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Allegion Gets A $600 Million M&A Reality Check On Growth

Allegion PLC has closed its fiscal year 2025 on a note of expansion and strategic growth, demonstrating both resilience in a challenging macroeconomic environment and a drive for innovation in its offerings. The company reported high single-digit overall revenue growth, bolstered by more than $600 million in accretive M&A activity, which positions it firmly in the security and access control market with its prominent brands like Schlage, Von Duprin, and LCN. Revenue for the fourth quarter surpassed $1 billion, marking a 9.3% increase compared to the previous year. This growth was significantly driven by the Americas nonresidential segment, which showed robust demand, although the Americas residential market underperformed expectations. Organic revenue increased by 3.3%, supported primarily by price realization, albeit offset by reduced volumes in both residential and some international sectors. Adjusted operating margins improved slightly to 22.