Item 16. FORM 10-K SUMMARY

Not applicable.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ALLEGION PLC

(Registrant)

By:						/s/ John H. Stone
						John H. Stone
						Chief Executive Officer
Date:						February 17, 2026

Pursuant to the requirement of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature						Title						Date
/s/ John H. Stone						President and Chief Executive Officer (Principal Executive Officer)						February 17, 2026
(John H. Stone)
/s/ Michael J. Wagnes						Senior Vice President and Chief Financial Officer (Principal Financial Officer)						February 17, 2026
(Michael J. Wagnes)
/s/ Nickolas A. Musial						Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer)						February 17, 2026
(Nickolas A. Musial)
/s/ Lauren B. Peters						Chair of the Board						February 17, 2026
(Lauren B. Peters)
/s/ Susan L. Main						Director						February 17, 2026
(Susan L. Main)
/s/ Steven C. Mizell						Director						February 17, 2026
(Steven C. Mizell)
/s/ Nicole Parent Haughey						Director						February 17, 2026
(Nicole Parent Haughey)
/s/ Ellen Rubin						Director						February 17, 2026
(Ellen Rubin)
/s/ Gregg C. Sengstack						Director						February 17, 2026
(Gregg C. Sengstack)
/s/ Dev Vardhan						Director						February 17, 2026
(Dev Vardhan)

ALLEGION PLC

Index to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm			F-1
Consolidated Statements of Comprehensive Income			F-3
Consolidated Balance Sheets			F-4
Consolidated Statements of Equity			F-5
Consolidated Statements of Cash Flows			F-6
Notes to Consolidated Financial Statements			F-7
Financial Statement Schedule: Schedule II – Valuation and Qualifying Accounts for the years ended December 31, 2025, 2024 and 2023			F-37

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Allegion plc

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Allegion plc and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated

F-1

financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognition

As described in Notes 2 and 18 to the consolidated financial statements, the Company has two principal revenue streams, tangible product sales and services and software. For the year ended December 31, 2025, the Company’s net revenues were $4,067.3 million. Net revenues are recognized based on the satisfaction of performance obligations under the terms of a contract. A performance obligation is a promise in a contract to transfer control of a distinct product or to provide a service, or a bundle of products or services, to a customer. Product sales involve contracts with a single performance obligation. Transfer of control typically occurs when goods are shipped from the Company's facilities or at other predetermined control transfer points (for instance, destination terms). Services and software offerings include inspection, maintenance and repair, aftermarket, design and installation services, as well as on-premise, software maintenance and software as a service solutions. Unlike the single performance obligation to ship a product or bundle of products, revenue related to services is recognized when the service based performance obligations are satisfied.

The principal consideration for our determination that performing procedures related to revenue recognition is a critical audit matter is the high degree of auditor effort in performing procedures and evaluating audit evidence related to the Company’s revenue recognition.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process. These procedures also included, among others (i) testing the completeness, accuracy, and occurrence of revenue recognized during the year for a sample of revenue transactions by obtaining and inspecting source documents, such as purchase orders, invoices, shipping documentation, service order completion sheets and subsequent cash receipts, (ii) for certain revenue transactions, testing the issuance and settlement of invoices and credit memos, tracing transactions not settled to a detailed listing of accounts receivable, and testing the completeness and accuracy of data provided by management; and (iii) confirming a sample of outstanding customer invoice balances as of year-end and obtaining and inspecting source documents, such as subsequent cash receipts or shipping documentation, for confirmations not returned.

/s/ PricewaterhouseCoopers LLP

Indianapolis, Indiana

February 17, 2026

We have served as the Company’s auditor since 2013.

F-2

Allegion plc

Consolidated Statements of Comprehensive Income

In millions, except per share amounts

For the years ended December 31,						2025						2024						2023
Net revenues						$	4,067.3					$	3,772.2					$	3,650.8
Cost of goods sold						2,229.0						2,103.7						2,069.3
Selling and administrative expenses						978.8						887.8						865.6
Impairment of intangible assets						—						—						7.5
Operating income						859.5						780.7						708.4
Interest expense						101.0						102.0						93.1
Other income, net						(9.9)						(20.1)						(1.9)
Earnings before income taxes						768.4						698.8						617.2
Provision for income taxes						124.6						101.3						76.6
Net earnings						643.8						597.5						540.6
Less: Net earnings attributable to noncontrolling interests						—						—						0.2
Net earnings attributable to Allegion plc						$	643.8					$	597.5					$	540.4
Amounts attributable to Allegion plc ordinary shareholders:
Earnings per share attributable to Allegion plc ordinary shareholders:
Basic net earnings:						$	7.48					$	6.85					$	6.15
Diluted net earnings:						$	7.44					$	6.82					$	6.12
Net earnings						$	643.8					$	597.5					$	540.6
Other comprehensive income (loss), net of tax:
Currency translation						130.2						(74.2)						33.6
Cash flow hedges:
Unrealized net (losses) gains arising during period						(1.9)						2.7						0.4
Net gains reclassified into earnings						(1.1)						(0.7)						(1.4)
Tax benefit (expense)						0.6						(0.7)						0.5
Total cash flow hedges, net of tax						(2.4)						1.3						(0.5)
Defined benefit plan adjustments:
Prior service costs and net actuarial gains (losses), net						2.6						(4.4)						(9.4)
Amortization reclassified into earnings						5.2						4.6						4.1
Settlements/curtailments reclassified into earnings						—						0.1						0.4
Currency translation and other						(7.7)						2.9						(5.4)
Tax (expense) benefit						(1.9)						(0.4)						1.5
Total defined benefit plan adjustments, net of tax						(1.8)						2.8						(8.8)
Other comprehensive income (loss), net of tax						126.0						(70.1)						24.3
Total comprehensive income, net of tax						769.8						527.4						564.9
Less: Total comprehensive income attributable to noncontrolling interests						—						—						0.2
Total comprehensive income attributable to Allegion plc						$	769.8					$	527.4					$	564.7

See accompanying notes to consolidated financial statements.

F-3

Allegion plc

Consolidated Balance Sheets

In millions, except share amounts

As of December 31,						2025						2024
ASSETS
Current assets:
Cash and cash equivalents						$	356.2					$	503.8
Accounts and notes receivable, net						437.7						418.9
Inventories						519.0						423.0
Current tax receivable						30.0						29.8
Other current assets						48.9						46.8
Total current assets						1,391.8						1,422.3
Property, plant and equipment, net						444.6						385.3
Goodwill						1,912.4						1,489.4
Intangible assets, net						826.0						569.0
Deferred and noncurrent income taxes						321.8						331.4
Other noncurrent assets						327.1						290.4
Total assets						$	5,223.7					$	4,487.8
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable						$	244.8					$	258.0
Accrued compensation and benefits						152.1						117.6
Accrued expenses and other current liabilities						324.0						275.4
Current tax payable						34.3						24.0
Short-term borrowings and current maturities of long-term debt						0.2						21.9
Total current liabilities						755.4						696.9
Long-term debt						1,979.9						1,977.6
Postemployment and other benefit liabilities						44.2						39.1
Deferred and noncurrent income taxes						165.8						97.9
Other noncurrent liabilities						210.8						175.6
Total liabilities						3,156.1						2,987.1
Equity:
Allegion plc shareholders’ equity
Ordinary shares, $0.01 par value (86,066,997 and 86,254,744 shares issued and outstanding at December 31, 2025 and 2024, respectively)						0.9						0.9
Capital in excess of par value						34.2						—
Retained earnings						2,238.1						1,831.4
Accumulated other comprehensive loss						(205.6)						(331.6)
Total equity						2,067.6						1,500.7
Total liabilities and equity						$	5,223.7					$	4,487.8

See accompanying notes to consolidated financial statements.

F-4

Allegion plc

Consolidated Statements of Equity

In millions, except per share amounts

												Allegion plc shareholders' equity
						Total equity						Ordinary Shares												Capital in excess of par value						Retained earnings						Accumulated other comprehensive loss						Noncontrolling interests
						Amount						Shares
Balance at December 31, 2022						$	944.5					$	0.9					87.9						$	13.9					$	1,212.8					$	(285.8)					$	2.7
Net earnings						540.6						—						—						—						540.4						—						0.2
Other comprehensive income, net						24.3						—						—						—						—						24.3						—
Repurchase of ordinary shares						(59.9)						—						(0.5)						(41.3)						(18.6)						—						—
Share-based compensation activity						27.0						—						0.1						27.0						—						—						—
Acquisition/divestiture of noncontrolling interest						(0.1)						—						—						0.4						2.3						—						(2.8)
Dividends declared to noncontrolling interests						(0.1)						—						—						—						—						—						(0.1)
Cash dividends declared ($1.80 per share)						(158.0)						—						—						—						(158.0)						—						—
Balance at December 31, 2023						1,318.3						0.9						87.5						—						1,578.9						(261.5)						—
Net earnings						597.5						—						—						—						597.5						—						—
Other comprehensive loss, net						(70.1)						—						—						—						—						(70.1)						—
Repurchase of ordinary shares						(220.0)						—						(1.6)						(42.0)						(178.0)						—						—
Share-based compensation activity						27.3						—						—						27.3						—						—						—
Shares issued under incentive stock plans						14.7						—						0.4						14.7						—						—						—
Cash dividends declared ($1.92 per share)						(167.0)						—						—						—						(167.0)						—						—
Balance at December 31, 2024						1,500.7						0.9						86.3						—						1,831.4						(331.6)						—
Net earnings						643.8						—						—						—						643.8						—						—
Other comprehensive income, net						126.0						—						—						—						—						126.0						—
Repurchase of ordinary shares						(80.0)						—						(0.6)						(18.4)						(61.6)						—						—
Share-based compensation activity						29.0						—						—						29.0						—						—						—
Shares issued under incentive stock plans						23.6						—						0.4						23.6						—						—						—
Cash dividends declared ($2.04 per share) and other						(175.5)						—						—						—						(175.5)						—						—
Balance at December 31, 2025						$	2,067.6					$	0.9					86.1						$	34.2					$	2,238.1					$	(205.6)					$	—

See accompanying notes to consolidated financial statements.

