ALLE - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to the Allegion's Second Quarter 2024 Earnings Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Josh Pokrzywinski, Vice President of Investor Relations. Please go ahead.

Joshua Pokrzywinski

Thank you, Jason. everyone. morning, Good joining Call. for Allegion's Quarter Second Thank us Earnings XXXX you for With and Financial Stone, and John me are today President Senior President Allegion. Mike Vice Chief and of Chief Officer Wagnes, Officer; Executive

Please earnings be we refer on recorded on presentation our and which and are investor.allegion.com. at website. today's will issued this archived to earlier Our morning go release, This X. the website call in to Slide available was call our will

The facts securities are Today's call made to these recent today's of that for see refer description financial historical of company factors a assumes cause and our and safe to are presentation in of to our for forward-looking the release made are actual the financial considered not results that no forward-looking pursuant the update harbor projections. Statements differ measures. statements statements. tables include provisions press law. most the our materially non-GAAP commentary in to Please details. may filings some of reconciliation obligation SEC federal further from Please

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

John Stone

markets, this year and full I'll presentation. Thanks, through with some can each the walk sum and our and updated morning, briefly of on today. X these and the That's results. share later for these joining I was Josh. that this in that team our highlights QX call words: partners. of then more quarter record drove entire the everybody. Good we'll up strong And Allegion team Thanks for strong Stable execution the execution. quarter by distribution channel outlook,

our given demonstrates We market expansion and our business model. demand expertise. stability Allegion QX see revenue growth margin specification the exposure broad in resilience and of

the And a helped to continues areas return expected, institutional and centers, see seasonal new to volume in investments saw data sequentially electronics and and further over our team quarter QX. own growth in strength product bump as like by we development. Our markets a in

are and to X We're values, for guidance the investing into share, to returning for flow while available capital Unicel per a results revenue Krieger shareholders our I and reported We've acquisitions. we're the announced already proud raising accelerating heading how acquisitions team year QX. affirming and Slide adjusted am and driving earnings half, deployment, is year our level. second cash X. with and we're at very We our living Allegion our Please executing outlook. Overall, of go in Products shareholders. high customers cash full our this Architectural in accretive Specialty

allocation business to advantage shareholders for continues pursue balanced, cash Allegion consistent capital the drives. generation strong take the this of and benefit of to

to of investing are lock April, We a easily status users indication organic solutions, of new trims best-in-class more X that Schlage with allow In we the introduced see door. for growth. lines portfolio a

Developed mind, new K-XX Combined, backgrounds. valuable every have unparalleled education largest fire-rated differentiated X blind quick for and locks XXX-degree matters and specifically it the when features resistance and on durability peace applications resource with functionality these and schools that some teachers to They tamper when are mind providing counts. Grade for most administrators offer their our higher views. friendly security doors addition market in indication needs the in windows of and second time, most color confirmation secured, allow and of

stock. dividend-paying a be to continues Allegion

metal a Krieger range returned bolt-on used health We halls with complement centers, including applications. expertise in care. QX, and X manufacturer Krieger concert this million in cash closed portfolio acquisitions are acoustical, quarter, region and door highly products in wide frequency a data government hollow high-security, thermal shareholders. Krieger facilities, Architectural. approximately engineered, specialty to and of radio is agencies, to our in and Unicel Specialty in our Americas the leading For Products amounted $XX

natural Unicel of our Both markets. This efficiency and is fast-growing that glass is and that sustainability privacy, will core a expand energy Access systems writing wall door of safety, business across institutional niche Krieger a our Unicel of leading window key portfolio TGP, the extension our systems manufacturer portfolio verticals capability advanced support with nationwide for AD sales Systems products benefit of Stanley strength and footprint. and Technologies. spec from and

valuation employees cultural very made, these the pleased teams the rates We're growth they On we've overall that EBITDA come low and businesses with to price in bring XXs. the represents a Allegion XXx combined to the that EBITDA. to strong Total management Allegion. XXXX with We're fit margins carry great Allegion-like recent a have excited basis, board a acquisitions on are of and approximately purchase accretive future.

cash the quarter, in on I'm to to allocation repurchases invest Allegion and approximately happy that shareholder-friendly balanced million. here business return share continues we the with $XX core, grow amounting see made the the the and to shareholders. Lastly, and capital additional slide, in you

financial you quarter and to Mike and provide second our update thoughts. results, back walk now be the will final an through outlook on I'll some

