Cash conversion remains subject to seasonal working capital cycles, as evidenced by a $72.4 million outflow in 2026Q1 that offset net income.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 805.12M | 783.8M | 675M | 600.6M | 459.5M | 488.6M | 490.3M | 488.2M | 457.8M | 347.2M | 377.5M | 257M | 255.9M | 223.9M | 269.2M |
| Operating CF Margin % | - | 19.27% | 17.89% | 16.45% | 14.04% | 17.04% | 18.03% | 17.11% | 16.76% | 14.42% | 16.87% | 12.43% | 12.08% | 10.82% | 13.3% |
| Operating CF Growth % | 39.09% | 16.12% | 12.39% | 30.71% | -5.96% | -0.35% | 0.43% | 6.64% | 31.85% | -8.03% | 46.89% | 0.43% | 14.29% | -16.83% | - |
| Net Income | 633.7M | 643.8M | 597.5M | 540.6M | 458.3M | 483.3M | 314.5M | 402.1M | 435.4M | 276.7M | 231.2M | 154.7M | 183.7M | 44.3M | 230M |
| Depreciation & Amortization | 137.8M | 133.2M | 119M | 111.6M | 97.9M | 83.1M | 81M | 83M | 86.2M | 66.9M | 66.9M | 53.2M | 48.8M | 46.1M | 43.8M |
| Stock-Based Compensation | 0 | 29.8M | 28.2M | 26.4M | 24.5M | 23.4M | 20.8M | 20.4M | 19.6M | 16.2M | 16.6M | 14.6M | 13.1M | 8.4M | 6.3M |
| Deferred Taxes | -10.52M | -10.2M | -44.2M | -67.7M | -71.3M | -43.8M | -24.4M | -30.2M | -64.4M | 24.9M | 6.3M | -2M | 17.2M | 16.8M | -3.6M |
| Other Non-Cash Items | 62.63M | -19.6M | -1.4M | 7.5M | 46.8M | 20.4M | 134.6M | 9.8M | 44.8M | -91.1M | -22.9M | -13M | -33.4M | 72.7M | -100K |
| Working Capital Changes | -18.5M | 6.8M | -24.1M | -17.8M | -96.7M | -77.8M | -36.2M | 3.1M | -63.8M | 53.6M | 79.4M | 49.5M | 26.5M | -3.3M | -9.3M |
| Change in Receivables | 0 | 23.7M | 0 | 0 | -53.4M | 31.7M | -1.9M | -6M | -8.6M | -22.7M | -19.8M | -13.5M | -8M | 26.8M | 2M |
| Change in Inventory | 0 | -38.9M | 16.7M | 44.6M | -61.7M | -105.6M | -7.8M | 5.4M | -19.7M | -4.4M | -15.6M | -5.8M | 3.4M | 5.4M | -1.2M |
| Change in Payables | 0 | -34.4M | 3.6M | -33.6M | 2.5M | 40M | -1.6M | -11M | 33.9M | 400K | 3.4M | -14.7M | 43.4M | -16.7M | 8M |
| Cash from Investing | -775.83M | -685.5M | -228.4M | -129.1M | -994.1M | -31.6M | -56.7M | -77.6M | -443.8M | -50.2M | -64M | -533.8M | -34.8M | -18.7M | -17.5M |
| Capital Expenditures | -101.07M | -98.1M | -92.1M | -84.2M | -64M | -45.4M | -47.1M | -65.6M | -49.1M | -49.3M | -42.5M | -35.2M | -51.5M | -20.2M | -19.6M |
| CapEx % of Revenue | 2.43% | 2.41% | 2.44% | 2.31% | 1.96% | 1.58% | 1.73% | 2.3% | 1.8% | 2.05% | 1.9% | 1.7% | 2.43% | 0.98% | 0.97% |
| Acquisitions | -675.91M | -592.2M | -137.2M | -31.7M | -923.1M | -6.5M | -12.5M | -7.6M | -376.1M | -16.5M | -31.4M | -511.3M | -25.2M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.15M | 4.8M | 900K | -13.2M | -7M | 20.3M | -41.2M | -4.4M | -53.4M | 0 | -46.7M | -34.8M | 41.9M | 1.5M | 2.1M |
| Cash from Financing | -232.45M | -266.7M | -394.5M | -298.7M | 437M | -529.3M | -321.9M | -342.2M | -183.4M | -150.9M | -196M | 195M | -150M | -292.4M | -317.9M |
| Debt Issued (Net) | 25.35M | -53.8M | -13.3M | -81.6M | 656.4M | 11.1M | -200K | -17.9M | -36.1M | 10.1M | -64.7M | 278.3M | -78M | 1.34B | -1.1M |
| Equity Issued (Net) | -58.76M | -56.4M | -220M | -59.9M | -61M | -412.8M | -208.8M | -226M | -67.3M | -60M | -85.1M | -30M | -50.3M | 0 | 0 |
| Dividends Paid | -184.58M | -175.3M | -167M | -158.7M | -143.9M | -129M | -117.3M | -100.6M | -79.4M | -60.9M | -46M | -38.3M | -30M | 0 | 0 |
| Share Repurchases | -83.1M | -80M | -220M | -59.9M | -61M | -412.8M | -208.8M | -226M | -67.3M | -60M | -85.1M | -30M | -50.3M | 0 | 0 |
| Other Financing | -14.45M | 18.8M | 5.8M | 1.5M | -14.5M | 1.4M | 4.4M | 2.3M | -600K | -40.1M | -200K | -15M | 8.3M | -1.63B | -316.8M |
| Net Change in Cash | -185.6M | -147.6M | 35.7M | 180.1M | -109.9M | -82.5M | 121.7M | 68.1M | -175.6M | 153.8M | 112.7M | -90.8M | 63.1M | -90.1M | -59.3M |
| Free Cash Flow | 704.05M | 685.7M | 582.9M | 516.4M | 395.5M | 443.2M | 443.2M | 422.6M | 408.7M | 297.9M | 335M | 221.8M | 204.4M | 203.7M | 249.6M |
