Allegion plc (NYSE:ALLE) posted fourth-quarter adjusted earnings below Wall Street expectations on Tuesday, while outlining 2026 guidance broadly aligned with market projections.
Despite the earnings miss, the stock gained 0.52% in pre-market trading.
The Dublin-headquartered security products group reported adjusted earnings per share of $1.94 for the quarter, missing analyst estimates of $1.98.
Quarterly revenue totaled $1.03 billion, slightly under the $1.04 billion consensus forecast. Even so, revenue increased 9.3% on a reported basis and 3.3% organically compared with the same quarter a year earlier.
In the Americas segment, which underpinned the company’s organic growth, non-residential revenue rose by high-single digits organically, while residential revenue declined by high-single digits.
The International division delivered reported revenue growth of 21.5%, though organic revenue slipped 2.3%.
“I’m proud of the Allegion team as we delivered on our commitments to customers and shareholders, finishing out a strong 2025 marked by high-single digit enterprise revenue growth, accretive capital deployment and strong cash generation,” said Allegion President and CEO John H. Stone.
For full-year 2025, Allegion generated adjusted earnings per share of $8.14, up 8.1% from $7.53 in 2024. Annual revenue climbed 7.8% to $4.07 billion.
Looking ahead, the company expects 2026 adjusted EPS in a range of $8.70 to $8.90. The midpoint of $8.80 is slightly below the current analyst consensus of $8.86.
Allegion projects total revenue growth of 5% to 7% next year, with organic growth anticipated between 2% and 4%.
The company also expects available cash flow to represent 85% to 95% of adjusted net income in 2026.