Allegion plc

Good day, everyone. My name is Stefan and I'll be your conference operator today. At this time, I'd like to welcome you to Allegiant's first quarter earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there'll be a question and answer session. If you would like to ask a question during this time, and if you've joined via the webinar, please use the raised hand icon, which can be found at the bottom of your webinar application. At this time, I'd like to turn the call over to Joby Coyle, Director of Investor Relations.

Thank you, Stephan. Good morning, everyone. Thank you for joining us for Allegiant's first quarter 2026 earnings call. With me today are John Stone, President and Chief Executive Officer, and Mike Wagnus, Senior Vice President and Chief Financial Officer of Allegian. 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.allegian.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.

Good morning, everyone. Thanks for joining us. The Allegiant team has remained agile in a volatile environment and stayed focused on serving our customers alongside our strong channel partners. In Q1, we delivered high single-digit revenue growth led by the Americas non-residential business and contributions from acquisitions. In the Americas, performance was in line with our expectations we outlined back in February. In our international segment, top-line growth was led by acquisitions, which are on track. However, our Q1 organic revenue growth and margins in international were negatively impacted by an ERP implementation in one of our legacy mechanical businesses. Production rates there have started to improve, and we expect to recover the Q1 shortfall over the remainder of the year. As you'll see on the next slide, Allegiant remains committed to balanced discipline and consistent capital deployment. And finally, with respect to our outlook for the year, we are raising our reported revenue outlook to 6% to 8% to include the DCI acquisition. And we are affirming our outlook for organic revenue growth of 2% to 4% and adjusted earnings per share of $8.70 to $8.90. Please go to slide four. Taking a look at capital allocation for the first quarter, starting with our investments for organic growth. The latest example of this is our next generation LCN senior swing series of auto operators for heavy use doors across healthcare offices and other high traffic environments. Easy to install and upkeep, these automatic door operators self-adjust in real time to external pressures like wind, allowing smooth, safe, and consistent operation while saving the building time, energy, and maintenance calls. Turning to acquisitions, earlier in March, we closed the acquisition of DCI, a West Coast-based manufacturer of hollow metal doors and frames specializing in custom design and quick ship capability. Historically, we've had to rely on our Cincinnati, Ohio manufacturing facility to serve customers on the West Coast, which extended lead times and drove higher freight costs compared to local suppliers. DCI makes us far more competitive on the West Coast, helping the totality of our America's non-res business, not just our door offering, as customers purchase complete door and hardware packages together. DCI today has a low double-digit EBITDA margin, resulting in limited EPS accretion in the current fiscal year. But the strategic nature of this acquisition gives us significant improvement in serving our customers at a better cost position. I'm confident our execution and pricing discipline will drive higher profitability over time and expect performance to improve moving forward. Moving to dividends, Allegiant paid 47 million in dividends in the quarter, consistent with the long-term framework we outlined at our investor day last year. We repurchased $40 million of Allegiant shares in the first quarter. Our board also recently approved a new $500 million repurchase program. As we've said in the past, you can expect Allegiant to be balanced, disciplined, and consistent with capital deployment, oriented towards profitable growth and driving long-term returns for shareholders, including share repurchase as appropriate. Mike will now walk you through the first quarter results.