F-5

Allegion plc

Consolidated Statements of Cash Flows

In millions

For the years ended December 31,						2025						2024						2023
Cash flows from operating activities:
Net earnings						$	643.8					$	597.5					$	540.6
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization						133.2						119.0						111.6
Impairment of intangible assets						—						—						7.5
Share-based compensation						29.8						28.2						26.4
Unrealized (gain) loss on investments, net						(0.9)						1.0						0.8
Deferred income taxes						(10.2)						(44.2)						(67.7)
Other items						7.3						(2.4)						(0.8)
Changes in other assets and liabilities:
Accounts and notes receivable						23.7						(6.7)						(11.9)
Inventories						(38.9)						16.7						44.6
Accounts payable						(34.4)						3.6						(33.6)
Other assets and liabilities						30.4						(37.7)						(16.9)
Net cash provided by operating activities						783.8						675.0						600.6
Cash flows from investing activities:
Capital expenditures						(98.1)						(92.1)						(84.2)
Acquisition of and equity investments in businesses, net of cash acquired						(592.2)						(137.2)						(31.7)
Other investing activities, net						4.8						0.9						(13.2)
Net cash used in investing activities						(685.5)						(228.4)						(129.1)
Cash flows from financing activities:
Debt repayments						(216.1)						(413.3)						(12.6)
Proceeds from Revolving Facility						561.9						—						30.0
Repayments of Revolving Facility						(371.3)						—						(99.0)
Proceeds from issuance of Senior Notes						—						400.0						—
Repayments of debt, net						(25.5)						(13.3)						(81.6)
Debt financing costs						(1.4)						(7.6)						—
Dividends paid to ordinary shareholders						(175.3)						(167.0)						(158.7)
Proceeds from exercise of stock options						23.6						14.7						1.3
Repurchase of ordinary shares						(80.0)						(220.0)						(59.9)
Other financing activities, net						(8.1)						(1.3)						0.2
Net cash used in financing activities						(266.7)						(394.5)						(298.7)
Effect of exchange rate changes on cash and cash equivalents						20.8						(16.4)						7.3
Net (decrease) increase in cash and cash equivalents						(147.6)						35.7						180.1
Cash and cash equivalents – beginning of period						503.8						468.1						288.0
Cash and cash equivalents – end of period						$	356.2					$	503.8					$	468.1

See accompanying notes to consolidated financial statements.

F-6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – DESCRIPTION OF COMPANY AND BASIS OF PRESENTATION

Allegion plc, an Irish public limited company, and its consolidated subsidiaries ("Allegion" or "the Company") are a leading global company that provides security products and solutions that keep people and assets safe and secure in the places they live, learn, work and connect. Allegion creates peace of mind by pioneering safety and security to create a safer and more accessible world. The Company offers an extensive and versatile portfolio of security and access control products and solutions across a range of market-leading brands including CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®.

Basis of presentation: The Consolidated Financial Statements were prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") as defined by the Financial Accounting Standards Board ("FASB") within the FASB Accounting Standards Codification ("ASC").

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies used in the preparation of the accompanying Consolidated Financial Statements:

Principles of Consolidation: The Consolidated Financial Statements include all controlled subsidiaries of the Company, after elimination of all intercompany accounts and transactions. A noncontrolling interest in a subsidiary is considered an ownership interest in a controlled subsidiary that is not attributable to the Company. The Company includes noncontrolling interests as a component of Total equity in the Consolidated Balance Sheets and the Net earnings attributable to noncontrolling interests are presented as an adjustment from Net earnings used to arrive at Net earnings attributable to Allegion plc in the Consolidated Statements of Comprehensive Income.

Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical experience, risk of loss, general economic conditions and trends and the assessment of the probable future outcome. Some of the more significant estimates include useful lives of property, plant and equipment and intangible assets, purchase price allocations of acquired businesses, valuation of assets and liabilities including goodwill and other intangible assets, product warranties, sales allowances, assets and liabilities related to defined benefit plans, taxes, lease related assets and liabilities, share-based compensation, environmental costs, product liability and other contingencies. Actual results could differ from the Company's estimates. Estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Comprehensive Income in the period they are determined.

Currency Translation: Assets and liabilities where the functional currency is not the U.S. dollar have been translated at year-end exchange rates, and income and expense accounts have been translated using average exchange rates throughout the year. Adjustments resulting from the process of translating a subsidiary’s financial statements into the U.S. dollar are recorded to Accumulated other comprehensive loss.

Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Transaction gains and losses are recognized in Other income, net, in the Consolidated Statements of Comprehensive Income in the period they are incurred.

Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, demand deposits and all highly liquid investments with original maturities at the time of purchase of three months or less.

Accounts and Notes Receivable, Net: Receivables consist of billed receivables which are currently due from customers. The Company provides for an allowance for doubtful accounts and notes receivable, which represents the best estimate of expected lifetime credit losses inherent in the Company’s accounts and notes receivable portfolios. The Company's estimates are influenced by a continuing credit evaluation of customers' financial condition, trade accounts and notes receivable aging and historical loss experience, as well as reasonable and supportable forecasts of future economic conditions. The Company has reserved $12.9 million and $20.2 million for doubtful accounts and notes receivable as of December 31, 2025 and 2024, respectively.

Inventories: Inventories are stated at the lower of cost and net realizable value using the first-in, first-out (FIFO) method.

Property, Plant and Equipment: Property, plant and equipment are stated at cost, less accumulated depreciation. Assets placed in service are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset except for leasehold improvements, which are depreciated over the shorter of their economic useful life or their lease term. Repair and maintenance costs that do not extend the useful life of the asset are expensed as incurred. Major replacements and

F-7

significant improvements that increase asset values and/or extend useful lives are capitalized. The range of useful lives used to depreciate property, plant and equipment is as follows:

Buildings			10			to			50			years
Machinery and equipment			2			to			12			years
Software			2			to			7			years

The Company assesses the recoverability of the carrying value of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds its fair value.

Investments: The Company periodically invests in debt or equity securities of start-up companies and/or development stage technology or other companies without acquiring a controlling interest. The Company applies the equity method of accounting when the Company has the ability to exercise significant influence over the operating and financial decision making of the investee. Investments in equity method affiliates totaled $15.5 million and $13.7 million as of December 31, 2025 and 2024, respectively. Equity investments that have readily determinable fair values in which the Company does not have significant influence are measured at fair value, with any unrealized holding gains and losses being recorded to earnings. Investments without readily determinable fair values are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer and are qualitatively assessed for impairment indicators each reporting period. Investments in debt and equity securities not accounted for under the equity method of accounting totaled $66.8 million and $66.9 million as of December 31, 2025 and 2024, respectively. The Company's investments are recorded within Other noncurrent assets within the Consolidated Balance Sheets.

Leases: As a lessee, the Company categorizes its leases into two general categories: real estate and equipment leases. The Company's real estate leases include leased production and assembly facilities, warehouses and distribution centers and office space, while the Company's equipment leases primarily include vehicles, material handling and other equipment utilized in the Company's facilities, laptops and other information technology ("IT") equipment. The Company records a right-of-use ("ROU") asset and lease liability for substantially all leases for which it is a lessee. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company assesses the specific terms and conditions of each lease to determine the appropriate classification as either an operating or finance lease and the lease term. Substantially all of the Company's leases for which the Company is a lessee are classified as operating leases. If at lease commencement date, a lease has a term of less than 12 months and does not include a purchase option that is reasonably certain to be exercised, the Company does not include the lease as part of its ROU asset or lease liability. If the Company enters into a large number of leases in the same month with the same terms and conditions, these are considered a group (portfolio). There are no material residual value guarantees provided by the Company nor any restrictions or covenants imposed by any leases to which the Company is a party.

The Company assesses the specific terms and conditions of each real estate lease, which can vary significantly from lease to lease, to determine the amount of the lease payments and the length of the lease term, which includes the minimum period over which lease payments are required plus any renewal options that are both within the Company's control to exercise and reasonably certain of being exercised upon lease commencement. When available, the Company will utilize the rate implicit in the lease as the discount rate to determine the lease liability; however, as this rate is not available for most leases, the Company will use its incremental borrowing rate for debt instruments with terms approximating the weighted-average term of its real estate or equipment leases to discount the future lease payments over the lease term to present value. The Company incurs variable lease payments for certain of its real estate leases, such as reimbursements of property taxes, maintenance and other operational costs to the lessor. In general, these variable lease payments are not captured as part of the lease liability or ROU asset, but rather are expensed as incurred. Most of the Company's equipment leases are for terms ranging from two to five years, although terms and conditions can vary from lease to lease. The Company applies similar estimates and judgments to its equipment lease portfolio in determining the lease payments, lease term and incremental borrowing rate as it does to its real estate lease portfolio. The Company does not typically incur variable lease payments related to its equipment leases.