Michael Wagnes

today's you to good John, for everyone. Thanks, morning, Slide call. #X. go and Please joining Thank

As performance our from John shared, QX Allegion team. the results entire solid reflect

both to with continue high price margin and level, delivering strong a execute another of expansion mid-single-digit top at growth, driven volume. line We quarter by

very driven the leverage. increased margin and adjusted XXXX. respectively, and pleased by favorable increase QX $XXX.X expansion excess both and a volume. as and revenue inflation We regions. execution and in quarter of price X.X% points, Revenue increased million, XXX International to strength for Americas in productivity margin was result XXX basis margin adjusted Organic of operational our as of volume investments, price EBITDA operating compared favorable the with and the X.X% second saw as in and quarter by XXXX. an I'm well across

prior operational $X.XX share more per than interest of higher the earnings favorable Adjusted and deployment $X.XX headwinds capital and tax. accretive or versus offset the XX.X% increased performance, approximately year. Strong from other,

later and provide Please presentation. I Slide our go details year-to-date year. flow Finally, available million, decrease cash in which little on #X. $XXX the will XXXX more to flow cash X.X% versus a sheet was a last was balance

This Organic of in regions. revenue to slide of here, will price overview quarter, X.X% and realization revenue. comprised enterprise provides I before results volume X.X% of the review grew our X.X%. respective quarterly an our of growth turning the

mentioned last I we quarter, XXXX we versus what business year. experienced to in seeing last seasonality the return are expected As

John earlier, discussed our we're accelerating As both growth capital have and in deployment inorganic segments. investments and in International made Americas

to drove slight Slide go acquisitions result, a point the a #X. Please reported in to X.X%. quarter. was As almost bringing of growth X headwind, growth total Currency

and segment quarter. X.X% Reported basis organically favorable and X.X% growth Unicel. the and operating acquisitions Our in revenue Revenue a of strong of reported X% in as volume QX. from on the Americas includes million up result of delivered price up results was $XXX.X Krieger a

markets end stable. business, Access nonresidential inclusive in of Our increased the quarter mid-single digits Technologies, remained as

business residential showing digits single the was the declines Our quarter, improvement an low in in up versus QX.

region Demand for strong. in electronics Americas remained our

through was low both a comparable, against the team of and in respectively, another delivered and to were million grown growth revenue Please line up tough as execution. adjusted operational years operating quarter. quarter adjusted expansion down $XXX.X price the year-to-date. and in EBITDA and the the points, strong investments. our has go Americas' for quarter productivity of versus drive increased digits over the margin strong basis excess XXX electronics well Slide we solid top XXX quarter margin our Adjusted continue single due period above Americas #X. inflation to year XX% and for to margin income X While business last and operating Overall, prior X.X%

quarter. up basis growth up Our and on drove million solid was $XXX.X by X.X%. tailwind X.X% second in year. a Boss in organically. headwind of and business and strength Acquisitions X.X%, by the this quarter, had the was International however, were acquisitions segment a positively X.X% our a impacting quarter. reported the reported a driven Currency, realization DORCAS of earlier Price Revenues electronics this announced revenues

Adjusted increased as operating prior acquisitions. income increased as points. versus for margin margin adjusted adjusted XX.X% accretion margin both well are EBITDA period. million margin to the mix #X. of from quarter basis go operating and Slide expansion, Volume International driving Please the and XX the favorable $XX.X our year

this in came prior $XX.X million, $XXX versus growth did the at quarter down We see Year-to-date cash second million year. available year-over-year in the flow year.

lead benefited chain was first as However, the supply half strong it particularly of XXXX reductions. time from

of as driven result revenue as of collections increased and year. of revenue within working percent primarily a by the the a prior the higher receivables timing Next, capital versus quarter

has EBITDA our note and $XXX to net adjusted consistent quarter, ratio debt XXXX. of at include finished the proceeds second our issuance is remains a X.Xx, the but repay gross end to impact EBITDA with gross used senior to $XXX Finally, back noting worth senior adjusted resulted of It debt our from in cash a the of balances This million adjusted healthy will which in where we in that debt half note the maturity net on at million second EBITDA. a the slightly quarter, higher XXXX. to debt be no

strong and John. flow generate our over to continued sheet the continues cash to business balance now deployment. will back capital I call hand Our supports

