Allegion plc (NYSE:ALLE) Q1 2024 Earnings Call Transcript

Joe O’Dea: I appreciate the details. Thanks.

Operator: The next question comes from Brett Linzey with Mizuho. Please go ahead.

Peter Costa: Good morning, guys. This is Peter Costa on for Brett. I just have a strategic question around the election and tariffs. Obviously, we don’t know what the outcome looks like, but just understanding that Allegion has a manufacturing footprint outside the U.S. Can you just talk about how nimble your supply chain is and just your ability to flex around different regions should we enter a more aggressive tariff regime?

John Stone: Well, let me – this is John. I would just open with tariffs of any kind or not helpful to a company like Allegion in terms of our supply chain. I’d say we learned a lot of lessons as did everybody else over the course of 2022 and 2023. And in terms of supply chain resiliency, we feel a lot better about our position than we would have a couple of years ago. Not going to get into specifics of where we buy this part or that part or where we make this or that. But I would say, managing the portfolio of several million SKUs like we do, made-to-order environment in terms of supply chain and manufacturing, I’m quite confident in Allegion’s capabilities regardless of tariff regimes or administrations.

Peter Costa: Well, thanks for the call. That’s it for me.

Operator: 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.

John Stone: Well, thanks very much. And just to reiterate, we feel we’re off to a solid start in 2024. We look forward to connecting with you again next quarter. Be safe, be healthy, everyone.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.