Allegion plc

Good morning and welcome to the Allegiant first quarter 2025 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Josh Pokowinski, Vice President of Investor Relations. Please go ahead.

Thank you, Jason. Good morning, everyone. Thank you for joining us for Allegiant's first quarter 2025 earnings call. With me today are John Stone, President and Chief Executive Officer, and Mike Wagnus, Senior Vice President and Chief Financial Officer of Allegiant. 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 two. 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 three, and I'll turn the call over to John.

Thanks, Josh. Good morning, everyone, and thanks for joining us. Q1 was a strong start to our year and I am proud of the execution of the Allegiant team and grateful for the longstanding partnership with the finest distribution channel partners in the industry. This was another demonstration of the resilience of our business model as we expanded our industry leading margins and continued to invest in our business while returning capital to shareholders. I'm pleased with the top line growth in Q1, especially in the Americas driven by the non-residential business. Over the past year, the Americas team produced mid single digit growth and solid margin expansion, which we believe speaks to the resiliency of the model, our broad end market exposure, and the depth of our relationships with channel partners and end users. We continue to take advantage of our business's strong cash generation, returning cash to shareholders, and growing through accretive acquisitions. Our consistent cash flow and pipeline of opportunities positions us well for additional capital deployment that creates long-term value for our shareholders and drives performance through the cycle. We're exiting Q1 with solid momentum, and we're executing our long-term growth strategy while remaining agile. We are affirming our 2025 full-year outlook for adjusted earnings per share of $7.65 to $7.85, and I'll be back later to provide more color on our markets and outlook. Please go to slide four. Let's take a look at capital allocation for the first quarter, starting with investments for organic growth. As you may have seen from our Consumer Electronics Show announcements earlier this year, Schlage recently unveiled its first ultra-wideband solution. The Schlage Sense Pro Smart Deadbolt is set to transform home access, delivering a hands-free unlocking experience that combines ultimate convenience with trusted security for homeowners. Paired with a personal phone, its ultra-wideband technology can understand intent to enter and unlock a door for an authorized user precisely as they approach it. The Schlage Sense Pro will also allow homeowners to voice control the lock and set up automated routines via smart home platforms and devices. We are set to release the Schlage Arrive Smart Wi-Fi Deadbolt, our first push-button keypad deadbolt equipped with built-in Wi-Fi. It provides a simple and secure connected solution that is an easy upgrade for first-time smart lock users and those looking to add smart security to more doors throughout their home at a more affordable price point. Both of these innovative new offerings complement our leading Schlage and Code family of smart locks and are also backed by the Schlage name, which just earned the title of America's most trusted lock brand for the sixth year in a row. SensePro and Arrive are expected to hit U.S. markets later this year. Turning to M&A, Allegiant has closed three bolt-on acquisitions since the start of 2025. In the Americas, we acquired The Next Door Company in February, growing our specialty door solutions portfolio to include new custom configurations for industrial, commercial, and institutional buildings. In Allegiant International, we acquired Lamar, expanding our security and accessibility solutions in Australia. Lamar offers door entry systems, handles, and digital locks for residential and multifamily markets, and its channels and go-to-market approach complement our own, offering new opportunities to scale. On April 1st, we acquired Trimco, which bolsters our non-residential Americas portfolio with premium and patented door hardware solutions that are highly specifiable, ranging from architectural pulls to mechanical locks, latches, and strikes. We see continued opportunities to grow inorganically this year as our pipeline remains active with companies that align to our core and can leverage our channel strengths. As you heard from us on the call in February, Allegiant continues to be a dividend-paying stock. We announced our 11th consecutive increase to our dividend at the beginning of the year. And in Q1, this dividend amounted to approximately $44 million. Lastly, we made share repurchases in the quarter of approximately $40 million. We remain committed to balance consistent capital allocation with a clear priority of investing for growth. I look forward to updating you as we progress through 2025. Mike will now walk you through first quarter financial results.