安朗杰 (ALLE) 2026 Q2 法說會逐字稿

Good day, everyone. My name is Stefan and I'll be your conference operator today. At this time, I'd like to welcome you to the Allegion second-quarter earnings call. (Operator Instructions)

各位好。我叫Stefan，今天將擔任本次電話會議的接線員。此刻，我想歡迎各位參加Allegion第二季財報電話會議。(接線員指示)

At this time, I'd like to turn the call over to Josh Pokrzywinski, Vice President of Investor Relations.

此刻，我想把電話會議交給投資人關係副總裁Josh Pokrzywinski。

Thank you, Stefan. Good morning, everyone. Thank you for joining us for Allegion's second-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 Allegion. 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.

謝謝你，Stefan。各位早安。感謝各位參加Allegion 2026年第二季財報電話會議。今天與我一同出席的有Allegion總裁兼執行長John Stone，以及Allegion資深副總裁兼財務長Mike Wagnes。我們今天稍早發布的財報新聞稿，以及我們將在本次電話會議中引用的簡報，都可在我們的網站 investor.allegion.com 取得。本次電話會議將錄音並存檔於我們的網站。

Please go to slide 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. 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.

請翻到第2頁投影片。本次電話會議中所作、非歷史事實之陳述，均屬前瞻性陳述，並依據聯邦證券法之安全港條款作出。請參閱我們最近期的SEC申報文件，其中說明了可能導致實際結果與我們預測出現重大差異的部分因素。公司不承擔更新這些前瞻性陳述的任何義務。今天的簡報與評論包含非GAAP財務衡量指標。更多細節請參閱我們新聞稿財務表格中的調節表。

Please go to slide 3, and I'll turn the call over to John.

請翻到第3頁投影片，接著我把電話會議交給John。

Thanks, Josh. Good morning, everyone. Thanks for joining us. Second quarter results were driven by strong organic growth in the Americas, and we see continued momentum in non-residential indicators. Our specification activity has been robust for several quarters and includes the breadth of our core institutional markets cyclical improvement in commercial verticals like office and multifamily and strong growth in data center, which is still small compared to some of our legacy markets that will continue to gain relevance as that installed base grows and fuels aftermarket over time.

謝謝，Josh。各位早安。感謝各位加入我們。第二季的表現主要由美洲地區強勁的有機成長所帶動，我們也看到非住宅指標持續具備動能。我們的規格指定（specification）活動已連續數季維持強勁，涵蓋我們核心機構型市場的廣度；同時商用垂直領域（如辦公與多戶住宅）呈現週期性改善，而資料中心也維持強勁成長。雖然資料中心相較於我們部分傳統市場仍屬較小，但隨著裝機基礎擴大並在時間推移下帶動售後市場，其重要性將持續提升。

I'm also pleased with the return to Americas margin expansion. In our International segment, we made progress on the ERP challenges experienced in the first quarter, consistent with our expectations. We saw strong sequential margin improvement and expect to build on that in the second half of the year. However, demand is weaker in several of our European markets, including Germany, which is our largest market, and we have taken additional restructuring actions in response.

我也很高興看到美洲地區毛利率恢復擴張。在國際事業部方面，我們針對第一季所遇到的ERP挑戰已取得進展，符合我們的預期。我們看到毛利率按季顯著改善，並預期在下半年持續在此基礎上再提升。然而，我們在多個歐洲市場的需求較弱，其中包括我們最大的市場德國，因此我們已採取額外的重整措施以因應。

With respect to our full year, we are raising our reported revenue outlook to 7.5% to 8.5% and our outlook for organic revenue growth to 3.5% to 4.5% based on stronger expected demand in the Americas, partially offset by weaker international demand. We are raising our adjusted EPS outlook to $8.85 to $9. I'll provide additional details on this later in the call.

就全年展望而言，基於美洲地區預期需求更強、但部分被國際需求走弱所抵銷，我們將報告營收展望上調至7.5%至8.5%，並將有機營收成長展望上調至3.5%至4.5%。我們也將調整後每股盈餘（adjusted EPS）展望上調至8.85美元至9美元。我將在稍後的電話會議中提供更多細節。

Please go to slide 4. Let's take a look at capital allocation, starting with our organic investments and ongoing demand trend for electronics. Higher education offers a clear example of continued secular growth in electronics, as demand for mobile technology increases on college campuses, these customers are moving from plastic cards and mechanical keys to contactless mobile credentials provided and managed by Allegion. This also drives large-scale hardware modernization.

請翻到第4頁投影片。我們先從有機投資以及電子產品持續的需求趨勢，來看看資本配置。高等教育提供了一個電子化持續結構性成長的明確例子：隨著大學校園對行動科技的需求增加，這些客戶正從塑膠卡與機械鑰匙，轉向由Allegion提供並管理的非接觸式行動憑證。這也帶動大規模的硬體現代化升級。

In a recent example from our team, two flagship university deployments turned into multimillion dollar opportunities for our company, stemming from thousands of Allegion reader and lock upgrades paired with system-wide Allegion credential standardization. We also see off-campus housing and property managers adopting the same approach, extending secure seamless access from the campuses where students learn into the communities where they live and connect. These upgrades deliver real benefits, simpler credential management and updates, lower installation costs, faster integration and improved security and convenience for the end user.

