Allegion raises EPS outlook to $9.05–9.10 after quarterly profit growth
Key Facts
Allegion raised its full-year adjusted earnings per share outlook as it reported profit and revenue growth for the third quarter of 2026, according to its earnings release and investor presentation issued on October 22. Quarterly revenue totaled $1,172.6 million, up 9.6% from the same period a year earlier. Adjusted earnings per share rose to $2.60, marking year-over-year growth of 13.0%. On a reported basis, quarterly net income totaled $220.9 million, according to the company's release. Reported earnings per share reached $2.59, up 18.8% year over year, outpacing growth in adjusted earnings per share.
Organic revenue grew 7.2% in the third quarter, excluding the effects of acquisitions, divestitures and currency movements, according to Allegion's release. The investor presentation showed price realization of 3.8% alongside volume growth of 3.4%, combining improved pricing with higher sales volumes. The presentation described the drivers as follows: "Price realization of 3.8%; volume growth of 3.4%." In the Americas, organic revenue rose 9.1%, with strength in the nonresidential business highlighted in the company's investor presentation. By contrast, organic revenue in the international segment fell 0.2%, as the impact of lower volumes outweighed pricing gains, according to the earnings release.
On operating profitability, the adjusted operating margin improved to 24.7% from 24.1% in the third quarter of 2025, according to the company's release. Reported operating profit benefited from $19.9 million in tariff refunds, while those refunds were excluded from adjusted metrics. The adjusted margin therefore improved with the tariff refund benefit excluded from that measure. On liquidity, available cash flow totaled $539.4 million for the nine months ended September 2026, according to the same release. Allegion spent about $120 million on share repurchases during the third quarter as part of its returns to shareholders in the period. It also paid quarterly cash dividends of $0.55 per common share.
The latest results follow a second quarter in which Allegion recorded year-over-year organic revenue growth of 6.9%, according to the earnings release for that period. The 2026 adjusted earnings per share guidance range announced with the second-quarter results was between $8.85 and $9.00. The new range, included in the third-quarter results presentation, is between $9.05 and $9.10 per share, raising both the lower and upper ends of the previous outlook. The revision also covered annual revenue guidance, with the company raising its expected reported growth range for 2026 to 9.5–10.5%. It also raised its organic revenue growth outlook for the same year to 5.0–6.0%, maintaining the distinction between reported growth and growth excluding the effects of acquisitions, divestitures and currencies. Allegion scheduled its investor call to discuss third-quarter results for 8 a.m. Eastern Time on October 22, 2026, according to its earnings date announcement.