Revenue growth accelerated to 12.7% in 2026Q2, with gross margin expanding to 44.9% and operating margin reaching 22.1%, driven by pricing power and operating leverage.
Allegion plc (ALLE) annual income statement — 14-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 4.29B | 4.07B | 3.77B | 3.65B | 3.27B | 2.87B | 2.72B | 2.85B | 2.73B | 2.41B | 2.24B | 2.07B | 2.12B | 2.07B | 2.02B |
| Revenue Growth % | 10.63% | 7.82% | 3.33% | 11.58% | 14.11% | 5.42% | -4.7% | 4.48% | 13.43% | 7.61% | 8.22% | -2.37% | 2.35% | 2.29% | - |
| Cost of Goods Sold | 2.37B | 2.23B | 2.1B | 2.07B | 1.95B | 1.66B | 1.54B | 1.6B | 1.56B | 1.34B | 1.25B | 1.2B | 1.26B | 1.21B | 1.2B |
| COGS % of Revenue | - | 54.8% | 55.77% | 56.68% | 59.58% | 57.98% | 56.66% | 56.12% | 57.05% | 55.45% | 55.78% | 57.98% | 59.7% | 58.37% | 59.2% |
| Gross Profit | 1.92B | 1.84B | 1.67B | 1.58B | 1.32B | 1.2B | 1.18B | 1.25B | 1.17B | 1.07B | 989.7M | 869.1M | 853.7M | 861.5M | 825.6M |
| Gross Margin % | 44.8% | 45.2% | 44.23% | 43.32% | 40.42% | 42.02% | 43.34% | 43.88% | 42.95% | 44.55% | 44.22% | 42.02% | 40.3% | 41.63% | 40.8% |
| Gross Profit Growth % | - | 10.18% | 5.5% | 19.59% | 9.75% | 2.21% | -5.87% | 6.73% | 9.36% | 8.41% | 13.88% | 1.8% | -0.91% | 4.35% | - |
| Operating Expenses | 1.03B | 978.8M | 887.8M | 873.1M | 736M | 674.7M | 775.3M | 687.2M | 647.5M | 580.4M | 555.4M | 510.5M | 527.4M | 620.7M | 454.3M |
| OpEx % of Revenue | - | 24.07% | 23.54% | 23.92% | 22.49% | 23.53% | 28.5% | 24.08% | 23.7% | 24.1% | 24.82% | 24.68% | 24.9% | 29.99% | 22.45% |
| Selling, General & Admin | 1.03B | 978.8M | 887.8M | 865.6M | 736M | 674.7M | 635.7M | 681.3M | 647.5M | 580.4M | 555.4M | 510.5M | 527.4M | 483.1M | 454.3M |
| SG&A % of Revenue | - | 24.07% | 23.54% | 23.71% | 22.49% | 23.53% | 23.37% | 23.87% | 23.7% | 24.1% | 24.82% | 24.68% | 24.9% | 23.34% | 22.45% |
| Research & Development | 0 | 132M | 112.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 3.25% | 2.99% | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -132M | -112.7M | 7.5M | 0 | 0 | 139.6M | 5.9M | 0 | 0 | 0 | 0 | 0 | 137.6M | 0 |
| Operating Income | 893.4M | 859.5M | 780.7M | 708.4M | 586.4M | 530.2M | 403.5M | 565.1M | 525.8M | 492.5M | 434.3M | 358.6M | 326.3M | 240.8M | 371.3M |
| Operating Margin % | 20.83% | 21.13% | 20.7% | 19.4% | 17.92% | 18.49% | 14.84% | 19.8% | 19.25% | 20.45% | 19.41% | 17.34% | 15.4% | 11.64% | 18.35% |
| Operating Income Growth % | - | 10.09% | 10.21% | 20.8% | 10.6% | 31.4% | -28.6% | 7.47% | 6.76% | 13.4% | 21.11% | 9.9% | 35.51% | -35.15% | - |
| EBITDA | 994.8M | 989.2M | 899.7M | 820M | 684.3M | 613.3M | 484.5M | 648.1M | 612M | 559.4M | 501.2M | 411.8M | 375.1M | 286.9M | 415.1M |
| EBITDA Margin % | 23.2% | 24.32% | 23.85% | 22.46% | 20.91% | 21.39% | 17.81% | 22.71% | 22.4% | 23.23% | 22.39% | 19.91% | 17.71% | 13.86% | 20.52% |
| EBITDA Growth % | 6.16% | 9.95% | 9.72% | 19.83% | 11.58% | 26.58% | -25.24% | 5.9% | 9.4% | 11.61% | 21.71% | 9.78% | 30.74% | -30.88% | - |
| D&A (Non-Cash Add-back) | 103.4M | 129.7M | 119M | 111.6M | 97.9M | 83.1M | 81M | 83M | 86.2M | 66.9M | 66.9M | 53.2M | 48.8M | 46.1M | 43.8M |
