Allegion beats Q3 estimates, raises outlook

* Allegion press release [https://seekingalpha.com/pr/20276764-allegion-nyse-alle-reports-q3minus-2025-financial-results] (NYSE:ALLE [https://seekingalpha.com/symbol/ALLE]): Q3 Non-GAAP EPS of $2.30 beats by $0.06.
* Revenue of $1.07B (+10.6% Y/Y) beats by $20M.
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The company is raising its 2025 full-year revenue growth outlook, which is expected to be 7.0% to 8.0% on a reported basis, and is maintaining the 3.5% to 4.5% organic growth outlook, 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 outlooks. 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 Aug. 18, 2025.

The company is raising the outlook for 2025 full-year EPS and expects it to be in the range of $7.45 to $7.55, or $8.10 to $8.20 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, partially offset by $0.10 per share for a tax benefit related to a legislative change.

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

The company is raising the outlook for full-year available cash flow to be 85% to 95% of adjusted net income.

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