Goodwill: The Company records goodwill as the excess of the purchase price of an acquired business over the fair value of the net assets acquired. Goodwill is tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate the fair value of a reporting unit is more likely than not less than its carrying amount. Recoverability of goodwill is measured at the reporting unit level. The carrying amount of a reporting unit is compared to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, a goodwill impairment charge will be recognized for the amount by which the carrying value of the reporting unit exceeds its fair

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value, not to exceed the carrying amount of the reporting unit's goodwill. Estimated fair value of the Company's reporting units is based on two valuation techniques, a discounted cash flow model (income approach) and a market multiple of earnings (market approach), with each method being weighted in the calculation.

Intangible Assets: Similar to Goodwill, indefinite-lived intangible assets are not amortized, but are tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate the fair value of the asset is more likely than not less than its carrying amount. Recoverability of indefinite-lived intangible assets (i.e. Trade names) is determined on a relief from royalty methodology, which is based on the implied royalty paid, at an appropriate discount rate, to license the use of an asset rather than owning the asset. The present value of the after-tax cost savings (i.e. royalty relief) indicates the estimated fair value of the asset. Any excess of the carrying value over the estimated fair value is recognized as an impairment loss equal to that excess.

Intangible assets such as completed technologies, patents, customer-related intangible assets and other intangible assets with finite useful lives are amortized on a straight-line basis over their estimated economic lives. The weighted-average useful lives approximate the following:

Customer relationships			21			years
Trade names (finite-lived)			14			years
Completed technologies/patents			11			years
Other			5			years

Recoverability of intangible assets with finite useful lives is assessed in the same manner as property, plant and equipment, as described above.

Business Combinations: The fair value of consideration paid in a business combination is allocated to the tangible and identifiable intangible assets acquired, liabilities assumed and goodwill using the acquisition method of accounting. Acquired intangible assets typically include trade names, customer relationships and completed technologies. The accounting for business combinations involves a considerable amount of judgment and estimation, and as a result, for significant acquisitions the Company normally obtains the assistance of a third-party valuation specialist in estimating fair values of acquired tangible and intangible assets and assumed liabilities. The allocation of consideration paid to assets acquired and liabilities assumed may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. Any contingent consideration is recorded at the estimated fair value as of the date of the acquisition and is recorded as part of the purchase price. This estimate is updated in future periods and any changes in the estimate, which are not considered an adjustment to the purchase price, are recorded in the Consolidated Statements of Comprehensive Income. Business acquisition and integration costs are expensed as incurred.

Income Taxes: The calculation of the Company’s income taxes involves considerable judgment and the use of both estimates and allocations. Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. The Company recognizes future tax benefits, such as net operating losses and tax credits, to the extent that realizing these benefits is considered in its judgment to be more likely than not. The Company regularly reviews the recoverability of its deferred tax assets considering its historic profitability, projected future taxable income, timing of the reversals of existing temporary differences and the feasibility of its tax planning strategies. Where appropriate, the Company records a valuation allowance with respect to future tax benefits.

Cash paid for income taxes, net of refunds, for the year ended December 31, 2025, was $121.2 million. Irish federal taxes paid were $1.3 million, U.S. federal taxes paid were $72.5 million and other foreign taxes paid were $47.4 million. Cash paid for income taxes, net of refunds, for the years ended December 31, 2024 and 2023 was $158.3 million and $157.9 million, respectively. The reduction in cash taxes paid in 2025 compared to prior years was primarily attributable to the 2025 enactment of the One Big Beautiful Bill Act in the United States, which allowed for the acceleration of certain tax deductions.

Product Warranties: The Company offers a standard warranty with most product sales, and the value of such warranty is included in the contractual sales price. Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience. The Company regularly assesses the adequacy of its liabilities and makes adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available.

Revenue Recognition: Net revenues are recognized based on the satisfaction of performance obligations under the terms of a contract. A performance obligation is a promise in a contract to transfer control of a distinct product or to provide a service, or a bundle of products or services, to a customer. The Company has two principal revenue streams, tangible product sales and services and software. Product sales involve contracts with a single performance obligation, the transfer of control of a product or bundle of products to a customer. Transfer of control typically occurs when goods are shipped from the Company's facilities or at other predetermined control transfer points (for instance, destination terms). Services and software offerings include inspection, maintenance and repair, aftermarket, design and installation services, as well as on-premise, software maintenance and software as a service ("SaaS") solutions. Unlike the single performance obligation to ship a product or bundle of products,

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revenue related to services is recognized when the service based performance obligations are satisfied. In some instances, customer acceptance provisions are included in sales arrangements to give the buyer the ability to ensure the service meets any established criteria. In these instances, revenue recognition is deferred until the performance obligations are satisfied, which could include acceptance terms specified in the arrangement being fulfilled through customer acceptance or a demonstration that established criteria have been satisfied. Revenue from on-premise software solutions are recognized at the point in time when the customer can benefit from the software, which generally aligns with the beginning of the license period.

Net revenues are measured as the amount of consideration expected to be received in exchange for transferring control of the products or providing the services and takes into account variable consideration, such as sales incentive programs including discounts and volume rebates. The existence of these programs does not preclude revenue recognition but does require the Company's best estimate of the variable consideration to be made based on expected activity, as these items are reserved for as a deduction to Net revenues based on the Company's historical rates of providing these incentives and annual forecasted sales volumes. Sales returns and customer disputes involving a question of quantity or price are accounted for as variable consideration, and therefore, as a reduction to Net revenues and as a contra receivable. At December 31, 2025 and 2024, the Company had a reserve for customer claims of $50.6 million and $56.2 million, respectively. All other incentives or incentive programs where the customer is required to reach a certain level of purchases, remain a customer for a certain period, provide a rebate form or is subject to additional requirements are also considered variable consideration and are accounted for as a reduction of revenue and a liability. At December 31, 2025 and 2024, the Company had a sales incentive accrual of $73.5 million and $62.8 million, respectively. These estimates are reviewed regularly for accuracy, and if updated information or actual amounts are different from previous estimates, the revisions are included in the Company’s results for the period in which they become known.

As a practical expedient allowed under ASC 606, "Revenue from Contracts with Customers", the Company recognizes incremental costs of obtaining a contract, if any, as an expense when incurred if the amortization period of the asset would have been one year or less. The Company also applies the practical expedients to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less. The transaction price is not adjusted for the effects of a significant financing component, as the time period between control transfer of goods and services is less than one year. Sales, value-added and other similar taxes collected by the Company are excluded from Net revenues. The Company has also elected to account for shipping and handling activities that occur after control of the related goods transfers as fulfillment activities instead of performance obligations. These activities are included in Cost of goods sold in the Consolidated Statements of Comprehensive Income. The Company’s payment terms are generally consistent with the industries in which its businesses operate.

Environmental Costs: The Company is subject to laws and regulations relating to protecting the environment and is dedicated to an environmental program to reduce the utilization and generation of hazardous materials during the manufacturing process and to remediate identified environmental concerns. The Company is currently engaged in site investigations and remediation activities to address environmental cleanup from past operations at current and former production facilities. The Company is also sometimes a party to environmental lawsuits and claims and has, from time to time, received notices of potential violations of environmental laws and regulations from the U.S. Environmental Protection Agency and similar state authorities. It has also been identified as a potentially responsible party ("PRP") for cleanup costs associated with off-site waste disposal at federal Superfund and state remediation sites for past operations. For all such sites, there are other PRPs and, in most instances, the Company’s involvement is minimal. In estimating its liability, the Company has assumed it will not bear the entire cost of remediation of any site to the exclusion of other PRPs who may be jointly and severally liable. The ability of other PRPs to participate has been taken into account, based on the Company's understanding of the parties’ financial condition and probable contributions on a per site basis. The Company regularly evaluates its remediation programs and considers alternative remediation methods that are in addition to, or in replacement of, those currently utilized by the Company based upon enhanced technology and regulatory changes.

Environmental expenditures relating to current operations are expensed or capitalized as appropriate. Expenditures relating to existing conditions caused by past operations, which do not contribute to current or future revenues, are expensed. Liabilities for remediation costs are recorded when they are probable and can be reasonably estimated, generally no later than the completion of feasibility studies or the Company’s commitment to a plan of action. The assessment of this liability, which is calculated based on existing technology, does not reflect any offset for possible recoveries from insurance companies and is not discounted.

Research and Development Costs: The Company conducts research and development activities for the purpose of developing and improving new products and services. These costs are expensed when incurred. For the years ended December 31, 2025, 2024 and 2023, expenses related to research and development activities amounted to approximately $132.0 million, $112.7 million and $101.9 million, respectively, and primarily consisted of salaries, wages, benefits, facility costs and other overhead expenses.

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Defined Benefit Plans: The Company provides a range of U.S. and non-U.S. defined benefit plan benefits to eligible current and former employees. Noncontributory defined benefit pension plans covering non-collectively bargained U.S. employees provide benefits based on an average pay formula while most plans for collectively bargained U.S. employees provide benefits based on a flat dollar benefit formula. The non-U.S. defined benefit plans generally provide benefits based on earnings and years of service. Determining the costs associated with such benefits is dependent on various actuarial assumptions, including discount rates, expected returns on plan assets, employee mortality and turnover rates. Actuarial valuations are performed to determine the plan obligations and expense in accordance with GAAP. Actual results may differ from the actuarial estimates and assumptions, and when they do, are generally recorded to Accumulated other comprehensive loss and amortized into Net earnings over future periods.

