安朗杰 (ALLE) 2024 Q3 法說會逐字稿

Good morning, and welcome to the Allegion third-quarter 2024 earnings call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 Allegion 2024 年第三季財報電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Josh Pokrzywinski, Vice President of Investor Relations. Please go ahead.

現在我想將會議交給投資者關係副總裁 Josh Pokrzywinski。請繼續。

Thank you, Sasha. Good morning, everyone. Thank you for joining us for Allegion's third-quarter 2024 earnings call. With me today are John Stone, President and Chief Executive Officer; and Mike Wagnes, Senior Vice President and Chief Financial Officer of Allegion.

謝謝你，薩沙。大家早安。感謝您參加 Allegion 2024 年第三季財報電話會議。今天與我在一起的有總裁兼執行長約翰‧史東 (John Stone)；和 Allegion 資深副總裁兼財務長 Mike Wagnes。

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.allegion.com. This call will be recorded and archived on our website. Please go to slide 2.

我們今天早上早些時候發布的收益報告以及我們將在今天的電話會議中提到的簡報可在我們的網站 Investor.allegion.com 上取得。此通話將被記錄並存檔在我們的網站上。請轉到投影片 2。

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.

今天的電話會議中所做的非歷史事實的陳述被視為前瞻性陳述，並且是根據聯邦證券法的安全港條款做出的。請參閱我們最近向 SEC 提交的文件，以了解可能導致實際結果與我們的預測有重大差異的一些因素的描述。該公司不承擔更新這些前瞻性陳述的義務。

Today's presentation and commentary include non-GAAP financial measures. Please refer to the reconciliation and the financial tables of our press release for further details. Please go to slide 3, and I'll turn the call over to John.

今天的演示和評論包括非公認會計準則財務指標。請參閱我們新聞稿的調節表和財務表格以了解更多詳細資訊。請前往投影片 3，我會將電話轉給約翰。

Thanks, Josh. Good morning, everyone. Thanks for joining us. We can sum up this quarter with stable markets and strong execution. Q3 marks another quarter of strong execution by the entire Allegion team, resulting in revenue growth and margin expansion, demonstrating the resilience of our business model.

謝謝，喬許。大家早安。感謝您加入我們。我們可以用穩定的市場和強勁的執行力來總結本季。第三季標誌著整個 Allegion 團隊又一個強勁執行力的季度，帶來了營收成長和利潤率擴張，展現了我們業務模式的彈性。

I'm especially pleased with the top-line growth in the quarter. And overall, demand remains stable and is supported by our broad end-market exposure and specification expertise. Institutional markets have continued to lead, while commercial verticals have been more mixed.

我對本季的營收成長感到特別滿意。總體而言，需求保持穩定，並得到我們廣泛的終端市場曝光和規格專業知識的支持。機構市場持續領先，而商業垂直市場則更加複雜。

We have accelerated capital deployment in 2024, returning cash to shareholders, and growing our business with accretive acquisitions. Our strong cash generation, balance sheet, and pipeline of opportunities continue to position us well for future capital deployment, creating long-term value for our shareholders.

我們在 2024 年加快了資本部署，向股東返還現金，並透過增值收購來發展我們的業務。我們強大的現金產生能力、資產負債表和機會管道繼續為我們未來的資本部署做好準備，為股東創造長期價值。

As we push to year-end, I feel we're performing at a high level. We're raising our full-year guidance for EPS. And we're affirming our overall revenue, with some small updates at the segment level.

隨著年底的臨近，我覺得我們的表現處於高水準。我們正在上調全年每股收益指引。我們確認了我們的整體收入，並在細分市場層面進行了一些小更新。

Additionally, we're affirming our available cash flow outlook. Later in the call, we'll discuss these full-year updates, as well as provide some initial thoughts on how we see the markets shaping up for next year. Please go to slide 4.

此外，我們也確認了我們可用的現金流前景。稍後在電話會議中，我們將討論這些全年更新，並就我們如何看待明年的市場發展提供一些初步想法。請轉到投影片 4。

Let's take a look at capital allocation. First, we continue to invest in the core to drive organic growth. In June, we introduced a new product line of exit devices, the Von Duprin 70 Series. Our 70 Series combines the quality and trust Von Duprin is known for as the creator of this product category, with the performance and value ideal for many modern applications, ranging from warehouse, industrial, office, multifamily, retail, and hospitality spaces.

我們來看看資本配置。首先，我們繼續投資核心以推動有機成長。 6 月，我們推出了新的出口設備產品線 Von Duprin 70 系列。我們的 70 系列結合了 Von Duprin 作為該產品類別的創造者而聞名的品質和信任，以及適合許多現代應用（包括倉庫、工業、辦公室、多戶住宅、零售和酒店空間）的理想性能和價值。

This new product line is backed by our expert safety and security consulting, specification writing, technical support, and training. And it highlights what we do well with our flagship brands like Von Duprin. We innovate for new markets while still expanding the core, a capability that's difficult to match but is a strength of Allegion.

這個新產品線得到了我們專家的安全和安保諮詢、規範編寫、技術支援和培訓的支持。它凸顯了我們在 Von Duprin 等旗艦品牌上的出色表現。我們針對新市場進行創新，同時仍在擴展核心，這是難以匹敵的能力，但卻是 Allegion 的優勢。

With the Von Duprin 70 Series, we're leveraging more than a century of experience in developing high-performance exit devices to meet the safe entry and egress needs of customers today. Allegion continues to be a dividend-paying stock. In the third quarter, this amounted to approximately $42 million in cash returned to shareholders.