以我們團隊近期的一個案例為例，兩所旗艦大學的部署案，因數千套Allegion讀卡機與鎖具升級，並搭配全校系統的Allegion憑證標準化，為公司帶來數百萬美元等級的機會。我們也看到校外住宅與物業管理業者採用相同做法，將安全且無縫的出入控制，從學生學習的校園延伸到他們居住與互動連結的社區。這些升級帶來實質效益：更簡化的憑證管理與更新、更低的安裝成本、更快速的整合，以及為終端使用者提升安全性與便利性。

As mobile credential adoption spreads across core institutional markets, our organic investments position Allegion to capture these hardware upgrade cycles, driving deeper customer loyalty and long-term electronics growth and shareholder value.

隨著行動憑證在核心機構型市場的採用擴大，我們的有機投資使Allegion得以掌握這些硬體升級週期，進一步提升客戶黏著度，並推動長期的電子化成長與股東價值。

Turning to M&A. We spent $70 million in acquisitions in the first quarter and did not complete any acquisitions in the second quarter. We continue to cultivate a pipeline of opportunities that complement our portfolio. Allegion paid $47 million in dividends and we repurchased $120 million of Allegiant shares in the second quarter. And as we've said in the past, you can expect Allegion to be balanced, disciplined and consistent with capital deployment, oriented towards profitable growth and driving long-term returns for shareholders.

接著談併購（M&A）。我們在第一季投入7,000萬美元進行收購，第二季則未完成任何收購案。我們持續培育一條可補強我們產品組合的機會管線。Allegion支付了4,700萬美元股利，並在第二季回購了1.2億美元的Allegion股票。如同我們過去所說，各位可以預期Allegion在資本部署上將保持均衡、嚴謹且一致，以獲利性成長為導向，並為股東創造長期報酬。

At current share price levels, we do see attractive valuation in our shares and expect to remain active in the second half. However, consistent with past practice, our outlook does not include additional share repurchase.

以目前股價水準來看，我們認為公司股票估值具吸引力，並預期在下半年仍將保持積極。然而，依循過往慣例，我們的展望不包含額外的股票回購。

Mike will now walk you through second quarter financial results.

接下來Mike將帶各位回顧第二季財務結果。

Thanks, John, and good morning, everyone. Thank you for joining today's call. Please go to slide number 5. Revenue for the second quarter was approximately $1.2 billion, an increase of 12.7% compared to last year. Organic revenue increased 6.9% in the quarter, driven by strength in our Americas segment. The enterprise organic revenue increase was driven by both price realization and volume. Q2 adjusted operating margin was 24.2%, up 50 basis points compared to last year.

謝謝你，John，各位早安。感謝各位參加今天的電話會議。請翻到第5頁投影片。第二季營收約為12億美元，較去年成長12.7%。本季有機營收成長6.9%，主要由美洲事業部的強勁表現所帶動。整體企業的有機營收成長同時來自價格實現與銷量。第二季調整後營業利益率為24.2%，較去年提高50個基點。

Price and productivity net of inflation and investment and inclusive of transactional FX was favorable by $11.8 million and was a 30-basis point tailwind to margin rate. Volume leverage was also a tailwind to margin rate in the quarter. This favorability was partially offset by acquisitions, which were a 30-basis point headwind to margins. I'll provide more details on revenue and margins within each of the regions. Adjusted earnings per share of $2.40 increased $0.36 or 17.6% versus the prior year.

價格與生產力在扣除通膨與投資影響後，並包含交易性匯率（FX）因素，帶來1,180萬美元的正面貢獻，對毛利率形成30個基點的順風。本季的量增槓桿也對毛利率形成順風。上述有利因素部分被併購所抵銷，併購對毛利率造成30個基點的逆風。我將在各區域的營收與毛利率部分提供更多細節。調整後每股盈餘為2.40美元，較去年增加0.36美元或17.6%。

Operating income, inclusive of acquisitions drove the majority of the year-over-year EPS growth with a slight tailwind from tax and share count, partially offset by interest and other. Finally, year-to-date available cash flow was $260.8 million, down 5.3% from the prior year. I'll provide more details on cash flow and the balance sheet a little later in the presentation.

營業利益（包含併購）帶動了年對年每股盈餘（EPS）成長的大部分，稅負與股數帶來些微順風，部分被利息及其他項目所抵銷。最後，年初至今可用現金流為2.608億美元，較去年同期下降5.3%。我會在簡報稍後提供更多關於現金流與資產負債表的細節。

Please go to slide number 6. Our Americas segment delivered revenue of $918.6 million, which was up 11.8% on a reported basis and up 8.9% on an organic basis. Our non-residential business increased high single digits organically driven by price and volume growth. Demand for our non-res products remains healthy. And as John mentioned earlier, spec activity continues to be strong. Our residential business also grew high single digits, driven by both price and volume. Resi growth in Q2 was particularly strong in electronics, which can fluctuate quarter-to-quarter.

