Allegion faces risks from macroeconomic instability, inflation, currency fluctuations, construction market volatility, potential goodwill impairment, debt repayment/refinancing challenges, competition, new product acceptance, customer preference shifts, product defects, acquisition integration issues, supply chain disruptions, reputational risks, legal proceedings, tax liabilities, and transfer pricing uncertainties. The company's reliance on third-party vendors and its international operations also pose risks.
Financial Upside
Allegion experienced revenue growth in Q3 2024, driven by favorable pricing, volume increases, and acquisitions. The company expects continued growth in Q4 2024. Acquisitions, debt financing, and share repurchases are also contributing factors to the financial upside. Strong operating cash flow, low leverage, and low capital intensity provide financial flexibility.