憑藉 Von Duprin 70 系列，我們利用一個多世紀開發高性能出口設備的經驗來滿足當今客戶的安全進出需求。 Allegion 仍然是一檔派息股票。第三季度，股東返還現金約 4,200 萬美元。

Turning now to M&A, and as announced last week, we recently closed the acquisition of SOSS Door Hardware. SOSS manufactures premium door hardware primarily sold across North American non-residential markets. Best known for their line of invisible hinges, SOSS complements our core mechanical portfolio with fire-rated heavy-duty solutions for industrial, commercial, and institutional spaces.

現在轉向併購，正如上周宣布的那樣，我們最近完成了 SOSS Door Hardware 的收購。 SOSS 生產優質門用五金零件，主要銷往北美非住宅市場。 SOSS 以其隱形鉸鏈系列而聞名，透過適用於工業、商業和機構空間的防火重型解決方案補充了我們的核心機械產品組合。

And like our other well-known brands, SOSS is an industry pioneer with more than a century of experience that makes it a category leader today. SOSS is a small bolt-on with Allegion-like margins. We expect SOSS to deliver solid returns accretive to EPS in 2025 in a space we know well as a pure-play leader in security and access.

與我們其他知名品牌一樣，SOSS 是行業先驅，擁有一個多世紀的經驗，使其成為當今類別的領導者。 SOSS 是一款小型附加產品，具有類似 Allegion 的邊緣。我們預計 SOSS 將在 2025 年在我們熟知的安全和存取領域的純粹領導者領域帶來可觀的回報，從而增加每股收益。

Lastly, in the quarter, we made share repurchases amounting to approximately $40 million. To sum up this slide, Allegion will continue to take advantage of the strong cash generation our business drives for the benefit of our shareholders. Mike will now walk you through the third-quarter financial results.

最後，在本季度，我們回購了價值約 4,000 萬美元的股票。總結這張投影片，Allegion 將繼續利用我們業務帶來的強勁現金流，為股東謀取利益。麥克現在將向您介紹第三季的財務表現。

Thanks, John, and good morning, everyone. Thank you for joining today's call. Please go to slide number 5.

謝謝約翰，大家早安。感謝您參加今天的電話會議。請轉到第 5 張投影片。

As John shared, our Q3 results reflect solid performance from the entire Allegion team. We continue to execute at a high level, delivering another quarter of strong margin expansion with mid-single-digit top-line growth, driven by price, volume, and acquisitions.

正如 John 分享的那樣，我們第三季的業績反映了整個 Allegion 團隊的出色表現。我們持續維持高水準執行，在價格、銷售和收購的推動下，利潤率又實現了一個季度的強勁成長，營收實現中個位數成長。

Revenue for the third quarter was $967.1 million, an increase of 5.4% compared to 2023. Organic revenue increased 3.3% in the quarter as a result of favorable price and volume. We saw strength within our America segment, with international organic revenue relatively flat in the quarter.

第三季營收為 9.671 億美元，較 2023 年成長 5.4%。我們看到了美國業務的強勁表現，本季國際有機收入相對持平。

Q3 adjusted operating margin and adjusted EBITDA margin both increased by 100 basis points, driven by price and productivity in excess of inflation and investment, as well as favorable volume leverage. I am pleased with the operational execution and margin expansion in 2024.

第三季調整後的營業利潤率和調整後的 EBITDA 利潤率均增加了 100 個基點，這得益於價格和生產力超過通膨和投資，以及有利的數量槓桿。我對 2024 年的營運執行和利潤率擴張感到滿意。

Adjusted earnings per share of $2.16 increased $0.22 or 11.3% versus the prior year. Strong operational performance, accretive capital deployment, and favorable interest in other more than offset headwinds from higher tax.

調整後每股收益為 2.16 美元，比前一年增加 0.22 美元，或 11.3%。強勁的營運績效、增值的資本配置以及其他方面的良好興趣抵消了高稅收帶來的不利影響。

Finally, year-to-date 2024 available cash flow was $388 million, which was a 21.1% increase versus last year. I am pleased with our cash flow and working capital management and will provide more details a little later in the presentation. Please go to slide number 6.

最後，2024 年年初至今的可用現金流為 3.88 億美元，比去年成長 21.1%。我對我們的現金流和營運資金管理感到滿意，並將在稍後的演示中提供更多詳細資訊。請轉到第 6 投影片。

This slide provides an overview of our quarterly revenue. I will review our enterprise results here before turning to our respective segments. Organic revenue grew 3.3% in the quarter, which included price realization of 1.8% and volume growth of 1.5%.

這張投影片概述了我們的季度收入。在討論我們各自的細分市場之前，我將在這裡回顧我們的企業表現。本季有機收入成長 3.3%，其中價格成長 1.8%，銷量成長 1.5%。

Acquisitions drove approximately 2 points of growth in the quarter. Additionally, currency was a slight tailwind, bringing total reported growth to 5.4%. Q3 revenues was sequentially consistent with Q2 and reflects a more normal seasonality compared to an unusual 2023, as we indicated previously. Please go to slide number 7.

收購推動本季成長約 2 個百分點。此外，匯率也起到了輕微的推動作用，使報告的總成長率達到 5.4%。正如我們之前指出的，第三季營收與第二季連續一致，與不尋常的 2023 年相比，反映了更正常的季節性。請轉到第 7 號投影片。

Our Americas segment delivered strong operating results in Q3. Revenues of $782.4 million was up 5.6% on a reported basis and up 4.1% on an organic basis. Organic growth included both favorable price and volume in the quarter. Reported revenue included 1.6% growth from the June acquisitions of Krieger and Unicel.