請翻到第6頁。我們美洲事業部門營收為9.186億美元，按報告基礎年增11.8%，按有機基礎年增8.9%。我們的非住宅業務有機成長達高個位數，主要由價格與銷量成長帶動。我們非住宅產品的需求仍然健康。如John先前提到的，規格（spec）活動持續強勁。我們的住宅業務也以高個位數成長，價格與銷量皆有貢獻。第二季住宅（Resi）成長在電子類別特別強勁，而該類別可能會隨季度波動。

Electronics revenue for this segment was up low teens for the quarter as both res and non-res were strong. On a year-to-date basis, electronics grew high single digits, consistent with our long-term expectations. In addition, acquisitions contributed 2.9 points of growth in the quarter. Americas adjusted operating income of $276.4 million increased 12.5% versus the prior year. Adjusted operating margins were up 20 basis points in the quarter. Pricing productivity net of inflation and investment and inclusive of transactional FX was favorable by $10.8 million and was a 10-basis point tailwind to margins.

本部門電子產品營收本季年增約低十位數，住宅與非住宅皆表現強勁。以年初至今來看，電子產品成長為高個位數，符合我們的長期預期。此外，併購在本季貢獻了2.9個百分點的成長。美洲調整後營業利益為2.764億美元，較去年同期增加12.5%。本季調整後營業利益率上升20個基點。扣除通膨與投資後的定價與生產力（並包含交易性外匯）帶來1,080萬美元的有利影響，對利潤率形成10個基點的順風。

The transactional foreign currency headwind of $2 million related to the prior year benefit that we disclosed in Q2 last year. Volume leverage was a tailwind to margin rates and acquisitions were a 40-basis point headwind as expected.

交易性外匯逆風為200萬美元，與我們去年第二季揭露的前一年利益相關。銷量槓桿對利潤率為順風，而併購如預期對利潤率造成40個基點的逆風。

Please go to slide number 7. Our International segment delivered revenue of $232.9 million, which was up 16.2% on a reported basis, but down 1.2% organically. The organic revenue decline was the result of weaker demand in some of our markets, including Germany, as John discussed earlier. Net acquisitions contributed 14.3% to segment revenue. Currency was also a tailwind, positively impacting reported revenue by 3.1%.

請翻到第7頁。我們國際事業部門營收為2.329億美元，按報告基礎年增16.2%，但按有機基礎年減1.2%。有機營收下滑主要因部分市場需求較弱所致，包括John先前提到的德國。淨併購對部門營收貢獻14.3%。匯率亦為順風，使報告營收正向影響3.1%。

International adjusted operating income of $28.8 million increased 9.9% versus the prior year. Adjusted operating margin for the quarter decreased 70 basis points. Price and productivity net of inflation and investment was 120 basis point headwind to margin rate in the quarter. Volume deleverage was also a headwind to margins. These declines were partially offset by an 80-basis point tailwind from acquisitions. Margins did increase 440 basis points sequentially as the company worked to improve production rates following the ERP disruptions experienced in Q1.

國際調整後營業利益為2,880萬美元，較去年同期增加9.9%。本季調整後營業利益率下降70個基點。扣除通膨與投資後的價格與生產力，對本季利潤率造成120個基點的逆風。銷量去槓桿亦對利潤率形成逆風。上述下滑部分被併購帶來的80個基點順風所抵銷。隨著公司在第一季ERP干擾後致力提升產能，本季利潤率較前一季增加440個基點。

Please go to slide 8, and I will provide an overview of our cash flow and balance sheet. Year-to-date available cash flow was $260.8 million, down 5.3% versus the prior year. The cash flow decrease was primarily driven by timing of sales, which were stronger later in the quarter, resulting in higher receivable balances at quarter end. For 2026, we still anticipate our ACF conversion will be approximately 85% to 95% of adjusted net income.

請翻到第8頁，我將概述我們的現金流與資產負債表。年初至今可用現金流為2.608億美元，較去年同期下降5.3%。現金流下降主要由銷售時點所致，銷售在本季後段較強，導致季末應收帳款餘額較高。對於2026年，我們仍預期可用現金流（ACF）轉換率約為調整後淨利的85%至95%。

Next, working capital as a percent of revenue increased in the second quarter due in part to acquired working capital as well as higher receivables just mentioned. Finally, our balance sheet remains healthy with net debt to adjusted EBITDA at 1.6 times.

接著，第二季營運資金占營收比重上升，部分原因是併購帶入的營運資金，以及前述較高的應收帳款。最後，我們的資產負債表仍然穩健，淨負債對調整後EBITDA為1.6倍。

I will now hand the call back over to John.

我現在把電話會議交回給John。

Thanks, Mike. Please go to slide 9. Midway through the year, we are raising our organic revenue growth outlook to 3.5% to 4.5% and adjusted earnings per share outlook to $8.85 to $9.00. We're raising our reported revenue outlook to 7.5% to 8.5% based on changes to the organic growth range. You can find more details on our outlook in the appendix. In the Americas, we're raising our organic assumption to the higher end of mid-single digits, reflecting pricing associated with increased inflation as well as a healthier demand environment, primarily in non-res.

謝謝，Mike。請翻到第9頁。在年度過半之際，我們將有機營收成長展望上調至3.5%至4.5%，並將調整後每股盈餘展望上調至8.85至9.00美元。我們也基於有機成長區間的調整，將報告營收展望上調至7.5%至8.5%。您可在附錄中找到更多展望細節。在美洲，我們將有機假設上調至中個位數成長區間的較高端，反映與通膨上升相關的定價，以及更健康的需求環境，主要在非住宅領域。

We announced pricing actions in the quarter to cover the higher inflation we were experiencing, and we'll continue to monitor the tariff and input cost environment to cover additional inflationary pressures if needed. As we said in the first quarter, we expect Americas margin expansion in the second half. Our outlook does not include potential IEEPA refunds due to uncertainty on future refund timing and as we prioritize communicating with our customers first. We would not expect any potential IEEPA refund to have a material impact on EPS.

