Allegion plc (ALLE) SEC Filings & Earnings Calls

Tariff impact on future demand

“Existing or new tariffs could impact future demand.” · word for word

Western Europe market weakness

“lower volumes primarily due to market conditions in Western Europe” · word for word

International segment organic revenue decline of 0.2% driven by volume declines

“International segment revenues were down 0.2% on an organic basis, driven by volume declines”

Acquisition-related dilution to Americas margin (40bps headwind)

“Acquisitions were a 40-basis point headwind to margin rate in Americas segment”

Tariff refunds are one-time; adjusted results exclude them

“IEEPA tariff refunds excluded from adjusted operating income and adjusted EPS”

Minimal risk; internal promotion ensures continuity. No financial impact disclosed.

“Orderly leadership transition with internal successor.”

International segment organic revenue decline of 1.2% driven by weaker European demand

“International organic revenue decrease was primarily driven by weaker demand in our core European markets”

ERP disruption in Q1 2026 impacted International production rates, though sequentially improved

“Margin rate increased 440 basis points sequentially as the company worked to improve production rates following the ERP disruption experienced in first-quarter 2026” · word for word

Available cash flow declined $14.6M YTD due to higher receivables from revenue timing

“Decline in year-to-date available cash flow was primarily driven by higher receivables due to the timing of revenue, which was stronger in the latter part of the second quarter” · word for word

Tariff Impact on Demand

“Existing or new tariffs could impact future demand.” · word for word

International Segment Margin Pressure

“Segment operating margin for the three months ended June 30, 2026, decreased to 6.4% from 7.8%” · word for word

ERP implementation disruption in International segment causing volume declines and margin pressure; recovery expected over remainder of 2026.

“International segment organic revenue down 5.3% primarily due to volume declines related to ERP implementation; adjusted operating margin decreased 220 bps.”

Volume declines in Americas residential business and unfavorable mix pressuring margins.

“Americas residential business flat organically with price offsetting volume declines; adjusted operating margin decreased 110 bps due to volume declines and unfavorable mix.”

Tariff exposure on COGS

“We estimate we source approximately 20-25% of cost of goods sold ('COGS') from Mexico, less than 5% of COGS from China, and 5-10% of COGS from all other non-US countries.” · word for word

Volume decline in both segments

“Volume (2.0)%” · word for word

Margin compression in International segment

“Segment operating margin for the three months ended March 31, 2026, decreased to 3.7% from 6.3%” · word for word

Tariff exposure on COGS

“We estimate we source approximately 20-25% of cost of goods sold ('COGS') from Mexico, less than 5% of COGS from China, and 5-10% of COGS from all other non-US countries.”

Tariff exposure on COGS

“We estimate we source approximately 20-25% of Cost of goods sold from Mexico and less than 5% of Cost of goods sold from China.” · word for word

Inflation and cost pressure

“Higher prices for raw materials, parts and components, freight, packaging, labor and energy... increase our costs.” · word for word

Macroeconomic cyclicality

“Demand for our security products and solutions relies on the institutional, commercial, and residential construction and remodeling markets, which are marked by cyclicality.” · word for word

Residential business decline high-single digits organically

“The residential business declined high-single digits organically, as a result of lower volume” · word for word