John Stone

to income increasing earnings adjusted on We're Thanks, available revenue outlook operating and in and our flow. revenue, tightening go share EPS, adjusted Allegion cash organic is XX. and range year our full Mike. track year adjusted affirming Please on record for reported XXXX. Slide per full revenue

up by and We growth now business. X.X% our to segment led expect X.X% the nonresidential X% be to organically, to Americas total X% for

to to X.X% X.X% a X% organically to on range All we ends we're point to in software. tightening expect including up range company, solid total X.X% X.X%. on International, Organically, growth raising start in for For based to the year, to the particularly by X.X a be X% a revenue and of X.X%. we electronics are to in both the X.X% to total,

a we by Based and share operational the of increasing quarter $X.XX deployment, per earnings second $X.XX our performance in on are strong adjusted our $X.XX. to outlook capital to range

the on affirm $XXX Slide million. $XXX to to our outlook go in be available million XX. we Please of range flow cash to Lastly,

to to at years lucky want supply and to into reflect. very are have a Now great record team We I X business. and and take margins. disruptions a and my humbled feel chain into moment inflationary now revenues overcame and Allegion, very such up role stepped putting I

ramping new X smoothly have and factories safely. We up

Gallup proudest Allegion largest successfully say achievement with business Allegion's earlier that additional acquisition earned I an my X in Award, And would the far. and our have have year, so integrated Workplace Exceptional probably bolt-on this further with history moment We is the we grown acquisitions.

it's macro outside it step you'll whether Allegion, the resilient strong discussion data well ago or proposition growth starts as and at business Fed of. of policy regardless customers shareholders. complex which and is that and with It the problems part a and engine as end segment running opportunities nonres always reward front user moment, today. spec further was a solving to X the market end as years a our to chain find helpful a reflecting drive supply It's inflation for model, With value and they're

Plugging grow. and as access this like spec Krieger niche into and in additional help engine bolt-ons to heightened their them creates channel Unicel bring products value, we strong

Our margins of hallmark a strong at culture execution the Allegion. are of industry-leading

We long-standing through on record have a success that price and has productivity track the cycle. durable returns created of

construction of broad mix and and to end business. aftermarket our exposure and resiliency portfolio Allegion's of market new adds the further

framework $XXX allocation Our million on M&A capital flow of us cash shareholders. consistent to and approximately capital deploy allowed to accretive directly balanced has return through of year-to-date

In summary, partners of XXXX. are share team shareholders, revenue strong higher capital margins our per the for channel expanded QX entire drove which for and execution by supports and outlook stable and Allegion results. our benefit and demand We deployment our accelerating earnings the record

With that, to Q&A. let's turn

Operator

first Our from from question [Operator Tim Instructions] comes Baird. Wojs

Timothy Wojs

question, you of color Americas. seeing could on Maybe little us what just, the of if business on a bit you're side just give the within spec maybe first John,

around anything from And what markets. end kind and on construction specific activity. of that color you're sort guys on Just variances then of like maybe be seeing quoting you remodeling releases, and seeing might any new and

John Stone

by been outset channel we have a pretty Yes. and what just there. the Appreciate teams in our that field demand with much really out sales environment, the call, I in, what question. and would and said our stability Thanks, institutional distributors, at we're think the the Tim. stable And driven users checks segments the indicate would end we recently,

always specification the said activity remarks. just is the in on, we I it prepared think the way

they And to writers our have to. whichever the need flex that spec capability whichever job to vertical,

can an spec center, So whether building, a data writers school, all. it's university, it a a it's whether office our hospital, do a

that so flywheel a just doesn't that of stop. And as think

like I'd like just a us the think for outperform there's which looking strength of depending and market. our environment, and vertical of demand stick strength, we've in certainly stable or ebbs demand you weakness, quarters. would But we with side, just few general, will feel the differentiate on you're and and at. say -- the we'll I execution we the flows, where That on our pockets saying been pockets are last

Timothy Wojs

Okay.

has And historically, represents just of activity uneven helpful. a basis? that an function closed the just should to clusters kind just in of Allegion of and you've a pace It's That's Okay. pace M&A, And activity of I'm more forward in is investors lot And say, I'd going cadence in much perspective, asking the annualized M&A more then what I'm the M&A of underlying Allegion. been of of or from change come your X should year-to-date wondering on kind at if of we tuck-in a that acquisitions if expect past. regular timing where a on start kind again. really, is, think about kind for