我們在本季宣布了定價措施，以因應我們所面臨的較高通膨；若有需要，我們將持續監控關稅與投入成本環境，以涵蓋額外的通膨壓力。如同我們在第一季所說，我們預期美洲在下半年將出現利潤率擴張。由於未來退稅時點不確定，且我們優先先與客戶溝通，我們的展望未納入任何潛在的IEEPA退稅。我們不預期任何潛在的IEEPA退稅會對EPS造成重大影響。

For International, we expect to catch up on production impacts from the ERP implementation during the remainder of the year. And while we expect better revenue and margin performance in the second half, weak market demand in Europe, particularly Germany, supports reducing our full year outlook to a low single-digit organic decline. We're also truing up inorganic assumptions around FX and a modest reduction to M&A contribution as those businesses faced weaker markets this year as well.

就國際而言，我們預期在今年剩餘期間追趕ERP導入所造成的生產影響。雖然我們預期下半年營收與利潤率表現會更好，但歐洲市場需求疲弱，尤其是德國，使我們將全年展望下修為有機營收低個位數下滑。我們也將外生成長假設就匯率進行校準，並小幅下調併購（M&A）貢獻，因為這些業務今年同樣面臨較疲弱的市場。

In total for 2026, we expect to deliver high single-digit to low double-digit EPS growth in line with our long-term earnings framework. Consistent with prior practice, the outlook does not include the benefit of future capital deployment, and as a result, the outlook assumes a share count of 85.9 million shares.

整體而言，對於2026年，我們預期可實現高個位數至低雙位數的EPS成長，符合我們的長期獲利架構。依循以往作法，本展望未包含未來資本配置所帶來的效益，因此展望假設股數為8,590萬股。

Please go to slide 10. In summary, Allegion delivered double-digit revenue growth, high-teens adjusted earnings per share growth and return capital to shareholders. We see momentum building in our largest market, which gives us confidence in our organic growth potential over the next several years. The Allegion team expects to continue delivering on our commitments and driving value for shareholders.

請翻到第10頁。總結來說，Allegion實現了雙位數營收成長、調整後每股盈餘高十位數成長，並向股東回饋資本。我們看到在最大市場的動能正在累積，這讓我們對未來數年的有機成長潛力更具信心。Allegion團隊預期將持續履行我們的承諾，並為股東創造價值。

And with that, we'll take your questions.

那麼，接下來我們將開始回答各位的提問。

(Operator Instructions)

(接線員指示)

Tim Wojs, Robert W. Baird & Company.

Tim Wojs，Robert W. Baird & Company。

Hey, guys. Good morning. Okay, great. Thanks. I guess, maybe just first question, I guess, particularly on the volumes in North America, I mean, it seems like the quarter itself was better from a volume perspective for you guys. I'm just kind of curious what was better relative to your expectations? And what is your expectation for Americas volume in the second half of the year?

嗨，各位。早安。好的，很好。謝謝。我想，可能先問第一個問題，特別是關於北美的出貨量（volume）。看起來就出貨量角度而言，這一季對你們來說表現更好。我有點好奇，哪些方面比你們原先的預期更好？以及你們對今年下半年美洲出貨量的預期是什麼？

Yeah, Tim. Certainly, we had a real strong second quarter from a volume and total revenue. The quarter itself was as strong as I can remember in some time. There was strength across both res and non-res, res demand has been really solid, and we feel will continue to have strong demand patterns moving forward when you think of '26 and '27. Residential, certainly stronger than we expected, high single digit at the higher end of that, obviously, with the close to 9% organic.

是的，Tim。確實，我們第二季在出貨量與總營收方面都非常強勁。就我記憶所及，這一季的強度是相當長一段時間以來最強的。住宅與非住宅兩端都有力道；住宅需求一直很扎實，我們也認為展望未來，當你想到'26與'27年時，需求型態仍會維持強勁。住宅端確實比我們預期更強，高個位數成長且接近區間上緣，顯然有接近9%的有機成長。

That was a little stronger. That was driven by electronics. The one item I would note for Allegion here in the second quarter in the Americas, we did put a price increase out in the market at the end of May. That does result in customers ordering a little in advance of that. So that led to the stronger June. You could have seen a little pull forward as you think of Q3 into Q2, but not much. I mean underlying demand is in the high singles when you think about the second quarter, maybe just not as high as 9% for the segment.

這確實稍微更強一些。主要是由電子產品所帶動。我想特別指出 Allegion 在美洲第二季的一點：我們在5月底對市場推出了漲價。這會使客戶在漲價前稍微提前下單。因此帶動了6月的強勁表現。當你把Q3與Q2對照來看，可能會看到一些從Q3拉到Q2的提前拉貨，但不多。我的意思是，若看第二季的基本面需求，大概是高個位數，只是對該事業部門而言可能沒有高到9%。

But overall, really good demand. And as you think moving forward, non-res feel real good. In the case of residential, encouraged by the quarter we just had, I would say the outlook doesn't assume that level of performance moving forward. I think there's -- we're a little prudent to not take one quarter and then extrapolate that as a trend moving forward. So I think there's more modest assumptions in residential in the outlook, although feel good that great to see our residential business growing as strongly as it did in the second quarter.

