Low-Double Digit Revenue Growth, High-Teens EPS Growth; Raising Full-Year 2026 Outlook
Quarterly Financial Highlights
(All comparisons are year-over-year, unless otherwise noted)
- Net earnings per share (EPS) of $2.15, up 16.2% compared with $1.85; Adjusted EPS of $2.40, up 17.6% compared with $2.04
- Revenues of $1,151.5 million, up 12.7% on a reported basis and up 6.9% on an organic basis
- Operating margin of 22.1%, compared with 21.5%; Adjusted operating margin of 24.2%, compared with 23.7%
DUBLIN (July 23, 2026) – Allegion plc (NYSE: ALLE), a leading global security products and solutions provider, today reported financial results for its second quarter (ended June 30, 2026).
“Allegion delivered a strong quarter driven by organic growth and margin expansion in the Americas,” Allegion President and CEO John H. Stone said. “As a result, we are raising our company’s full-year outlook for revenue and adjusted EPS.”
“Entering the second half of 2026, we see continued strength in our Americas non-residential business and positive momentum in demand indicators there. With demand weaker in some European markets, our Allegion International team is focused on execution and cost discipline.”
Q2 2026 Company Results
(All comparisons are year-over-year, unless otherwise noted)
Allegion reported second-quarter 2026 net revenues of $1,151.5 million and net earnings of $184.6 million, or $2.15 per share. Adjusted net earnings were $206.0 million, or $2.40 per share, up 17.6%. (Details of the adjustments are included in the footnotes of the tables in this press release.)
Second-quarter 2026 net revenues increased 12.7%. On an organic basis, which excludes impacts of acquisitions, divestitures and foreign currency movements, net revenues increased 6.9%, led by the Americas region. The organic revenue increase was driven by volume growth and price realization. Reported revenue reflects a 5.1% net positive impact from acquisitions and divestitures, as well as a 0.7% tailwind from foreign currency.
Second-quarter 2026 operating income was $254.7 million, an increase of $35.0 million or 15.9%. Adjusted operating income in second-quarter 2026 was $278.8 million, an increase of $36.9 million or 15.3%.
Second-quarter 2026 operating margin was 22.1%, compared with 21.5%. The adjusted operating margin in second-quarter 2026 was 24.2%, compared with 23.7%. The adjusted operating margin increase is attributable to favorable volume leverage as well as price and productivity net of inflation and investment (PPII), inclusive of transactional foreign currency, which was positive on a dollar basis and a tailwind to margin rate.
Q2 2026 Segment Results
(All comparisons are year-over-year, unless otherwise noted)
The Americas segment revenues were up 11.8% (up 8.9% on an organic basis). The non-residential and residential businesses were both up high-single digits organically, driven by volume growth and price realization. The reported revenue reflects a 2.9% positive impact from acquisitions. Adjusted operating margin in the region increased 20 basis points to 30.1%. The adjusted operating margin increase is attributable to favorable volume leverage as well as PPII, inclusive of transactional foreign currency headwinds, which was positive on a dollar basis and a 10-basis point tailwind to margin rate. Acquisitions were a 40-basis point headwind to margin rate.
The International segment revenues were up 16.2% (down 1.2% on an organic basis). The organic revenue decrease was primarily driven by weaker demand in our core European markets. Reported revenue reflects a 14.3% net positive impact from acquisitions and divestitures and a 3.1% tailwind from foreign currency. Adjusted operating margin in the region decreased 70 basis points to 12.4%, driven by volume declines and a PPII headwind, offset by favorable impacts from acquisitions. Margin rate increased 440 basis points sequentially as the company worked to improve production rates following the ERP disruption experienced in first-quarter 2026.
Additional Items
(All comparisons are year-over-year, unless otherwise noted)
Interest expense for second-quarter 2026 was $24.8 million, an increase of $0.2 million.
Other expense, net for second-quarter 2026 was $2.0 million, compared to other income, net of $5.3 million. Other expense, net for second-quarter 2026 includes a $3.7 million non-cash pension settlement charge, which is excluded from adjusted EPS.
The company’s effective tax rate for second-quarter 2026 was 19.0%, compared with 20.3%. The company’s adjusted effective tax rate for second-quarter 2026 was 19.7%, compared with 20.7%.
Cash Flow and Liquidity
Year-to-date available cash flow for 2026 was $260.8 million, a decrease of $14.6 million versus the prior-year period. The decline in year-to-date available cash flow was primarily driven by higher receivables due to the timing of revenue, which was stronger in the latter part of the second quarter. The company ended second-quarter 2026 with cash and cash equivalents of $320.6 million and total debt of $2,031.1 million.
