Allegion (ALLE) FY2025 10-K Annual Report

Filed: Feb 17, 2026
Information Technology
Services-Detective, Guard & Armored Car ServicesSEC EDGAR

Allegion (ALLE) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 17, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Allegion FY2025 10-K Analysis

Business Overview

  • Core business: Global operations with complex tax and environmental compliance responsibilities
  • Emphasis on risks related to evolving global tax reforms, incl. OECD global minimum tax (GMT) implementation affecting effective tax rate
  • Strategic complexity increased by Irish incorporation, exposing Allegion to unique legal and tax jurisdictional risks vs prior filings
  • Notable: Board authorized to issue up to 40% of issued ordinary shares (20% general plus 20% for cash) pending shareholder renewal
  • Unusual: Irish law restricts shareholder actions and takeover attempts, creating governance and acquisition deterrents unique to this filing year

Management Discussion & Analysis

  • Revenue $4.067B, up 7.8% YoY ($295.1M); Americas +6.9% ($206.4M), International +11.7% ($88.7M)
  • Operating margin 21.1% vs 20.7%, operating income $859.5M vs $780.7M, Americas best at 27.9% margin, International worst at 9.0%
  • Americas segment operating income $896.5M, up 9.8%; International segment operating income $76.5M, up 15.4%
  • Operating cash flow $783.8M (+$108.8M YoY); investing cash flow -$685.5M (higher acquisitions/capex); financing cash flow -$266.7M (less buybacks, higher dividends)
  • Management expects sufficient liquidity for 12+ months; notes risks from inflation, restructuring expenses, and mixed macro conditions internationally

Risk Factors

  • U.S. tariffs on imports from various countries including Mexico increase COGS exposure with 20-25% sourced from Mexico, less than 5% from China, and 5-10% other non-US countries
  • Acquisition of ELATEC in July 2025 expands electronic security product portfolio, contributing $93.0 million in net revenues since acquisition
  • Increased unsecured revolving credit facility commitment from $750M to $1.0B, with $190.6M outstanding borrowings as of December 31, 2025
  • Quarterly dividends totaling $175.3 million paid in 2025, reflecting ongoing shareholder return commitment amid market uncertainties
  • Competitive pressure from expanding electronic security solutions market driven by acquisitions and integration of complementary software and services

Allegion FY2025 Key Financial Metrics
XBRL

Revenue

$4.1B

+7.8% YoY

Net Income

$644M

+7.7% YoY

Operating Margin

21.1%

+44bp YoY

Net Margin

15.8%

-1bp YoY

ROE

31.1%

-868bp YoY

Total Assets

$5.2B

+16.4% YoY

EPS (Diluted)

$7.44

+9.1% YoY

Operating Cash Flow

$784M

+16.1% YoY

Source: XBRL data from Allegion FY2025 10-K filing on SEC EDGAR. All figures in USD.

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