoperable — meeting security and convenience needs, while providing opportunities to adapt to emerging trends.
We acquired plano, a German software-as-a-service (SaaS) workforce management solutions company and long-time partner for our workforce management brand, Interflex. Its successful integration with Interflex has deepened our presence in key institutional and commercial markets. It has also strengthened our technical talent and software capabilities to deliver new value to customers. The longstanding relationship between the businesses helped support an efficient transition that benefits customers and builds on our mutual reputations for quality and excellence.
Our Americas team launched the Zentra suite of solutions, intended to deliver new value to property owners and managers, while also improving the tenant experience. Through Zentra, Allegion provides a unique system to streamline access control, visitor management, package delivery and concierge services. Paired with the breadth of the Allegion portfolio – ranging from electronic locks and readers to mobile credentials and cloud-native systems – we’re integrating software, hardware and related services in a single platform.
Allegion Ventures
Allegion also celebrated the fifth anniversary of Allegion Ventures, created in 2018 to invest in growing companies that make security solutions better. This puts us in a unique position to identify new technology trends early and foster innovation through partnerships. Over the last five years we’ve focused on companies that help deliver new value in access by bridging the gap between physical and digital security. In 2023, we announced three new portfolio companies, including our largest-ever investment:
This proptech startup, founded in 2017, elevates rental experiences using technology to empower property managers to streamline operations, ultimately providing their renters better service, more perks and faster maintenance in an efficient and cost-effective way. The software allows property managers to be more responsive while also creating a new revenue stream.
This tech-enabled, next-generation self-storage company partners with property owners to turn basements, garages and other spaces in commercial buildings into storage, creating new cash flow opportunities for landlords and bringing valued amenities close to where people live and work.
This portfolio addition represents Allegion Ventures’ largest investment to date. The artificial-intelligence (AI) powered computer vision intelligence (CVI) company is applying innovative technology to security camera infrastructure, delivering near human-level visual perception that analyzes actions and situational context to create accurate threat detection.
With a long history of participating in industry collaboration, Allegion is passionate about partnerships that promote the growth and development of impactful emerging technologies. As we continue to shape security and access in an increasingly connected world, we know that developing and nurturing those strategic partnerships helps drive growth and the influence of secure, industry-shaping platforms.
With the security industry on the cusp of major changes, we’re focused on adaptive environments, enhanced design and new levels of integration and convenience for our customers and end users. As one of the earliest adopters of Internet-of-Things (IoT) technology in our industry, we firmly believe that open standards and interoperability are key drivers of innovation.
In 2023, we expanded our leadership and influence on the future of IoT technology and markets when we were named a promoter member of the Connectivity Standards Alliance (the Alliance) and given a seat on its Board of Directors.
The Alliance is made up of more than 675 technology companies — including industry giants such as Apple, Google, Samsung and Verizon — and is responsible for creating, maintaining and delivering open global standards for the IoT.
This elevated status means Allegion will continue to help develop and promote the standards, and our security and access experts will use their meaningful perspectives and ideas to contribute to improving user experiences in smart home and smart building ecosystems.
In partnership with the Alliance last year, we also announced Aliro, a new effort to transform how users unlock doors using their mobile devices or watches. The initiative includes a new standard credential and protocol that will enhance interoperability between mobile devices, wearables and access control readers, regardless of the brand or manufacturer. This open ecosystem ultimately empowers customers to choose solutions that best fit their needs.
In October 2023, we announced a partnership with Quext, a smart technology and services company owned by multifamily owner-operators whose innovative IoT-patented solution focuses on operational efficiencies and addressing real pain points in the industry. When paired with Allegion brands like Schlage and Zentra, the industry-leading smart and intuitive technology boasts an all-in-one solution. The technology also requires significantly less hardware and capital investment to implement and maintain, which gives customers more flexibility.
As an industry leader, we want to model the value partnerships and alliances can offer. As connected and smart solutions play a larger role in people’s lives, the complexity of how they work together grows, and meaningful collaborations with experts and innovators will grow in importance, too.
We’re dedicated to delivering excellent customer experiences while fostering continuous growth and development across our businesses. We’re also committed to advancing our culture of safety, inclusion, employee empowerment and sustainability.
As demonstrated in our environmental, social and governance (ESG) key performance indicators (KPIs) from 2023, we know that doing right by our customers, employees and communities is always best for our business.
Proactive measures like going carbon-free in our facilities demonstrate our commitment to operating with excellence as we strive to be good stewards of the natural resources in the communities where we live and work and in a way that matters to our customers. In 2023, two of our manufacturing facilities began operating on 100% carbon-free electricity, ultimately bringing us significantly closer to achieving a key ESG goal: using 100% carbon-free electricity across all our facilities globally by 2030. The carbon-free facilities added in 2023 include Allegion New Zealand and Steelcraft in Cincinnati, Ohio.
We know that doing right by our customers, employees and communities is always best for our business.
In addition, we believe an engaged workforce is nurtured by a culture of inclusivity and support, and our employees thrive when they feel valued by peers and connected to the mission and purpose of our organization. In 2023, we celebrated 10 years of pioneering safety for our customers — and with that, employee engagement that’s now in the 74th percentile among our manufacturing industry peers. We also remained steadfast in our commitment to our “be safe, be healthy” value, with safety results that reflect our position as one of the safest workforces in our industry.
Finally, we enhanced company processes and policies to ensure we’re meeting and exceeding high ethical standards. As of 2023, an ESG scorecard influences annual executive incentive compensation. We also achieved 60% diversity across gender, racial and ethnic representation on our Board of Directors (Board) — adding two new directors in 2023, which strengthened diversity and our Board’s composition of skills.
Allegion's carbon-free manufacturing facilities
Learn More About Allegion
Allegion is a global provider of security solutions enabling seamless access and a safer world.
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