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Allegion plc ALLE is poised to benefit from strength across its businesses, focus on operational excellence, accretive acquisitions and shareholder-friendly policies. The company remains focused on investing in growth opportunities and strengthening its long-term market position.
ALLE, which has a market capitalization of $10.7 billion, currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.
Business Strength: Allegion is benefiting from strong momentum across its segments. Stable demand across several end markets like education, healthcare, government, hospitality and retail within the non-residential business is driving the Americas segment. The increase in demand for residential and non-residential products also bodes well. The segment’s revenues increased 6.4% year over year in the fourth quarter of 2024.
Increased demand for electronic security products, driven by growing awareness about the security and safety of people and infrastructure, is aiding the Allegion International segment. It is worth noting that the segmental revenues increased 1.5% year over year in the fourth quarter.
For 2025, the company expects the Allegion Americas segment’s revenues to increase in the low to mid-single-digits and the Allegion International segment’s revenues to be flat year over year.
Accretive Acquisitions: Allegion is focused on strengthening its business and product offerings through acquisitions. In April 2025, ALLE acquired Trimco Hardware (Trimco), along with its brands and various assets, through one of its subsidiaries. The inclusion of Trimco’s expertise in specialty solutions, coupled with its strong innovation capabilities, will enable ALLE to boost its door and frame portfolio.
In June 2024, the company acquired Krieger Specialty Products. The addition of Krieger’s expertise in specialty solutions enabled ALLE to strengthen its door and frame portfolio. In the same month, it purchased Unicel Architectural Corp, which enabled it to boost its product portfolio within the non-residential business. Both the acquired businesses have been incorporated into the Americas segment.
Also, in February 2025, it inked a deal to buy Lemaar Pty Ltd. (Lemaar). This acquisition is expected to boost Allegion’s security and accessibility portfolio in Australia. It’s worth noting that in the fourth quarter, acquisitions boosted the company’s sales by 2%.
ALLE Stock’s Price Performance
In the past three months, the company’s shares have lost 3.7% compared with the industry‘s 11.7% decline. Although its shares have declined in the past three months, the stock has soared 23.2% in the past couple of years, higher than the 9.1% growth recorded by the industry.