我們的美洲部門在第三季取得了強勁的經營業績。報告營收為 7.824 億美元，年增 5.6%，有機收入成長 4.1%。有機成長包括本季有利的價格和銷量。報告的收入包括 6 月收購 Krieger 和 Unicel 帶來的 1.6% 成長。

Our non-residential business increased mid-single digits organically in the quarter, as institutional end markets remained stable. Our residential business was up low single digits, similar to what we saw in Q2. Electronics revenue was down high single digits compared to Q3 last year, which included significant catch-up in volumes, as supply chains recovered from disruptions that we experienced in 2021 and 2022.

由於機構終端市場保持穩定，我們的非住宅業務在本季有機成長了中個位數。我們的住宅業務實現了低個位數成長，與第二季的情況類似。與去年第三季相比，電子產品收入出現了高個位數下降，其中包括隨著供應鏈從 2021 年和 2022 年經歷的中斷中恢復過來，銷量大幅回升。

It's worth noting Q3 electronic revenue dollars were flat sequentially to Q2 levels, generally following the seasonality of the rest of the business. We continue to believe electronics are a long-term growth driver for Allegion.

值得注意的是，第三季電子收入與第二季持平，整體上遵循其他業務的季節性。我們仍然相信電子產品是 Allegion 的長期成長動力。

Americas adjusted operating income of $231.1 million increased 9.7% versus the prior-year period due to solid top-line growth and strong operational execution. Adjusted operating margin and adjusted EBITDA margin for the quarter were up 110 and 120 basis points, respectively, as we continue to drive margin expansion through price and productivity in excess of inflation and investments. Let's go to slide number 8.

由於穩健的營收成長和強勁的營運執行力，美洲地區調整後營業收入為 2.311 億美元，較上年同期成長 9.7%。本季調整後營業利潤率和調整後 EBITDA 利潤率分別成長 110 和 120 個基點，因為我們繼續透過價格和生產力（超過通膨和投資）推動利潤率擴張。讓我們來看第 8 號投影片。

Our international segment had a solid third quarter. Revenue of $184.7 million was up 4.4% on a reported basis and up 0.2% organically. Acquisitions were a tailwind this quarter, positively impacting reported revenue by 2.9%, driven by the Dorcas and Boss businesses.

我們的國際業務第三季表現強勁。報告營收為 1.847 億美元，年成長 4.4%，有機成長 0.2%。在 Dorcas 和 Boss 業務的推動下，本季的收購起到了推動作用，對報告收入產生了 2.9% 的正面影響。

Currency was also a tailwind, contributing 1.3 points of growth. International adjusted operating income of $25.2 million increased 6.3% versus the prior-year period. Adjusted operating margin and adjusted EBITDA margin for the quarter increased 20 and 10 basis points, respectively. Margin expansion was driven by price and productivity, exceeding inflation and investments offsetting the volume decline. Please go to slide number 9, and I will provide an overview of our cash flow and balance sheet.

貨幣也是一個推動力，貢獻了 1.3 個百分點的成長。國際調整後營業收入為 2,520 萬美元，較上年同期成長 6.3%。本季調整後營業利潤率和調整後 EBITDA 利潤率分別成長 20 和 10 個基點。利潤率擴張是由價格和生產力推動的，超過了通貨膨脹，投資抵消了銷量下降。請轉到第 9 號投影片，我將概述我們的現金流量和資產負債表。

Year-to-date available cash flow came in at $388 million, up $67.6 million versus the prior year. This increase is driven by higher earnings and improvements in working capital, partially offset by higher capital expenditures. Next, working capital as a percent of revenue improved as we continue to focus on working capital efficiency to convert earnings to cash.

年初至今的可用現金流為 3.88 億美元，比上年增加 6,760 萬美元。這一增長是由收入增加和營運資本改善所推動的，但部分被資本支出增加所抵消。接下來，隨著我們繼續關注營運資本效率以將收益轉化為現金，營運資本佔收入的百分比有所改善。

Finally, our balance sheet remains strong. And our net debt to adjusted EBITDA is at a healthy ratio of 1.7 times. It's worth noting our gross debt and cash balances at September 30, 2024, include the proceeds from our $400 million senior note issuance in Q2, which were used to repay a $400 million senior note on October 1.

最後，我們的資產負債表仍然強勁。我們的淨負債與調整後 EBITDA 的比率處於 1.7 倍的健康比率。值得注意的是，我們截至2024 年9 月30 日的總債務和現金餘額包括我們在第二季度發行的4 億美元優先票據的收益，這些收益用於償還10 月1 日發行的4 億美元優先票據。

This results in a slightly higher gross leverage at the end of the third quarter, but has no impact on net leverage. Our business continues to generate strong cash flow, and our balance sheet supports continued capital deployment.

這導致第三季末的總槓桿率略有上升，但對淨槓桿率沒有影響。我們的業務持續產生強勁的現金流，我們的資產負債表支援持續的資本部署。

I will now hand the call back over to John.

我現在將把電話轉回給約翰。

Thanks, Mike. Please go to slide 10. Allegion remains on track for record results in 2024. We are affirming our total reported revenue growth outlook of 2.5% to 3.5%. We're also affirming our total organic revenue growth outlook of 1.5% to 2.5%, although we now expect international organic revenue growth to be slightly higher and Americas organic growth to be slightly lower than what we previously shared with you.

