Allegion plc Q1 FY2026 earnings call

· Allegiant team remained agile in volatile environment, Q1 delivered high single-digit revenue growth led by Americas non-residential business and acquisitions. · Closed acquisition of DCI in March, which makes Allegiant more competitive on West Coast. · Paid $47 million in dividends and repurchased $40 million of shares in Q1, board approved new $500 million repurchase program. · Americas non-residential business increased mid-single digits organically driven by price realization; residential business flat with price realization offset by volume declines; electronics revenue up mid-single digits.

Americas segment delivered revenue of $809.9 million, up 6.9% on a reported basis and 4.5% organically. International segment delivered revenue of $223.7 million, up 21.5% on a reported basis and down 5.3% organically. Net acquisitions contributed 15.9% to international segment revenue. Currency was a tailwind for reported revenues in international.

· Raising reported revenue outlook to 6% to 8% to include DCI acquisition. · Affirming organic revenue growth outlook of 2% to 4% and adjusted earnings per share of $8.70 to $8.90. · Anticipating incremental headwind of approximately 1% of COGS from tariffs and other inflation in Americas, expect to offset on dollar basis through price and cost actions. · Expect to catch up on production impacts from ERP implementation in international segment during remainder of year.

· International segment organic revenue growth and margins negatively impacted by ERP implementation in one legacy mechanical business. · Volatility in macro and input cost environment poses risks.

Q: Joe O'Day with Wells Fargo Securities asked about demand in Americas, tariff impact.

A: John responded on spec activity being strong, no notable elongation from spec to order, and on tariff impact and how addressing it.

Q: Tim Weiss with Robert W. Bird and Company asked about North American margins mix.

A: Mike responded on mix impact in Q1 and margin sequence through year.

Q: Tomo Sano with JP Morgan asked about Americas electronics business growth.

A: John and Mike responded on electronics being long-term growth driver.

Q: Jeffrey Sprague with Vertical Research Partners, LLC asked about ERP implementations and Europe.

A: John responded on ERP recovery and Europe market conditions.

Q: Joe Ritchie with Goldman Sachs asked about international segment and capital deployment.

A: John responded on international segment recovery and capital deployment.

Q: Rafe Jadrosi asked about electronics growth and inflation.

A: John responded on electronics as long-term driver and inflation cadence.

Q: Alexander Virgo with ISI Evercore asked about ERP impact and electronics supply chain.

A: John responded on ERP implementation issues and electronics supply chain.

Q: David McGregor with Longbow Research asked about Americas margins and residential business.

A: John responded on Americas margins mix and residential business market share.