Allegion plcALLE
Allegion plc Segments Disclosure
BUSINESS SEGMENT INFORMATION
The Company classifies its business into the following two reportable segments based on industry and market focus: Allegion Americas and Allegion International. The Company largely evaluates performance based on Segment operating income and Segment operating margin. The Company’s CODM is its chief executive officer, who uses Segment operating income as the measure of profit and loss to evaluate the financial performance of the business and as the basis for resource allocation, performance reviews and compensation. For these reasons, the Company believes Segment operating income represents the most relevant measure of segment profit and loss. The Company’s CODM may exclude certain charges or gains, such as corporate charges and other special charges, from Operating income to arrive at a Segment operating income that is a more meaningful measure of profit and loss upon which to base operating decisions. The Company defines Segment operating margin as Segment operating income as a percentage of the segment's Net revenues.
A summary of operations and balance sheet information by reportable segments as of and for the years ended December 31, were as follows:
| Dollar amounts in millions | 2025 | 2024 | 2023 | |||||||||||||||||
| Allegion Americas | ||||||||||||||||||||
| Net revenues | $ | 3,218.8 | $ | 3,012.4 | $ | 2,913.6 | ||||||||||||||
| Cost of goods sold | 1,751.6 | 1,666.5 | 1,637.9 | |||||||||||||||||
| Selling and administrative expenses | 570.7 | 529.7 | 518.5 | |||||||||||||||||
| Segment operating income | 896.5 | 816.2 | 757.2 | |||||||||||||||||
| Segment operating margin | 27.9 | % | 27.1 | % | 26.0 | % | ||||||||||||||
| Depreciation and amortization | 79.4 | 74.3 | 67.6 | |||||||||||||||||
| Capital expenditures | 69.1 | 67.2 | 72.6 | |||||||||||||||||
| Total segment assets | $ | 2,732.5 | $ | 2,572.7 | $ | 2,457.7 | ||||||||||||||
| Allegion International | ||||||||||||||||||||
| Net revenues | $ | 848.5 | $ | 759.8 | $ | 737.2 | ||||||||||||||
| Cost of goods sold | 477.4 | 441.4 | 430.6 | |||||||||||||||||
| Selling and administrative expenses | 294.6 | 252.1 | 241.0 | |||||||||||||||||
| Impairment of intangible assets | — | — | 7.5 | |||||||||||||||||
| Segment operating income | 76.5 | 66.3 | 58.1 | |||||||||||||||||
| Segment operating margin | 9.0 | % | 8.7 | % | 7.9 | % | ||||||||||||||
| Depreciation and amortization | 49.4 | 41.0 | 40.0 | |||||||||||||||||
| Capital expenditures | 23.5 | 24.2 | 16.2 | |||||||||||||||||
| Total segment assets | $ | 1,886.1 | $ | 1,146.0 | $ | 1,204.3 | ||||||||||||||
| Reconciliation to earnings before income taxes | ||||||||||||||||||||
| Segment operating income from reportable segments | $ | 973.0 | $ | 882.5 | $ | 815.3 | ||||||||||||||
| Unallocated corporate expense | 113.5 | 101.8 | 106.9 | |||||||||||||||||
| Interest expense | 101.0 | 102.0 | 93.1 | |||||||||||||||||
| Other income, net | (9.9) | (20.1) | (1.9) | |||||||||||||||||
| Total earnings before income taxes | $ | 768.4 | $ | 698.8 | $ | 617.2 | ||||||||||||||
Other reportable segment information | ||||||||||||||||||||
| Depreciation and amortization from reportable segments | $ | 128.8 | $ | 115.3 | $ | 107.6 | ||||||||||||||
| Unallocated depreciation and amortization | 0.9 | 0.9 | 1.4 | |||||||||||||||||
| Total depreciation and amortization | $ | 129.7 | $ | 116.2 | $ | 109.0 | ||||||||||||||
| Capital expenditures from reportable segments | $ | 92.7 | $ | 91.4 | $ | 88.8 | ||||||||||||||
| Corporate capital expenditures, net of transfers to business segments | 5.4 | 0.7 | (4.6) | |||||||||||||||||
| Total capital expenditures | $ | 98.1 | $ | 92.1 | $ | 84.2 | ||||||||||||||
| Assets from reportable segments | $ | 4,618.6 | $ | 3,718.7 | $ | 3,662.0 | ||||||||||||||
Unallocated assets(a) | 605.1 | 769.1 | 649.5 | |||||||||||||||||
| Total assets | $ | 5,223.7 | $ | 4,487.8 | $ | 4,311.5 | ||||||||||||||
(a)Unallocated assets consist primarily of investments in unconsolidated affiliates, property, plant and equipment, net, ROU assets, deferred income taxes and cash and cash equivalents.
Net revenues by destination and nature of products and services for the years ended December 31, were as follows:
| In millions | 2025 | 2024 | 2023 | |||||||||||||||||
| U.S. | $ | 3,049.8 | $ | 2,858.7 | $ | 2,754.7 | ||||||||||||||
| Non-U.S. | 1,017.5 | 913.5 | 896.1 | |||||||||||||||||
| Total Net revenues | $ | 4,067.3 | $ | 3,772.2 | $ | 3,650.8 | ||||||||||||||
| In millions | 2025 | 2024 | 2023 | |||||||||||||||||
| Mechanical products | $ | 2,713.9 | $ | 2,572.2 | $ | 2,436.3 | ||||||||||||||
Electronic products(a) | 1,075.1 | 946.4 | 965.0 | |||||||||||||||||
Services and software(b) | 278.3 | 253.6 | 249.5 | |||||||||||||||||
| Total Net revenues | $ | 4,067.3 | $ | 3,772.2 | $ | 3,650.8 | ||||||||||||||
(a)Electronic products encompass both residential and non-residential products, and include all electrified product categories, including, but not limited to, electronic and electrified locks, access control systems, time and attendance systems, electronic and electrified door controls and systems and exit devices.
(b)Services and software revenues include inspection, maintenance and repair, design and installation and aftermarket services, as well as software offerings such as access control, platform integration, workforce management and time, attendance, and workforce productivity software.
In fiscal years 2025, 2024 and 2023, no customer exceeded 10% of consolidated Net revenues.
At December 31, long-lived assets by geographic area were as follows:
| In millions | 2025 | 2024 | ||||||||||||
| U.S. | $ | 453.4 | $ | 460.1 | ||||||||||
| Non-U.S. | 710.0 | 393.1 | ||||||||||||
| Total | $ | 1,163.4 | $ | 853.2 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.