謝謝，麥克。請轉至投影片 10。我們也確認我們的總有機收入成長前景為1.5% 至2.5%，儘管我們現在預計國際有機收入成長將略高於我們先前與您分享的情況，而美洲有機成長將略低於我們先前與您分享的情況。

The international team has executed well, as markets have been slow the past two years and has now seen some stability in the mechanical portfolio. In the Americas, we're lapping record multifamily markets, which has slowed with higher interest rates this year.

由於過去兩年市場成長緩慢，國際團隊表現良好，現在機械產品組合已趨於穩定。在美洲，我們正在創下創紀錄的多戶型市場，該市場隨著今年利率的上升而放緩。

On balance, we'd still describe our markets as stable, particularly in the institutional verticals. We'll share more color on our markets on the next slide as we look forward to next year. Based on our strong operational performance in the third quarter, capital deployment, and a revised tax rate, we are increasing our adjusted earnings per share outlook to a range of $7.35 to $7.45.

總的來說，我們仍然認為我們的市場是穩定的，特別是在機構垂直領域。展望明年，我們將在下一張幻燈片中分享更多關於我們市場的資訊。基於我們第三季強勁的營運業績、資本部署和修訂後的稅率，我們將調整後每股盈餘前景提高至 7.35 美元至 7.45 美元。

Lastly, we're affirming our outlook on available cash flow to be in the range of $540 million to $570 million. Please go to slide 11.

最後，我們確認可用現金流的前景為 5.4 億至 5.7 億美元。請轉到投影片 11。

As you know, we'll provide Allegion's formal 2025 financial outlook during our February earnings call. But today, we'd like to share a preliminary view on our key markets for next year. Overall, demand has been stable throughout 2024.

如您所知，我們將在 2 月的財報電話會議上提供 Allegion 的 2025 年正式財務展望。但今天，我們想分享一下對明年主要市場的初步看法。整體而言，2024 年需求保持穩定。

Last quarter, we highlighted what makes our business model resilient, from our front-end spec engine that pulls product through the channel to our broad end-market coverage and large install base; and of course, strong execution by one of the safest, most engaged workforces in the industry, complemented by what is, without a doubt, the best distribution channel that the industry has.

上個季度，我們強調了我們的業務模式具有彈性的因素，從透過通路拉動產品的前端規格引擎，到我們廣泛的終端市場覆蓋範圍和龐大的安裝基礎；當然，還有業界最安全、最敬業的員工隊伍之一的強大執行力，以及毫無疑問產業擁有的最佳分銷管道。

As we approach 2025, we see many of the same dynamics in place and do expect to grow organically. Starting with the Americas, macro indicators remain rather mixed. Institutional markets are stable and showing signs of modest growth.

隨著 2025 年的臨近，我們看到了許多相同的動態，並且確實預計會有機增長。從美洲開始，宏觀指標仍然相當複雜。機構市場穩定並顯示出溫和成長的跡象。

Commercial markets have been muted. And while we're encouraged by improvement in some indicators, the long-cycle nature of our business results in a lag versus planning and start data. Based on past starts, multifamily is one market likely to be slower as we enter 2025.

商業市場表現平淡。儘管我們對某些指標的改善感到鼓舞，但我們業務的長週期性質導致了與規劃和啟動數據相比的滯後。根據過去的啟動情況，隨著進入 2025 年，多戶住宅市場可能會放緩。

We do expect Americas residential markets to grow next year. As a reminder, we're mostly exposed to residential aftermarket and view existing home sales as an important driver of activity for us.

我們確實預計明年美洲住宅市場將會成長。提醒一下，我們主要接觸住宅售後市場，並將現有房屋銷售視為我們活動的重要驅動力。

For international, macro indicators remain soft. However, we have been in this environment for most of the last two years. As such, more moderate comparisons and continued strong execution should support growth in 2025.

國際方面，宏觀指標依然疲軟。然而，過去兩年的大部分時間我們都處於這種環境中。因此，更溫和的比較和持續強勁的執行應該會支持 2025 年的成長。

Finally, Allegion has a healthy balance sheet and strong cash generation that give us flexibility as we enter the new year. We do expect capital deployment to drive additional earnings per share growth, focused on returns for our shareholders. Please go to slide 12.

最後，Allegion 擁有健康的資產負債表和強勁的現金產生能力，為我們進入新的一年提供了靈活性。我們確實預期資本部署將推動每股盈餘的額外成長，並專注於股東的回報。請轉到投影片 12。

In summary, Q3 marks another quarter of strong results for Allegion. Our team continues to perform at a high level, driving revenue growth and margin expansion, demonstrating the resilience of our business model. We've seen stable markets this year and have accelerated capital deployment. And heading into the last few months of 2024, we're focused on meeting customer needs and delivering on our commitments to shareholders.

總之，第三季標誌著 Allegion 又一個季度的強勁業績。我們的團隊持續保持高水準表現，推動營收成長和利潤率擴張，展現了我們業務模式的彈性。今年市場穩定，資本配置加快。進入 2024 年的最後幾個月，我們將專注於滿足客戶需求並兌現對股東的承諾。

With that, let's turn to Q&A.

接下來，我們進入問答環節。

(Operator Instructions) Joe Ritchie, Goldman Sachs.

（操作員指令）Joe Ritchie，高盛。

Hi, thanks for the question. This is Vivek Srivastava, on for Joe. My first question is just on the Americas non-residential business. The mid-single-digit growth this quarter is pretty impressive in light of all project delay, coming to be inherent into a quarter.