但整體而言，需求非常不錯。展望未來，非住宅端我們感覺非常好。至於住宅端，雖然我們對剛結束的這一季感到鼓舞，但我會說，我們的展望並未假設未來仍能維持這樣的表現水準。我認為——我們會比較審慎，不會因為單一季度就把它外推成未來的趨勢。因此在展望中，對住宅端的假設更為溫和；不過也很高興看到我們住宅業務在第二季成長得如此強勁。

Okay. Okay. That's helpful. And then I guess maybe just stepping back, can you -- is there any way to put numbers or any sort of kind of color or trend around what you're seeing from like a spec quoting activity and how that's kind of tracked the past three to four quarters? I'm just trying to get a better kind of visual or understanding of how that specifically that non-res spec activity has changed over the last three to four quarters and what that might mean for volumes as we think about 2027 here? Thanks.

好的。好的。這很有幫助。接著我想退一步問，你們能否提供一些數字，或任何形式的補充說明或趨勢，來描述你們看到的規格（spec）報價/投標活動（quoting activity）情況，以及它在過去三到四個季度的走勢？我想更清楚地理解，特別是非住宅端的 spec 活動在過去三到四個季度如何變化，以及當我們思考2027年時，這對出貨量可能意味著什麼？謝謝。

Tim, this is John. It's a good question. And I think certainly, you picked up on the commentary from Q1, where we said spec activity was strong to even very strong. That strength, that momentum has continued through second quarter. It's as strong as I've seen since I joined the company. And we're very encouraged by it.

Tim，我是John。這是個好問題。我想你也注意到我們在Q1的評論，當時我們說 spec 活動很強，甚至非常強。這股強勢與動能在第二季仍持續。這是我加入公司以來看過最強的水準。我們對此非常受到鼓舞。

And I think certainly, we feel it supports our outlook for the current year. And with specs generally indicating or being a good indication of project work and revenue in the next 12 to 18 months. We -- as we said, we feel this lays a good foundation for organic growth in for the next couple of years. We don't release specific numbers around spec. I think it's not prudent to do that because the line of sight to revenue is always a little lumpy.

而且我想，這確實支撐我們對今年的展望。一般而言，spec 通常代表或是很好地反映未來12到18個月的專案工作與營收。我們——如同所說，認為這為未來幾年的有機成長奠定了良好基礎。我們不會公布 spec 的具體數字。我認為這樣做並不審慎，因為從 spec 到營收的可視性（line of sight）總是會有些不均勻、起伏。

So better just to let you know, like we said in the prepared remarks, we see broad-based strength across the core institutional verticals, we do see cyclical recovery in commercial verticals. AIA consensus came out this week with -- that indicates some acceleration in the commercial space into 2027. So there's more signal than noise at this point for -- but what feels like improving non-res demand.

所以更好的方式是告訴你們：如同我們在事先準備的講稿中提到的，我們在核心的機構型（institutional）垂直領域看到廣泛的強勢；在商業（commercial）垂直領域也看到景氣循環的復甦。AIA 的共識預測本週出爐——其中顯示商業領域到2027年將有一些加速。因此就目前而言，訊號多於雜訊——整體感覺非住宅需求正在改善。

Appreciate the color. Thanks, guys. Good luck.

感謝補充說明。謝謝各位。祝順利。

Alexander Virgo, ISI Evercore.

Alexander Virgo，ISI Evercore。

Yeah. Thanks very much. I wondered if you could talk a little bit about Europe and the evolution of demand there. I think your -- one of your main competitors last week actually reported accelerating growth in Europe, albeit low slow. So I just wondered if you could give us a little bit of comment there around some of the drivers of the difference in performance and perhaps the -- a bit of color around that -- the deceleration or deterioration that you called out in, especially in Germany?

是的。非常感謝。我想請你們談談歐洲以及那裡需求的演變。我記得你們——你們的一個主要競爭對手上週其實回報歐洲成長正在加速，雖然基期低、速度也慢。所以我想請你們評論一下，造成表現差異的一些驅動因素，以及也請補充說明你們提到的——特別是在德國——你們所指出的放緩或惡化情況？

Yeah. Very fair question and something we've been watching pretty closely. I think when you look at our exposure in Europe, primarily Southern Europe and overweighted in Germany. If you look at Germany GDP growth forecasts sequentially been taking that down with every update in the last six or nine months. And we're feeling that. I think confident in the businesses there. They're good businesses. Our electronics businesses in Europe are very strong, great margins, been good growth. The macro backdrop in Germany has just been worsening.

是的。這是非常合理的問題，也是我們一直密切關注的。我想當你看我們在歐洲的曝險，主要在南歐，且在德國的比重偏高。如果你看德國GDP成長預測，過去六到九個月每次更新都在往下修。我們也感受到這點。我對當地的業務有信心。它們是很好的事業。我們在歐洲的電子業務非常強，毛利很高，成長也一直不錯。只是德國的總體環境一直在惡化。

And so that does have an outsized impact on us. In our mechanical businesses largely exposed to Southern Europe and countries like Italy and Spain have been hanging in there consistent with our expectations. It's not great, like you say, it's not it's not huge, but hanging in with expectations. It's just been a sequential decline in demand in Germany that's had a bit of an outsized impact on us.