The Company reviews its actuarial assumptions at each measurement date and makes modifications to the assumptions as appropriate. Discount rates are generally established using hypothetical yield curves based on the yields of corporate bonds rated AA quality. Spot rates are developed from the yield curve and used to discount future benefit payments. The expected return on plan assets reflects the average rate of returns expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation. The expected return on plan assets is based on what is achievable given the plan’s investment policy, the types of assets held and the target asset allocation.

Share-Based Compensation: The Company records share-based compensation awards using a fair value method and recognizes compensation expense for an amount equal to the fair value of the share-based payment award issued. The Company’s share-based compensation plans include programs for stock options, restricted stock units ("RSUs"), performance stock units ("PSUs") and deferred compensation. The fair value of each of the Company’s stock option and RSU awards is expensed on a straight-line basis over the required service period, which is generally the 3-year vesting period. However, for stock options and RSUs granted to retirement eligible employees, the Company recognizes expense for the fair value of these awards at the grant date. The Company's Performance Stock Program ("PSP") provides awards for key employees in the form of PSUs based on performance against pre-established objectives. The annual target award level is expressed as a number of the Company's ordinary shares. All PSUs are settled in the form of ordinary shares.

Share Repurchases: Common shares that are repurchased by the Company subsequent to issuance are immediately retired upon settlement and decrease the total number of shares issued and outstanding. The cost of share repurchases is charged against shareholder's equity.

Loss Contingencies: Liabilities are recorded for various contingencies arising in the normal course of business, including litigation and administrative proceedings, environmental matters, product liabilities, product warranties, workers' compensation and other claims. The Company has recorded reserves in the financial statements related to these matters, which are developed using inputs derived from actuarial estimates and historical and anticipated experience data, depending on the nature of the reserve and, in certain instances, with consultation of legal counsel, internal and external consultants and engineers. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available.

Financial Instruments: The Company uses various financial instruments, including derivative instruments, to manage the risks associated with interest and currency rate exposures. These financial instruments are not used for trading or speculative purposes. When a derivative contract is entered into, the Company designates the derivative instrument as a cash flow hedge of a forecasted transaction, a cash flow hedge of a recognized asset or liability or as an undesignated derivative. The Company formally documents its hedge relationships, including identification of the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivative instruments that are designated as hedges to specific assets, liabilities or forecasted transactions.

The Company assesses at inception and at least quarterly thereafter, whether the derivatives used in cash flow hedging transactions are effective in offsetting the changes in the cash flows of the hedged item. To the extent the derivative is deemed to be an effective hedge, the fair market value changes of the instrument are recorded to Accumulated other comprehensive loss and subsequently reclassified to Net earnings when the hedged transaction affects earnings. Changes in the fair market value of derivatives not deemed to be an effective hedge are recorded in Net earnings in the period of change. The Company recognizes all derivative instruments on the Consolidated Balance Sheets at their fair value, which is determined through market-based valuations and may not be representative of the actual gains or losses that will be recorded when these instruments mature due to future fluctuations in the markets in which they are traded. If the hedging relationship ceases to be effective subsequent to inception, or it becomes probable that a forecasted transaction will no longer occur, the hedging relationship will be undesignated, and any future gains or losses on the derivative instrument will be recorded in Net earnings.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements:

In December 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which modifies the rules on income tax disclosures to require entities to disclose

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(1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). This ASU also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. This guidance became effective for the Company in the current year. The Company adopted this ASU prospectively for the fiscal year ended December 31, 2025. See Note 16 to the Consolidated Financial Statements for further information.

Recently Issued Accounting Pronouncements:

In November 2024, the FASB issued ASU No. 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses", which requires disaggregated disclosures of certain categories of expenses that are included in expense line items on the face of the consolidated statements of comprehensive income. This guidance will be effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. This ASU is to be applied prospectively, but retrospective application is permitted. This ASU will result in additional required disclosures in the Company's Consolidated Financial Statements once adopted.

In September 2025, the FASB issued ASU No. 2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software", which removes references to prescriptive and sequential software development stages, and requires entities to start capitalizing software costs when management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended. This guidance will be effective for annual and interim periods beginning after December 15, 2027. This ASU is to be applied prospectively, but retrospective application is permitted. The Company is currently evaluating the impact this ASU will have on the Company's Consolidated Financial Statements.

NOTE 3 - ACQUISITIONS

2025

Acquisitions completed during the year ended December 31, 2025, included the following:

Next Door

On February 4, 2025, the Company, through its subsidiaries, acquired Next Door Company ("Next Door"), a global provider of security products and solutions based in the United States. Next Door is reported in the Company's Allegion Americas segment.

Lemaar

On March 1, 2025, the Company, through its subsidiaries, acquired Lemaar Pty Ltd ("Lemaar"), a global provider of security products and solutions based in Australia. Lemaar is reported in the Company's Allegion International segment.

Trimco

On April 2, 2025, the Company, through its subsidiaries, acquired 100% of Trimco Hardware ("Trimco"), a manufacturer of high-performance and custom-designed architectural hardware primarily sold for commercial and institutional markets based in the United States. Trimco is reported in the Company's Allegion Americas segment.

Novas

On June 2, 2025, the Company, through its subsidiaries, acquired 100% of Nova Hardware Pty Ltd ("Novas"), an architectural door hardware company based in Australia. Novas is reported in the Company's Allegion International segment.

ELATEC

On July 1, 2025, the Company, through its subsidiaries, acquired 100% of ELATEC, including Elatec GmbH and other group entities ("ELATEC"). ELATEC is a manufacturer of security and access technology based in Germany. This acquisition helps the Company expand its global electronics portfolio in attractive end markets while also increasing strategic relationships with channel partners. The purchase price of the acquisition was €327.9 million (approximately $386.5 million). The Company used

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cash on hand and borrowings under the Revolving Facility to finance the acquisition. ELATEC is reported in the Company's Allegion International segment.

Gatewise

On July 2, 2025, the Company, through its subsidiaries, acquired 100% of Gatewise Inc. (“Gatewise"), a provider of smart access control solutions in the U.S. multifamily marketplace based in the United States. Gatewise is reported in the Company's Allegion Americas segment.

Waitwhile

On July 7, 2025, the Company, through its subsidiaries, acquired 100% of Waitwhile Inc. (“Waitwhile"), a software-as-a-service provider that specializes in cloud-based appointment scheduling and queue management based in the United States. Waitwhile is reported in the Company's Allegion Americas segment.

UAP

On August 1, 2025, the Company, through its subsidiaries, acquired 100% of UAP Group Limited (“UAP"), a security solutions provider based in the United Kingdom. UAP is reported in the Company's Allegion International segment.

Brisant

On August 12, 2025, the Company, through its subsidiaries, acquired 100% of Brisant Secure Limited (“Brisant"), a security hardware provider based in the United Kingdom. Brisant is reported in the Company's Allegion International segment.

The aggregate consideration for all acquisitions completed in 2025 was approximately $631.6 million (net of cash acquired), including the aggregate fair value of earnout contingent consideration. The Company estimates the fair value of this earnout contingent consideration to be approximately $30.3 million, which becomes payable at certain dates through 2028 if certain conditions are achieved. These acquisitions were accounted for as business combinations and were funded with available cash on hand and borrowings under the Revolving Facility.

The following table summarizes the preliminary allocation of the aggregate purchase price for the acquisitions completed in 2025, which includes initial cash consideration and the estimated fair value of contingent consideration, to assets acquired and liabilities assumed as of the acquisition dates:

In millions
Net working capital			$	38.9
Property, plant and equipment and other noncurrent assets			24.6
Goodwill			377.9
Intangible assets			281.9
Deferred tax liabilities related to acquired intangible assets			(70.8)
Other noncurrent liabilities			(20.9)
Total net assets acquired and liabilities assumed			$	631.6

The valuations of assets acquired and liabilities assumed had not yet been finalized as of December 31, 2025, and finalization of the valuations during the measurement period could result in a change in the amounts recorded. The completion of the valuations will occur no later than one year from the respective acquisition dates as required by GAAP.

Intangible assets recognized as of the acquisition dates were comprised of the following:

In millions			Value (in millions)						Weighted-average useful life (in years)
Completed technologies/patents			$	41.0					11
Customer relationships			193.3						20
Trade names (finite-lived)			47.6						14

The following unaudited pro forma financial information for the years ended December 31, 2025 and 2024 is subject to change, and reflects the consolidated results of operations of the Company as if these acquisitions had taken place on January 1, 2024:

			Years ended
In millions			2025						2024
Net revenues			$	4,156.0					$	3,943.8
Net earnings			648.9						576.7

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The unaudited pro forma financial information is presented for informational purposes only and is not intended to be indicative of results of operations that would have occurred had the pro forma events taken place on the date indicated or the future consolidated results of operations of the combined company. The unaudited pro forma financial information does not reflect any synergies or other strategic benefits as a result of the acquisitions. The unaudited pro forma financial information is required under GAAP, and has been calculated after applying the Company's accounting policies and adjusting the historical financial results to reflect additional items directly attributable to the acquisitions that would have been incurred assuming the acquisitions had occurred on January 1, 2024, including amortization of acquired intangible assets, interest costs for debt to fund the acquisitions, and acquisition and integration costs.