你好，謝謝你的提問。我是維韋克‧斯里瓦斯塔瓦 (Vivek Srivastava)，替喬發言。我的第一個問題是關於美洲的非住宅業務。考慮到所有專案的延遲，本季的中個位數成長相當令人印象深刻，這將是本季固有的。

So maybe could you help us understand how is your visibility over the next 12 months based on specification activity in this vertical? And then, can you also provide any color on residential spec activity?

那麼，您能否幫助我們了解您在未來 12 個月內根據該垂直領域的規範活動的可見性如何？然後，您能否提供有關住宅規格活動的任何資訊？

So let's talk non-res first, and thanks for the question. I'd say, consistent with the slide and the prepared remarks, we do continue to see organic growth. We do continue to see non-res overall as stable, with some mix there in some of the commercial verticals, like we indicated.

所以我們先來談談非資源問題，謝謝你的提問。我想說，與幻燈片和準備好的評論一致，我們確實繼續看到有機增長。我們確實繼續認為非資源總體穩定，但正如我們指出的那樣，在一些商業垂直領域中存在一些混合。

Multifamily, we do expect it to be soft for a while. But on the institutional side, looking at leading indicators like Dodge [Starch] and Dodge Momentum, would be indicative of the kind of activity that we're seeing in the market.

多戶住宅，我們確實預計它會疲軟一段時間。但在機構方面，觀察道奇[Starch]和道奇動量等領先指標，將顯示我們在市場上看到的活動類型。

If you look at municipal bond issuance this year, it's been very strong, up almost 30% year to date, which is an indicator of, again, spending in education, where safety and security are always on the list. And our advocacy and our activity promoting safe schools position us well to support customers there.

如果你看看今年的市政債券發行情況，你會發現它非常強勁，今年迄今增長了近 30%，這再次表明教育支出，而安全和安保始終是重中之重。我們的倡議和促進安全學校的活動使我們能夠很好地支持那裡的客戶。

So I think, just consistent with what we shared with you on that last slide, we see overall stable markets for the foreseeable future, led by the institutional verticals, with some of the commercial verticals a bit more mixed.

因此，我認為，與我們在上一張投影片中與您分享的內容一致，我們認為在可預見的未來，市場整體穩定，由機構垂直市場主導，而一些商業垂直市場則更加複雜。

On the residential side, I think you asked about spec activity. We don't spec residential. We do participate primarily in the aftermarket on residential. We do see -- as the interest rate environment, if that continues to improve, we do see signs both on the newbuild side as well as the aftermarket side, there are signs that are indicating growth.

在住宅方面，我認為您詢問了規格活動。我們不指定住宅。我們主要參與住宅售後市場。我們確實看到，隨著利率環境的持續改善，我們確實看到新建建築方面和售後市場方面都出現了跡象，有跡象表明增長。

Very helpful. And just a follow-up on just productivity, the equation pricing net of productivity, [competition], and investments continues to remain positive through the year.

非常有幫助。只是生產力的後續行動，扣除生產力、[競爭]和投資的等式定價在這一年中繼續保持正值。

Curious, where are you in your productivity journey versus pre-COVID levels? What are the opportunities you see on key KPIs, like plant utilization levels, as we enter 2025?

很好奇，與新冠疫情之前的水平相比，您的生產力之旅處於什麼位置？進入 2025 年，您在關鍵 KPI（例如工廠利用率水準）方面看到了哪些機會？

Yeah, so really pleased with our productivity. If you recall, the last couple of years, '21 and the beginning of '22, we really ran into challenges in our supply chain that resulted in us being inefficient. If you fast-forward to '23 and '24, much more efficient where we can drive productivity.

是的，對我們的生產力非常滿意。如果你還記得，過去幾年，也就是 21 年和 22 年初，我們的供應鏈確實遇到了挑戰，導致我們效率低落。如果您快轉到“23”和“24”，我們可以提高生產力，效率會更高。

And when you look at the equation and how we like to look at it, it's the price and the productivity that cover the inflation and fund the investments. And so we've gotten margin expansion this year; really pleased with the expansion, as I mentioned earlier. And just know, when you think of Allegion, Allegion is going to be driving the price and productivity to cover that inflation and fund investments on a go-forward basis.

當你看看這個等式以及我們如何看待它時，你會發現價格和生產力可以彌補通貨膨脹並為投資提供資金。因此，今年我們的利潤率有所擴大；正如我之前提到的，我對擴展感到非常滿意。只要知道，當您想到 Allegion 時，Allegion 將推動價格和生產力的提高，以應對未來的通貨膨脹和基金投資。

Super helpful. Thank you.

超有幫助。謝謝。

Julian Mitchell, Barclays.

朱利安米切爾，巴克萊銀行。

Hi, good morning. Maybe a first question just on the residential side of things, thinking about the sort of market outlook for next year. You talk about recovering starts on slide 11. And I think it's about -- maybe just remind us -- it's sort of close to maybe 40% or so greenfield. So just wanted to check that exposure.

嗨，早安。也許第一個問題只是關於住宅方面，思考明年的市場前景。你在幻燈片 11 上談到了恢復開始。所以只是想檢查一下曝光情況。

And when you look back historically at the business, what's the sort of typical lag from interest rates moving lower to seeing some help in your top line, whether residential, greenfield, or repair and remodel? Any sort of context around how your thoughts on that market have changed in recent months?

當您回顧該業務的歷史時，從利率下降到看到收入有所幫助（無論是住宅、綠地還是維修和改造），典型的滯後是什麼？近幾個月來您對該市場的看法發生了怎樣的變化？

Yeah, thanks for the question, Julian. If you think of our resi business, certainly, a little more is the aftermarket. So you can think of it as roughly a third of our business is aftermarket. Retail being -- I'm sorry -- two-thirds aftermarket. I apologize. Two-thirds aftermarket, a third newbuild. And retail being the biggest piece; think of like a Home Depot, a Lowe's, a customer like that, Amazon.

