Allegion Raises FY2025 Adj EPS Guidance From $7.65-$7.85 To $8.00-$8.15 vs $7.84 Est; And GAAP EPS Guidance From $7.05-$7.25 To $7.25-$7.40 vs $7.43 Est; Expects Revenue Growth To Be 6.5%-7.5% And 3.5%-4.5% Organically

2025 Full-Year Outlook

(All comparisons against full-year 2024, unless otherwise noted)

The company is raising its 2025 full-year revenue growth outlook, which is expected to be 6.5% to 7.5% on a reported basis and 3.5% to 4.5% organically, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements.

The company estimates tariff costs of approximately $40 million in 2025, which are included in the reported and organic revenue growth outlook. The company expects to offset tariffs at the operating profit and EPS level on a full-year basis, primarily through pricing actions. Accordingly, the company's 2025 full-year EPS outlook includes the impact from tariffs enacted as of July 22, 2025.

The company is raising the outlook for 2025 full-year EPS and expects it to be in the range of $7.25 to $7.40, or $8.00 to $8.15 on an adjusted basis. The outlook continues to assume a full-year adjusted effective tax rate of approximately 17% to 18%.

Adjustments to 2025 EPS include estimated impacts of approximately $0.60 per share for acquisition-related amortization, as well as $0.15 per share for restructuring and M&A.

The outlook assumes an average diluted share count for the full year of approximately 86.5 million shares.

The company expects full-year available cash flow to be 85% to 90% of adjusted net income.