Allegion plc reported a strong financial performance for the fiscal year ending December 31, 2025, with net revenues reaching $4,067.3 million, a 7.8% increase from $3,772.2 million in 2024. The company's operating income also rose to $859.5 million, up from $780.7 million the previous year, reflecting an operating margin improvement to 21.1% from 20.7%. This growth was attributed to favorable pricing, volume increases, and contributions from recent acquisitions, including the purchase of ELATEC, a manufacturer of security and access technology, which bolstered Allegion's electronic product portfolio.
The company experienced notable changes compared to the previous fiscal period, particularly in its cost structure. The cost of goods sold as a percentage of net revenues decreased to 54.8% from 55.8%, driven by improved product mix and productivity gains that outpaced inflationary pressures. Selling and administrative expenses increased slightly to 24.1% of net revenues, primarily due to inflation exceeding productivity gains and higher restructuring costs. Despite these challenges, Allegion's overall profitability improved, with net earnings rising to $643.8 million from $597.5 million in 2024.
Operationally, Allegion's customer base and market presence expanded, with significant growth in electronic security products, which are seen as a long-term growth driver. The Allegion Americas segment reported a 6.9% increase in net revenues, while the Allegion International segment saw an 11.7% rise. The company maintained a diverse portfolio of over 40 brands, including Schlage and CISA, and continued to invest in product innovation and development, launching several new products aimed at enhancing security and access control solutions.
Looking ahead, Allegion's management expressed optimism about future growth, citing ongoing demand for electronic security products and the potential for further acquisitions to enhance its market position. However, the company also acknowledged the challenges posed by global macroeconomic factors, including inflation, supply chain disruptions, and geopolitical uncertainties, which could impact its operations and financial performance. Allegion plans to leverage its strong cash flow and financial flexibility to navigate these challenges while continuing to focus on strategic initiatives that align with its long-term growth objectives.
About Allegion plc
Allegion plc is a global provider of security products and solutions for residential, commercial, and institutional markets. Its portfolio includes door controls, locks, electronic access systems, doors, and related services under brands like Schlage, Von Duprin, and CISA. Allegion serves customers worldwide through distribution and retail channels, offering customizable, integrated security solutions that combine mechanical and electronic technologies to enhance safety, access control, and user experience.
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