Allegion (ALLE) Q4 2025 earnings summary

Executive summary

• Achieved high single-digit revenue growth in 2025, with strong execution, capital deployment, and margin expansion, led by Americas non-residential and electronics.

• Adjusted EPS for Q4 2025 rose 4.3% to $1.94; full-year adjusted EPS up 8.1% to $8.14.

• Completed over $600 million in accretive M&A, expanding core mechanical and electronics/software portfolios.

• 2026 outlook projects 5–7% reported revenue growth and adjusted EPS of $8.70–$8.90.

• Maintained a resilient business model with broad end market exposure, especially in Americas non-residential.

Financial highlights

• Q4 2025 revenue exceeded $1 billion, up 9.3% year-over-year; organic growth was 3.3%.

• Q4 adjusted operating margin was 22.4%, up 30 bps; adjusted EBITDA margin 24.0%.

• Full-year 2025 revenue up 7.8% to $4,067.3 million; organic growth 4.1%.

• Full-year adjusted EPS up 8.1% to $8.14; available cash flow reached $685.7 million, up 17.6%.

• Capex for FY 2025 was $98.1 million.

Outlook and guidance

• 2026 total company revenue expected to grow 5%–7% reported, 2%–4% organic.

• Adjusted EPS guidance for 2026 is $8.70–$8.90; available cash flow expected at 85%–95% of adjusted net income.

• Tax rate projected at 18%–19%; average diluted share count of 86.6 million.

• Americas non-residential to lead growth; residential expected to remain soft.

• Electronics to outpace mechanical growth; international segment to see modest growth led by electronics.