Allegion plc

Good day and welcome to the Allegiant second 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 presentation, 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.

Thanks, Jason. Good morning, everyone. Thank you for joining us for Allegiant's second 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.allegiant.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 and 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. Q2 was a strong quarter, once again demonstrating the agility of our team, durability of our business, and execution of our capital allocation strategy. We also achieved an exciting milestone. This was Allegiant's first quarter of revenue in excess of a billion dollars, and we certainly don't think it'll be our last. I'm very proud of our team's performance. The high single-digit America's non-res organic growth and continued segment margin expansion speaks to the resiliency of our business model, our brought-in 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 our business through accretive acquisitions that complement our core and create long-term value. Midway through the year, our team's strong execution and continued demand momentum in our core non-res Americas market gives us confidence in our full-year performance. We're raising our 2025 full-year outlook for adjusted earnings per share to $8 to $8.15. I'll be back later to provide more color on our markets and the outlook. Please go to slide four. Let's take a look at capital allocation for the second quarter, starting with investments for organic growth. As you may have seen at our recent Investor Day in New York, our Simons Voss business continues to be a great success story for Elysian. A known pioneer in our industry, Simons Voss is a leader in electronics, leveraging the global long-term growth trends we see across security and access. Most recently, Simons Voss has introduced a new portfolio of products called Fortlocks. which is launching with some of our key Simons Voss customers this year. FortLox is Allegiant's first batteryless electronic cylinder, offering customers the high quality and ease of use that Simons Voss is known for, and now without the need for a battery to power it. It's an incredible evolution of Simons Voss technology that expands applications and market segments that we can serve. Turning to M&A, since we spoke at Q1 earnings, Allegiant has announced four additional acquisitions, Novas closed in Q2, while Ellatech, Gatewise, and Waitwhile closed early in the third quarter. I'll spend some time on the next slide discussing these recent additions to the portfolio and how they support our long-term growth strategy. Elysian continues to be a dividend-paying stock, and in the second quarter, this amounted to 51 cents per share, approximately $44 million. And lastly, we made share repurchases in the quarter of approximately $40 million. We remain consistent to balanced We remain committed to balance consistent capital allocation with a clear priority of investing for growth. Please go to slide five, where I'll discuss our recent acquisitions. These acquisition categories should look familiar to those of you who tuned in for Investor Day. At that meeting, we outlined a capital allocation strategy that takes advantage of Allegiant's demand generation model, channel and distribution strength, and solid relationships. This framework also includes growing our portfolio with additional electronics products, as well as software and services that differentiate our hardware and security and access environments where Allegiant has a right to win. Starting with additions to our mechanical portfolio, Allegiant recently completed the acquisition of Trimco in the Americas, which we announced prior to Q1 earnings, and Novas in the international segment. Both of these businesses leverage existing go-to-market channel strength in their respective geographies, while broadening the high-quality hardware offerings we provide to our customers. Trimco expands our accessories portfolio in non-res America's markets, while Novos adds to our residential offering in Australia. Moving to our electronics portfolio, Allegiant closed our acquisition of Germany-based Elitech in the third quarter, adding to our international segment. Similar to our existing electronics portfolio, Elitech has an attractive growth profile in the high single to low double-digit range with strong profitability. Elitech's readers and credentials bolster Allegiant's electronics portfolio globally, including in the US, and expands our reach into new applications and customers. Lastly, we'll continue to look to acquire complementary software and service businesses that differentiate our hardware, and drive adoption in security and access environments where Allegiant has a right to win. Our two most recent July acquisitions highlight this. We added GateWise, a software-as-a-service provider that offers a modern and retrofit-friendly gate entry system for multifamily communities. This business is a hand-in-glove fit with Allegiant's electronic locks and Zantra multifamily property access solution, bringing together expanded perimeter security with unit and common area security. We also acquired Waitwhile, a leading software-as-a-service provider that specializes in cloud-based appointment scheduling and queue management. With Waitwhile, we can connect the virtual queue to secure and seamless physical access at the door in core non-residential markets that we know well, ultimately providing the right access to the right people at the right time, all while streamlining operations for the building of the campus. Both of these SaaS businesses have strong growth fundamentals and deliver recurring value to our customers in a way that differentiates and supports our electronic hardware business. Collectively, we expect these acquisitions to be accretive to 2026 adjusted earnings per share and increase the long-term growth potential of Allegiant at attractive margins. Mike will now walk you through the second quarter financial results.