Allegion delivered a resilient Q4 2024 despite seasonality, reporting USD 945.6 million in revenue, up 5.37% year over year and down 2.22% quarter over quarter. Gross profit rose to USD 416.7 million with a gross margin of 44.1%, while operating income amounted to USD 184.6 million (operating margin of 19.5%). Net income registered USD 144.1 million and diluted EPS of USD 1.65–1.66, supported by EBITDA of USD 217.2 million and a favorable tax rate of roughly 11.2%. Free cash flow reached USD 194.9 million, underpinning a robust cash-generative profile even as the company carries meaningful leverage. The company also executed a USD 100 million share repurchase and a USD 403.2 million debt repayment in the period, underscoring a capital allocation strategy focused on returning capital to shareholders while reducing leverage gradually over time.
On the balance sheet, Allegion shows a solid liquidity position with cash of USD 503.8 million and current assets of USD 1.4223 billion against current liabilities of USD 696.9 million (current ratio 2.04). Total assets stood at USD 4.4878 billion, with goodwill and intangible assets totaling USD 2.059 billion. Total debt was USD 1.9995 billion, yielding a net debt position of USD 1.4957 billion. Interest coverage stood at ~7.3x, and the company generated USD 219 million of operating cash flow versus USD 24.1 million in capital expenditures, producing a meaningful free cash flow yield. The quarterly results reflect a business with healthy profitability and cash generation but with construction-material cyclicality and leverage that warrant close monitoring.
Looking ahead, absent explicit management guidance in the provided data, investors should weigh continued demand for security products across commercial, institutional, and residential markets against ongoing macro headwinds (rates, construction cycles, and competitive dynamics). The near- to mid-term outlook will hinge on the pace of project activity in commercial facilities, price realization, and the company’s ability to deleverage while sustaining cash returns to shareholders.