Allegion Q4 revenue slightly misses analyst expectations

Overview

• Security products provider's Q4 revenue slightly missed analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company expects continued growth in 2026, led by Americas non-residential segment

Outlook

• Allegion expects 2026 revenue growth of 5% to 7% on a reported basis

• Company forecasts 2026 adjusted EPS between $8.70 and $8.90

• Available cash flow for 2026 expected to be 85% to 95% of adjusted net income

Result Drivers

• AMERICAS NON-RESIDENTIAL - High-single-digit organic growth driven by price and volume increases in non-residential sector

• INTERNATIONAL REVENUE - Significant increase in reported revenue due to acquisitions and favorable currency impacts, despite organic volume decline

• OPERATING MARGIN IMPROVEMENT - Margin expansion due to price and productivity gains exceeding inflation and investment costs, and favorable mix

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy."

• Wall Street's median 12-month price target for Allegion PLC is $180.00, about 0.3% above its February 13 closing price of $179.50

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw1FRkjza

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