Allegion provides report on Q3 2022 financial results

DUBLIN – Allegion plc released its third quarter fiscal 2022 financial results on Oct. 27, as well as a revised outlook for the remainder of 2022.

The company saw a net earnings per share (EPS) of $1.30 compared to $1.59 in 2021, with an adjusted EPS of $1.64, up roughly 5 percent from $1.56 in 2021. Allegion posted Q3 2022 revenues of $913.7 million, up 27.4 percent reported and 18.6 percent organically.     

“Allegion delivered a very strong third quarter,” President and CEO John H. Stone told investors at the start of the call. “And as we look at the market dynamics, we continue to see strength in the Americas non-residential sector. Leading indicators for that business like the ABI, and AIA consensus are positive and continue to be an expansionary territory particularly for institutional verticals.” Stone also noted that residential grew well throughout the quarter albeit with signs of slowing market.

Stone went on to say that despite a weakness in some of its markets there was still high demand for their electronics and software solutions. “Allegion delivered record revenue during the third quarter,” Stone said. “This is due to the dedication of our team as we’ve made significant progress on product redesign and other supply chain improvements.”

Regardless of improvements made there was still a “choppiness” in the electronic supply chain according to Stone, it comes because of continued strong demand for those products, reflected in a variety of predictions made across the security industry for the next decade with skyrocketing demand for smart solutions. Allegion has said it will continue adjust prices increases as necessary to account for inflation and other financial measures.

The company said it is, “…revising its full-year 2022 reported EPS to be in the $4.90 to $5.00 range, with adjusted EPS between $5.40 to $5.50. The revised outlook now assumes approximately negative $0.05 adjusted EPS impact related to Access Technologies and associated costs of the acquisition, with the $0.05 improvement to prior outlook driven by lower intangible asset amortization.”

Allegion has said its expected cash flow for the remainder of 2022 to continue to be between $420 million and $440 million. You can find the full third quarter report for Allegion at investor.allegion.com.