ALLE

Allegion is a high-quality security-products company (locks, door hardware, access control) with the financial profile of a durable compounder. FY2025 was its strongest year in the five-year record: revenue accelerated 7.8% to $4.07B, operating income grew 10.1% to $860M, net income rose 7.7% to $644M, and diluted EPS climbed 9.1% to $7.44. The operating margin of 21.1% and net margin of 15.8% reflect strong pricing power and a high-mix of recurring, specification-driven demand. ROE of 31.1% is outstanding and signals efficient capital deployment.

The growth trajectory is the standout: revenue has compounded from $2.87B (FY2021) to $4.07B and net income from $483M to $644M, with FY2025 showing the fastest top-line growth of the period — a sign the security/access-control end-markets and recent acquisitions are gaining momentum (total assets up 16.4%, R&D up 17.1% as the company invests in electronic/smart access). The balance sheet is sound: long-term debt flat at $1.98B, equity up 37.8% to $2.07B, and retained earnings up 22.2% to $2.24B. Cash generation is excellent — $784M operating cash flow (+16.1%) on just $98.1M of capex.