Allegion Q2 results estimates on higher demand, prices; outlook raised

Overview

• Security products provider's Q2 revenue rose 12.7%, beating analyst expectations

• Adjusted EPS for Q2 increased 17.6% and beat analyst expectations

• Company raised full-year 2026 revenue and adjusted EPS outlook

Outlook

• Allegion raises 2026 reported revenue growth outlook to 7.5%-8.5%

• Company lifts 2026 organic revenue growth outlook to 3.5%-4.5%

• Allegion now sees 2026 adjusted EPS at $8.85-$9.00

Result Drivers

• AMERICAS ORGANIC GROWTH - Q2 organic revenue growth was led by the Americas region, driven by volume growth and price realization in both non-residential and residential segments

• MARGIN EXPANSION - Adjusted operating margin increased due to favorable volume leverage and positive price and productivity net of inflation and investment (PPII)

• WEAK EUROPEAN DEMAND - International segment organic revenue declined, primarily due to weaker demand in core European markets

Company press release: ID:nBw9Hvghfa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications networking peer group is "buy"

• Wall Street's median 12-month price target for Allegion PLC is $167.50, about 19.7% above its July 22 closing price of $139.95

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• July 22 - Otis Q2 sales, adj EPS beat estimates on service growth

• July 21 - Valmont beats Q2 revenue estimates, raises outlook

• July 21 - Switzerland's Schindler H1 EBIT margin rises; reaffirms outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)