Allegion plc (ALLE)

Price—Loading quote

AI: Fair-priced

Price checkThe shares look fairly priced, with little room for a fresh slowdown.

At $164.78, Allegion’s equity is worth about $14.0 billion. The price equals 21.6 times trailing earnings of $7.62 per share, 20.5 times the midpoint of 2026 reported guidance, or 18.5 times adjusted guidance, which removes selected acquisition and restructuring costs. Fiscal 2025 free cash flow—cash left after operations and capital investment—was $685.7 million, giving a 4.9% yield. My fair-price judgment reflects strong momentum, balanced against a price that already assumes continued growth and resilient margins.

Big pictureSales, profits, and cash have climbed steadily, though building demand remains cyclical.

Revenue rose from $2.72 billion in 2020 to $4.07 billion in 2025, while net income more than doubled from $314.3 million to $643.8 million. Free cash flow increased from $443.2 million to $685.7 million, supporting durable dividends and reinvestment. Momentum strengthened in the second quarter of 2026: revenue grew 12.7%, including 6.9% growth excluding acquisitions and currency. However, first-quarter volume declines and current weakness in core European markets show that residential and commercial-building demand can still interrupt growth.

Business strengthStrong margins and modest share shrinkage offset a meaningful but manageable debt load.

The 2025 operating margin reached 21.1%, up from 14.8% in 2020, showing stronger pricing and cost control. At June 2026, $1.50 billion of current assets covered $777.3 million of near-term liabilities. Debt was $2.03 billion against $320.6 million of cash, leaving net debt near 1.7 times 2025 operating profit before interest, tax, depreciation, and amortization. Shares fell 6.7% from 2020 to June 2026. Yet first-half 2026 buybacks and dividends consumed almost all $260.8 million of available cash flow, limiting rapid debt reduction.

What could change the storyAmericas growth can lift value, while European weakness or costly deals can erode it.

The bull case is the Americas: second-quarter sales excluding acquisitions and currency grew 8.9%, and adjusted operating margin reached 30.1%, supporting raised 2026 guidance. The bear case is International, where comparable sales fell 1.2% and margin was only 12.4% amid weak European demand and recovery from a software-system disruption. Allegion also spent $631.6 million on 2025 acquisitions; ELATEC alone cost roughly 18 times expected 2026 operating cash profit. The present price requires successful integration, sustained margins, and earnings growth beyond 2026.

$164.78 price considered

AI: News

Strong quarter lifts outlookFaster Americas growth and better profits prompted management to raise its full-year expectations.

On July 23, 2026, Allegion reported second-quarter revenue of $1.15 billion, up 12.7%, and adjusted earnings of $2.40 per share, up 17.6%. Both exceeded widely reported analyst estimates. Management raised adjusted full-year earnings guidance to $8.85–$9.00 and comparable revenue-growth guidance to 3.5%–4.5%. The shares closed 10.45% higher that day. The timing strongly links the move to the report, though market prices can reflect other information.

Buyback capacity replenishedThe board created substantial capacity to reduce the share count when management finds prices attractive.

On April 15, 2026, Allegion replenished its share-repurchase authorization to $500 million, without a fixed expiration date. That represented roughly 3%–4% of the company’s recent market value, although authorization does not guarantee purchases. Management subsequently spent $120 million repurchasing about 0.9 million shares during the second quarter, bringing first-half repurchases to $160.6 million. No reliable evidence established a distinct announcement-day market reaction.

First-quarter earnings stumbleA profit miss and European operating disruption exposed the risks behind Allegion’s premium price.

On April 28, 2026, Allegion reported first-quarter adjusted earnings of $1.80 per share, below the approximately $1.89 consensus. Adjusted operating margin fell to 21.2% from 22.7%, while International sales excluding acquisitions and currency dropped 5.3% because a new business-software system disrupted production. Reports placed the shares down about 7% during the session. The reaction is consistent with disappointment, though timing alone cannot prove the earnings release caused the entire decline.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012
Revenue	$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
Research & development	$132.0M	$112.7M	$101.9M	$74.5M	$73.3M	$54.4M	$54.7M	$54.4M	$48.3M	$47.3M	$45.2M	$43.3M	$39.6M	$38.2M
Operating income	$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
EBITDAderived	$989.2M	$896.9M	$817.4M	$681.5M	$609.4M	$481.5M	$643.2M	$608.1M	$554.1M	$495.7M	$407.4M	$370.5M	$286.5M	$425.0M
Net income	$643.8M	$597.5M	$540.4M	$458.0M	$483.0M	$314.3M	$401.8M	$434.9M	$273.3M	$229.1M	$153.9M	$175.2M	$32.3M	$220.1M
Basic EPSper diluted share	$7.48	$6.85	$6.15	$5.20	$5.37	$3.41	$4.29	$4.58	$2.87	$2.39	$1.60	$1.82	$0.34	$2.29
Diluted EPSper diluted share	$7.44	$6.82	$6.12	$5.19	$5.34	$3.39	$4.26	$4.54	$2.85	$2.36	$1.59	$1.80	$0.34	$2.29

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys9$3.43M disclosed value

Sells (SEC code S)16$7.61M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 7, 2026Form 4	Martens Robert C.SVP-Chief Innovation & Design	SellOrdinary Shares	4.0K	$137.15	$547.6K	8.6K
Mar 11, 2026Form 4	MAIN SUEDirector	BuyOrdinary Shares · indirect	600	$150.05	$90.0K	2.0K
Mar 11, 2026Form 4	MAIN SUEDirector	BuyOrdinary Shares · indirect	1.3K	$149.58	$194.5K	1.4K
Mar 11, 2026Form 4	MAIN SUEDirector	BuyOrdinary Shares · indirect	100	$147.26	$14.7K	100
Feb 19, 2026Form 4	MIZELL STEVENDirector	SellOrdinary Shares	1.0K	$161.51	$161.5K	4.9K

Review ownership filings at SEC.gov ↗

Allegion plc (ALLE)

Financial charts

Financial statements

Insider buys & sells