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.

• 2026 outlook projects 5%-7% reported revenue growth and adjusted EPS of $8.70–$8.90, reflecting continued operational strength.

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%.

• Full-year adjusted EPS up 8.1% to $8.14; available cash flow for 2025 was $685.7 million, up 17.6%.

• Full-year adjusted EBITDA margin was 24.8%.

Outlook and guidance

• Fiscal 2026 Adjusted EPS guidance set at $8.70–$8.90, with reported EPS $8.00–$8.20.

• 2026 revenue growth expected at 5%-7% reported, 2%-4% organic; 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 organic growth projected in low to mid-single digits, led by non-residential; residential expected to remain soft.

• International segment outlook assumes low single-digit growth, led by electronics.