The following financial information reflects the Net revenues and Earnings before income tax generated by the businesses since the acquisition dates included within the Company's Consolidated Statements of Comprehensive Income:

In millions			Year ended December 31, 2025
Net revenues			$	93.0
Earnings before income taxes			4.7

2024

The following acquisitions were made during the year ended December 31, 2024:

Boss Door Controls

On February 1, 2024, the Company, through its subsidiaries, acquired 100% of Boss Door Controls, a door solutions provider in the United Kingdom. Boss Door Controls is reported in the Company's Allegion International segment.

Dorcas

On March 4, 2024, the Company, through its subsidiaries, acquired 100% of Montajes electronicos Dorcas S.L. ("Dorcas"), a manufacturer of electromechanical access control solutions based in Spain. Dorcas is reported in the Company's Allegion International segment.

Krieger

On June 3, 2024, the Company, through its subsidiaries, acquired 100% of Krieger Specialty Products, LLC ("Krieger"), a manufacturer of high-performance special purpose doors and windows based in the United States. Krieger is reported in the Company's Allegion Americas segment.

Unicel

On June 10, 2024, the Company, through its subsidiaries, acquired 100% of Unicel Architectural Corp. ("Unicel"), a manufacturer of advanced glass, timber and aluminum building solutions based in Canada. Unicel is reported in the Company's Allegion Americas segment.

SOSS

On October 18, 2024, the Company, through its subsidiaries, acquired 100% of SOSS Door Hardware ("SOSS"), a manufacturer of premium hinges and door hardware based primarily in the United States. SOSS is reported in the Company's Allegion Americas segment.

The aggregate consideration for acquisitions was approximately $147.2 million (net of cash acquired), including the fair value of contingent consideration, which the Company estimates to be approximately $10.5 million at the various applicable acquisition dates. These acquisitions were accounted for as business combinations and were funded with available cash on hand.

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The following table for these 2024 acquisitions summarizes the allocation of the aggregate purchase price, which includes cash consideration and the estimated fair value of contingent consideration, to assets acquired and liabilities assumed as of the acquisition dates:

In millions
Net working capital			$	10.1
Property, plant and equipment			4.1
Goodwill			74.4
Intangible assets			70.5
Other noncurrent liabilities			(11.9)
Total net assets acquired and liabilities assumed			$	147.2

Intangible assets recognized for these 2024 acquisitions as of the various acquisition dates were comprised of the following:

In millions			Value (in millions)						Weighted-average useful life (in years)
Completed technologies/patents			$	14.3					15
Customer relationships			30.6						16
Trade names (finite-lived)			15.3						15
Backlog revenue			10.3						1

During the years ended December 31, 2025, 2024 and 2023, the Company incurred $14.6 million, $11.4 million and $21.0 million, respectively, of acquisition and integration related expenses, which are included in Selling and administrative expenses in the Consolidated Statements of Comprehensive Income.

Goodwill results from several factors, including Allegion-specific synergies that were excluded from the cash flow projections used in the valuation of intangible assets and intangible assets that do not qualify for separate recognition. The majority of goodwill resulting from these acquisitions is not deductible for tax purposes.

NOTE 4 – INVENTORIES

At December 31, the major classes of Inventories were as follows:

In millions						2025						2024
Raw materials						$	237.9					$	196.9
Work-in-process						55.1						48.2
Finished goods						226.0						177.9
Total						$	519.0					$	423.0

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT

At December 31, the major classes of property, plant and equipment were as follows:

In millions						2025						2024
Land						$	19.8					$	18.5
Buildings						204.1						186.3
Machinery and equipment						577.2						514.6
Software						253.4						201.5
Construction in progress						75.5						90.7
Total property, plant and equipment						1,130.0						1,011.6
Accumulated depreciation						(685.4)						(626.3)
Property, plant and equipment, net						$	444.6					$	385.3

Depreciation expense for the years ended December 31, 2025, 2024 and 2023, was $59.3 million, $52.2 million and $47.3 million.

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NOTE 6 – GOODWILL

The changes in the carrying amount of Goodwill were as follows:

In millions			Allegion Americas						Allegion International						Total
December 31, 2023			$	1,126.7					$	316.4					$	1,443.1
Acquisitions and adjustments			69.1						5.6						74.7
Currency translation			(9.9)						(18.5)						(28.4)
December 31, 2024			1,185.9						303.5						1,489.4
Acquisitions and adjustments			88.9						287.9						376.8
Currency translation			6.3						39.9						46.2
December 31, 2025			$	1,281.1					$	631.3					$	1,912.4

Accumulated impairment for the International segment was $573.6 million as of December 31, 2025, 2024, and 2023. There are no accumulated impairments for the Americas segment.

There was no impairment of goodwill for the years ended December 31, 2025, 2024 and 2023.

NOTE 7 – INTANGIBLE ASSETS

At December 31, the gross amount of the Company's intangible assets and related accumulated amortization were as follows:

						2025																		2024
In millions						Gross carrying amount						Accumulated amortization						Net carrying amount						Gross carrying amount						Accumulated amortization						Net carrying amount
Completed technologies/patents						$	121.2					$	(52.1)					$	69.1					$	76.6					$	(41.7)					$	34.9
Customer relationships						776.3						(254.2)						522.1						542.7						(201.5)						341.2
Trade names (finite-lived)						210.8						(119.6)						91.2						151.3						(91.4)						59.9
Other						78.4						(42.0)						36.4						91.8						(59.9)						31.9
Total finite-lived intangible assets						1,186.7						$	(467.9)					718.8						862.4						$	(394.5)					467.9
Trade names (indefinite-lived)						107.2												107.2						101.1												101.1
Total						$	1,293.9											$	826.0					$	963.5											$	569.0

Intangible asset amortization expense for the years ended December 31, 2025, 2024 and 2023, was $71.3 million, $63.9 million and $61.7 million, respectively.

Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $72.5 million for 2026, $65.2 million for 2027, $56.0 million for 2028, $53.2 million for 2029 and $44.4 million for 2030.

In 2023, it was determined that two of the Company's indefinite-lived trade names in the International segment were impaired, and an impairment charge of $7.5 million was recorded. The impairment related to declines in volumes which reduced the brands' expected future cash flows. No intangible asset impairment charges were recorded in the years ended December 31, 2025 or 2024.

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NOTE 8 – DEBT AND CREDIT FACILITIES

At December 31, long-term debt and other borrowings consisted of the following:

In millions			2025						2024
Term Facility			$	—					$	212.5
Revolving Facility			190.6						—
3.550% Senior Notes due 2027			400.0						400.0
3.500% Senior Notes due 2029			400.0						400.0
5.411% Senior Notes due 2032			600.0						600.0
5.600% Senior Notes due 2034			400.0						400.0
Other debt			0.2						—
Total borrowings outstanding			1,990.8						2,012.5
Discounts and debt issuance costs, net			(10.7)						(13.0)
Total debt			1,980.1						1,999.5
Less current portion of long-term debt			0.2						21.9
Total long-term debt			$	1,979.9					$	1,977.6

Unsecured Credit Facilities

On December 9, 2025, the Company amended and restated its unsecured revolving credit facility (the "Revolving Facility") which, among other things, increased the total commitment from $750.0 million to $1.0 billion, and extended the maturity from May 20, 2029 to May 20, 2030. The Company used borrowings under the Revolving Facility to repay its outstanding term loan, which was scheduled to mature in November 2026. Outstanding borrowings under the Revolving Facility were $190.6 million at December 31, 2025.

The Revolving Facility provides aggregate commitments of up to $1.0 billion, which includes up to $100.0 million for the issuance of letters of credit. The Company had $25.2 million and $18.4 million of letters of credit outstanding at December 31, 2025 and 2024, respectively. Borrowings under the Revolving Facility may be repaid at any time without premium or penalty, and amounts repaid may be reborrowed. The Company pays certain fees with respect to the Revolving Facility, including an unused commitment fee on the undrawn portion of between 0.080% and 0.200% per year, depending on the Company's credit ratings, as well as certain other fees.

Outstanding borrowings under the Revolving Facility accrue interest, at the option of the Company, of (i) a SOFR plus an applicable margin, or (ii) a base rate (as defined in the credit agreement) plus an applicable margin. The applicable margin ranges from 0.875% to 1.375% depending on the Company's credit ratings. At December 31, 2025, the Company's outstanding borrowings under the Revolving Facility accrued interest at SOFR plus a margin of 1.125%, resulting in an interest rate of 4.902%. The credit agreement also contains negative and affirmative covenants and events of default that, among other things, limit or restrict the Company’s ability to enter into certain transactions. In addition, the Revolving Facility requires the Company to comply with a maximum leverage ratio as defined in the credit agreement. As of December 31, 2025, the Company was in compliance with all applicable covenants under the credit agreement.

Senior Notes

As of December 31, 2025, Allegion US Hold Co has $400.0 million outstanding of its 3.550% Senior Notes due 2027 (the “3.550% Senior Notes”), $600.0 million outstanding of its 5.411% Senior Notes due 2032 (the “5.411% Senior Notes”) and $400.0 million outstanding of its 5.600% Senior Notes due 2034 (the "5.600% Senior Notes"), and Allegion plc has $400.0 million outstanding of its 3.500% Senior Notes due 2029 (the “3.500% Senior Notes”, and all four senior notes collectively, the "Senior Notes"). The 3.550% Senior Notes and 3.500% Senior Notes both require semi-annual interest payments on April 1 and October 1 of each year and mature on October 1, 2027 and October 1, 2029, respectively. The 5.411% Senior Notes require semi-annual interest payments on January 1 and July 1 of each year and mature on July 1, 2032. The 5.600% Senior Notes require semi-annual interest payments on May 29 and November 29 of each year and mature on May 29, 2034.

