Allegion (ALLEN) Q3 2026 Earnings Report
MX:ALLEN Q3 2026 EPS Results
- Actual EPS
- MXN 48.58
- Consensus EPS
- MXN 46.75
- Beat/Miss
- Beat by +MXN 1.83
- One Year Ago EPS
- MXN 42.97
MX:ALLEN Q3 2026 Revenue Results
- Actual Revenue
- MXN 21.91B
- Expected Revenue
- MXN 21.26B
- Beat/Miss
- Beat by +MXN 651.01M
- YoY Revenue Growth
- +9.57%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/22/2026
- Time
- Before Open
- Conference Call
- Thursday, October 22, 2026
Allegion's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was predominantly positive, led by strong Americas and Non-Residential performance, broad-based organic growth, raised full-year revenue and EPS guidance, expanding quarterly margins, strong cash flow, and continued investment in connected products, AI and acquisitions. The main challenges were weak International markets, flat Residential volume, persistent inflation requiring ongoing pricing, and limited full-year margin expansion.
For full year 2026, Allegion raised its reported revenue outlook to 9.5% to 10.5%, organic revenue growth outlook to 5% to 6%, and adjusted earnings per share outlook to $9.05 to $9.10, with Americas organic growth at 7% to 8%, International organic growth down low single digits, low double-digit EPS growth, and an assumed share count of 85.6 million; ACF conversion is expected to be in the range of 85% to 95% of adjusted net income, and full-year margins are expected to be flat to slightly up. For 2027, demand in major end markets is expected to be similar to current year with growth led by strength in the Americas; Residential growth is expected to be driven primarily by price, International markets are expected to remain soft, and Allegion expects to remain in an inflationary environment, take pricing to protect operating profit dollars, deliver Americas operating leverage consistent with its long-term framework for incremental margins, and see margin expansion. Carryover pricing will continue into next year, with a pricing increase anticipated in early February, while the approximately $90 million Overly acquisition is expected to add approximately 1 point to Americas revenues on an annualized basis.
- Strong Third-Quarter Revenue, Margin and EPS GrowthThird-quarter revenue was approximately $1.2 billion, up 9.6% year over year, with organic revenue increasing 7.2%, driven by strength in the Americas and by both price realization and volume growth. Adjusted operating margin was 24.7%, up 60 basis points, supported by $15.6 million of favorable price and productivity net of inflation and investment, a 50-basis-point margin tailwind, and volume leverage. Adjusted EPS was $2.60, up $0.30 or 13% versus the prior year.
- Americas Delivered Broad-Based GrowthAmericas revenue was $942.4 million, up 11.7% on a reported basis and 9.1% organically. Non-Residential revenue increased low double digits organically on price and volume growth, Residential revenue grew mid-single digits driven by price, and Electronics revenue increased low double digits. Acquisitions contributed 2.6% of segment growth. Americas adjusted operating income increased 12.6% to $283.8 million, while adjusted operating margins increased 20 basis points.
- Healthy Non-Residential Demand and Spec ActivityManagement said demand for Non-Residential products remains healthy, with strong and broad-based specification activity. The company expects Non-Residential strength to continue into 2027 and described a high single-digit growth environment supported by a combination of price and volume. Data centers were approaching 5% of the Non-Residential business, are growing rapidly, and have been a source of volume growth in 2026.
- Full-Year 2026 Guidance RaisedThe company raised its full-year reported revenue outlook to 9.5% to 10.5%, organic revenue growth outlook to 5% to 6%, and adjusted EPS outlook to $9.05 to $9.10. The Americas organic growth assumption was raised to 7% to 8% based on a healthier Non-Residential demand environment and higher price realization. Allegion expects low double-digit EPS growth for full-year 2026.
- Strong Cash Flow and Healthy Balance SheetYear-to-date available cash flow was $539.4 million, up 11.2% from the prior year, primarily driven by higher earnings. The company continues to expect 2026 available cash flow conversion of 85% to 95% of adjusted net income. Working capital as a percentage of revenue was 7.9%, consistent with the prior year, and net debt to adjusted EBITDA was 1.5x.
