Thu, Apr 24, 10:09 AM (19 days ago)
**Allegion PLC (ALLE) Q1 2025 Financial Summary** Allegion PLC reported a strong Q1 2025, with notable improvements in revenue, profit margins, and cash flow. Here are the key points: **Financial Health and Performance:** - **Revenue:** Net revenues increased by 5.4% to $941.9 million, driven by higher volumes, acquisitions, and improved pricing, partially offset by unfavorable foreign currency exchange rates. - **Profit Margins:** Operating income rose by 14.1% to $196.4 million, with an operating margin of 20.9%, up from 19.3% in Q1 2024. This improvement was driven by favorable volume/product mix, acquisitions, and lower acquisition/integration/restructuring expenses. - **Net Earnings:** Net earnings attributable to Allegion PLC increased by 19.7% to $148.2 million, with diluted earnings per share rising by 21.3% to $1.71. - **Cash Flow:** Net cash provided by operating activities increased by 104.3% to $104.5 million, driven by higher net earnings and lower cash used for working capital. **Segment Performance:** - **Allegion Americas:** This segment saw a 6.8% increase in net revenues, driven by higher volumes, acquisitions, and improved pricing. Operating income increased by 13.0%, with an operating margin of 27.9%. - **Allegion International:** This segment experienced a slight decrease in net revenues by 0.3%, primarily due to unfavorable foreign currency exchange rates. Operating income decreased by 10.0%, with an operating margin of 6.3%. **Trends and Uncertainties:** - **Macroeconomic Conditions:** Global trade and macroeconomic environment uncertainties, including tariffs and geopolitical risks, may impact future performance. - **Acquisitions:** Allegion completed two acquisitions in Q1 2025, Next Door Company and Lemaar Pty Ltd, which contributed to revenue growth. - **Dividends and Share Repurchases:** Allegion paid dividends of $0.51 per share and repurchased approximately 0.3 million shares for $40.0 million. **Future Operations Impact:** - Allegion expects continued growth in electronic products and non-residential products in 2025. - The company anticipates softness in the residential business due to current market conditions. - Allegion is focused on executing its long-term growth strategies, returning value to shareholders, and maintaining a sound financial position. **Conclusion:** Allegion PLC demonstrated strong financial performance in Q1 2025, with notable improvements in revenue, profit margins, and cash flow. The company is well-positioned to navigate macroeconomic uncertainties and continue its growth trajectory.