July 24 - Allegion ALLE.N raised its annual profit and revenue forecast on Thursday, anticipating that strong demand for its high-end locks and electronic systems in non-residential establishments will offset expected tariff impacts.
The Dublin-based lockmaker offset weak residential demand, pressured by high mortgage rates and soaring home prices, with price hikes on products sold to commercial businesses.
Sales in the company's Americas region rose 6.6% in the quarter, mainly driven by non-residential demand. Its international business recorded a 2.9% rise in revenue.
The company expects about $40 million in tariff costs in 2025 and plans to offset the impact on operating profit and earnings per share primarily through pricing actions.
Allegion expects its 2025 adjusted profit per share to be between $8.00 and $8.15, compared with its previous forecast of $7.65 and $7.85.
It also expects 2025 revenue growth of 3.5% to 4.5% from prior forecast of 1.5% to 3.5%.
Allegion reported an adjusted profit per share of $2.04, compared with analysts' estimates of $1.99, according to data compiled by LSEG.
Its second-quarter revenue rose 5.8% to $1.02 billion, as compared with Wall Street expectations of $1.02 billion.
(Reporting by Apratim Sarkar; Editing by Vijay Kishore)
((Apratim.Sarkar@thomsonreuters.com;))
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