ALLE Allegion plc

Overview and Growth

In fiscal 2025, Allegion plc recorded $4.07B of revenue, net income of $643.80M, and an operating cash inflow of $783.80M. At $4.07B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $3.77B in fiscal 2024, revenue recorded a 7.8% year-over-year increase. Diluted earnings per share were $7.44, translating the period’s attributable earnings into the amount reported for each diluted share. The per-share result recorded a 9.1% increase from fiscal 2024 diluted EPS of $6.82. The revenue-to-assets relationship was 0.78x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $1.84B as gross profit before recognizing operating expenses and other items. Gross profit represented 45.2% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $859.50M, capturing profitability after direct costs and the operating expenses reflected in the statements. The operating result equaled 21.1% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $643.80M, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 15.8% margin after operating costs and the remaining recognized items. Before income taxes, the company reported $768.40M of earnings, providing a bridge between the operating result and final net income. The pretax margin was 18.9%, relating income before taxes directly to revenue. The reported income-tax provision was $124.60M, the amount recognized between pretax income and the final net-income result. The income-tax provision equaled 16.2% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

Total assets were $5.22B, supported by $3.16B of liabilities and $2.07B of shareholder equity. At period end, current assets of $1.39B compared with current liabilities of $755.40M, defining the company’s short-term resource position. Current assets covered current liabilities by 1.84x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $356.20M, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 47.2% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $1.98B, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.96x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 37.9%, showing how much of the asset base was matched by borrowing. Liabilities represented 60.4% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 6.8% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

The company reported $783.80M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 1.22x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $98.10M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 12.5% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $685.70M of positive free cash flow for the period. The free-cash-flow margin was 16.9%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 13.1% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.