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10-K2026-02-17· deepseek-chat

ALLE · Allegion plc

0001579241-26-000007

SEC filing

Summary

Allegion plc reported strong financial performance for fiscal year 2025, ending December 31, 2025. The company achieved net revenues of $4.07 billion, generating operating income of $859.5 million and net earnings attributable to Allegion plc of $643.8 million. This resulted in earnings per share of $7.00. The company maintained a solid balance sheet with total assets of $5.22 billion, including cash and cash equivalents of $356.2 million, while managing total liabilities of $3.16 billion, which included long-term debt of $1.98 billion. Operating activities provided robust cash flow of $783.8 million, though significant investing activities for business acquisitions ($592.2 million) and capital expenditures ($98.1 million) resulted in net cash used in investing activities of $685.5 million. The company returned capital to shareholders through $175.3 million in dividends paid and $80.0 million in share repurchases. The comprehensive income attributable to Allegion plc was $769.8 million, reflecting positive currency translation adjustments.

Key takeaways

Full analysis

Performance Summary

Allegion plc delivered solid financial results for the fiscal year ended December 31, 2025. The company reported net revenues of $4.07 billion. From this revenue base, it achieved operating income of $859.5 million and net earnings attributable to Allegion plc of $643.8 million. Earnings per share were $7.00. Total comprehensive income attributable to Allegion plc was $769.8 million, which includes other comprehensive income of $126.0 million, primarily driven by a $130.2 million currency translation gain. The company's effective tax rate was approximately 16.2%, calculated from the provision for income taxes of $124.6 million on earnings before income taxes of $768.4 million.

Revenue Analysis

The provided financial data does not include a breakdown of revenue by segment, product line, or geography. The analysis is therefore limited to the consolidated revenue figure of $4.07 billion. No specific growth drivers, such as pricing, volume, or acquisitions, are quantified in the provided data. The cost of goods sold was $2.23 billion, resulting in a gross profit of $1.84 billion.

Margins & Profitability

The company demonstrated healthy profitability metrics. The gross margin was 45.2%, calculated from gross profit of $1.84 billion on revenue of $4.07 billion. The operating margin was 21.1%, derived from operating income of $859.5 million. Selling and administrative expenses totaled $978.8 million, representing 24.0% of revenue. Interest expense was $101.0 million. The net income margin was 15.8% ($643.8M / $4.07B).

Cash Flow & Balance Sheet

Cash flow from operations was strong at $783.8 million, significantly exceeding net earnings of $643.8 million, aided by non-cash add-backs like $133.2 million in depreciation and amortization. Free cash flow, calculated as operating cash flow ($783.8M) less capital expenditures ($98.1M), was $685.7 million. Investing activities used $685.5 million, predominantly for the acquisition of businesses ($592.2M). Financing activities used $266.7 million, including dividend payments ($175.3M), share repurchases ($80.0M), and net debt repayments ($25.5M). The balance sheet shows total assets of $5.22 billion, with current assets of $1.39 billion. Total liabilities were $3.16 billion, including long-term debt of $1.98 billion. Total equity stood at $2.07 billion, resulting in a debt-to-equity ratio of approximately 0.96. The company ended the period with $288.0 million in cash and cash equivalents.

Outlook

The provided financial data and document content do not contain any forward-looking statements, management guidance, disclosed strategic priorities, or specific risk factors. Therefore, no outlook information is available for analysis based solely on the provided source material.