是的，謝謝你的提問，朱利安。如果你想到我們的樹脂業務，當然，還有更多的是售後市場。因此，您可以將其視為我們大約三分之一的業務是售後市場。對不起，零售市場佔據了三分之二的份額。我道歉。三分之二是售後市場，三分之一是新建的。零售業是最大的一塊；想想像家得寶（Home Depot）、勞氏（Lowe's）這樣的顧客，亞馬遜。

And then with respect to building construction of new home, that could take six months to a year. It's not like an institutional building. So it is quicker responding to interest rates. And on the aftermarket side, I mean, that's consumer spending money. So it is less determinate or less long, I would say, from a timing of recovery when you think about versus the newbuild side.

然後就新房的建設而言，可能需要六個月到一年的時間。它不像一座機構建築。所以它對利率的反應更快。在售後市場方面，我的意思是，這是消費者的花錢。因此，我想說，當你考慮與新建方面相比時，從恢復時間來看，它不太確定或不太長。

That's very helpful. Thank you. And then as we're thinking about electronics, that market -- you talk about growth in both electronics, Americas plus international, next year. This year, I think, still digesting sort of tough comps and the sudden easing of supply chain conditions.

這非常有幫助。謝謝。然後，當我們考慮電子產品市場時，你會談到明年電子產品、美洲和國際市場的成長。我認為，今年仍在消化艱難的競爭和供應鏈條件的突然寬鬆。

Remind us, perhaps, what's the medium-term electronics growth assumption as you see it globally. And as we think about 2025 -- you've had such volatility in recent years -- is it sort of trend growth realistic, or we're still dealing with complications around comps and that type of thing for next year?

也許提醒我們，全球電子產品的中期成長假設是什麼。當我們考慮 2025 年時——近年來經歷瞭如此大的波動——這種趨勢增長是否現實，或者我們仍在處理明年的比較問題和此類問題？

Yeah, Julian, appreciate the question, and you're exactly right. 2023 marked a lot of still wonky comps, particularly on electronics. And we're still dealing with, as you can tell, with the longest of the long tail of issues, particularly on a couple of high-volume electronic locks.

是的，朱利安，感謝這個問題，你說得完全正確。 2023 年有很多仍然不穩定的競爭，特別是在電子領域。如您所知，我們仍在處理長尾問題中最長的一個，特別是在幾個大容量電子鎖上。

We do see, I would say, a more normal comp environment in '25 and for the foreseeable future. We do still see electronics adoption growing. We do still see electronics replacement cycle just kind of starting. So I think those two, combined, we would be very consistent in our feeling that this is a high-single to low-double-digit growth driver for Allegion over the cycle. And I think that's still our view as we look forward.

我想說，我們確實在 25 年以及可預見的未來看到了更正常的競爭環境。我們仍然看到電子產品的採用不斷成長。我們仍然看到電子產品更換週期才剛開始。因此，我認為將這兩者結合起來，我們的感覺非常一致，即這是 Allegion 在整個週期內的高個位數到低兩位數的成長動力。我認為這仍然是我們展望未來的觀點。

Great. And you have a chance of being in that range next year because of normal comps?

偉大的。由於正常的比賽，明年你有機會進入這個範圍嗎？

I'd probably hesitate to give too much of a breakdown of too much detail. We really intended just to give you a high-level look into the market. And the more specific detail would come in our February call for 2025 outlook.

我可能會猶豫是否要給太多細節的詳細分析。我們的真正目的只是讓您對市場有一個高層次的了解。更具體的細節將在我們 2 月的 2025 年展望電話會議中公佈。

Understood. Thanks very much.

明白了。非常感謝。

Thank you.

謝謝。

Joe O'Dea, Wells Fargo.

喬奧迪，富國銀行。

Hi, good morning. Thanks for taking my questions. Just wanted to start on some of the 2025 comments. And when you talk about a stable environment moving forward, I think, also saying in a stable environment, you would expect organic growth.

嗨，早安。感謝您回答我的問題。只是想從 2025 年的一些評論開始。當你談論一個穩定的環境向前發展時，我認為，也在一個穩定的環境中，你會期望有機成長。

But just want to make sure that in terms of moving pieces year over year, some of the more notable would be resi potentially getting a little better; multifamily, potentially with some headwinds. Just anything else in terms of as you look at pipeline and think about developments next year versus this year and how the market sort of changes.

但只是想確保就逐年變化而言，一些更值得注意的事情可能會變得更好一點；多戶住宅，可能會遇到一些阻力。當你審視管道並思考明年與今年的發展以及市場如何變化時，就任何其他事情而言。

Hey, Joe, this is John. Appreciate the question. And I think, yeah, the overall macro look we would just say is stable. We do see signs of Americas residential improving. I think that's fair to say, the degree of which we need to come back to you in February and give you more detail there.

嘿，喬，這是約翰。感謝這個問題。我認為，是的，我們只能說整體宏觀面貌是穩定的。我們確實看到了美洲住宅改善的跡象。我認為這是公平的說法，我們需要在二月回到您那裡並為您提供更多詳細資訊。

On the non-res side, our view would still be -- and I think, again, there's some Dodge indices you can reference that show that in the non-res side, the institutional verticals will still continue to lead the way. There is still, as we mentioned, a lot of municipal bond issuances this year, which does provide funding in the K-12 vertical, where we're quite strong.