Share Repurchase and Dividends
In the second quarter of 2026, the company repurchased approximately 0.9 million shares for approximately $120 million and paid quarterly dividends of $0.55 per ordinary share or approximately $47 million.
2026 Full-Year Outlook
(All comparisons are year-over-year, unless otherwise noted)
The company is raising its full-year 2026 reported revenue growth outlook to a range of 7.5% to 8.5% and is raising its organic growth outlook to a range of 3.5% to 4.5%, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements.
The company is raising the outlook for full-year 2026 adjusted EPS to be in the range of $8.85 to $9.00. The company is updating the outlook for full-year 2026 reported EPS and expects it to be in the range of $7.95 to $8.10. Adjustments to 2026 EPS include estimated impacts of approximately $0.60 per share for acquisition-related amortization, as well as $0.20 per share for restructuring and $0.10 for M&A and other adjustments.
The outlook does not include the impact of potential IEEPA tariff refunds.
The outlook continues to assume a full-year adjusted effective tax rate of approximately 18% to 19%.
The outlook assumes an average diluted share count for the full year of approximately 85.9 million shares.
The company continues to expect full-year available cash flow to be 85% to 95% of adjusted net income.
Conference Call Information
On Thursday, July 23, 2026, President and CEO John H. Stone and Senior Vice President and Chief Financial Officer Mike Wagnes will conduct a conference call for analysts and investors, beginning at 8 a.m. ET, to review the company's results.
A real-time, listen-only webcast of the conference call will be broadcast live online. Individuals wishing to listen may access the call through https://investor.allegion.com.
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About Allegion
At Allegion (NYSE: ALLE), we design and manufacture innovative security and access solutions that help keep people safe where they live, learn, work and connect. We’re pioneering safety with our strong legacy of leading brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®. Our comprehensive portfolio of hardware, software and electronic solutions is sold around the world and spans residential and commercial locks, door closer and exit devices, steel doors and frames, access control and workforce productivity systems. Allegion had $4.1 billion in revenue in 2025. For more, visit www.allegion.com.
Non-GAAP Measures
This news release and accompanying earnings release materials include adjusted non-GAAP financial information which should be considered supplemental to, not a substitute for or superior to, the financial measure calculated in accordance with GAAP. The company presents operating income, operating margin, earnings before income taxes, effective tax rate, net earnings and diluted earnings per ordinary share (EPS) on both a U.S. GAAP basis and on an adjusted (non-GAAP) basis, revenue growth on a U.S. GAAP basis and organic revenue growth on a non-GAAP basis, EBITDA, adjusted EBITDA and adjusted EBITDA margin (all non-GAAP measures) and Available Cash Flow (“ACF,” a non-GAAP measure), including in certain cases, on a segment basis. The company presents these non-GAAP measures because management believes these non-GAAP measures provide management and investors useful perspective of the company’s underlying business results and trends and a more comparable measure of period-over-period results. These measures are also used to evaluate senior management and are a factor in determining at-risk compensation. Investors should not consider non-GAAP measures as alternatives to the related U.S. GAAP measures. Further information about the adjusted non-GAAP financial tables is attached to this news release. The Quarterly Financial Highlights, Full-Year Financial Highlights and 2026 Full-Year Outlook Highlights contain non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from our U.S. GAAP financial statements. When we provide forward-looking outlooks for any of the various non-GAAP metrics described above, we do not provide reconciliations of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements under the heading “2026 Full-Year Outlook” and statements regarding the company's 2026 and future financial performance, the company’s business plans and strategy, the company’s growth strategy, the company’s capital allocation strategy, the company’s ability to successfully complete and integrate acquisitions and achieve anticipated strategic and financial benefits and the performance of the markets in which the company operates. These forward-looking statements generally are identified by the words “believe,” “aim,” “projected,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “intend,” “scheduled,” “targets,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements. Forward-looking statements may relate to such matters as projections of revenue, margins, expenses, tax rate and provisions, earnings, cash flows, benefit obligations, dividends, share purchases or other financial items; any statements of the plans, strategies and objectives of management for future operations, including those relating to any statements concerning expected development, performance or market share relating to our products and services; any statements regarding future economic conditions or our performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Undue reliance should not be placed on any forward-looking statements, as these statements are based on the company's currently available information and our current assumptions, expectations and projections about future events. They are subject to future events, risks and uncertainties - many of which are beyond the company’s control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Important factors and other risks that may affect the company's business or that could cause actual results to differ materially are included in filings the company makes with the Securities and Exchange Commission (SEC) from time to time, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q and in its other SEC filings. All forward-looking statements in this press release are made only as of the date hereof and are expressly qualified by such cautionary statements and by reference to the underlying assumptions. The company undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