John Stone

orienting a to talked appreciate I we Every we've in little that to would acquirer the that. first a buys of be really don't indication Americas this to We EPS to bit, chute. accretive want Allegion recently. And to I valuation We want stepped to want acquisitions accretive customers. to serial with one to our looking that want acquisitive. shareholders. were anything. pleased in want it's the We are our we I bit that the way We a wantonly kind in want the on a And an We just of back are gave the of about Tim, here portfolio great become bring and seat, to acquisitions we have We returns to towards at and reinforce, benefits talked say I'd right more strategic. to our growth. out have that little complement year. Yes, be very We do strengths. play our just question, tucked

going -- would X the activity, be or the my life opportunity. see than changing the acquisition, year is And so so say for its ago. to own terms of it timing a of of don't near it We we and would going would environment in view be deal, a is term, better is be each is. do a I on take and good to what view like each pipeline But strategics that was see in our Allegion

So couple can forward I from seen seeing quarters these last to think Allegion. more you look like you've

Operator

Ritchie Joe The Sachs. next question Goldman from comes from

Joseph Ritchie

margin start you in going key just It's on seen I'm Maybe on some levers? Especially off. of time. that margin-dilutive Tech in Americas can the we touch sustainability that given margins business. wondering And forward, to best the mix coming about the we've have through the Access margin what impressive, are

any helpful. provide can forward so you be would on color the that And go

Michael Wagnes

about Thanks for talking We've been for question, Joe. this the time. some

quarters dynamic productivity shown to now. manage Our to it, ] in inflation. we drive many inflations to productivity net investments. is a our fund over drive we us. business, pricing going that We're And aggregate, price way We've cover that for and the positive [ investments

to that continue. expect We

that From very it's a sticky. pricing business, perspective nonres in the Americas,

And margin productivity have, of DNA we feel continue. about we the resiliency So that to that profile. we the that expect comfortable

that to temporary So chain driving and from you in that to where over I kind a challenges, us good I that of would maintain expect decade, you've to maintain we these we're going see. think had decline here, margins. productivity that behind us last supply price be in 'XX now And There 'XX we're us expand and Allegion the and think known place. where margins was of that's and

Joseph Ritchie

the side commodities the the we like as do And your curious seeing have are That's cost just point, you equation the I'm year. deflate see maybe commodities? in seen helpful. year? we start evolving you of And what progress that to how through core Yes. some John, along just

John Stone

And extreme sure, a It's rather of I for not 'XX, volatility good Yes. in say 'XX. we question, of I'd And it's lately, Joe. dampened. event. think had much kind volatility, some been an has That

range then parts for a business I us the that's are but of to projects down, need it. host mentioned, And or that drive productivity factories. pipeline factories within on up to in whole a blips got of the either generally think productivity X the more pretty side. concerning inflation new we've that our as raw way, exciting mat You in going and up see ramping a deflation of little not And again, Mike couple

raw has So don't I'd the enough say mat been recently. stable We horizon. see on dramatic anything

Operator

The next O'Dea Joe question comes from Fargo. from Wells

Joseph O'Dea

the on of first in quarter volume growth start you Can couple this a is I International side, think years. the of

the in into for on we the expectations have just of half that so And terms as of what confidence there could and move year. back seeing volumes expanding you're turned, things and

John Stone

Yes.

Joe. So over in dying to there it's pruning We've they've for to on been International, the to asked of I'm businesses. would your extremely underperforming couple International question, been exit call couple performing great well. a attention think years, been glad some past you brag the of we us. I a chance just because has intentional

range markets, in quarters Those after volume growth many So made forget very International. businesses positive been in continue here acquisitions contributing have recently in strong end well. Portable on remained Security, favorably electronics QX. in single-digit has to as then for The solutions say many, software to not our high demand the The and outperform. And even turned International that. of tough let's I'd

would a great addition in strong demand and really So job really our X.X teams. on performance managing say well. been strong the and tough happy for our as year, going electronics mechanical in continued of International ton by software and on, side there's work to of just They've self-help turned positive them. I the environments, margins volume past that a done over years Overall, business

Joseph O'Dea

get on And in I also, Americas. then views your institutional wanted to

the soft. there of some when we contrasting data Momentum, look institutional maybe kind points Dodge looks at out think I

forecasts out new had institutional it's AIA I XXXX, come for the up we think actually X%. with got recently

So good. pretty

back in on So on of Momentum, and activity. guess when see overall of you direction you I spec about at look you terms sort when activity, institutional, you spec Dodge anything peel headwinds just based there tailwinds, understand if

John Stone

that leading a certainly, -- question. And watch same have pretty the indicators you it's been the good Yes, They we volatile. referenced.

