Allegion sees ‘resilient’ non-residential market, ‘soft’ residential market in Americas

DUBLIN—Allegion reported a strong Q3 2025, supported by what CEO John H. Stone calls a “resilient” performance and steady aftermarket demand in the non-residential market in the Americas, even as residential markets remained “soft.”  

Allegion’s Americas segment delivered strong operating results in Q3, with revenue of $844 million - up 7.9% on a reported basis and up 6.4% on an organic basis - led by its non-residential business. 

“Q3 was another strong quarter as we execute our long-term strategy and steadily deliver on our commitments to shareholders,” Stone told investors. “I'm proud of our team's performance as we've remained agile in a dynamic operating environment.”  

Overall, revenue for the third quarter was more than $1 billion - an increase of 10.7% compared to 2024 – and organic revenue increased 5.9%.   

Residential market remains soft despite product momentum 

Although Allegion’s residential business grew mid-single digits in Q3 - primarily driven by volume associated with new electronic products launched in the quarter and pricing - overall market demand is still considered “soft,” consistent with year-to-date growth rates. What’s the outlook for Q4? 

“Think of market demand consistent with year-to-date growth rates for residential, which is down slightly,” said Michael Wagnes, senior VP and chief financial officer. “So, as you think about the fourth quarter, we would not expect a mid-single-digit positive growth. We would expect it more in line with market demand, which is that softer residential market that we're in.” 

Capital allocation and M&A  

Stone detailed Allegion’s capital allocation in Q3, starting with investments for organic growth. He highlighted September’s launch of its mid-tier commercial product line for Schlage, Allegion’s Performance Series locks.  

“These locks bring Schlage quality to more price points in non-residential applications, giving us more ways to win in the aftermarket and building on the success of the mid-price point Von Duprin 70 Series exit devices released last year,” he said.  

In addition, Stone lauded Allegion’s M&A activity in the third quarter, adding U.K.-based businesses UAP and Brisant to its portfolio, in addition to the acquisitions of ELATEC, Gatewise and Waitwhile earlier in Q3. 

“These businesses strengthen our product portfolio - including electronic locks - in addition to enhancing our cost position,” he said.  

Confidence in strategy and capital deployment 

Stone reaffirmed Allegion’s disciplined approach to growth and capital allocation. 

“Our performance is led by an enduring business model in non-residential Americas, double-digit electronics growth and accretive capital deployment as we acquire good businesses in markets where we have a right to win,” he stated. “You can continue to expect Allegion to be balanced, consistent and disciplined with capital deployment over time with a clear priority of investing for profitable growth.”