| EBIT | 892.9M | 869.4M | 800.8M | 710.3M | 590.4M | 574.2M | 416.5M | 531.2M | 529.2M | 501.4M | 359.3M | 262.2M | 321.7M | 233.6M | 368.2M |
| Net Interest Income | -93.6M | -89M | -81.5M | -86.3M | -74.6M | -49.8M | -50.2M | -54.2M | -53.2M | -104.5M | -62.4M | -51.4M | -52.7M | -9.4M | -1.4M |
| Interest Income | 7.1M | 12M | 20.5M | 6.8M | 1.3M | 400K | 900K | 1.8M | 800K | 1.2M | 1.9M | 1.5M | 1.1M | 800K | 100K |
| Interest Expense | 100.7M | 101M | 102M | 93.1M | 75.9M | 50.2M | 51.1M | 56M | 54M | 105.7M | 64.3M | 52.9M | 53.8M | 10.2M | 1.5M |
| Other Income/Expense | -101.2M | -91.1M | -81.9M | -91.2M | -71.9M | -6.2M | -38.1M | -89.9M | -50.6M | -96.8M | -139.3M | -149.3M | -58.4M | -17.4M | -4.6M |
| Pretax Income | 792.2M | 768.4M | 698.8M | 617.2M | 514.5M | 524M | 365.4M | 475.2M | 475.2M | 395.7M | 295M | 209.3M | 267.9M | 223.4M | 366.7M |
| Pretax Margin % | 18.47% | 18.89% | 18.52% | 16.91% | 15.72% | 18.27% | 13.43% | 16.65% | 17.4% | 16.43% | 13.18% | 10.12% | 12.65% | 10.79% | 18.12% |
| Income Tax | 133.6M | 124.6M | 101.3M | 76.6M | 56.2M | 40.7M | 50.9M | 73.1M | 39.8M | 119M | 63.8M | 54.6M | 84.2M | 175M | 136.7M |
| Effective Tax Rate % | 16.86% | 16.22% | 14.5% | 12.41% | 10.92% | 7.77% | 13.93% | 15.38% | 8.38% | 30.07% | 21.63% | 26.09% | 31.43% | 78.33% | 37.28% |
| Net Income | 658.6M | 643.8M | 597.5M | 540.4M | 458M | 483M | 314.3M | 401.8M | 434.9M | 273.3M | 229.1M | 153.9M | 175.2M | 32.3M | 220.1M |
| Net Margin % | 15.36% | 15.83% | 15.84% | 14.8% | 14% | 16.84% | 11.56% | 14.08% | 15.92% | 11.35% | 10.24% | 7.44% | 8.27% | 1.56% | 10.88% |
| Net Income Growth % | 5.17% | 7.75% | 10.57% | 17.99% | -5.18% | 53.67% | -21.78% | -7.61% | 59.13% | 19.29% | 48.86% | -12.16% | 442.41% | -85.32% | - |
| Net Income (Continuing) | 658.6M | 643.8M | 597.5M | 540.6M | 458.3M | 483.3M | 314.5M | 402.1M | 435.4M | 276.7M | 231.2M | 154.7M | 183.7M | 48.4M | 230M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -400K | -11.1M | -3.6M | -4.2M |
| Minority Interest | 0 | 0 | 0 | 0 | 2.7M | 3.3M | 3.2M | 3M | 3M | 3.9M | 3.1M | 4.1M | 23.3M | 31.1M | 23M |
| EPS (Diluted) | 7.66 | 7.44 | 6.82 | 6.12 | 5.19 | 5.34 | 3.39 | 4.26 | 4.54 | 2.85 | 2.36 | 1.59 | 1.82 | 0.32 | 2.29 |
| EPS Growth % | 5.83% | 9.09% | 11.44% | 17.92% | -2.81% | 57.52% | -20.42% | -6.17% | 59.3% | 20.76% | 48.43% | -12.64% | 468.75% | -86.03% | - |
| EPS (Basic) | - | 7.49 | 6.85 | 6.15 | 5.20 | 5.37 | 3.41 | 4.29 | 4.58 | 2.87 | 2.39 | 1.60 | 1.82 | 0.32 | 2.29 |
| Diluted Shares Outstanding | 86M | 86.5M | 87.6M | 88.3M | 88.3M | 90.5M | 92.8M | 94.3M | 95.7M | 96M | 96.9M | 96.9M | 97.2M | 96.1M | 96.03M |
| Basic Shares Outstanding | 85.7M | 85.9M | 87.2M | 87.9M | 88M | 89.9M | 92.3M | 93.6M | 95M | 95.1M | 95.8M | 95.9M | 96.1M | 96M | 96.03M |
| Dividend Payout Ratio | - | 27.23% | 27.95% | 29.37% | 31.42% | 26.71% | 37.32% | 25.04% | 18.26% | 22.28% | 20.08% | 24.89% | 17.12% | - | - |
Quick answers to the most common questions about buying ALLE stock.
