Allegion plc

Good day everyone, my name is Shell and I will be your conference operator today. At this time I would like to welcome you to the Allegiant third quarter earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question and answer session. If you would like to ask a question during this time and if you have 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 would like to turn the call over to Josh Pokrzywinski, Vice President Investor Relations.

Thank you, Shel. Good morning, everyone. Thank you for joining us for Allegiant's third quarter 2026 earnings call. With me today are John Stone, President and Chief Executive Officer, and Mike Wagnes, Senior Vice President and Chief Financial Officer of Allegiant. Our earnings release, which was issued earlier this morning, and the presentations 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. We 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. Third quarter results were driven by strong organic growth in the Americas led by double digit organic growth in our non-residential business. The team's performance reinforces what I hope you've come to believe about Allegiant. We're a leader in security and access with premium brands in the highest margins in a great industry. Our resilient business model has the proven ability to navigate inflation and withstand cyclical forces based on the value we provide to our customers and the large installed base we serve. This model continues to evolve with technology as security and access become electrified and digitized, a trend we expect to benefit market leaders like Allegiant for many years to come. All of this allows us to deliver double digit EPS growth through the cycle as we outlined at our investor day in May of last year. Digging into the quarter, our America's business is performing very well. With continued momentum and spec writing trends through our demand generation engine, we expect non-residential strength to continue into 2027, which we'll comment on later in the presentation. Residential has performed well in 2026, despite consumer headwinds from inflation and interest rates. However, these dynamics also make it difficult to forecast a strong recovery in the medium term. Thank you for joining us. With respect to our full year, we're raising our reported revenue outlook to 9.5% to 10.5% and our outlook for organic revenue growth to 5% to 6% based on stronger demand and favorable price in the Americas. We are raising our adjusted earnings per share outlook to $9.05 to $9.10. I'll provide additional details on this later in the call. Please go to slide four and let's take a look at capital allocation starting with our organic investments. In September, we launched the Allegiant Optimize app in the Americas. Optimize gives installers, end users, and our channel partners one tool to commission, configure, manage, and troubleshoot our connected products throughout their lifecycle. We're rolling Optimize out initially across electronic door controls and locks, and we expect this app will ultimately manage our full non-residential connected portfolio globally. Offering a single app to cover management of multiple product categories is a first in our industry. Customers will benefit from faster, easier experiences with our intuitive interface that eliminates the friction of switching between multiple standalone apps for connected devices. Turning to M&A, we completed the acquisition of the Overly Door Company in early October for approximately $90 million. Overly manufactures specialty doors for acoustics, blast, bullet resistance, and vault security. Overly's high security solutions serve commercial and institutional customers with strength across US government, education, and healthcare markets. Similar to our 2024 acquisition of Krieger Specialty Products, this complements our hollow metal portfolio with additional specialty products and regional capability. We expect Overly to add approximately one point to America's revenues on an annualized basis at margins consistent with the overall enterprise. Recently, we also made a $40 million follow-on investment in Ambient AI through Allegiant Ventures. Ambient continues to prove the transformative potential of purpose-built ai and physical security helping customers shift their security operations from reactive to proactive this investment underscores our confidence in their technology their leadership and our increased collaboration Allegiant paid $46 million in dividends and repurchased $120 million of shares in the quarter. We see attractive valuation in Allegiant shares and expect to remain active in share repurchase. As we've said in the past, you can expect Allegiant to be balanced, disciplined, and consistent with capital deployment, oriented to profitable growth and driving long-term returns for shareholders. Mike will now walk you through the third quarter financial results.