Mike Wagnes
SVP and Chief Financial Officer at Allegion
Thanks, John, and good morning, everyone. Thank you for joining today's call. Please go to slide number 6. As John shared, Allegion continued to execute at a high level. We delivered another quarter of solid performance with strong electronics growth, sustained margin expansion and healthy cash flows.
Revenue for the third quarter was $917.9 million, an increase of five-tenths of a percent compared to 2022. We continue to see favorable price realization along with strength in electronics and Access Technologies. However, ongoing pressure on our residential business, paired with a challenging prior year comparable resulted in organic revenue declines of 0.6-tenths of a percent.
Adjusted operating margin and adjusted EBITDA margin in the third quarter both increased by 110 basis points. Price and productivity in excess of inflation and investment, along with strong operational execution more than offset the volume decline impact. On a year-to-date basis, we have achieved the highest adjusted operating margin in our history.
I'm pleased with the margin performance over the last 18 months, as we have now recaptured the margin lost during our supply chain disruptions. Our operating model and strong execution have positioned us well for future margin expansion. Adjusted earnings per share of $1.94 increased $0.21 or approximately 12% versus the prior year. Operational performance drove nearly $0.10 per share, with the remaining coming from tax driven by timing of discrete items versus the prior year. We expect our full year adjusted effective tax rate to be approximately 15%. You can find further details of our earnings per share performance in the Appendix.
Year to date available cash flow is $320.4 million, an increase of approximately $95 million versus last year driven by higher earnings. I will provide more details on our cash flow and balance sheet a little later in the presentation.
Please go to slide number 7. This slide provides an overview of our quarterly and year-to-date revenue. Our reviews are -- I will review our enterprise results here before turning to our respective regions.
As I just mentioned, we had reported growth of five-tenths of a percent with a decline in organic revenue of six-tenths a percent in the quarter, as price realization offset pressure on mechanical volumes. As you see on the top of the slide, Q3 is comping against a prior year quarter with organic growth of more than 18%. If you recall, that is when our supply chain improvement efforts allowed us to start working through backlogs and past due customer orders and represented the highest organic growth in our company's history.
Currency drove some favorability in the quarter, bringing total reported growth to five-tenths. On a year-to-date basis, organic revenue was 6.1% overall, with Americas at nearly 9%, driven by strength in our nonresidential business. Our international business is down about 3% year to date.
Please go to slide number 8. Our Americas segment continues to deliver strong operating results in the third quarter, expanding margins despite lower volumes. Revenues of $740.9 million was down slightly on a reported basis and flat organically as favorable pricing was offset by reduced volumes.
Let me disaggregate the components further. The America's nonresidential business was up low single digits against a prior year comp, which grew approximately 30%, driven by backlog reductions I just mentioned. On a year-to-date basis, nonresidential business has grown double digits. Our America's residential business is down low teens in the quarter as we continue to see weakness in the residential market as higher interest rates continue to impact new and existing home sales.
Our Access Technologies business delivered organic growth of mid-teens, representing another strong quarter of top line growth and demonstrating the stability that this business provides us.
Demand for our electronic solutions remains strong in the Americas. We delivered high teens organic growth in electronics in the quarter, and we continue to see a long runway for further adoption as electronics remains a key growth driver for the long term.
As we discussed during our second quarter call, mechanical volumes were expected to be a little soft in the third quarter as customers adjusted to our reduced lead times. We feel the channel has worked through this adjustment, and we are back to a more normal book and ship business.
Our America's adjusted operating income of $210.6 million increased 5% versus the prior year period, while adjusted operating margin and adjusted EBITDA margin for the quarter were up 140 basis points and 150 basis points respectively. Pricing and productivity exceeded inflation and investments, driving substantial margin expansion, demonstrating the resiliency of our America's business model.
Please go to slide number 9. Our international segment executed well in a challenging macroeconomic environment. Revenues of $177 million was up 3% on a reported basis and down 2.8% organically. Price realization was more than offset by lower volumes, primarily associated with our global portable securities business and our China business, which are operating in challenging markets. We continue to see strength in our electronics and software solutions, which grew low double digits organically in the quarter.
In addition, currency was a tailwind this quarter, positively impacting reported revenues by 5.2%. International adjusted operating income of $23.7 million increased over 18% versus the prior year period. We also saw improvements in adjusted operating margin and adjusted EBITDA margins of 180 basis points and 190 basis points respectively. This substantial margin expansion, despite reduced volumes, highlights the healthier portfolio within our international segment.
Please go to slide number 10. As I mentioned earlier, year-to-date available cash flow came in at $320.4 million, up nearly $95 million versus the prior year. This increase is driven by higher earnings, partially offset by higher capital expenditures related to our new facility in Mexico, which begins production later this quarter.
Working capital as a percent of revenue increased versus the prior year. This was primarily driven by timing of revenue and associated receivables within the quarter, as well as timing of payments to suppliers in the prior year. Working capital and inventory management remain a priority for a company as we efficiently turn earnings to cash.
Our net debt to adjusted EBITDA is down to two times as we continue to successfully delever following the Access Technologies' acquisition. We repaid the final $39 million on our revolving credit facility in the quarter, completing our repayments of short-term borrowings associated with that acquisition.
We are now back to pre-acquisition leverage levels, which demonstrates our proven track record of effectively deploying capital while maintaining an investment grade credit rating. Our business continues to generate strong cash flow and our balance sheet continues to be in a healthy position.
I'll now hand the call back over to John for an update on our full year 2023 outlook.
