Allegion plc (NYSE:ALLE) delivered stronger-than-expected second-quarter earnings on Thursday, fueled by steady demand in the non-residential sector. Following the results, the company’s stock edged up 1.13% in pre-market trading.
The global provider of security products reported adjusted earnings of $2.04 per share, topping the consensus estimate of $1.99. Revenue came in at $1.02 billion, slightly above the $1 billion forecast. The 5.8% revenue increase was supported by higher pricing (+2.6%), recent acquisitions (+1.9%), favorable currency impacts (+0.7%), and increased volumes (+0.6%).
The Americas segment—Allegion’s primary revenue engine—saw sales grow 6.6% year-over-year to $821.5 million. This growth was primarily driven by strong performance in non-residential product lines, which recorded high single-digit gains over the same period in 2024. International operations also contributed, with a 2.9% revenue bump to $200.5 million.
“Demand for our non-residential products remains healthy,” said John H. Stone, CEO of Allegion. “We delivered mid-single digit revenue growth compared to the same period in 2024, driven by the Allegion Americas segment.”
Operating income rose to $219.7 million from $209 million in the previous year, although the operating margin saw a minor dip to 21.5% from 21.6%. In particular, electronic security offerings—an important focus area for the company—experienced low double-digit growth within the Americas.
Allegion has also been actively expanding through acquisitions. The firm completed four transactions during the first half of 2025, and added three more in July. One key deal was the acquisition of German access technology specialist ELATEC, valued at approximately $389 million.
The company ended the quarter with a solid cash position, holding $656.8 million in cash and equivalents—up from $503.8 million at the close of 2024. In the first half of this year, Allegion returned capital to shareholders through $1.02 per share in dividends and buybacks totaling $80 million for roughly 0.6 million shares.
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