因此這對我們造成了相對更大的影響。我們的機械業務主要曝險在南歐，像義大利與西班牙等國家表現仍算撐得住，符合我們的預期。如你所說，情況不算很好，也不是——不是很大幅度的成長，但仍與預期一致。只是德國需求的逐季下滑，對我們造成了稍微偏大的影響。

Okay. That's very helpful. Thank you. And just as a kind of extension of that, I guess. The pricing side of things and the pricing that you've obviously been able to push through in the Americas is encouraging to see. I'm getting that the weakness in the broader market in International makes pricing a little bit more difficult. So I just wondered if you could just maybe talk a little bit about the second half and how we might think about that. Thank you.

好的。這非常有幫助。謝謝。另外，算是延伸一下我剛剛的問題。你們在美洲顯然能夠推動的定價面與定價落實，看到這點令人鼓舞。我理解到，國際市場整體市場較疲弱，使得定價變得稍微更困難。所以我想請你們談談下半年，以及我們應該如何看待這件事。謝謝。

Yeah. Certainly, if you think about our business, our pricing ability in North America, particularly non-residential is our strongest across the company. I would expect though to see positive pricing. And as we talked about in the prepared remarks, we're also really focused on driving cost actions. So as you think about the margin performance for the international business, you should see expansion in the second half of margins. And that would be a combination of pricing, but as well as restructuring and cost activity to drive better margin performance.

是的。當然，如果你看我們的業務，我們在北美的定價能力，尤其是非住宅領域，是全公司最強的。不過我仍預期會看到正向的定價。而且如同我們在事先準備的發言中提到的，我們也非常專注於推動成本行動。因此，當你思考國際業務的毛利表現時，你應該會在下半年看到毛利擴張。這將是定價的組合效果，同時也包括重整與成本活動，以推動更好的毛利表現。

Thank you very much.

非常感謝。

Rafe Jadrosich, Bank of America.

Rafe Jadrosich，美國銀行。

Hi. Good morning and thanks for taking my questions. Just to start, can you just talk a little bit about the -- obviously, the acceleration on Americas residential. Like how do you think about kind of quantifying the prebuy relative to the sell-through rate there? And just how do we think about potentially the cadence as we go through the back half of the year?

嗨。早安，謝謝讓我提問。先從一個問題開始，你能否談談——顯然美洲住宅端的加速。你們如何量化那邊的預先採購（prebuy）相對於終端銷售速度（sell-through rate）的影響？以及我們該如何看待今年下半年的節奏變化？

Yeah. If you look at our performance in the second quarter for res, really strong electronics, and that's driven by consumers and retail channel and point of sale was good. So inventory levels at retailers are at normal levels, right? So this is not a big stocking order. Underlying demand was strong in the quarter.

好的。如果你看我們第二季在住宅端的表現，電子類別非常強勁，這是由消費者與零售通路帶動，銷售點（POS）表現也很好。因此零售商的庫存水位在正常水準，對吧？所以這不是一筆大量的補庫訂單。本季的基本面需求很強。

In the first question, I try to address this. This is one quarter where we saw the super pleased. I think the activity is getting -- was stronger in the quarter. But the outlook doesn't assume that just yet, right? We want to see a few more quarters of positivity. In addition, just be cognizant. As you think about the prior year comp, Q3 last year was particularly strong. So as you think about resi as we progress, Q3 last year was strong, that's a tougher comp.

在第一個問題中，我試著回應這點。這是一個季度，我們看到表現讓我們非常滿意。我認為本季的活動——表現更強。但我們的展望目前還沒有把這點完全納入假設，對吧？我們希望再看到幾個季度的正向表現。另外也請留意。當你看去年同期比較時，去年第三季特別強。所以當你思考住宅端接下來的走勢，去年第三季很強，這會是一個較難的比較基期。

Okay. That's very helpful. And then in terms of the input cost environment, can you just talk about how that evolved maybe over the last three months or so? Obviously, there's a lot of puts and takes with 232 in steel prices, I think last time you were talking about maybe a 30-basis point margin rate headwind, but dollar-neutral, 1% of revenue in terms the (inaudible) cost pressure. Is that still the case? Or has that shifted at all?

了解。這非常有幫助。接著就投入成本環境而言，你能否談談過去大約三個月的變化？顯然鋼價方面有很多拉鋸，包含232條款的影響；我記得上次你們提到毛利率大約有30個基點的逆風，但以美元計是中性，成本壓力約為營收的1%（（聽不清））。現在仍是這樣嗎？還是有任何變化？

Yes. I would say, as we think about our business, tariffs and inflation, right? Tariff is a form of inflation. And what we're going to do is we're going to manage those inputs. We're going to drive pricing and productivity such that we're going to cover the inflation in the investments.

是的。我會說，當我們看待自身業務時，關稅與通膨，對吧？關稅是一種通膨形式。而我們要做的是管理這些投入成本。我們會推動定價與生產力提升，以便能夠涵蓋通膨以及相關投資。

What you saw in the second quarter is we're back to expanding margins and covering obviously the cost basis. Q1, a little pressure in the Americas, Q2 back to expansionary margins from PPII. I do expect for the full year will be neutral to slightly positive on PPII in the Americas. That would be obviously expansionary in the back half.

