Allegion plc (ALLE Quick QuoteALLE - Free Report) is poised to gain from strong momentum across its segments. Stable demand across end markets like education, healthcare, government, hospitality and retail, and the acquisitions of Next Door Company and Trimco are driving the Allegion Americas segment. Strength in the non-residential business, led by growth in demand for products, bodes well.

Increasing demand for electronic security products, driven by growing awareness about the security and safety of people and infrastructure, is aiding the Allegion International segment. Positive price realization and the acquisitions of Brisant, ELATEC and Lemaar Pty also bode well for the segment. Also, demand recovery for mechanical products augers well for the segment.

Over time, ALLE has expanded its market share, product offerings and customer base through acquisitions. The company acquired Brisant and UAP Group Limited in August 2025. The addition of Brisant’s residential security solutions portfolio will enable ALLE to strengthen its presence in the U.K. residential market while complementing its non-residential portfolio. The addition of UAP’s comprehensive portfolio of door hardware strengthened the company’s presence in the U.K. non-residential market.

In July 2025, Allegion acquired ELATEC, including Elatec GmbH and other group entities (ELATEC), from Summit Partners. ELATEC’s expertise in RFID reader and credential solutions enabled Allegion to expand its global electronics portfolio in non-residential markets such as education, healthcare, hospitality, enterprise and industrial.

In April 2025, the company acquired Trimco Hardware (Trimco), along with its brands and various assets, through one of its subsidiaries. The inclusion of Trimco’s expertise in specialty solutions, coupled with its strong innovation capabilities, enabled Allegion to boost its door and frame portfolio within the Allegion Americas segment. The company acquired Lemaar Pty Ltd (Lemaar) in March 2025. This acquisition boosted Allegion’s security and accessibility portfolio in Australia. The acquired company is incorporated into the Allegion International segment. In February 2025, the company acquired Next Door Company, which expanded its doors and frames portfolio. Next Door is reported in its Allegion Americas segment.

ALLE's commitment to rewarding shareholders through dividend payments and share buybacks is encouraging. Dividends paid out totaled $131.4 million in the first nine months of 2025, reflecting an increase of 4.6% year over year. In the same period, Allegion repurchased shares for $80 million.

Few Near-Term Headwinds

Allegion is dealing with escalating costs and expenses. During the nine months of 2025, the company witnessed a 5.1% year-over-year increase in the cost of sales due to high raw material costs. Also, selling and administrative expenses increased 11.2% year over year. The metric, as a percentage of total revenues, increased 80 basis points to 24%.

The company has a significant presence in the international markets. As a result, its financial performance is subject to various risks like the foreign currency exchange rate, interest rate fluctuations and hyperinflation in some foreign countries. The increased value of the U.S. dollar relative to the local currencies of the foreign markets is likely to affect the top line in the quarters ahead.

ALLE, which belongs to the Security and Safety Services industry, faces stiff competition from peers like Alarm.com Holdings, Inc. (ALRM Quick QuoteALRM - Free Report) , Cadre Holdings, Inc. (CDRE Quick QuoteCDRE - Free Report) and Intellicheck, Inc. (IDN Quick QuoteIDN - Free Report) .