High-Single Digit Revenue Growth for the Enterprise and Continued Strength in Americas Non-Residential

Quarterly Financial Highlights
(All comparisons are year-over-year, unless otherwise noted)

• Net earnings per share (EPS) of $1.70, up 3.0% compared with $1.65; Adjusted EPS of $1.94, up 4.3% compared with $1.86
• Revenues of $1,033.2 million, up 9.3% on a reported basis and up 3.3% on an organic basis
• Operating margin of 20.3%, compared with 19.5%; Adjusted operating margin of 22.4%, compared with 22.1%

Full-Year Financial Highlights
(All comparisons are year-over-year, unless otherwise noted)

• EPS of $7.44, up 9.1% compared with $6.82; Adjusted EPS of $8.14, up 8.1% compared with $7.53
• Revenues of $4,067.3 million, up 7.8% on a reported basis and up 4.1% on an organic basis
• Operating margin of 21.1%, compared with 20.7%; Adjusted operating margin of 23.2%, up 40 basis points compared with 22.8%
• Available cash flow, which is defined as net cash from operating activities minus capital expenditures, was $685.7 million for 2025, an increase of 17.6% 

2026 Full-Year Outlook Highlights

• Full-year reported revenue growth is estimated to be 5% to 7%, with organic revenue growth estimated to be 2% to 4%
• Full-year adjusted EPS is estimated to be $8.70 to $8.90
• Available cash flow is estimated to be 85% to 95% of adjusted net income

Allegion plc (NYSE: ALLE), a leading global security products and solutions provider, today reported financial results for its fourth quarter (ended Dec. 31, 2025).

“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,” Allegion President and CEO John H. Stone said. “As we enter 2026, we see continued growth led by Americas non-residential and will remain agile as we execute our strategy.”

Q4 2025 Company Results
(All comparisons are year-over-year, unless otherwise noted)

Allegion reported fourth-quarter 2025 net revenues of $1,033.2 million and net earnings of $147.5 million, or $1.70 per share. Adjusted net earnings were $168.3 million, or $1.94 per share, up 4.3%. (Details of the adjustments are included in the footnotes of the tables in this press release.)

Fourth-quarter 2025 net revenues increased 9.3%. On an organic basis, which excludes impacts of acquisitions, divestitures and foreign currency movements, net revenues increased 3.3%, led by the Americas region. The organic revenue increase was driven by price realization partially offset by volume declines. Reported revenue reflects a 4.4% net positive impact from acquisitions and divestitures, as well as a 1.6% tailwind from foreign currency.

Fourth-quarter 2025 operating income was $209.6 million, an increase of $25.0 million or 13.5%. Adjusted operating income in fourth-quarter 2025 was $231.3 million, an increase of $22.2 million or 10.6%.

Fourth-quarter 2025 operating margin was 20.3%, compared with 19.5%. The adjusted operating margin in fourth-quarter 2025 was 22.4%, compared with 22.1%. The operating margin expansion is attributable to price and productivity in excess of inflation and investment as well as favorable mix.

Q4 2025 Segment Results
(All comparisons are year-over-year, unless otherwise noted)

The Americas segment revenues were up 6.1% (up 4.8% on an organic basis). The non-residential business was up high-single digits organically, driven by both price and volume. The residential business declined high-single digits organically, as a result of lower volume, partially offset by price. The reported revenue reflects a 1.3% positive impact from acquisitions. Adjusted operating margin in the region decreased 30 basis points to 27.1% as price and productivity in excess of inflation and investment was an $8.9 million tailwind to operating income but was a 30-basis-point headwind to margin rates.

The International segment revenues increased 21.5% (down 2.3% on an organic basis). The organic revenue decrease was driven by volume, partially offset by price. Reported revenue reflects a net positive impact from acquisitions and divestitures of 16.0% and a 7.8% tailwind from foreign currency. Adjusted operating margin in the region increased 90 basis points to 16.7%, driven primarily by acquisitions and divestitures.

Full-Year 2025 Company Results
(All comparisons are year-over-year, unless otherwise noted)

Allegion reported full-year 2025 net revenues of $4,067.3 million and net earnings of $643.8 million, or $7.44 per share. Adjusted net earnings were $704.9 million, or $8.14 per share, up 8.1%.

Full-year 2025 net revenues increased 7.8%. On an organic basis, which excludes the impacts of acquisitions, divestitures and foreign currency movements, net revenues increased 4.1%, led by the Americas region. The organic revenue increase was driven by price realization and volume growth. Reported revenue reflects a 3.1% positive impact from acquisitions and a 0.6% tailwind from foreign currency.

Full-year 2025 operating income was $859.5 million, an increase of $78.8 million or 10.1%. Adjusted operating income for full-year 2025 was $944.0 million, an increase of $83.2 million or 9.7%.

Full-year 2025 operating margin was 21.1%, compared with 20.7%. The adjusted operating margin for full-year 2025 was 23.2%, compared with 22.8%. The 40-basis-point increase in adjusted operating margin is attributable to volume leverage and favorable mix. Price and productivity net of inflation and investment drove an $8.7 million tailwind to operating income but was a margin rate headwind of 50 basis points.

