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Allegion: $600 Million In Acquisitions Cannot Fully Offset The Residential Softness Ahead!

Allegion plc reported a solid financial performance for the full year 2025, marked by high single-digit enterprise revenue growth and over $600 million deployed in acquisitions that complemented its core mechanical portfolio and expanded its electronics and software offerings. The company showcased resilience in a dynamic and inflationary environment, underpinned by strong execution, a broad end market exposure, and established brands such as Schlage, Von Duprin, and LCN. In the fourth quarter, Allegion generated revenue exceeding $1 billion, a 9.3% increase compared to the prior year. Organic revenue grew 3.3%, primarily driven by the Americas nonresidential segment, despite volume declines in the residential and international businesses. Adjusted operating margins expanded modestly to 22.4%, supported by price realization and productivity improvements that more than offset inflationary pressures. Adjusted earnings per share rose 4.3% to $1.94, reflecting operational performance and contributions from accretive acquisitions, partly offset by a higher tax rate.