The 3.550% Senior Notes, 5.411% Senior Notes and 5.600% Senior Notes are senior unsecured obligations of Allegion US Hold Co and rank equally with all of Allegion US Hold Co’s existing and future senior unsecured and unsubordinated indebtedness. The guarantee of the 3.550% Senior Notes, 5.411% Senior Notes and 5.600% Senior Notes is the senior unsecured obligation of Allegion plc and ranks equally with all of the Company's existing and future senior unsecured and unsubordinated indebtedness. The 3.500% Senior Notes are senior unsecured obligations of Allegion plc, are guaranteed by Allegion US Hold Co and rank equally with all of the Company's existing and future senior unsecured indebtedness.

F-17

Future Repayments

Future required principal payments on indebtedness as of December 31, 2025 were as follows:

In millions
2026			$	0.2
2027			400.0
2028			—
2029			400.0
2030			190.6
Thereafter			1,000.0
Total			$	1,990.8

Cash paid for interest for the years ended December 31, 2025, 2024 and 2023 was $98.1 million, $100.3 million and $92.0 million, respectively.

NOTE 9 – FINANCIAL INSTRUMENTS

Currency Hedging Instruments

The gross notional amount of the Company’s currency derivatives was $320.1 million and $167.2 million at December 31, 2025 and 2024, respectively. Neither the fair values of currency derivatives, which are determined based on a pricing model that uses spot rates and forward prices from actively quoted currency markets that are readily observable (Level 2 inputs under the fair value hierarchy described in Note 12), nor the balances included in Accumulated other comprehensive loss, were material as of December 31, 2025 and 2024. Currency derivatives designated as cash flow hedges did not have a material impact to either Net earnings or Other comprehensive income (loss) during any of the years ended December 31, 2025, 2024 or 2023, nor is the amount to be reclassified into Net earnings over the next twelve months expected to be material, although the actual amounts that will be reclassified to Net earnings may vary as a result of future changes in market conditions. At December 31, 2025, the maximum term of the Company's currency derivatives, both those that are designated as cash flow hedges and those that are not, was less than one year.

Concentration of Credit Risk

The counterparties to the Company’s forward contracts consist of a number of investment grade major international financial institutions. The Company could be exposed to losses in the event of nonperformance by the counterparties. However, the credit ratings and the concentration of risk in these financial institutions are monitored on a continuous basis and present no significant credit risk to the Company.

NOTE 10 - LEASES

Total lease expense for the years ended December 31, 2025, 2024 and 2023, was $69.1 million, $64.2 million and $60.9 million, respectively, and is classified within Cost of goods sold and Selling and administrative expenses within the Consolidated Statements of Comprehensive Income. Lease expense related to short-term leases, variable lease payments or other leases or lease components not included within the ROU asset or lease liability totaled $18.6 million, $15.9 million and $16.9 million, respectively, for the years ended December 31, 2025, 2024 and 2023. No material lease costs have been capitalized on the Consolidated Balance Sheets as of December 31, 2025 or 2024.

Amounts included within the Consolidated Balance Sheets related to the Company's ROU asset and lease liability were as follows:

									December 31, 2025																		December 31, 2024
In millions			Balance Sheet classification						Real estate						Equipment						Total						Real estate						Equipment						Total
ROU asset			Other noncurrent assets						$	116.5					$	49.9					$	166.4					$	107.1					$	40.6					$	147.7
Lease liability - current			Accrued expenses and other current liabilities						22.5						19.2						41.7						19.8						16.9						36.7
Lease liability - noncurrent			Other noncurrent liabilities						98.0						30.5						128.5						91.0						23.5						114.5
Other information:
Weighted-average remaining term (years)									10.9						3.0												11.2						2.9
Weighted-average discount rate									5.3		%				5.9		%										5.2		%				5.8		%

F-18

The following table summarizes additional information related to the Company's leases for the years ended December 31:

						2025																		2024
In millions						Real estate						Equipment						Total						Real estate						Equipment						Total
Cash paid for amounts included in the measurement of lease liabilities						$	27.0					$	23.5					$	50.5					$	25.3					$	23.0					$	48.3
ROU assets obtained in exchange for new lease liabilities						14.2						22.0						36.2						12.1						20.5						32.6

Future Repayments

Future minimum lease payments required under non-cancellable operating leases for both the real estate and equipment lease portfolios for the next five years and thereafter as of December 31, 2025, were as follows:

In millions						2026						2027						2028						2029						2030						Thereafter						Total
Real estate leases						$	28.3					$	23.8					$	15.9					$	11.1					$	9.2					$	74.1					$	162.4
Equipment leases						21.5						16.0						10.1						4.8						1.5						0.2						54.1
Total						$	49.8					$	39.8					$	26.0					$	15.9					$	10.7					$	74.3					$	216.5

The difference between the total undiscounted minimum lease payments and the combined current and noncurrent lease liabilities as of December 31, 2025, is due to imputed interest of $46.3 million.

F-19

NOTE 11 – DEFINED BENEFIT PLANS

The Company sponsors several U.S. and non-U.S. defined benefit plans to eligible employees and retirees and also maintains other supplemental plans for officers and other key employees. The following table details information regarding the Company’s defined benefit plans at December 31:

						U.S.												NON-U.S.
In millions						2025						2024						2025						2024
Change in benefit obligations:
Benefit obligation at beginning of year						$	225.9					$	240.6					$	241.8					$	271.8
Service cost						2.0						2.0						4.2						3.3
Interest cost						11.4						11.6						12.9						12.0
Employee contributions						—						—						0.3						0.3
Amendments						—						—						(0.1)						(0.1)
Actuarial (gains) losses						4.5						(11.1)						(3.4)						(21.3)
Benefits paid						(16.9)						(15.6)						(14.9)						(13.6)
Currency translation						—						—						20.5						(7.4)
Curtailments and settlements						—						—						—						(0.9)
Other, including expenses paid						(1.6)						(1.6)						(2.7)						(2.3)
Benefit obligation at end of year						$	225.3					$	225.9					$	258.6					$	241.8
Change in plan assets:
Fair value at beginning of year						$	227.8					$	244.4					$	245.2					$	267.7
Actual return on plan assets						18.2						0.4						18.6						(6.4)
Company contributions						0.1						0.2						4.7						5.0
Employee contributions						—						—						0.3						0.3
Benefits paid						(16.9)						(15.6)						(14.9)						(13.6)
Currency translation						—						—						19.7						(4.7)
Curtailment and settlements						—						—						—						(0.9)
Other, including expenses paid						(1.6)						(1.6)						(2.7)						(2.2)
Fair value of assets at end of year						$	227.6					$	227.8					$	270.9					$	245.2
Funded status:
Plan assets exceeding benefit obligations						$	2.3					$	1.9					$	12.3					$	3.4
Amounts included in the balance sheet:
Other noncurrent assets						$	7.6					$	7.1					$	38.8					$	26.4
Accrued compensation and benefits						(0.1)						(0.3)						(2.4)						(1.2)
Postemployment and other benefit liabilities						(5.2)						(4.9)						(24.1)						(21.8)
Net amount recognized						$	2.3					$	1.9					$	12.3					$	3.4

It is the Company’s objective to contribute to the pension plans to ensure adequate funds are available in the plans to make benefit payments to plan participants and beneficiaries when required. However, certain plans are not funded due to either legal, accounting or tax requirements in certain jurisdictions. As of December 31, 2025, approximately 6% of the Company's projected benefit obligation relates to plans that are not funded, of which the majority are non-U.S. plans.

The pretax amounts recognized in Accumulated other comprehensive loss were as follows:

						U.S.
In millions						Prior service cost						Net actuarial losses						Total
December 31, 2023						$	(0.4)					$	(40.8)					$	(41.2)
Current year changes recorded to Accumulated other comprehensive loss						—						(3.6)						(3.6)
Amortization reclassified to earnings						0.2						0.9						1.1
December 31, 2024						$	(0.2)					$	(43.5)					$	(43.7)
Current year changes recorded to Accumulated other comprehensive loss						—						(1.7)						(1.7)
Amortization reclassified to earnings						0.1						1.2						1.3
December 31, 2025						$	(0.1)					$	(44.0)					$	(44.1)

F-20

						NON-U.S.
In millions						Prior service cost						Net actuarial losses						Total
December 31, 2023						$	(3.0)					$	(100.4)					$	(103.4)
Current year changes recorded to Accumulated other comprehensive loss						0.1						(1.2)						(1.1)
Amortization reclassified to earnings						0.1						3.5						3.6
Currency translation and other						—						1.9						1.9
December 31, 2024						$	(2.8)					$	(96.2)					$	(99.0)
Current year changes recorded to Accumulated other comprehensive loss						0.1						4.7						4.8
Amortization reclassified to earnings						0.1						3.7						3.8
Currency translation and other						(0.2)						(7.3)						(7.5)
December 31, 2025						$	(2.8)					$	(95.1)					$	(97.9)

Weighted-average discount rate assumptions utilized in determining benefit obligations as of December 31, were as follows:

