AL

Allegion plc stock research

Dec 31, 2024

FY2024 Q4

Allegion (ALLE) Gross Margin — Quarter Ended Dec 31, 2024

Revenue decreased from the prior quarter, while gross profit and cost of revenue also declined, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue, gross profit, and gross margin all improved, with cost of revenue rising at a slower pace.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue decreased from the prior quarter, while gross profit and cost of revenue also declined, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue, gross profit, and gross margin all improved, with cost of revenue rising at a slower pace.

  • The strongest observable margin driver is the gross margin level relative to the year-ago quarter, which is higher despite a lower sequential comparison.
  • Compared to the immediately preceding quarter, revenue and gross profit are lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin are all higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

44.1%

Gross profit

$416.7M

Revenue

$945.6M

Cost of revenue

$528.9M

Quarter-over-quarter change

-0.6 pts

Year-over-year change

+1.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$893.9M$391.4M$502.5M43.8%
Jun 30, 2024$965.6M$428.3M$537.3M44.4%
Sep 30, 2024$967.1M$432.1M$535.0M44.7%
Dec 31, 2024$945.6M$416.7M$528.9M44.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2024

-0.6 pts

Year-over-year change

Dec 31, 2023

+1.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the gross margin level relative to the year-ago quarter, which is higher despite a lower sequential comparison.

Compared to the immediately preceding quarter, revenue and gross profit are lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin are all higher.

Monitor the trend in cost of revenue relative to revenue, as its decline was proportionally smaller than the revenue decline in the sequential comparison.