Allegion (ALLE) Q4 2025 earnings summary

Executive summary

• Achieved high single-digit revenue growth for 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.

• Initiated 2026 adjusted EPS guidance of $8.70–$8.90, reflecting continued growth expectations.

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 basis points year-over-year; adjusted EBITDA margin reached 24.0%.

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

• Adjusted EPS for Q4 was $1.94, up 4.3%; available cash flow for 2025 was $685.7 million, up 17.6%.

• Full-year adjusted EBITDA margin was 24.8%.

Outlook and guidance

• 2026 reported revenue growth expected at 5%–7%, organic growth at 2%–4%.

• Adjusted EPS guidance for 2026 is $8.70–$8.90, representing ~8% growth at midpoint, with a projected tax rate of 18%–19%.

• Available cash flow expected at 85%–95% of adjusted net income.

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

• Electronics expected to outpace mechanical growth in both Americas and International segments.