This report does not constitute a rating action. Overview Key strengths Key risks One of the largest manufacturers of mechanical and electronic security products, including doors and access controls system, with leading brands such as LCN, Schlage, and Von Duprin. Intense competition from large and well-capitalized global companies Assa Abloy AB and Dormakaba Group. Effective global manufacturing footprint with multiple production and assembly facilities, strengthening freight cost control. Narrow security product focus, primarily concentrated in door locks, frames, closers, and related products. Above-average EBITDA margin (about 25%) through cycles, compared to peers. Ample free cash flow, exceptional liquidity, and expected debt to EBITDA of 2x over the next two years. Some exposure to construction market cycles. We expect Allegion's earning