						2025						2024
U.S. plans						5.4		%				5.6		%
Non-U.S. plans						5.3		%				5.4		%

Information regarding pension plans with accumulated benefit obligations more than plan assets were:

						U.S.												NON-U.S.
In millions						2025						2024						2025						2024
Projected benefit obligation						$	5.3					$	5.1					$	40.6					$	34.2
Accumulated benefit obligation						5.3						5.0						34.0						28.0
Fair value of plan assets						$	—					$	—					$	14.1					$	11.1

Future pension benefit payments are expected to be paid as follows:

In millions			U.S.						NON-U.S.
2026			$	19.4					$	17.5
2027			23.7						17.6
2028			18.5						17.5
2029			18.9						18.8
2030			18.0						18.4
2031 - 2035			84.7						98.7

The components of the Company’s net periodic pension benefit (income) cost for the years ended December 31, were as follows:

						U.S.
In millions						2025						2024						2023
Service cost						$	0.9					$	0.9					$	0.9
Interest cost						11.4						11.6						12.1
Expected return on plan assets						(15.3)						(15.2)						(15.0)
Administrative costs and other						1.1						1.1						1.0
Net amortization of:
Prior service costs						0.2						0.2						0.2
Plan net actuarial losses						1.2						0.9						0.7
Net periodic pension benefit income						$	(0.5)					$	(0.5)					$	(0.1)

F-21

						NON-U.S.
In millions						2025						2024						2023
Service cost						$	1.9					$	1.5					$	1.4
Interest cost						12.8						12.0						12.5
Expected return on plan assets						(17.3)						(16.2)						(16.0)
Administrative costs and other						2.3						1.9						1.8
Net amortization of:
Prior service costs						0.1						0.1						0.1
Plan net actuarial losses						3.7						3.5						3.5
Net curtailment and settlement losses						—						0.1						0.3
Net periodic pension benefit cost						$	3.5					$	2.9					$	3.6

The Service cost component of Net periodic pension benefit cost is recorded in Cost of goods sold and Selling and administrative expenses, while the remaining components are recorded within Other income, net within the Consolidated Statements of Comprehensive Income.

Net periodic pension benefit cost for 2026 is projected to be approximately $3.6 million, utilizing the assumptions for calculating the pension benefit obligations at the end of 2025.

Weighted-average assumptions utilized in determining net periodic pension benefit cost for the years ended December 31, were as follows:

						2025						2024						2023
Discount rate:
U.S. plans						5.6		%				5.1		%				5.4		%
Non-U.S. plans						5.4		%				4.6		%				4.9		%
Rate of compensation increase:
U.S. plans						3.0		%				3.0		%				—		%
Non-U.S. plans						3.3		%				3.2		%				3.4		%
Expected return on plan assets:
U.S. plans						7.0		%				6.5		%				6.5		%
Non-U.S. plans						6.9		%				6.2		%				6.4		%

The Company generally estimates the service and interest cost components of net periodic benefit cost utilizing a full yield-curve approach. Under this approach, the Company applies discounting using the applicable spot rates derived from the yield curve to discount the cash flows used to measure the benefit obligation. These spot rates align to each of the projected benefit obligation cash flows and service cost cash flows. The expected return on plan assets reflects the average rate of returns expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation and is based on what is achievable given the plan’s investment policy, the types of assets held and target asset allocations. The expected long-term rate of return is determined as of the measurement date. Each plan is reviewed, along with its historical returns and target asset allocations, to determine the appropriate expected return on plan assets to be used.

The Company's overall objective in managing its defined benefit plan assets is to ensure that all present and future benefit obligations are met as they come due. The goal is to achieve this while trying to mitigate volatility in plan funded status, contributions and expense by better matching the characteristics of the plan assets to that of the plan liabilities. Each plan’s funded status and asset allocation is monitored regularly in addition to investment manager performance.

The fair values of the Company’s U.S. pension plan assets at December 31, 2025, by asset category, were as follows:

						Fair value measurements																								Total
In millions						Quoted prices in active markets for identical assets (Level 1)						Significant other observable inputs (Level 2)						Significant unobservable inputs (Level 3)						Assets measured at NAV
Cash, cash equivalents and short-term investments						$	—					$	—					$	—					$	1.6					$	1.6
Common collective trusts						—						—						—						172.3						172.3
Other(a)						—						—						—						53.7						53.7
Total U.S. pension plan assets						$	—					$	—					$	—					$	227.6					$	227.6

(a)Includes group trust diversified credit and real asset funds.

F-22

The fair values of the Company’s U.S. pension plan assets at December 31, 2024, by asset category, were as follows:

						Fair value measurements																								Total
In millions						Quoted prices in active markets for identical assets (Level 1)						Significant other observable inputs (Level 2)						Significant unobservable inputs (Level 3)						Assets measured at NAV
Cash, cash equivalents and short-term investments						$	—					$	—					$	—					$	1.9					$	1.9
Common collective trusts						—						—						—						169.2						169.2
Other(a)						—						—						—						56.7						56.7
Total U.S. pension plan assets						$	—					$	—					$	—					$	227.8					$	227.8

(a)Includes group trust diversified credit and real asset funds.

No material transfers in or out of Level 3 occurred during the years ended December 31, 2025 or 2024.

The Company's U.S. pension plan assets are valued using the following methodologies:

• Cash, cash equivalents and short-term investments – Short-term investments are valued at their daily net asset value (NAV) per share or the equivalent based upon the fair value of the underlying investments. NAV per share or the equivalent is used for fair value purposes as a practical expedient and is calculated by the investment manager or sponsor of the fund. These investments primarily consist of short-term investment funds.

• Common collective trusts – Common collective trust ("CCT") funds are not publicly traded and are valued at NAV per share or the equivalent based upon the fair value of the underlying investments. NAV per share or the equivalent is used for fair value purposes as a practical expedient and is calculated by the investment manager or sponsor of the applicable fund. CCT funds consist of a variety of publicly traded securities, including equity mutual funds, U.S. government and agency obligations, corporate and non-U.S. bonds, securitized credit and emerging market debt. There are no unfunded commitments, redemption frequency restrictions or other redemption restrictions related to such investments.

The fair values of the Company’s non-U.S. pension plan assets at December 31, 2025, by asset category, were as follows:

						Fair value measurements																								Total
In millions						Quoted prices in active markets for identical assets (Level 1)						Significant other observable inputs (Level 2)						Significant unobservable inputs (Level 3)						Assets measured at NAV
Cash, cash equivalents and short-term investments						$	2.5					$	—					$	—					$	118.0					$	120.5
Equity mutual funds						—						5.1						—						22.0						27.1
Corporate and non-U.S. bonds						—						3.5						—						111.8						115.3
Other(a)						—						0.3						5.3						2.4						8.0
Total non-U.S. pension plan assets						$	2.5					$	8.9					$	5.3					$	254.2					$	270.9

(a)Primarily includes a core diversified credit fund, a credit opportunity fund and derivative contracts.

The fair values of the Company’s non-U.S. pension plan assets at December 31, 2024, by asset category, were as follows:

						Fair value measurements																								Total
In millions						Quoted prices in active markets for identical assets (Level 1)						Significant other observable inputs (Level 2)						Significant unobservable inputs (Level 3)						Assets measured at NAV
Cash, cash equivalents and short-term investments						$	0.9					$	—					$	—					$	32.7					$	33.6
Equity mutual funds						—						3.6						—						72.7						76.3
Corporate and non-U.S. bonds						—						3.3						—						124.4						127.7
Other(a)						—						0.3						4.1						3.2						7.6
Total non-U.S. pension plan assets						$	0.9					$	7.2					$	4.1					$	233.0					$	245.2

(a)Primarily includes a core diversified credit fund, a credit opportunity fund and derivative contracts.

No material transfers in or out of Level 3 occurred during the years ended December 31, 2025 or 2024.

F-23

The Company's non-U.S. pension plan assets are valued using the following methodologies:

• Cash, cash equivalents and short-term investments – Cash equivalents are valued using a market approach with inputs including quoted market prices for either identical or similar instruments. Short-term investments are valued at the closing price or amount held on deposit by the custodian bank, at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit-worthiness of the issuer, or at NAV per share or the equivalent based upon the fair value of the underlying investments. NAV per share or the equivalent is used for fair value purposes as a practical expedient and is calculated by the investment manager or sponsor of the fund. These investments primarily consist of short-term investment funds.

• Equity mutual funds – Equity mutual funds are primarily valued at NAV per share or the equivalent. NAV per share or the equivalent is used for fair value purposes as a practical expedient and is calculated by the investment manager or sponsor of the fund.

• Corporate and non-U.S. bonds – Quoted market prices are not available for these securities. Fair values are either estimated using pricing models and/or quoted prices of securities with similar characteristics or discounted cash flows, in which instances such securities are classified as Level 2, or valued at NAV per share or the equivalent. NAV per share or the equivalent is used for fair value purposes as a practical expedient and is calculated by the investment manager or sponsor of the fund.

The Company made employer contributions of $0.1 million, $0.2 million and $15.9 million to the U.S. pension plans in 2025, 2024 and 2023, respectively. The Company made employer contributions to its non-U.S. pension plans of $4.7 million, $5.0 million and $5.0 million in 2025, 2024 and 2023, respectively.

The Company currently projects that approximately $3.9 million will be contributed to its plans worldwide in 2026. The Company’s policy allows it to fund an amount, which could be in excess of or less than the pension cost expensed, subject to the limitations imposed by current tax regulations. The Company anticipates funding the plans in 2026 in accordance with contributions required by funding regulations or the laws of each jurisdiction.

