Allegion Q4 Revenue Lifted by $600M M&A, 2026 EPS at $8.70–$8.90
Allegion's enterprise revenue rose on strong Americas nonresidential performance and over $600,000,000 in accretive mergers and acquisitions, while margin expansion outpaced inflation by $12,000,000 through pricing and productivity gains. Management issued 2026 adjusted EPS guidance of $8.70 to $8.90, anticipating pricing-led organic growth and stable Electronics-driven international expansion.
1. Q4 2025 Financial Highlights
Allegion reported enterprise revenue growth driven by strong Americas nonresidential demand and over $600,000,000 in accretive M&A. U.S. residential volumes declined, offsetting favorable pricing, while Electronics revenue grew at a low double-digit rate. Pricing and productivity improvements delivered $12,000,000 in margin expansion beyond inflation.
2. 2026 Outlook and Assumptions
Management forecast adjusted EPS of $8.70–$8.90, reflecting a $0.10 headwind from a higher anticipated tax rate. Americas organic growth is expected to rely more on pricing than volume amid soft residential demand, while international growth will be led by Electronics while Mechanical markets remain stable.
3. Capital Allocation and Risk Factors
The company deployed approximately $630,000,000 toward acquisitions in 2025, expanded its dividend for the twelfth consecutive year, and maintains a net debt to adjusted EBITDA ratio of 1.6×. Management cautioned that Q1 2026 margins face tough comparables due to last year’s tariff pricing timing.