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Allegion's Q4 Earnings Miss Estimates, Revenues Increase Y/Y
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Key Takeaways
Allegion plc's Q4 adjusted EPS of $1.94 missed estimates, though revenues rose 9.3% year over year.
ALLE saw gross margin expand 40 bps to 44.5%, with adjusted operating income up 10.6%.
ALLE expects 2026 revenues to grow 5-7% and projects EPS of $8.70-$8.90.
Allegion plc’s (ALLE - Free Report) fourth-quarter 2025 adjusted earnings of $1.94 per share miss the Zacks Consensus Estimate of $2.01. However, the bottom line increased 4.3% year over year.
In 2025, the company’s adjusted earnings were $8.14 per share, up 8.1% year over year.
ALLE’s Revenue Details
Allegion’s revenues were $1.03 billion, which increased 9.3% year over year. Organic revenues increased 3.3%, driven by price realization. Revenues were in line with the Zacks Consensus Estimate.
Acquired assets boosted revenues by 4.4%. Foreign currency had a positive impact of 1.6%.
In 2025, ALLE reported net revenues of $4.07 billion, which increased 7.8% year over year.
ALLE reports revenues under two segments. A brief discussion of quarterly results is provided below:
Revenues from Allegion Americas increased 6.1% year over year to $795.5 million. The figure accounted for 77% of the quarter’s revenues. Our estimate for segmental revenues was $798.6 million. Organic revenues increased 4.8%, driven by solid momentum in the non-residential business.
Operating income for the segment was $206.1 million, up 6.3% year over year. Our estimate was $224.1 million.
Revenues from Allegion International were $237.7 million, up 21.5% year over year. The metric accounted for 23% of the quarter’s revenues. Our estimate for segmental revenues was $230.8 million. Organic revenues decreased 2.3%.
Segmental operating income was $29.4 million, up 66.1% year over year. Our estimate was $33.0 million.
In the quarter, Allegion’s cost of revenues increased 8.5% year over year to $573.7 million. Gross profit was $459.5 million, up 10.3% year over year, while the gross margin jumped 40 basis points (bps) to 44.5%.
Selling and administrative expenses increased 7.7% year over year to $249.9 million. Adjusted EBITDA was $248.2 million, reflecting a year-over-year increase of 11%. The margin was 24%, up 40 basis points on a year-over-year basis.
Adjusted operating income increased 10.6% year over year to $231.3 million. The adjusted margin was 22.4%, up 30 basis points year over year. Interest expenses were $25.1 million, down 0.4% year over year. The effective tax rate was 19.8%, up from 11.2% in the year-ago quarter.
ALLE’s Balance Sheet and Cash Flow
While exiting fourth-quarter 2025, Allegion had cash and cash equivalents of $356.2 million compared with $503.8 million at the end of 2024. Long-term debt was $1.98 billion, in line with the year-ago quarter.
In 2025, ALLE generated net cash of $783.8 million from operating activities, reflecting an increase of 16.1% year over year. Capital expenditure was $98.1 million, up 6.5% year over year. For the full year, the available cash flow was $685.7 million.
Allegion repurchased shares for $80.0 million. Dividends paid out totaled $175.3 million, reflecting an increase of 5% year over year.
Allegion’s 2026 Outlook
The company has issued 2026 guidance. Allegion expects revenues to increase in the range of 5-7% from the year-ago level. ALLE anticipates organic revenues to grow in the range of 2-4%.
Adjusted earnings are projected to be in the range of $8.70-$8.90 per share. The company estimates available cash flow to be 85-95% of adjusted net income. Adjusted effective tax rate is projected to be approximately 18-19%.
Graco Inc. (GGG - Free Report) posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.
Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares with year-ago revenues of $548.67 million.
Baker Hughes Company (BKR - Free Report) reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.
Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.
3M Company (MMM - Free Report) delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.
MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.
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Allegion's Q4 Earnings Miss Estimates, Revenues Increase Y/Y
Key Takeaways
Allegion plc’s (ALLE - Free Report) fourth-quarter 2025 adjusted earnings of $1.94 per share miss the Zacks Consensus Estimate of $2.01. However, the bottom line increased 4.3% year over year.
In 2025, the company’s adjusted earnings were $8.14 per share, up 8.1% year over year.
ALLE’s Revenue Details
Allegion’s revenues were $1.03 billion, which increased 9.3% year over year. Organic revenues increased 3.3%, driven by price realization. Revenues were in line with the Zacks Consensus Estimate.
Acquired assets boosted revenues by 4.4%. Foreign currency had a positive impact of 1.6%.
In 2025, ALLE reported net revenues of $4.07 billion, which increased 7.8% year over year.
ALLE reports revenues under two segments. A brief discussion of quarterly results is provided below:
Revenues from Allegion Americas increased 6.1% year over year to $795.5 million. The figure accounted for 77% of the quarter’s revenues. Our estimate for segmental revenues was $798.6 million. Organic revenues increased 4.8%, driven by solid momentum in the non-residential business.
Operating income for the segment was $206.1 million, up 6.3% year over year. Our estimate was $224.1 million.
Revenues from Allegion International were $237.7 million, up 21.5% year over year. The metric accounted for 23% of the quarter’s revenues. Our estimate for segmental revenues was $230.8 million. Organic revenues decreased 2.3%.
Segmental operating income was $29.4 million, up 66.1% year over year. Our estimate was $33.0 million.
Allegion PLC Price, Consensus and EPS Surprise
Allegion PLC price-consensus-eps-surprise-chart | Allegion PLC Quote
Allegion’s Margin Profile
In the quarter, Allegion’s cost of revenues increased 8.5% year over year to $573.7 million. Gross profit was $459.5 million, up 10.3% year over year, while the gross margin jumped 40 basis points (bps) to 44.5%.
Selling and administrative expenses increased 7.7% year over year to $249.9 million. Adjusted EBITDA was $248.2 million, reflecting a year-over-year increase of 11%. The margin was 24%, up 40 basis points on a year-over-year basis.
Adjusted operating income increased 10.6% year over year to $231.3 million. The adjusted margin was 22.4%, up 30 basis points year over year. Interest expenses were $25.1 million, down 0.4% year over year. The effective tax rate was 19.8%, up from 11.2% in the year-ago quarter.
ALLE’s Balance Sheet and Cash Flow
While exiting fourth-quarter 2025, Allegion had cash and cash equivalents of $356.2 million compared with $503.8 million at the end of 2024. Long-term debt was $1.98 billion, in line with the year-ago quarter.
In 2025, ALLE generated net cash of $783.8 million from operating activities, reflecting an increase of 16.1% year over year. Capital expenditure was $98.1 million, up 6.5% year over year. For the full year, the available cash flow was $685.7 million.
Allegion repurchased shares for $80.0 million. Dividends paid out totaled $175.3 million, reflecting an increase of 5% year over year.
Allegion’s 2026 Outlook
The company has issued 2026 guidance. Allegion expects revenues to increase in the range of 5-7% from the year-ago level. ALLE anticipates organic revenues to grow in the range of 2-4%.
Adjusted earnings are projected to be in the range of $8.70-$8.90 per share. The company estimates available cash flow to be 85-95% of adjusted net income. Adjusted effective tax rate is projected to be approximately 18-19%.
ALLE’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. (GGG - Free Report) posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.
Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares with year-ago revenues of $548.67 million.
Baker Hughes Company (BKR - Free Report) reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.
Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.
3M Company (MMM - Free Report) delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.
MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.