Allegion Stock

Allegion plc is a leading global provider of security products and solutions that keep people and assets safe and secure in the places they live, learn, work and connect. The company creates peace of mind by pioneering safety and security with a vision of enabling seamless access and a safer world. The company offers an extensive and versatile portfolio of security and access control products and solutions across a range of market-leading brands. The company’s experts across the globe deliver high-quality security hardware, software, services and systems, and it uses its deep expertise to serve as trusted partners to end-users who seek customized solutions to their security needs.

The company’s principal products and services include door controls and systems; exit devices; software-enabled access control systems; doors, accessories and other; locks, locksets, portable locks and key systems; electronic security products; time, attendance and workforce productivity systems; and services and software.

The company operates in and report financial results for two segments: Allegion Americas and Allegion International, the latter of which provides security products, services and solutions primarily throughout Europe, Asia and Oceania. The company sells its products and solutions under various brands. The company sells a wide range of security and access control solutions for end-users in commercial, institutional and residential facilities worldwide, including the education, healthcare, government, hospitality, retail, commercial office and single and multi-family residential markets. The company’s leading brands include CISA, Interflex, LCN, Schlage, SimonsVoss and Von Duprin.

Customers

The company serves customers within institutional, commercial and residential construction and remodeling markets throughout North America, Europe, Asia and Oceania. The company expects continued growth in connected security products and solutions as end-users continue to adopt newer technologies, including IoT and AI, in their facilities and single and multi-family homes.

Products and Services

The company offers the following extensive and versatile portfolio of security and access control products and solutions across a range of market-leading brands:

Locks, locksets, portable locks and key systems: A broad array of cylindrical, tubular and mortise door locksets, security levers and master key systems that are used to protect and control access and a range of portable security products, including bicycle, small vehicle and travel locks;

Electronic security products and access control systems: A broad range of electrified locks, electrified door closers and exit devices, access control products and systems, credentials and credential readers and accessories, including IoT, Bluetooth Low Energy, Power over Ethernet and cloud-based solutions;

Time, attendance and workforce productivity systems: These products are designed to help business customers manage and monitor workforce access, attendance and employee scheduling;

Door controls and systems and exit devices: An extensive portfolio of life-safety products and solutions generally installed on fire doors and facility entrances and exits. Exit devices, also known as panic hardware, provide rapid egress to allow building occupants to exit safely in an emergency. Door controls and systems include mechanical door closers, automatic door operators, as well as high-performance interior and storefront door systems. In addition, the company offers a full range of automatic entrance solutions, including sliding, swing, folding and ICU doors, as well as an array of sensors, controls and security options for commercial and institutional buildings;

Doors, accessories and other: A portfolio of hollow metal, glass and specialty doors, as well as a variety of additional security products and components, including hinges, door pulls, door stops, bike lights, louvers, weather stripping, thresholds and other accessories, as well as certain bathroom fittings and accessibility aids; and

Services and software: The company’s Access Technologies business offers extensive planned inspection, maintenance and repair services for its automatic entrance solutions throughout the U.S. and Canada. Additionally, the company offers software as a service (SaaS) offerings throughout the U.S. and internationally, including access control, IoT integration and workforce management solutions through its Interflex business. The company also offers ongoing aftermarket services, design and installation offerings and locksmith services in select locations.

Customers

The company sells most of its products and solutions through distribution and retail channels, including specialty distribution, e-commerce and wholesalers. The company has built a network of channel partners that help its customers choose the right solution to meet their security needs and help commercial and institutional end-users fulfill and install orders. The company also sells through a variety of retail channels, including large do-it-yourself home improvement centers, multiple online and e-commerce platforms, as well as small, specialty showroom outlets. The company works with its retail partners on developing marketing and merchandising strategies to maximize their sales per square foot of shelf space. Through a few of its businesses, most notably the company’s Access Technologies business, Interflex and its Global Portable Security brands, thee company also provides products and services directly to end-users.

Sales and Marketing

In markets where the company sells through commercial and institutional distribution channels, it employs sales professionals around the world who work with a combination of end-users, security professionals, architects, contractors, engineers and distribution partners to develop specific, custom-configured solutions to meet its end-users’ needs. The company’s field sales professionals are assisted by specification writers who work with architects, engineers and consultants to help design door openings and security systems to meet end-users’ functional, aesthetic and regulatory requirements. Both groups are supported by dedicated customer care and technical sales-support specialists worldwide. The company also supports its sales efforts with a variety of marketing efforts, including trade-specific advertising, cooperative distributor merchandising, digital marketing and marketing at a variety of industry trade shows.

In markets where the company sells through retail and homebuilder distribution channels, it has teams of sales, merchandising and marketing professionals who help drive brand and product awareness through its channel partners and to consumers. The company utilizes a variety of advertising and marketing strategies, including traditional consumer media, retail merchandising, digital marketing, retail promotions and builder and consumer trade shows, to support these teams.

The company also works actively with several industry bodies around the world to help promote effective and consistent safety and security open platform standards. For example, the company is member of the American Association of Automatic Door Manufacturers (AAADM), Builders Hardware Manufacturers Association (BHMA), Connectivity Standards Alliance (CSA), Construction Specification Institute, Door and Hardware Institute (DHI), FiRa Consortium, National Association of State Fire Marshals (NASFM), Partner Alliance for Safer Schools (PASS), Physical Security Interoperability Alliance (PSIA), Security Industry Association (SIA), Security Technology Alliance, Z-Wave Alliance, The European Federation of Associations of Locks and Builders Hardware Manufacturers (ARGE), ASSOFERMA (Italy), BHE (Germany), Door Hardware Federation (UK), Open Security Standards Association (Germany) and UNIQ (France).

Production and Distribution

The company manufactures products in several geographic markets around the world. The company’s strategy is to produce in the region of use, wherever appropriate, to allow it to be closer to the end-user and increase efficiency and timely product delivery. The company distributes its products through a broad network of channel partners. In addition, third-party manufacturing and logistics providers perform certain manufacturing, storage and distribution services for it to support certain parts of its manufacturing and distribution network.

Intellectual Property

The company considers its CISA, Interflex, LCN, Schlage, SimonsVoss, Von Duprin and other associated trademarks to be among its most valuable assets, and it has registered these trademarks in a number of countries.

Research and Development

For the year ended December 31, 2023, expenses related to research and development activities amounted to approximately $101.9 million.

Seasonality

The company’s business experiences seasonality that varies by product and service line. For instance, as more construction and do-it-yourself projects occur during the second and third calendar quarters in the Northern Hemisphere, its security product sales related to those projects are typically higher in those quarters than in the first and fourth quarters (year ended December 31, 2023).

Regulatory Matters

The company is subject to a variety of federal, state and local laws and regulations, both within and outside the U.S., relating to Environmental, Health and Safety (EHS) matters. The company is committed to conducting its business in a safe, environmentally responsible and sustainable manner, in compliance with all applicable EHS laws and regulations, and in a manner that helps promote and protect the health and safety of its environment, associates, customers, contractors and members of its local communities worldwide. The company sometimes a party to environmental lawsuits and claims and have, from time to time, received notices of potential violations of environmental laws and regulations from the U.S. Environmental Protection Agency (EPA) and similar state authorities.

Competition

The company faces competition in various markets and product categories throughout the world, including Fortune Brands Innovations, Inc. in the North American residential market.

History

Allegion plc was incorporated in Ireland in 2013.