你在第二季看到的是，我們回到毛利擴張，並且顯然也涵蓋了成本基礎。第一季美洲端有些壓力，第二季在PPII方面又回到毛利擴張。我預期就全年而言，美洲的PPII將是中性到略為正向。這在下半年顯然會呈現擴張。

And then finally, as you think about the quarters, just take a look at the prior year comps as well. I mentioned earlier about Q3. But in general, think of it as all the costs that we know about are in the outlook as inflation, and we've taken the necessary pricing actions to ensure that we can cover it.

最後，當你看各季度時，也請一併看看去年同期的比較基期。我先前提到第三季。但整體而言，你可以這樣理解：我們已知的所有成本都已以通膨形式納入展望中，而且我們也採取了必要的定價行動，以確保能夠涵蓋這些成本。

Great. Thank you.

很好。謝謝。

Jeffrey Sprague, VRP.

Jeffrey Sprague，VRP。

Hey, good morning, everyone. John, I just wondered if you could shed a little more light on sort of the nature and scope of the restructuring that you're doing in Europe? And is that -- is there anything you plan to do in flight here and maybe some color on the savings or expected savings on the other side of the actions?

嗨，各位早安。John，我想請你再多說明一下你們在歐洲進行重整的性質與範圍？另外，這——你們是否還計畫在進行中的過程中再做些什麼？也請提供一些節省成本或這些行動完成後預期節省的金額。

Yeah, Jeff, I'll start and ask Mike to chime in a little bit, too. With regards to the restructuring and the cost actions we took a couple of different flavors there. Some of it was capturing acquisition cost synergies from acquisitions we made a year ago. Some of it, though, admittedly, was just in response to softer demand environments that have persisted for a little bit and just reducing the overall cost structure in a couple of those segments. In terms of how to think about it from a more quantified perspective, let me ask Mike just to add in a couple of comments.

好的，Jeff，我先回答，也請Mike補充幾點。關於重整與我們採取的成本行動，裡面有幾種不同類型。其中一部分是把我們一年前所做併購的成本協同效益落實出來。但也有一部分，坦白說，是因應較疲弱的需求環境已持續一段時間，因此在其中幾個事業部門降低整體成本結構。至於更量化的角度該如何看待，我請Mike再補充幾點。

Yeah. So Jeff, if you think about the benefit, think of it as $10 million annually of cost benefit, we'll get the full run rate in Q4. The actions, though, have been addressed. They're already completed, and it's going to -- you're going to have a partial quarter in Q3. Q4 is the full quarter. And then as you think of the first half of next year, you're going to get the tailwind from the carryover, but just from a full year amount, think of it as $10 million annually, a benefit.

好的。Jeff，若你看其效益，可以把它視為每年約1,000萬美元的成本效益，我們會在第四季達到完整的年化運行水準（run rate）。不過這些行動已經處理完畢。第三季會反映部分季度的效益。第四季是完整季度。接著當你看明年上半年，會因為延續效應而有順風；但以全年金額來看，就把它視為每年約1,000萬美元的效益。

Great. Thanks for that. And then just back to resi, one more time or at least only one more time for me. Was there anything going on with I don't know, new product launches or anything that caused the stimulation of demand. You said there was no unusual inventory build and point-of-sale seem good. But like -- just again, curious, it seems like a surprisingly strong number.

很好。謝謝你的說明。然後再回到住宅（resi）這塊，我再問一次，至少對我來說就最後一次。是否有任何情況，例如我不知道，新產品上市之類的，導致需求被刺激起來？你說沒有異常的庫存累積，而且終端銷售（POS）看起來不錯。但就像——再問一次，純粹好奇，這看起來是一個出乎意料地強勁的數字。

Yeah, Jeff, I think consistent with the prepared remarks and Mike's answer earlier, it was stronger than we expected in the quarter. I do think it was driven by electronics. The new product launch was a year ago. That was Q3 2025. And Mike mentioned that's what drove -- what's going to be a strong or a tough comp as you look into second half of this year. But I think we're running our playbook. We're running our strategy, and it's working.

是的，Jeff，我想這與我們事先準備的發言以及 Mike 先前的回答一致，本季確實比我們預期更強。我確實認為主要是由電子產品帶動。新產品上市是在一年前。那是在 2025 年第三季。而 Mike 提到，那就是推動——當你展望今年下半年時，會形成一個強勁或艱難的比較基期（comp）的原因。但我認為我們就是照著我們的作戰手冊在跑。我們在執行我們的策略，而且它正在奏效。

We've got great electronic products out there. Our resi business is 70% weighted to aftermarket and about 30% on new build. New build is still weak. And there's no deny on that. You can see what the homebuilders are reporting and their commentary out there. But the point of sale in retail, like Mike said, has been pretty strong and strong because of electronics.

我們在市場上有很棒的電子產品。我們的住宅業務有 70% 偏向售後市場（aftermarket），約 30% 來自新建案（new build）。新建案仍然疲弱。這點無可否認。你可以看到房屋建商的財報揭露以及他們在外部的評論。但如 Mike 所說，零售端的終端銷售一直相當強勁，而強勁的原因在於電子產品。

Great. Got it. Thank you very much.

很好。了解了。非常感謝。

Joseph Ritchie, Goldman Sachs. (Operator Instructions)

Joseph Ritchie，高盛。（接線員指示）

Okay. In the meantime, we'll move on to Tomo Sano from JPMorgan.

