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Allegion's Q1 Earnings Miss Estimates, Revenues Rise Y/Y
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Key Takeaways
Allegion Q1 EPS of $1.80 missed estimates and fell 3.2% despite 9.7% revenue growth.
ALLE Americas revenues rose 6.9% on non-residential and electronics strength.
Margins declined as costs and expenses rose, though 2026 revenue guidance was raised.
Allegion plc’s (ALLE - Free Report) first-quarter 2026 adjusted earnings of $1.80 per share missed the Zacks Consensus Estimate of $1.88. The bottom line decreased 3.2% year over year.
ALLE’s Revenue Details
Allegion’s revenues were $1.03 billion, which increased 9.7% year over year. Organic revenues increased 2.6%, driven by price realization. Revenues beat the Zacks Consensus Estimate of $1.02 billion. While acquired assets boosted revenues by 4.8%, foreign currency had a positive impact of 2.3%.
ALLE reports revenues under two segments. A brief discussion of quarterly results is provided below:
Revenues from Allegion Americas increased 6.9% year over year to $809.9 million. The figure accounted for 78.4% of the quarter’s revenues. Our estimate for segmental revenues was $807.1 million. Organic revenues increased 4.5%, driven by solid momentum in the non-residential and electronics businesses.
Operating income for the segment was $215.1 million, up 1.8% year over year. Our estimate was $209.7 million.
Revenues from Allegion International were $223.7 million, up 21.5% year over year. The metric accounted for 21.6% of the quarter’s revenues. Organic revenues decreased 5.3%. Segmental operating income was $8.3 million, down 29.1% year over year.
In the quarter, Allegion’s cost of revenues increased 11.5% year over year to $579.1 million. Gross profit was $454.5 million, up 7.5% year over year, while the gross margin declined 90 basis points (bps) to 44%.
Selling and administrative expenses increased 14.6% year over year to $259.2 million. Adjusted EBITDA was $236.8 million, reflecting a year-over-year increase of 3.9%. The margin was 22.9%, down 130 basis points on a year-over-year basis.
Adjusted operating income increased 2.6% year over year to $218.9 million. The adjusted margin was 21.2%, down 150 basis points year over year. Interest expenses were $24.2 million, down 2% year over year. The effective tax rate (on an adjusted basis) was 20.1%, up from 16.1% in the year-ago quarter.
ALLE’s Balance Sheet and Cash Flow
While exiting first-quarter 2026, Allegion had cash and cash equivalents of $308.9 million compared with $356.2 million at the end of 2025. Long-term debt was $2.03 billion, higher than $1.98 billion at 2025-end.
In the first three months of 2026, ALLE generated net cash of $101.3 million from operating activities, reflecting a decrease of 3.1% year over year. Capital expenditure was $21 million, in line with the year-ago period. For the first three months of 2026, the available cash flow was $80.3 million.
Allegion repurchased shares for $40.6 million. Dividends paid out totaled $47.4 million, reflecting an increase of 8.7% year over year.
Allegion’s 2026 Outlook
The company has raised its 2026 revenue guidance. Allegion expects revenues to increase in the range of 6-8% year over year, higher than 5-7% projected earlier. ALLE continues to expect organic revenues to grow in the range of 2-4%.
Adjusted earnings are still projected to be in the range of $8.70-$8.90 per share. The company estimates available cash flow to be 85-95% of adjusted net income. Adjusted effective tax rate is projected to be approximately 18-19%.
ALLE’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 0.5%.
RBC Bearings (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched down 0.3%.
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Allegion's Q1 Earnings Miss Estimates, Revenues Rise Y/Y
Key Takeaways
Allegion plc’s (ALLE - Free Report) first-quarter 2026 adjusted earnings of $1.80 per share missed the Zacks Consensus Estimate of $1.88. The bottom line decreased 3.2% year over year.
ALLE’s Revenue Details
Allegion’s revenues were $1.03 billion, which increased 9.7% year over year. Organic revenues increased 2.6%, driven by price realization. Revenues beat the Zacks Consensus Estimate of $1.02 billion. While acquired assets boosted revenues by 4.8%, foreign currency had a positive impact of 2.3%.
ALLE reports revenues under two segments. A brief discussion of quarterly results is provided below:
Revenues from Allegion Americas increased 6.9% year over year to $809.9 million. The figure accounted for 78.4% of the quarter’s revenues. Our estimate for segmental revenues was $807.1 million. Organic revenues increased 4.5%, driven by solid momentum in the non-residential and electronics businesses.
Operating income for the segment was $215.1 million, up 1.8% year over year. Our estimate was $209.7 million.
Revenues from Allegion International were $223.7 million, up 21.5% year over year. The metric accounted for 21.6% of the quarter’s revenues. Organic revenues decreased 5.3%. Segmental operating income was $8.3 million, down 29.1% year over year.
Allegion PLC Price, Consensus and EPS Surprise
Allegion PLC price-consensus-eps-surprise-chart | Allegion PLC Quote
Allegion’s Margin Profile
In the quarter, Allegion’s cost of revenues increased 11.5% year over year to $579.1 million. Gross profit was $454.5 million, up 7.5% year over year, while the gross margin declined 90 basis points (bps) to 44%.
Selling and administrative expenses increased 14.6% year over year to $259.2 million. Adjusted EBITDA was $236.8 million, reflecting a year-over-year increase of 3.9%. The margin was 22.9%, down 130 basis points on a year-over-year basis.
Adjusted operating income increased 2.6% year over year to $218.9 million. The adjusted margin was 21.2%, down 150 basis points year over year. Interest expenses were $24.2 million, down 2% year over year. The effective tax rate (on an adjusted basis) was 20.1%, up from 16.1% in the year-ago quarter.
ALLE’s Balance Sheet and Cash Flow
While exiting first-quarter 2026, Allegion had cash and cash equivalents of $308.9 million compared with $356.2 million at the end of 2025. Long-term debt was $2.03 billion, higher than $1.98 billion at 2025-end.
In the first three months of 2026, ALLE generated net cash of $101.3 million from operating activities, reflecting a decrease of 3.1% year over year. Capital expenditure was $21 million, in line with the year-ago period. For the first three months of 2026, the available cash flow was $80.3 million.
Allegion repurchased shares for $40.6 million. Dividends paid out totaled $47.4 million, reflecting an increase of 8.7% year over year.
Allegion’s 2026 Outlook
The company has raised its 2026 revenue guidance. Allegion expects revenues to increase in the range of 6-8% year over year, higher than 5-7% projected earlier. ALLE continues to expect organic revenues to grow in the range of 2-4%.
Adjusted earnings are still projected to be in the range of $8.70-$8.90 per share. The company estimates available cash flow to be 85-95% of adjusted net income. Adjusted effective tax rate is projected to be approximately 18-19%.
ALLE’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
DXP Enterprises (DXPE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 0.5%.
RBC Bearings (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched down 0.3%.