Allegion hits billion-dollar milestone, with nod to non-residential biz

DUBLIN — Allegion plc hit a key milestone with the release of its second quarter 2025 results this week, largely the result of growth in its non-residential segment in the Americas. 

CEO John Stone highlighted the company’s $1.02 billion in net revenues, an increase of 5.8%, and its high-single digit non-residential organic growth in the Americas as an indicator of the resilience of the business and the health of its relationship with channel partners. 

“Q2 was a strong quarter, once again demonstrating the agility of our team, durability of our business and execution of our capital allocation strategy,” he said during a call to discuss Q2 results. “We also achieved an exciting milestone: This was Allegion's first quarter of revenue in excess of a billion dollars, and we certainly don't think it will be our last.” 

Stone also made note of continued segment margin expansion and four mergers and acquisitions that contributed to a 1.9% positive impact in the second quarter. Among those acquisitions: Gatewise, a provider of smart access control solutions in the U.S. multifamily marketplace, in July. 

Allegion expects its non-residential business in the Americas to only pick up speed in the second half of the year, said CFO Mike Wagner. 

“Growing as well as it is, non-residential is a stronger, more profitable business than the residential,” he said. “If you think of the rest of year, I would say it would be imprudent to assume in the outlook that level of margin expansion. So, I wouldn't say we've included it, but I would say we do expect non-residential to grow and be the driver of growth in the back half of the year, as well. That's the market that's really humming for us.” 

Softness in the residential market continues to wreak havoc for numerous companies in the market. Allegion’s residential business saw a mid-single digit decline in the second quarter. 

“Residential markets have been soft thus far in 2025, with interest rates as the key swing factor,” Stone said. 

Financials at a glance: 

• Net earnings per share (EPS) of $1.85, up 4.5% compared with $1.77; Adjusted EPS of $2.04, up 4.1% compared with $1.96   

• Revenues of $1,022.0 million, up 5.8% on a reported basis and up 3.2% on an organic basis  

• Operating margin of 21.5%, compared with 21.6%; Adjusted operating margin of 23.7%, flat compared with prior year