好的。同時，我們先請摩根大通的 Tomo Sano。

Hi, good morning, everyone. Thank you for taking my questiosn. I would like to double click on Americas nonresidential high single-digit growth in second quarter. Could you give us more color on the by verticals, let's say, universities, office, multifamily, John, you talked about -- a little bit about the data centers. How should we look at the second outlook for those drivers as well? Thank you.

嗨，各位早安。謝謝讓我提問。我想更深入了解美洲非住宅在第二季達到高個位數成長。能否就各垂直領域提供更多細節，例如大學、辦公室、多戶住宅（multifamily）；John，你也提到——稍微談到資料中心。我們應該如何看待這些驅動因素在下半年（second outlook）的展望？謝謝。

Yeah, Tomo, really good question. And non-res certainly largest part of Allegiant's business and demand has been improving. The momentum is good, forward-looking signals around spec activity and the AI consent favorable. So we feel good about that. In the slides in the prepared remarks, you saw a bit of the breakdown between pricing volume growth.

是的，Tomo，這問題很好。非住宅確實是 Allegion 業務中最大的一部分，而且需求一直在改善。動能不錯，前瞻性訊號包含規格（spec）活動，以及 AI 的同意（consent）有利。所以我們對此感覺良好。在事先準備的發言投影片中，你也看到價格與銷量成長之間的一些拆解。

I would say consistent with what we said on the spec activity, the project work, our customers' backlogs are very much broad-based. And you do see some cyclical recovery in commercial verticals like multifamily and office that have been depressed for the last few years. They're improving.

我會說，與我們對規格活動（spec activity）的說法一致，專案型工作方面，我們客戶的在手訂單（backlog）非常廣泛分布。而且你確實看到一些商用垂直領域的循環性復甦，例如多戶住宅與辦公室，這些在過去幾年一直低迷。它們正在改善。

Our institutional verticals. Health care has been strong. Education hanging in there. We highlighted some of the work going on within Higher Ed just as a few pinpoint examples for you. But broad-based is the way we would talk about the acceleration in non-res demand.

至於我們的機構型（institutional）垂直領域。醫療保健一直很強。教育仍維持韌性。我們也特別點出高等教育（Higher Ed）正在進行的一些工作，作為幾個具體例子提供給你。但我們會用「廣泛分布」來描述非住宅需求加速的情況。

Data centers, obviously, very rapid growing space. It's small. It's probably approaching 5% of our non-res business at this point and still growing very rapidly. And that's a future installed base that will generate aftermarket sales in the coming years. So very excited about that, too.

資料中心顯然是成長非常快速的領域。目前占比不大。就現階段而言，它可能接近我們非住宅業務的 5%，而且仍在非常快速地成長。而那將形成未來的裝機基礎（installed base），在未來幾年帶來售後市場銷售。所以我們對此也非常興奮。

Thank you, John. If I may follow up on data centers, as these clients emerge as new areas of technology-driven demand, how does Allegion differentiate yourself for the customers and versus competitors, please?

謝謝你，John。如果我可以追問資料中心，隨著這些客戶成為技術驅動需求的新領域，Allegion 對客戶而言如何做出差異化、並相較競爭對手有何不同？謝謝。

Yeah. That's a great question. And I'd say really, really proud of our Americas field sales and marketing team, our spec writers, our end-user demand generation playbook is exact to what we're doing here. And I do feel we're the best at it. So getting in early in the design phase, creating end-user standards, that meet code meets specification, have all the SKUs available that meet the specifics around data centers. A really important acquisition we made two years ago now.

是的。這是個很好的問題。我想說，我們對美洲的現場銷售與行銷團隊、我們的規格撰寫人員（spec writers）感到非常、非常自豪；我們的終端用戶需求生成（end-user demand generation）作戰手冊，正是我們在這裡所做的事情。而我確實覺得我們在這方面是最強的。也就是在設計階段就提早介入，建立終端用戶標準，符合規範（code）並符合規格（specification），並提供所有符合資料中心特定需求的 SKU。這也得益於我們兩年前做的一項非常重要的收購。

Krieger Specialty Products is bringing very high-technology doors, in fact, that are a new space for us, but are really helping in the data center vertical. So create the specification, create the end user standard and then meet the delivery expectations with all of these SKUs and very short lead times as the projects go, and now as these hyperscalers build new campuses, we expect to be there.

Krieger Specialty Products 帶來了非常高科技的門產品；事實上，這對我們而言是新的領域，但在資料中心這個垂直市場非常有幫助。因此，先建立規格、建立終端用戶標準，接著在專案推進時，以所有這些 SKU 與非常短的交期來滿足交付期望；而現在，隨著這些超大規模業者（hyperscalers）建置新的園區（campuses），我們預期會在其中占有一席之地。

Thank you. Appreciate it.

謝謝。很感謝。

At this time, I see no callers in the queue, so I'll hand back to John Stone for closing remarks.

目前我看到等候隊列中沒有來電者，因此我把時間交回給 John Stone 作結語。

Well, thank you all for the engagement and the great Q&A, and we look forward to connecting with you on our Q3 earnings call in October. Be safe. Be healthy.

好的，感謝各位的參與以及精彩的問答，我們期待在 10 月的第三季財報電話會議上再與各位交流。注意安全。保持健康。