Allegion plc (ALLE) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 26, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the Allegion Second Quarter 2023 Earnings Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Jobi Coyle, Director of Investor Relations. Please, go ahead.

Jobi Coyle

Thank you, [Joe]. Good morning, everyone. Thank you for joining us for Allegion's second quarter 2023 earnings call. With me today are John Stone, President and Chief Executive Officer; and Mike Wagnes, Senior Vice President and Chief Financial Officer of Allegion. Our earnings release, which was issued earlier this morning and the presentation which we will refer to in today's call, are available on our website at investor.allegion.com. This call will be recorded and archived on our website.

Please go to Slide 2. Statements made in today's call that are not historical facts are considered forward-looking statements and are made pursuant to the safe harbor provisions of federal securities law. Please see our most recent SEC filings for a description of some of the factors that may cause actual results to differ materially from our projections. The company assumes no obligation to update these forward-looking statements.

Today's presentation and commentary include non-GAAP financial measures. Please refer to the reconciliation in the financial tables of our press release for further details.

Please go to Slide 3, and I'll turn the call over to John.

John Stone

Thanks, Jobi. Good morning, everyone. Thanks for joining us today.

My, how time flies. It's hard to believe this time last year, I was joining you for my first Allegion earnings call. I shared then my belief in our company's mission, our people, our culture, and my excitement around this chapter that we're writing in Allegion's history together. One year in, I'm even more energized about Allegion's future and even more proud of our global team who has just delivered another quarter of outstanding operational performance. Let's go to Slide 3 and talk about some of the highlights.

The Allegion team delivered 18% total growth and we drove strong margin expansion. In Q2, we increased margins across the Americas and international business segments, both sequentially and year-over-year, resulting in a 130 basis-point increase in adjusted operating income margin for the quarter. We see electronics continuing to be a key growth driver for Allegion. Demand was strong for our electronic solutions in the second quarter, fueling Allegion's overall revenue growth.