Allegion (NYSE:ALLE) Issues Earnings Results

Allegion (NYSE:ALLE) posted its quarterly earnings results on Thursday. The scientific and technical instruments company reported $2.60 earnings per share for the quarter, beating the consensus estimate of $2.50 by $0.10, FiscalAI reports. The business had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.14 billion. Allegion had a return on equity of 35.41% and a net margin of 15.36%. The company’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.30 EPS.

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 Stock Performance

Shares of ALLE opened at $176.01 on Friday. The company has a market capitalization of $14.97 billion, a price-to-earnings ratio of 23.10, a price-to-earnings-growth ratio of 3.23 and a beta of 0.81. Allegion has a 52-week low of $125.00 and a 52-week high of $183.11. The company has a quick ratio of 1.23, a current ratio of 1.93 and a debt-to-equity ratio of 0.96. The stock has a 50 day moving average price of $156.04 and a 200 day moving average price of $146.13.

Allegion Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were paid a dividend of $0.55 per share. The ex-dividend date was Tuesday, September 15th. This represents a $2.20 annualized dividend and a yield of 1.2%. Allegion’s payout ratio is presently 28.87%.

Allegion News Roundup

Here are the key news stories impacting Allegion this week:

• Positive Sentiment: Quarterly results exceeded expectations: Allegion reported adjusted earnings of $2.60 per share, above the $2.50 consensus estimate, while revenue rose 9.6% year over year to $1.17 billion, surpassing forecasts of approximately $1.14 billion. Earnings also increased from $2.30 per share in the prior-year quarter. Allegion third-quarter earnings report
• Positive Sentiment: Management raised its 2026 guidance: Allegion now expects reported revenue growth of 9.5% to 10.5% and adjusted earnings of $9.05 to $9.10 per share. The higher outlook signals that management sees the recent demand and margin trends continuing through the remainder of the year. Allegion raises 2026 outlook
• Positive Sentiment: Americas operations led the improvement: Organic revenue in the Americas non-residential business grew at a low-double-digit rate in the third quarter. Robust regional growth, pricing and margin expansion were key drivers of the earnings beat and helped offset softer conditions in some international markets. Allegion long-term investor takeaways
• Neutral Sentiment: The market’s positive reaction places Allegion near its 12-month high, with the stock trading above both its 50-day and 200-day moving averages. This reflects stronger investor expectations, but may also leave less room for disappointment if growth or guidance momentum slows.
• Negative Sentiment: International weakness remains a headwind, making Allegion’s performance increasingly dependent on sustained Americas demand. Investors will also monitor whether the company can maintain margin gains and meet the newly raised guidance.

Analyst Ratings Changes

Several research firms recently issued reports on ALLE. Evercore reiterated an “outperform” rating and issued a $180.00 target price on shares of Allegion in a research note on Tuesday, September 22nd. JPMorgan Chase & Co. increased their price objective on Allegion from $150.00 to $170.00 and gave the company a “neutral” rating in a research note on Friday, July 24th. Robert W. Baird set a $170.00 target price on Allegion in a report on Friday, July 24th. Finally, Weiss Ratings raised shares of Allegion from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Allegion presently has a consensus rating of “Hold” and a consensus target price of $162.50.

Insider Activity

In other Allegion news, SVP Timothy Eckersley sold 6,417 shares of the company’s stock in a transaction on Monday, July 27th. The shares were 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Steven Mizell bought 170 shares of the business’s stock in a transaction dated Friday, August 28th. The shares were purchased at an average price of $158.28 per share, for a total transaction of $26,907.60. Following the transaction, the director directly owned 5,899 shares of the company’s stock, valued at approximately $933,693.72. This represents a 2.97% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.64% of the company’s stock.

About Allegion

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.