Allegion plc reported fourth‑quarter 2025 results on February 17, 2026, with net revenue of $1,033.2 million, up 9.3% from $945.6 million in the same quarter a year earlier. Net earnings were $147.5 million, or $1.70 per share, while adjusted earnings per share rose 4.3% to $1.94, slightly below the consensus estimate of $2.01.
The company’s Americas non‑residential segment drove the majority of the growth, expanding 6.1% year‑over‑year, while the International segment posted a 21.5% revenue increase but experienced a 2.3% organic decline due to volume pressures. Residential markets, particularly in the United States, were softer than expected, contributing to the overall mix shift.
Operating margin for the quarter was 20.3%, compared with 19.5% in the prior quarter and 19.5% in Q4 2024. Adjusted operating margin reached 22.4%, up 30 basis points from 22.1% a year earlier, reflecting pricing power and cost discipline that offset inflationary headwinds.
Allegion reiterated its 2026 outlook, guiding for reported revenue growth of 5%–7% and organic revenue growth of 2%–4%, and adjusted earnings per share of $8.70 to $8.90. Management emphasized continued growth led by Americas non‑residential and the expansion of its electronics and software portfolio, while noting that U.S. residential markets are expected to remain soft.
The results missed adjusted EPS estimates by $0.07 and revenue by $0.01, prompting a muted market reaction focused on the EPS miss and the cautious guidance. Investors noted that the company’s margin expansion and strategic focus on high‑margin electronics provide a foundation for future growth.
"I'm proud of the Allegion team as we delivered on our commitments to customers and shareholders, finishing out a strong 2025 marked by high‑single‑digit enterprise revenue growth, accretive capital deployment and strong cash generation." – John H. Stone, President and CEO
"As we enter 2026, we see continued growth led by Americas non‑residential and will remain agile as we execute our strategy." – John H. Stone, President and CEO
"Our broad end market exposure supports continued growth led by Americas nonresidential. U.S. residential markets were softer than expected in the fourth quarter, and our outlook contemplates that residential remained soft in 2026." – John H. Stone, President and CEO
"Revenue for the fourth quarter was over $1 billion, an increase of 9.3% compared to 2024. Organic revenue increased 3.3% in the quarter, led by our Americas nonresidential business." – Michael Wagnes, Senior VP & CFO
"Q4 adjusted operating margin was 22.4%, up 30 basis points compared to last year. Price and productivity exceeded inflation and investment by $12 million." – Michael Wagnes, Senior VP & CFO
"We expect electronics to outpace mechanical growth consistent with our long‑term performance and customer trends." – Michael Wagnes, Senior VP & CFO
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