For fiscal year 2025, Allegion plc (ALLE) reported total revenue of $4.07B. This represents a 101.0% increase compared to $2.02B in 2012.
Allegion plc (ALLE) is profitable, generating $643.8M in net income for the fiscal year ending 2025 with a net profit margin of 15.8%.
Allegion plc (ALLE) reported an operating income of $859.5M, resulting in an operating profit margin of 21.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Allegion plc (ALLE) generated $1.84B in gross profit for the year, representing a gross profit margin of 45.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Commercial real estate slowdown
Metrics are mathematically derived from official filings.
Accelerating Growth on Institutional Strength
Revenue growth accelerated to 12.7% in 2026Q2, up from 5.8% a year earlier, driven by robust Americas demand and pricing, as reported in the latest quarterly filing.
The sequential acceleration from 9.7% in 2026Q1 to 12.7% in 2026Q2 suggests that the company is benefiting from strong institutional spending, particularly in education and healthcare, which are less cyclical than office construction. The raised full-year guidance implies management expects this momentum to persist, though investors should monitor whether growth is sustainable as the ABI has shown recent contraction.
Gross Margin Expansion Amid Mix Shift
Gross margin improved to 44.9% in 2026Q2, up 50 basis points year-over-year, reflecting pricing power and favorable product mix, according to the income statement data.
The consistent gross margin above 44% indicates that Allegion can pass on raw material costs, but the ongoing transition to electronic products may pressure margins due to higher component costs. The 45.2% reported gross margin in the latest quarter suggests that the company is managing this mix shift effectively, but investors should watch for potential commoditization in electronic access control.
Operating Leverage Driving Margin Gains
Operating margin expanded to 22.1% in 2026Q2, up from 21.5% in the prior year, as SG&A grew only 6.5% versus revenue growth of 12.7%, per the latest financials.
The operating income growth of 16% outpaced revenue growth, indicating that the company is leveraging its fixed cost base. SG&A as a percentage of revenue declined to 21.9% from 24.1% a year ago, suggesting disciplined overhead control. This operating leverage is a key driver of the earnings beat and supports the raised guidance.
Earnings Quality Solid Despite SBC Fluctuations
Net income rose to $184.6M in 2026Q2, with EPS of $2.15, up 16.2% year-over-year, while stock-based compensation swung to a negative $10.8M, per the income statement.
The negative SBC in 2026Q2 is unusual and may reflect a reversal or adjustment, but it does not appear to distort the overall earnings picture. The tax rate appears stable, and the strong cash conversion suggests that reported earnings are of high quality. However, the quarterly EPS miss versus consensus ($2.40 actual vs. $2.49 estimate) warrants monitoring for potential one-off items.
Cost Discipline Offsets Raw Material Pressures
COGS as a percentage of revenue declined to 55.1% in 2026Q2 from 55.6% a year ago, while SG&A grew only 6.5% year-over-year, as per the latest quarterly data.
The company appears to be managing input costs effectively, likely through pricing actions and productivity initiatives. The modest SG&A growth relative to revenue indicates strong cost control, which is critical in an inflationary environment. Investors should monitor whether the company can maintain this discipline as electronic component costs rise.
2026Q2 Marks a Growth Inflection
The 12.7% revenue growth in 2026Q2 represents the strongest quarterly growth in the past ten quarters, up from a low of -3.2% in 2024Q1, based on reported figures.
This inflection appears driven by a rebound in institutional demand and successful pricing strategies, particularly in the Americas. The raised guidance suggests that management sees this as a durable trend, but the sustainability depends on the trajectory of non-residential construction and the ABI. The company's ability to maintain this growth while expanding margins will be key.
Commercial Real Estate Overhang Persists
Despite strong growth, the potential slowdown in office and commercial real estate could pressure new-build revenue, as institutional strength may not fully offset this headwind, per recent context.
Short-sellers might argue that the current growth is partly driven by price increases rather than volume, and that the EPS miss signals underlying cost pressures. The reliance on the Americas (75-80% of revenue) makes the company vulnerable to a U.S. commercial construction downturn. Investors should monitor the ABI and office vacancy rates for signs of deterioration.