Allegion up 26.7 percent in Q2 revenues compared with 2020

DUBLIN—Allegion plc, a global provider of security products and solutions, reported second-quarter 2021 net revenues of $746.9 million, a 26.7 percent increase when compared to the prior-year period (up 23.8 percent on an organic basis).

Excluding charges related to restructuring and acquisition and integration, adjusted net earnings were $119.3 million, or $1.32 per share, up 43.5 percent when compared with second-quarter 2020 adjusted EPS of $0.92.

“I’m encouraged by the robust customer demand and solid results delivered by our business in the second quarter,” said David D. Petratis, Allegion chairman, president and CEO. “We continue to see the benefits of the newly formed Allegion International reporting segment, including Q2 growth in the core business, strong execution and focus.”

The organic revenue increase was driven by strength in both the Allegion Americas and Allegion International businesses, buoyed by strong demand and the favorable comparable from last year’s COVID-related shutdowns. Reported revenues also reflect benefits from foreign currency that more than offset the impact of divestitures.

The Allegion Americas segment revenues increased 23.7 percent (up 22.9 percent on an organic basis). The non-residential business was up high-single digits percent and the residential business experienced growth in excess of 70 percent. The organic growth was driven by strong demand for residential do-it-yourself and new construction products, as well as an increase in spending on non-residential discretionary projects. It also reflects the comparative impact of lower volumes, in the same quarter in 2020, caused by COVID-related shutdowns.

“Our Allegion Americas business experienced continued strength in residential, and non-residential returned to growth, driven by retrofit, repair and small projects,” said Petratis. “I’m also pleased with the growth in electronics and the margin expansion our company delivered against macroeconomic challenges like increased commodity, freight and labor inflation, as well as shortages in parts and labor.”

The Allegion International segment revenues increased 36 percent (up 26.6 percent on an organic basis), reflecting strong growth across all its major geographies and businesses. The organic growth was driven by continued recovery in end markets and includes the impact of comparing against last year’s COVID-related shutdowns.

Second-quarter 2021 operating income was $145.4 million, an increase of $48.9 million or 50.7 percent compared to 2020. Adjusted operating income in second-quarter 2021 was $146.2 million, an increase of $35 million or 31.5 percent compared to 2020.

The company is raising its full-year 2021 revenue outlook and now expects reported revenue growth of 7 to 7.5 percent and organic revenue growth of 5.5 to 6 percent, when compared with 2020, after excluding the expected impacts of divestitures and foreign currency movements. The company is also raising its outlook for full-year available cash flow to approximately $490 to $510 million.

“Global macroeconomic indicators and construction indices continue to be positive, and demand has rebounded faster than anticipated,” Petratis added. “This heightened demand has led to global supply chain pressures that will temper the pace of recovery for the remainder of the year. We have stepped up our strategic investments and partnerships and believe those actions, paired with our demonstrated abilities in supply chain management, position us well to emerge from the pandemic strong as the market migrates to seamless access solutions.”