would have than of I segment negative our less a general, segments. It's time stable. parts in Some of commercial a now. for long, institutional say, view has the volatility long maybe been would them flashing more bit be

make or year-to-date that prior XX% about ABI And to I period, and look an bond Dodge it which something is like versus wouldn't issuance, municipal Dart funds, else which up that. goes into think maybe budgets at year school is to a things

a Just aftermarket of else about what's in think like to but still the expansion new and We it's of from driving the maintenance, the type going feel or on. level. takeaway, beginning or terms remarks executing is something construction activity stable at that's activity, best see the very Joe. headline say high the prepared I'd we're we whether repair demand,

Julian Mitchell

a EPS Maybe first the just question the guidance of operations on kind tailwind. around

that, you growth is high So raised guide the and the the I unchanged. organic low end think, at end,

just that us Any the cushion conservatism some guide in in moved of on don't you year? there year, and that So point a what around move that? kind Given cost of for just inflation? help expectations on understand terms Was of please, that, operating the we're something help at why the up moved did has around say, of, maybe need anymore? halfway kind

Michael Wagnes

Thanks Yes. Julian. question, the for

it, half, we're mentioned front. doing the on been it earlier talking the at margin and look first we've well to earlier our about question. I you quite If And

we progress. that we've to price we and the margins, driving control productivity, actions push feel made Just good and can

really we well. performance the the tightened has So margin although we organically feel guide, performed that

see, And our performance. you raise so in did we operational as $X.XX, a

Julian Mitchell

we locks see understanding in follow-up residential how not seems then question side outlook, And the be I is would about you're to Maybe that second market. there consumer my of weak result though very great. around quarter. about if a that the update That's think, more just sort discretionary broadly, feeling discretionary. positive The maybe think that surprising, us just

the expectations So for ahead. on resi maybe just color some year

John Stone

going Julian, super of in couple And this res. is on insightful think That's different question. a things John. I a

levels, really depressed of a kind right. sales are pace. maintained completions Housing home You're really levels. secondary at has decent low

some from better So some are still we're hearing Interest growth rates, national quite high sentiment mortgage builders. large though, activities. depressing rates

half all sum up, business really you has how first the feel we So our that resi of the executed about year. good

a environment then that outlook relief a be That flattish being of contemplating. is would a a interest bit waiting And And what of us. said, rate a still positive in to outlook, market we're think the the cautionary is for any definitely for. what be I broader seems bit

Operator

Brett from The next Mizuho. Linzey comes question from

Brett Linzey

a great quarter. on Congrats

John Stone

Brett. Thanks,

Brett Linzey

performance, did markets, the stack are electronic Just than to better you institutional, verticals? across the the Or expected. the that of versus question different broader locks adoption little the better? The multifamily, you accelerate in of commercial end I improvement a QX. on mix Would just X-year seeing attribute some softer; a so

John Stone

a still strong, et still conclusion. say, broad-based, Yes, back looking It is multifamily, is demand [ really Brett, good 'XX, in strong. through cetera. And the is relevant adopted electronic in cetera. to tail would office, we've is of first you health stack. ] see with those that adoption. dealt is it chain of other is broad-based adopted locks et care, and being given being The comps at question. disruptions education, the half We supply it's appreciate talk Demand I commercial the It X-year the I and

now And convenience, think credentials, our increasing still the is of right are the smartphone as seamless of leverage one point which and well identities safer of the of both key growth the middle drivers just the digital is digital that access credentials, the security strategy. underlying world I as the mobile up access wallet,

out flat a or their card to of from You and smartphone inbound is a key natural that persona. large of these days, carry a plastic -- just extension customers hear things refuse university ours students

in really still good in Allegion our as And in as here in and work is can I adoption. to a doing the electronics space terms technology, leading that we're doing results. demand and continue growth there position tailwinds we're credential of and feel see drive software, So in our well hardware, like the work the

Brett Linzey

That's I it's that great. new understand lose But at sales you versus construction a lock metrics. some through you on then versus whether And point any new the categories or you granular aftermarket color just some between aftermarket. other had it of the just performance could how glean follow-up on curious if track channels. performed through,

John Stone

Yes. It's most good precision think question, numbers. X describe think way a XX-XX I roughly mix, not those that Brett. are And accurate still us and of pinpoint as that the -- XXs a as can we

You're right, selling through distribution and, in goes. the probably some cases, that it X-step where where are distribution, also depends you do Americas. And on lose sight you of exactly say would in I