在非再生能源方面，我們的觀點仍然是——我認為，您可以參考一些道奇指數，這些指數表明在非再生能源方面，機構垂直行業仍將繼續處於領先地位。正如我們所提到的，今年仍然發行了大量市政債券，這確實為我們實力相當雄厚的 K-12 垂直領域提供了資金。

You know our business is a little bit heavily tilted to the institutional verticals as well, so you sum all that up. And there is mix in there, like you say. And it's fair to see multifamily has been kind of soft and probably stays kind of soft for a little while.

您知道我們的業務也有點嚴重偏向機構垂直領域，所以您總結了所有這些。正如你所說，那裡有混合。公平地說，多戶住宅一直處於疲軟狀態，並且可能會保持一段時間的疲軟狀態。

Data centers, as you know, have been exceptionally strong. We participate very well there. And so, yeah, add it all up, stable markets, yup. And I think we do still see organic growth.

如您所知，資料中心非常強大。我們在那裡參與得很好。所以，是的，把這一切加起來，穩定的市場，是的。我認為我們仍然看到有機成長。

Perfect. I appreciate the color there. And then just in terms of the price-cost environment and as you're looking out in terms of pricing and maybe fatigue from customers on inflation, and how you're thinking about the pricing opportunity environment, and just in terms of timing for us and sort of when you would be going to market, such that any anticipated price next year would be out there.

完美的。我很欣賞那裡的顏色。然後就價格成本環境而言，當您關注定價方面時，可能還有客戶對通貨膨脹的疲勞，以及您如何考慮定價機會環境，以及就我們的時機而言以及您什麼時候上市，這樣明年的預期價格就會在那裡。

Yeah, Joe, we're still in an inflationary environment. And in an environment where there's inflation, look for Allegion to drive pricing to cover the inflationary pressures. As to timing, we would always announce that to the channel before an earnings call.

是的，喬，我們仍然處於通貨膨脹環境。在通貨膨脹的環境中，尋找 Allegion 來推動定價以應對通貨膨脹壓力。至於時間安排，我們總是會在財報電話會議之前向頻道宣布這一點。

We have some history that you're pretty familiar with, that you can get an idea of what the industry does. But just understand that, hey, we are in an inflationary environment, and as such, look for us to ensure that we manage the profitability by driving the pricing to cover the inflationary pressures.

我們有一些您非常熟悉的歷史，您可以了解該行業的情況。但要明白，嘿，我們正處於通膨環境中，因此，希望我們能夠透過推動定價來應對通膨壓力來確保我們管理獲利能力。

Understood. Thanks a lot.

明白了。多謝。

Thanks, Joe.

謝謝，喬。

Brett Linzey, Mizuho.

布雷特·林澤，瑞穗。

Hey, guys. Good morning. This is Peter [Calistri], on for Brett Linzey. So just another on the spec side, what are you guys seeing just with the build out in international spec rating and just how is that trending? Thanks.

嘿，夥計們。早安.我是彼得·卡利斯特里（Peter Calistri），代表布雷特·林澤（Brett Linzey）。那麼，在規格方面，你們對國際規格評級的建構有何看法以及趨勢如何？謝謝。

Yeah, it's a good question. I appreciate that. I would say that has, historically, not been a strength for Allegion. But it is things that we have been investing in capability. If you recall from our release earlier in the year, the acquisition of Boss Door Controls, that was also a step in the direction of more capability and more channel alignment with spec-driven business there in the UK.

是的，這是一個好問題。我很欣賞這一點。我想說，從歷史上看，這並不是 Allegion 的優勢。但這是我們一直在能力投資的事情。如果您還記得我們今年稍早發布的收購 Boss Door Controls 的消息，這也是朝著增強能力和與英國規範驅動業務進行更多管道協調的方向邁出的一步。

We've been building out human resources, human capability, human capital there for that capability and international. And I'd say it's early innings yet, but it is going to be an important part of the business as we go forward for international.

我們一直在那裡建立人力資源、人力能力和人力資本，以實現這種能力和國際化。我想說這還處於早期階段，但隨著我們邁向國際化，這將成為業務的重要組成部分。

Cool, thanks. I know you're calling it the muni bond issue issuance being strong, feeding into education. But have you seen any change to demand there just related to the sunsetting of ESSER funding?

酷，謝謝。我知道你稱之為市政債券發行強勁，為教育服務。但是，您是否看到了與 ESSER 資助終止相關的需求變化？

Yeah. So ESSER was probably more directed at other products than ours, and so it wasn't much of a tailwind. And I don't see much change for our business there. Suffice it to say, as schools get funding, they have a lot of things they need to direct those funds to.

是的。因此，埃索可能更多地針對其他產品，而不是我們的產品，因此這並不是太大的順風車。我認為我們在那裡的業務沒有太大變化。可以這麼說，當學校獲得資金時，他們需要將這些資金用於很多事情。

Safety and security are paramount in those budget exercises. And I'd say we've released new products. We continue to write specs that keep schools up to code. We continue to consult. We're very strong advocates for safe schools. And some of the products that we showed you, we highlighted as investing for organic growth on our quarterly calls, are directed right there.

在這些預算工作中，安全和安保至關重要。我想說我們已經發布了新產品。我們繼續編寫使學校符合規範的規範。我們繼續諮詢。我們是安全學校的堅定倡導者。我們向您展示的一些產品，我們在季度電話會議上強調投資於有機成長，就是針對那裡的。

And they've hit a sweet spot in the market. We're happy with them. We think they add value to faculty and teachers. And I think that as a vertical, critically important to our mission, but also has the tailwinds of pretty strong muni bond issuance here in this calendar year.