Additional Items
(All comparisons are year-over-year, unless otherwise noted)

Interest expense for fourth-quarter 2025 was $25.1 million, a decrease of $0.1 million.

Other expense, net for fourth-quarter 2025 was $0.6 million, compared to other income, net of $2.9 million.

The company’s effective tax rate for fourth-quarter 2025 was 19.8%, compared with 11.2%. The company’s adjusted effective tax rate for fourth-quarter 2025 was 18.8%, compared with 13.1%. The company’s adjusted effective tax rate for full-year 2025 was 17.6%, compared with 15.6% for full-year 2024.

Cash Flow and Liquidity

Year-to-date available cash flow for 2025 was $685.7 million, an increase of $102.8 million versus the prior-year period. The company ended 2025 with cash and cash equivalents of $356.2 million, as well as total debt of $1,980.1 million.

Dividends

In the fourth quarter of 2025, the company paid quarterly dividends of $0.51 per ordinary share or approximately $44 million.

2026 Full-Year Outlook
(All comparisons are year-over-year, unless otherwise noted)

The company expects full-year 2026 revenues to increase 5% to 7% on a reported basis and increase 2% to 4% organically, when compared to 2025, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements.

Full-year 2026 reported EPS is expected to be in the range of $8.00 to $8.20, or $8.70 to $8.90 on an adjusted basis. The outlook assumes a full-year adjusted effective tax rate of approximately 18% to 19%.

Adjustments to 2025 EPS include estimated impacts of approximately $0.60 per share for acquisition-related amortization, as well as $0.10 per share for other adjustments.

The outlook assumes an average diluted share count for the full year of approximately 86.6 million shares.

The company expects full-year available cash flow to be 85% to 95% of adjusted net income.

Conference Call Information

On Tuesday, Feb. 17, 2026, President and CEO John H. Stone and Senior Vice President and Chief Financial Officer Mike Wagnes will conduct a conference call for analysts and investors, beginning at 8 a.m. ET, to review the company's results.

A real-time, listen-only webcast of the conference call will be broadcast live online. Individuals wishing to listen may access the call through https://investor.allegion.com.

About Allegion

At Allegion (NYSE: ALLE), we design and manufacture innovative security and access solutions that help keep people safe where they live, learn, work and connect. We’re pioneering safety with our strong legacy of leading brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®. Our comprehensive portfolio of hardware, software and electronic solutions is sold around the world and spans residential and commercial locks, door closer and exit devices, steel doors and frames, access control and workforce productivity systems. Allegion had $4.1 billion in revenue in 2025. For more, visit www.allegion.com.

Non-GAAP Measures

This news release and accompanying earnings release materials include adjusted non-GAAP financial information which should be considered supplemental to, not a substitute for or superior to, the financial measure calculated in accordance with GAAP. The company presents operating income, operating margin, earnings before income taxes, effective tax rate, net earnings and diluted earnings per ordinary share (EPS) on both a U.S. GAAP basis and on an adjusted (non-GAAP) basis, revenue growth on a U.S. GAAP basis and organic revenue growth on a non-GAAP basis, EBITDA, adjusted EBITDA and adjusted EBITDA margin (all non-GAAP measures) and Available Cash Flow (“ACF,” a non-GAAP measure), including in certain cases, on a segment basis. The company presents these non-GAAP measures because management believes these non-GAAP measures provide management and investors useful perspective of the company’s underlying business results and trends and a more comparable measure of period-over-period results. These measures are also used to evaluate senior management and are a factor in determining at-risk compensation. Investors should not consider non-GAAP measures as alternatives to the related U.S. GAAP measures. Further information about the adjusted non-GAAP financial tables is attached to this news release. The Quarterly Financial Highlights, Full-Year Financial Highlights and 2026 Full-Year Outlook Highlights contain non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from our U.S. GAAP financial statements. When we provide forward-looking outlooks for any of the various non-GAAP metrics described above, we do not provide reconciliations of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements under the headings “2026 Full-Year Outlook Highlights” and “2026 Full-Year Outlook” and statements regarding the company's 2026 and future financial performance, the company’s business plans and strategy, the company’s growth strategy, the company’s capital allocation strategy, the company’s ability to successfully complete and integrate acquisitions and achieve anticipated strategic and financial benefits and the performance of the markets in which the company operates. These forward-looking statements generally are identified by the words “believe,” “aim,” “projected,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “intend,” “scheduled,” “targets,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements. Forward-looking statements may relate to such matters as projections of revenue, margins, expenses, tax rate and provisions, earnings, cash flows, benefit obligations, dividends, share purchases or other financial items; any statements of the plans, strategies and objectives of management for future operations, including those relating to any statements concerning expected development, performance or market share relating to our products and services; any statements regarding future economic conditions or our performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Undue reliance should not be placed on any forward-looking statements, as these statements are based on the company's currently available information and our current assumptions, expectations and projections about future events. They are subject to future events, risks and uncertainties - many of which are beyond the company’s control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Important factors and other risks that may affect the company's business or that could cause actual results to differ materially are included in filings the company makes with the Securities and Exchange Commission (SEC) from time to time, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q and in its other SEC filings. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. The company undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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