If place in more construction migration, a you're net a a new is XX% now. Florida, where or probably there's than right like Texas

mature more it's some about in or it's on more heavily say of whichever Midwest still appropriate to us a regions, why you're That's or think and mix. balance I'd weighted maybe, aftermarket. XX-XX towards aggregate, Northeast in If markets, as

school to a campus, I yourself business in The spec makes once is institution, say really aftermarket et cetera, large that university thing you other district, that sticky. would that

And fix, on repair electronics upgrading expansion because years after some just so prevalent. model electronic early that's a is break, adopters quite tailwind important X maintenance, X, of to the locks side locks wing now another recent or And installing replacement we're whatever seeing ago. like-for-like, new

these also a showing faster days. So cycle is up replacement

Operator

MacGregor from David comes question next from Research. Longbow The

David S. MacGregor

Pretty solid quarter.

So congratulations there.

John Stone

very Thank you much.

David S. MacGregor

months. guess I talking be we're about tariffs few to more a next the Yes, here going little over

what sourced could changed of COGS around? the last terms what's us was your you percentage to just now outside tariff since in if wondering And of of was reshoring time burden suppliers? be America? would what American North North earnings remind And I So maybe

John Stone

has Mexico. not I'd that well. Querétaro, company near-shoring company like down. say see with say John, That's you Allegion. Mike global start. tariffs not are back I'd Allegion, is new But right? David. to Yes. the -- Tough helpful, this invested Allegion any We'll that helpful The ramp-up if to to break call our add, all general like going factory in anything to is for a in would I'll I in

And between They're on are Great safe. just people our are campus Our our quality. are and like down that lot The team through manufacturing the a that's a we manufactured we have. numbers focused in culture coming products, of for there. great residential and thought. Baja area Querétaro

I'd resilient chain our and outsourced did say be terms our used supply some in to derisk made significantly supply more in that China. chain, product that investment supply of single-sourced

can and acquired produce product that we've so we now. to And want wherever the we IP,

have that we the own design. since flexibility We

well obviously, the sourcing close lines, supply As home. as to shortening

would the to Mike, the investments I to resiliency, have and not evolve. any that regimes. think tariff is say to chain I of are now terms speculate policies see time need really We But and kind supply of the the wait in future just how months delivering XX over we've results so add? anything made very past or been well like the placed you'd we'd see. about

Michael Wagnes

Yes.

in you is most really in think nonresidential If you the sell, business, manufacturing large Americas Asia the to have do of in well. of business we here it we but U.S., and in our sold as a the we're So here mentioned, operations if over If United to John manufactured our remember, that it some right? We have shipping supply tend manufacture we don't Mexico, tend David, as region make chain we it's product where States. our here. in

David S. MacGregor

Got it. and just channel wondering of business, obviously space? And inventory I just not a the terms specified as follow-up, in in the in you're retail seeing the inventory what guess, but commercial

John Stone

environment. Yes, it's our made-to-order distribution channel a question, we in And and think I operates a good operate David.

whatever, market. not lot -- ordered choice that's hold inventory, model, where to that unless rarely so SKUs channel hold to does want or of a unique provider just our And they a business their specific of general, will in be to some, particular in distributor their

patterns So Ordering X-week progressed that to down back range X- adjusted times XXXX to. our is of I think. over channel of used for lead most have the well, our products pretty the course to

feel I on like so And what normal as internally like feel you just kind I more to we QX, the environment that's similar inventory guess Allegion's I a back is, side. And with would how of saw QX think well. to seasonality

year. I are good think up about working feel good there. this inventory that, own modestly discipline capital turns our We

is feel sense my our channel So same. the would

Operator

no conference are over This session. turn There remarks. Instructions] for closing queue. the to back I [Operator would our like to more in any concludes the Stone, questions President question-and-answer and CEO, John

John Stone

much, time. joining. your Thanks everyone, for very Appreciate

summary, feel Allegion execution out, I and it's the days marketing QX. everyone. by Allegion's team. team the would best what I revenue how industry. sales the in think probably proud worth in are Thanks, our and call of demand, and feel, field still in strong entire ahead. QX is Very to Very organization of proud distribution best EPS stable like we channel executed definitely And they've And results.

Operator

conference now Thank presentation. for concluded. attending The has today's you

You may now disconnect.

Allegion (ALLE) 24 Jul 242024 Q2 Earnings call transcript