| FCF Margin % | 16.93% | 16.86% | 15.45% | 14.14% | 12.09% | 15.46% | 16.29% | 14.81% | 14.96% | 12.37% | 14.97% | 10.72% | 9.65% | 9.84% | 12.34% |
| FCF Growth % | 9.72% | 17.64% | 12.88% | 30.57% | -10.76% | 0% | 4.87% | 3.4% | 37.19% | -11.07% | 51.04% | 8.51% | 0.34% | -18.39% | - |
| FCF per Share | 8.13 | 7.93 | 6.65 | 5.85 | 4.48 | 4.90 | 4.78 | 4.48 | 4.27 | 3.10 | 3.46 | 2.29 | 2.10 | 2.12 | 2.60 |
| FCF Conversion (FCF/Net Income) | 1.11x | 1.22x | 1.13x | 1.11x | 1.00x | 1.01x | 1.56x | 1.22x | 1.05x | 1.27x | 1.65x | 1.67x | 1.46x | 6.93x | 1.22x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in financial statements, Allegion's operating cash flow to net income ratio exhibits significant quarterly volatility, ranging from a low of 0.41 in 2024Q1 to a high of 1.85 in 2023Q4, suggesting that GAAP earnings often diverge from actual cash generation due to timing differences.
The recurring gap between net income and operating cash flow appears primarily driven by the timing of working capital movements rather than structural accounting issues. Investors should monitor whether this volatility persists as the company integrates service-heavy business models that may alter the traditional cash conversion cycle.
Based on recent quarterly filings, Allegion's free cash flow margin has fluctuated between 2.7% and 21.9%, reflecting a pattern where cash generation is periodically constrained by seasonal working capital outflows despite the company's underlying strength in institutional hardware specification and recurring replacement revenue streams.
The sharp contraction in FCF margins during the first quarters of 2025 and 2026 suggests a recurring seasonal pattern of inventory build-up or payment timing that temporarily masks the company's core cash-generating capability. This trajectory warrants caution, as it indicates that cash flow remains sensitive to operational timing rather than just pure profitability.
According to the provided cash flow data, Allegion experienced a substantial working capital outflow of $72.4 million in 2026Q1, which directly offset the period's net income and highlights the company's susceptibility to inventory and receivables management cycles within its North American commercial distribution network.
The significant swings in working capital changes suggest that the company's cash flow is highly sensitive to the timing of large-scale institutional project completions and channel inventory stocking. Analysts should interpret these fluctuations as a reflection of the business's project-based nature rather than a fundamental deterioration in operational efficiency.
As indicated by recent financial disclosures, Allegion maintains a consistent capital deployment strategy, balancing steady dividend payments with opportunistic share repurchases and strategic acquisitions, such as the $572.1 million outlay in 2025Q3, which underscores management's focus on expanding its footprint in the automatic entrance market.
The company's ability to fund significant acquisitions while maintaining dividend payouts suggests a high degree of confidence in its long-term cash flow stability. However, the impact of these acquisitions on future leverage and cash availability remains a key variable for investors to monitor as the company integrates these new service-oriented assets.
Quick answers to the most common questions about buying ALLE stock.
Allegion plc (ALLE) generated $783.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Allegion plc (ALLE) generated $685.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Allegion plc (ALLE) spent $98.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Allegion plc (ALLE) returned $175.3M to shareholders via cash dividends and spent $80.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.