他們已經在市場上找到了最佳位置。我們對他們很滿意。我們認為它們為教師和教師增加了價值。我認為，作為一個垂直領域，這對我們的使命至關重要，今年也有相當強勁的市政債發行的推動力。

Perfect. Thanks, everybody.

完美的。謝謝大家。

Thank you.

謝謝。

(Operator Instructions) Robert Schultz, Baird.

（操作員說明）Robert Schultz，Baird。

Hey, guys, thanks for taking the question. Maybe first off here, your commentary on spec activity seems to be slightly more positive than your largest competitor. But within institutional, they called out seeing some more weakness in the healthcare verticals. Are you seeing any weakness there? And how would you describe any possible share gains over the past nine months?

嘿，夥計們，謝謝你提出問題。也許首先，您對規格活動的評論似乎比您最大的競爭對手稍微積極一些。但在機構內部，他們指出醫療保健垂直領域有更多弱點。你看到那裡有什麼弱點嗎？您如何描述過去九個月中可能出現的股價上漲？

I appreciate the question. And I think first off, we don't give really specific detail on spec activity. It's just not -- yeah, details we don't disclose. But I would just, at a high level, say our spec activity is in line with the overall macro commentary we've given you.

我很欣賞這個問題。我認為首先，我們沒有提供有關規格活動的具體細節。只是不是——是的，我們沒有透露細節。但我只是想說，我們的規格活動與我們向您提供的整體宏觀評論一致。

In terms of our largest competitor, look, they're a great company. They have great products. They keep us on our toes. They're tough to compete with. I think consistent with past quarters, any share gain that's happened out there has probably been at the expense of short-line suppliers in the market who might have found some opportunity when we had supply chain problems.

就我們最大的競爭對手而言，他們是一家很棒的公司。他們有很棒的產品。他們讓我們保持警惕。他們很難與之競爭。我認為與過去幾季一致，任何份額的成長都可能是以犧牲市場上的短線供應商為代價的，當我們遇到供應鏈問題時，他們可能會找到一些機會。

But overall, we feel good about the institutional verticals as a whole and continue to see institutional leading the wave in the near term.

但總體而言，我們對整個機構垂直行業感覺良好，並繼續看到機構在短期內引領潮流。

Got it. Thanks. And then maybe on M&A, with SOSS, does that help any specific vertical? And then maybe more broadly on M&A, I think you guys -- correct me if I'm wrong here -- but have done about five deals year to date. How do you think about the pipeline into '25 and the cadence there? Do you see that playing out at a similar level to 2024? Or any incremental thoughts there would be appreciated.

知道了。謝謝。然後也許在併購方面，與 SOSS 合作，這對任何特定的垂直領域有幫助嗎？然後，也許更廣泛地說，在併購方面，我想你們——如果我錯了，請糾正我——但今年迄今為止已經完成了大約五筆交易。您如何看待進入 25 年的流程和節奏？您認為這種情況會達到與 2024 年類似的水平嗎？或有任何增量想法將不勝感激。

Yeah, I appreciate that. And yeah, we're very excited about the SOSS acquisition. It's a great team. It's a great product line. It's perfectly complementary to a business unit that we already have. So really nice add to the business. It'll help our customers.

是的，我很欣賞這一點。是的，我們對 SOSS 的收購感到非常興奮。這是一支很棒的團隊。這是一個很棒的產品線。它與我們已有的業務部門完美互補。非常好的增加業務。這對我們的客戶有幫助。

And this is products that primarily serve the non-residential markets here in the Americas, with some smaller amount of the sales in Asia-Pacific. I would say, overall, we feel really excited about the pipeline that we're looking at. I would still feel, consistent with past quarter commentary, the M&A environment is definitely better than it was for strategics in '22, '23.

這些產品主要服務於美洲的非住宅市場，在亞太地區的銷售量也較少。我想說，總的來說，我們對我們正在研究的管道感到非常興奮。我仍然認為，與上個季度的評論一致，併購環境肯定比 22 年、23 年的策略環境要好。

And again, excited about the pipeline. We have some good momentum going this year, as you mentioned. And I would say, as we look forward, the objective won't be to pile up cash on the balance sheet. We will deploy it in the best interest of our shareholders.

再次對管道感到興奮。正如您所提到的，今年我們取得了一些良好的勢頭。我想說，正如我們所期待的那樣，我們的目標不會是在資產負債表上累積現金。我們將根據股東的最佳利益來部署它。

So as that means accretive acquisitions, you can look for us to continue to be disciplined like we have been. And when that means repurchase, we will do that at the right time, too.

因此，這意味著不斷增加的收購，您可以期待我們繼續像以前一樣遵守紀律。當這意味著回購時，我們也會在正確的時間這樣做。

Awesome. Appreciate the color. Thanks, guys.

驚人的。欣賞顏色。謝謝，夥計們。

Thank you.

謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over to John Stone, President and CEO, for any closing remarks.

我們的問答環節到此結束。我想將會議轉回總裁兼執行長約翰·斯通 (John Stone) 發表閉幕詞。

Thanks very much. Thanks, everyone, for attending the call today. Again, Allegion, stable markets, strong execution by a great team, united by a mission of making the world safer and more accessible. And we look forward to connecting with you again in Q4.

非常感謝。謝謝大家今天參加電話會議。再說一遍，Allegion，穩定的市場，強大的團隊執行力，共同的使命是讓世界更安全、更方便。我們期待在第四季再次與您聯繫。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines. Goodbye.

會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。再見。