Allegion Reports Q3 2026 Results and Raises Full-Year Outlook

Executive Summary

On October 22, 2026, Allegion plc filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits), releasing its financial results for the third quarter ended September 30, 2026, and raising its full-year 2026 outlook.

Key Financial Highlights

• Net Revenues: Reached $1,172.6 million, an increase of 9.6% on a reported basis and 7.2% organically compared to Q3 2025. Growth was led by the Americas non-residential segment.
• Earnings Per Share (EPS): Reported diluted EPS of $2.59 (up 18.8% YoY from $2.18); Adjusted EPS came in at $2.60 (up 13.0% YoY from $2.30).
• Operating Profitability: Operating income rose 21.7% to $284.6 million (24.3% margin). Adjusted operating income climbed 12.5% to $289.7 million (24.7% margin, up 60 bps YoY), supported by volume leverage, price realization, and productivity.
• Segment Performance:
  • Americas: Revenue grew 11.7% (+9.1% organic), with adjusted operating margin expanding 20 bps to 30.1%.
  • International: Revenue grew 1.8% (-0.2% organic), with adjusted operating margin contracting 40 bps to 13.9% due to volume and mix headwinds.
• IEEPA Tariff Refunds: Recognized a benefit of $19.9 million in operating income and $0.9 million in interest income during the quarter (excluded from non-GAAP metrics).

Full-Year 2026 Outlook Raised

• Reported Revenue Growth: Raised to a range of 9.5% to 10.5% (Organic growth raised to 5.0% to 6.0%).
• Adjusted EPS: Raised to a range of $9.05 to $9.10 (Reported EPS updated to $8.35 to $8.40).
• Cash Flow: Available cash flow expected to be 85% to 95% of adjusted net income.

Capital Allocation & Balance Sheet

• Liquidity: Ended Q3 2026 with $388.1 million in cash and cash equivalents against $2,032.0 million of total debt.
• Shareholder Returns: Repurchased ~0.8 million shares for approximately $120 million and distributed ~$46 million in dividends during the quarter.