Allegion (NYSE:ALLE) Issues Quarterly Earnings Results, Misses Estimates By $0.07 EPS

Allegion (NYSE:ALLE) released its earnings results on Tuesday. The scientific and technical instruments company reported $1.94 EPS for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.07), FiscalAI reports. Allegion had a net margin of 15.83% and a return on equity of 38.06%. The firm had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $1.04 billion. During the same period in the prior year, the company earned $1.86 EPS. The firm’s revenue was up 9.3% compared to the same quarter last year. Allegion updated its FY 2026 guidance to 8.700-8.900 EPS.

Here are the key takeaways from Allegion’s conference call:

• 2026 guidance: Allegion expects total revenue growth of 5%–7% (organic 2%–4%) and issued Adjusted EPS guidance of $8.70–$8.90, implying roughly 8% EPS growth at the midpoint.
• U.S. residential softness: Residential volumes were weaker than expected in Q4 and management assumes residential demand will remain soft in 2026, which pressured Americas margins in the quarter.
• M&A and electronics-led growth: The company deployed about $630 million of acquisitions in 2025 to expand mechanical, electronics, and software capabilities, and electronics grew low double-digits, supporting long-term revenue diversification.
• Strong cash generation and disciplined capital allocation: Available cash flow was $685.7 million (up 17.6%), net debt/Adjusted EBITDA is ~1.6x, the dividend was raised for the 12th consecutive year, and management says it will remain balanced and disciplined on buybacks vs. M&A.

Allegion Stock Up 0.0%

NYSE:ALLE opened at $162.70 on Thursday. Allegion has a 1-year low of $116.57 and a 1-year high of $183.11. The firm’s 50-day moving average price is $165.49 and its 200-day moving average price is $168.17. The company has a market capitalization of $14.00 billion, a PE ratio of 21.87, a P/E/G ratio of 2.98 and a beta of 1.03. The company has a debt-to-equity ratio of 0.96, a current ratio of 1.84 and a quick ratio of 1.11.

Allegion Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be given a $0.55 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 1.4%. This is a boost from Allegion’s previous quarterly dividend of $0.51. Allegion’s payout ratio is currently 27.60%.

Hedge Funds Weigh In On Allegion

Several large investors have recently modified their holdings of the stock. Franklin Resources Inc. lifted its stake in shares of Allegion by 163.9% in the fourth quarter. Franklin Resources Inc. now owns 529,243 shares of the scientific and technical instruments company’s stock worth $84,266,000 after buying an additional 328,701 shares in the last quarter. Millennium Management LLC raised its holdings in Allegion by 817.1% in the 3rd quarter. Millennium Management LLC now owns 308,430 shares of the scientific and technical instruments company’s stock worth $54,700,000 after acquiring an additional 274,800 shares during the last quarter. State Street Corp lifted its position in Allegion by 6.6% in the 3rd quarter. State Street Corp now owns 4,232,208 shares of the scientific and technical instruments company’s stock valued at $750,584,000 after acquiring an additional 260,973 shares in the last quarter. Janney Montgomery Scott LLC boosted its stake in Allegion by 292.9% during the 4th quarter. Janney Montgomery Scott LLC now owns 266,985 shares of the scientific and technical instruments company’s stock valued at $42,509,000 after purchasing an additional 199,026 shares during the last quarter. Finally, Caisse de depot et placement du Quebec increased its holdings in shares of Allegion by 188.2% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 289,761 shares of the scientific and technical instruments company’s stock worth $51,389,000 after purchasing an additional 189,236 shares in the last quarter. Hedge funds and other institutional investors own 92.21% of the company’s stock.

Wall Street Analysts Forecast Growth

ALLE has been the topic of a number of recent research reports. JPMorgan Chase & Co. reduced their price target on shares of Allegion from $190.00 to $180.00 and set an “overweight” rating on the stock in a research report on Wednesday. Barclays decreased their price target on Allegion from $187.00 to $180.00 and set an “equal weight” rating on the stock in a research note on Wednesday, January 7th. Weiss Ratings reissued a “buy (b)” rating on shares of Allegion in a research note on Wednesday, January 21st. Finally, Wells Fargo & Company restated a “positive” rating on shares of Allegion in a report on Tuesday, December 16th. Three investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $175.50.

About Allegion

Allegion plc (NYSE: ALLE) is a global provider of security products and solutions focused on ensuring the safety and security of people and property. The company was formed in December 2013 through a corporate spin-off from Ingersoll Rand and is head­quartered in Dublin, Ireland. Allegion’s core mission is to deliver innovative mechanical and electronic access control systems for a wide range of end markets, including commercial buildings, residential properties, institutional facilities, and industrial sites.

The company’s product portfolio spans mechanical locksets, door closers, exit devices, key systems and cylinders, as well as a growing suite of electronic and smart access control offerings.