Revenue Growth Momentum
Allegion grew total revenue by 7.8% year-over-year to $4.07B in FY2025, up from $3.77B in the prior year, reflecting solid demand across its security products and solutions portfolio.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Allegion (ALLE) delivered strong FY2025 results with revenue growing 7.8% to $4.07B and net income rising 7.7% to $643.8M, driven by operating leverage and disciplined cost management that expanded operating margins to 21.1%.
Revenue
$4.07B
+7.82% YoY
EPS (Diluted)
$7.44
+9.09% YoY
Operating Income
$859.5M
+10.09% YoY
Source: SEC XBRL
Allegion (ALLE) reported FY2025 revenue of $4.07B, up 7.8% year over year. Operating margin was 21.1%, up 0.4 points from 20.7% a year earlier. Operating cash flow was $783.8M, up 16.1% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.40 | 2.26 | Beat +6.2% |
| Mar 2026 | 1.80 | 1.93 | Miss -6.9% |
| Dec 2025This filing | 1.94 | 2.03 | Miss -4.2% |
| Sep 2025 | 2.30 | 2.26 | Beat +2.0% |
Reported EPS of $1.94 versus the $2.03 analyst consensus — a -4.2% miss for Dec 2025.
Compiled by AI from this SEC filing
Allegion grew total revenue by 7.8% year-over-year to $4.07B in FY2025, up from $3.77B in the prior year, reflecting solid demand across its security products and solutions portfolio.
Source: 10-K Income Statement
Operating income rose 10.1% to $859.5M, pushing operating margin to 21.1% from 20.7% in the prior year — a 40 basis point improvement — indicating that revenue growth outpaced cost increases.
Source: 10-K Income Statement
SG&A expenses increased 10.3% to $978.8M and R&D spending jumped 17.1% to $132.0M, suggesting the company is investing aggressively in growth initiatives and innovation, though these increases outpaced revenue growth.
Source: 10-K Income Statement
Operating cash flow surged 16.1% to $783.8M in FY2025, well ahead of net income of $643.8M, reflecting high earnings quality and strong working capital management.
Source: 10-K Cash Flow Statement
Investing cash outflows ballooned to -$685.5M from -$228.4M in the prior year (a -200.1% change), driving total assets up 16.4% to $5.22B, likely reflecting a major acquisition or capital deployment; cash balances declined 29.3% to $356.2M as a result.
Source: 10-K Cash Flow Statement & Balance Sheet
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
SG&A expenses of $978.8M represent a significant portion of revenue and grew faster (10.3%) than revenue (7.8%) in FY2025. Sustained cost inflation or inability to scale these expenses could compress margins going forward.
Source: 10-K Income Statement
Investing cash outflows tripled to -$685.5M in FY2025, likely tied to acquisitions or capital expenditures, causing cash and equivalents to fall 29.3% to $356.2M. If these investments underperform, the company's financial flexibility could be constrained.
Source: 10-K Cash Flow Statement & Balance Sheet
Allegion carries $1.98B in long-term debt, which, while slightly reduced from $2.00B, remains substantial relative to its asset base. Rising interest rates or refinancing risk could increase debt service costs and pressure free cash flow.
Source: 10-K Balance Sheet
Share repurchases fell sharply by 63.6% to $80.0M in FY2025 from $220.0M in the prior year, potentially signaling that capital is being redirected toward acquisitions or debt management, which may disappoint income-oriented investors.
Source: 10-K Cash Flow Statement
R&D expenses grew 17.1% to $132.0M, the fastest-growing cost line in FY2025. While this signals innovation investment, there is no guarantee these expenditures will translate into revenue-generating products within a near-term timeframe.
Source: 10-K Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.07 $B | 3.77 $B | +7.82% |
Cost of Revenue $B | 2.23 $B | 2.10 $B | +5.96% |
Operating Income $M | 859.50 $M | 780.70 $M | +10.09% |
Net Income $M | 643.80 $M | 597.50 $M | +7.75% |
EPS (Basic) $ | 7.48 $ | 6.85 $ | +9.20% |
EPS (Diluted) $ | 7.44 $ | 6.82 $ | +9.09% |
R&D Expense $M | 132.00 $M | 112.70 $M | +17.13% |
SG&A Expense $M | 978.80 $M | 887.80 $M | +10.25% |
Answers draw on this SEC filing and the data on this page
In Q2 FY2026, Allegion delivered 12.7% revenue growth to $1.15B and 15.6% basic EPS growth to $2.15, with operating margin expanding to 22.1% as pricing, volume/product mix and acquisitions more than offset higher costs and integration expenses. Source: 10-Q Item 2 MD&A, pp.17-18
Allegion (ALLE) posted strong Q1 2026 revenue growth of 9.7% to $1.03B, but operating income slipped 0.6% and EPS fell 7.0% to $1.59 as SG&A costs surged 14.6% and cost of revenue rose faster than sales.
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