- International ERP Issue ResolvedManagement said the ERP challenge previously highlighted in the first quarter has been resolved, with the International business back to normal operations and lead times.
- Launch of Allegion Optimize Connected-Product AppAllegion launched the Optimize app in the Americas in September. The app allows installers, end users and channel partners to commission, configure, manage and troubleshoot connected products through one tool. It is initially being rolled out across electronic door controls and locks and is expected to ultimately manage the company's full nonresidential connected portfolio globally. Management described the single-app approach as a first in the industry.
- Overly Door Company Acquisition Adds Specialty-Door CapabilityAllegion completed the acquisition of Overly Door Company in early October for approximately $90 million. Overly manufactures specialty doors for acoustics, blast, bullet resistance and vault security, serving commercial and institutional customers including U.S. government, education and health care markets. The acquisition is expected to add approximately 1 point to Americas revenue on an annualized basis, with margins consistent with the overall enterprise.
- Continued Investment in AI and Physical SecurityAllegion made a $40 million follow-on investment in Ambient.ai through Allegion Ventures. Management said Ambient's purpose-built AI technology is helping customers shift physical-security operations from reactive to proactive. Allegion is also making internal investments in AI tools across business functions; its specification activity covers approximately 2.5 million openings annually, providing a large data set for improving the speed and accuracy of specifications and change orders.
- Capital Returned to ShareholdersAllegion paid $46 million in dividends and repurchased $120 million of shares during the quarter. Management said the company sees attractive valuation in its shares and expects to remain active in share repurchase.
- Electronics and Connected-Lock Growth OpportunityManagement expects Electronics to remain a high single-digit growth driver over the cycle. Growth is supported by new-product introductions, new adoption of electronics, conversion from mechanical to electronic products, and upgrades of older electronic locks. The company has introduced a new family of connected commercial locks, and Schlage is integrated with all major smart-home devices and providers as well as Airbnb.
- Schlage Brand and Smart-Home Position Remain StrongManagement said Schlage has been America's most trusted lock brand for the past 7 years, has a strong product portfolio, and was the first Wi-Fi-connected deadbolt to integrate with Apple HomeKit approximately 8 or 9 years ago. The company said the product category associated with potential new entrants represents a low single-digit percentage of Americas revenue and an even smaller portion of Americas operating profit.
- Pricing and Productivity Actions Are Offsetting InflationAllegion has been taking multiple pricing increases across selected parts of the business rather than relying only on a single increase at the beginning of the year. Management said the company has become quicker at responding to inflationary pressures and expects pricing and productivity to offset inflation and investment, producing positive dollars and neutral margin-rate impact for the full year.
- Disciplined Long-Term Capital Deployment StrategyManagement plans to remain active in deploying capital through bolt-on acquisitions and share repurchases. Future acquisitions are intended to build the mechanical portfolio and add electronics, electromechanical products and complementary software, with discipline around strategic fit and valuation.
MX:ALLEN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 23, 2027 | 2026 (Q4) | 43.22- | 36.25 | ― | ― |
| Oct 22, 2026 | 2026 (Q3) | 46.7548.58 | 42.97 | 13.04% (+5.61) | |
| Jul 23, 2026 | 2026 (Q2) | 41.4044.84 | 38.11 | 17.65% (+6.73) | |
| Apr 28, 2026 | 2026 (Q1) | 35.4133.63 | 34.75 | -3.23% (-1.12) | |
| Feb 17, 2026 | 2025 (Q4) | 37.1136.25 | 34.75 | 4.30% (+1.49) | |
| Oct 23, 2025 | 2025 (Q3) | 41.3142.97 | 40.36 | 6.48% (+2.62) | |
| Jul 24, 2025 | 2025 (Q2) | 37.2238.11 | 36.62 | 4.08% (+1.49) | |
| Apr 24, 2025 | 2025 (Q1) | 31.2434.75 | 28.96 | 20.00% (+5.79) | |
| Feb 18, 2025 | 2024 (Q4) | 32.7334.75 | 31.39 | 10.71% (+3.36) | |
| Oct 24, 2024 | 2024 (Q3) | 37.0540.36 | 36.25 | 11.34% (+4.11) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.