Most of the Company’s U.S. employees are covered by defined contribution plans. Employer contributions are determined based on criteria specific to the individual plans and amounted to approximately $36.2 million, $33.0 million and $31.7 million in 2025, 2024 and 2023, respectively. The Company’s contributions relating to non-U.S. defined contribution plans and other non-U.S. benefit plans were $12.0 million, $10.9 million and $10.1 million in 2025, 2024 and 2023, respectively.

Deferred Compensation Plan

The Company maintains an Executive Deferred Compensation Plan, which is an unfunded, nonqualified plan that, prior to 2019, permitted certain employees to defer up to 50% of their annual salary and up to 100% of their annual bonus awards, performance stock plan awards and restricted stock units into a number of investment choices, including its ordinary share equivalents, until conclusion of their employment with the Company. As of December 31, 2025 and 2024, the deferred compensation liability balance was $11.5 million and $12.0 million, respectively, the majority of which was recorded within Postemployment and other benefit liabilities in the Consolidated Balance Sheets. Amounts invested in ordinary share equivalents of the Company are not included in the deferred compensation liability balance, as these amounts will be settled in ordinary shares of the Company at the time of distribution.

NOTE 12 – FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on a framework that utilizes the inputs market participants use to determine the fair value of an asset or liability and establishes a fair value hierarchy to prioritize those inputs. The fair value hierarchy is comprised of the three levels described below:

• Level 1 – Inputs based on quoted prices in active markets for identical assets or liabilities.

• Level 2 – Inputs other than Level 1 quoted prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

• Level 3 – Unobservable inputs based on little or no market activity and that are significant to the fair value of the assets and liabilities.

The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability based on the best information available under the circumstances. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

F-24

Assets and liabilities measured at fair value at December 31, 2025, were as follows:

			Fair value measurements																		Total fair value
In millions			Quoted prices in active markets for identical assets (Level 1)						Significant other observable inputs (Level 2)						Significant unobservable inputs (Level 3)
Recurring fair value measurements
Assets:
Investments			$	—					$	17.4					$	—					$	17.4
Total asset recurring fair value measurements			$	—					$	17.4					$	—					$	17.4
Liabilities:
Deferred compensation and other retirement plans			$	—					$	18.1					$	—					$	18.1
Total liability recurring fair value measurements			$	—					$	18.1					$	—					$	18.1
Financial instruments not carried at fair value
Total debt			$	—					$	2,021.1					$	—					$	2,021.1
Total financial instruments not carried at fair value			$	—					$	2,021.1					$	—					$	2,021.1

Assets and liabilities measured at fair value at December 31, 2024, were as follows:

			Fair value measurements																		Total fair value
In millions			Quoted prices in active markets for identical assets (Level 1)						Significant other observable inputs (Level 2)						Significant unobservable inputs (Level 3)
Recurring fair value measurements
Assets:
Investments			$	—					$	17.1					$	—					$	17.1
Total asset recurring fair value measurements			$	—					$	17.1					$	—					$	17.1
Liabilities:
Deferred compensation and other retirement plans			$	—					$	17.4					$	—					$	17.4
Total liability recurring fair value measurements			$	—					$	17.4					$	—					$	17.4
Financial instruments not carried at fair value
Total debt			$	—					$	1,979.3					$	—					$	1,979.3
Total financial instruments not carried at fair value			$	—					$	1,979.3					$	—					$	1,979.3

The Company determines the fair value of its financial assets and liabilities using the following methodologies:

*•*Investments – These instruments include equity mutual funds and corporate bond funds. The fair value is obtained based on observable market prices quoted on public exchanges for similar instruments.

*•*Deferred compensation and other retirement plans – These include obligations related to deferred compensation and other retirement plans adjusted for market performance. The fair value is obtained based on observable market prices quoted on public exchanges for similar instruments.

• Debt – These instruments are recorded at cost and include the Revolving Facility and Senior Notes maturing through 2034. The fair value of these debt instruments is obtained based on observable market prices quoted on public exchanges for similar instruments.

The carrying values of Cash and cash equivalents, Accounts and notes receivable, net, Accounts payable, Accrued compensation and benefits and Accrued expenses and other current liabilities are a reasonable estimate of their fair values due to the short-term nature of these instruments. As discussed in Note 2, the Company also has investments in debt and equity securities without readily determinable fair values, which are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer and are qualitatively assessed for impairment indicators at each reporting period. As these investments are considered to be nonrecurring fair value measurements, they are not included in the fair value tables above.

The methodologies used by the Company to determine the fair value of its financial assets and liabilities at December 31, 2025, are the same as those used at December 31, 2024.

F-25

NOTE 13 – EQUITY

Ordinary Shares

The changes in ordinary shares outstanding for the year ended December 31, 2025, were as follows:

In millions			Total
December 31, 2024			86.3
Shares issued under equity incentive plans			0.4
Repurchase of ordinary shares			(0.6)
December 31, 2025			86.1

Allegion had 400.0 million ordinary shares authorized and 10.0 million preferred shares, $0.001 par value per share, authorized (with none outstanding) at December 31, 2025.

In June 2023, the Company's Board of Directors reauthorized the Company's existing share repurchase program and, as a result, authorized the repurchase of up to, and including $500.0 million of the Company's ordinary shares (the "Share Repurchase Authorization"). During the year ended December 31, 2025, the Company paid $80.0 million to repurchase approximately 0.6 million ordinary shares on the open market under the Share Repurchase Authorization. As of December 31, 2025, the Company has approximately $160.0 million available to be repurchased under the Share Repurchase Authorization.

Accumulated Other Comprehensive Loss

The changes in Accumulated other comprehensive loss were as follows:

In millions						Cash flow hedges						Defined benefit plan adjustments						Currency translation						Total
December 31, 2022						$	6.1					$	(117.1)					$	(174.8)					$	(285.8)
Other comprehensive income (loss), net of tax						(0.5)						(8.8)						33.6						24.3
December 31, 2023						5.6						(125.9)						(141.2)						(261.5)
Other comprehensive (loss) income, net of tax						1.3						2.8						(74.2)						(70.1)
December 31, 2024						6.9						(123.1)						(215.4)						(331.6)
Other comprehensive income (loss), net of tax						(2.4)						(1.8)						130.2						126.0
December 31, 2025						$	4.5					$	(124.9)					$	(85.2)					$	(205.6)

All amounts of Other comprehensive income (loss), net attributable to noncontrolling interests on the Consolidated Statements of Equity relate to foreign currency items.

NOTE 14 – SHARE-BASED COMPENSATION

Under the Company's shareholder-approved equity incentive plan, a maximum of 2.7 million ordinary shares are authorized for issuance, of which 2.1 million remained available for issuance as of December 31, 2025, for future equity incentive awards.

Compensation Expense

Share-based compensation expense is included in Cost of goods sold and Selling and administrative expenses within the Consolidated Statements of Comprehensive Income. The following table summarizes the expenses recognized for the years ended December 31:

In millions						2025						2024						2023
Stock options						$	5.4					$	4.9					$	4.3
RSUs						14.3						15.2						14.6
PSUs						10.1						8.1						7.5
Pre-tax expense						29.8						28.2						26.4
Tax benefit						(3.2)						(2.5)						(2.7)
After-tax expense						$	26.6					$	25.7					$	23.7

F-26

Stock Options / RSUs

The weighted-average fair value of stock options granted for the years ended December 31, 2025, 2024 and 2023, was estimated to be $37.72, $40.92 and $33.66 per share, respectively, using the Black-Scholes option-pricing model. The weighted-average assumptions used were as follows:

						2025						2024						2023
Dividend yield						1.61		%				1.47		%				1.60		%
Volatility						29.89		%				29.28		%				28.47		%
Risk-free rate of return						4.31		%				4.29		%				4.10		%
Expected life						5.4 years						6.0 years						6.0 years

Volatility is based on the Company's historic volatility. The risk-free rate of return is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected term of the award. In 2023 and 2024, the expected life of the Company’s stock option awards was derived from the simplified approach based on the weighted-average time to vest and the remaining contractual term, because the company did not have sufficient history to estimate expected life. Beginning in 2025, the expected life of the Company's stock option awards is derived from historical data, based on the past exercise activity and post-vest cancellation activity of the Company's stock option program and represents the period of time that awards are expected to be outstanding.

Changes in options outstanding under the plans for the years ended December 31, 2025, 2024 and 2023, were as follows:

						Shares subject to option						Weighted- average exercise price**(a)**						Aggregate intrinsic value (millions)						Weighted-average remaining life (years)
December 31, 2022						932,582						$	100.21
Granted						156,929						112.59
Exercised						(76,969)						73.30
Canceled						(12,182)						117.82
December 31, 2023						1,000,360						104.01
Granted						135,906						130.66
Exercised						(247,729)						90.19
Canceled						(17,884)						125.72
December 31, 2024						870,653						111.65
Granted						144,504						127.40
Exercised						(289,139)						107.56
Canceled						(5,744)						125.78
Outstanding December 31, 2025						720,274						$	116.34					$	30.9					6.5
Exercisable December 31, 2025						450,138						$	110.78					$	21.8					5.4

(a)The weighted-average exercise price of awards represents the exercise price of the awards on the grant date converted to ordinary shares of the Company.

The following table summarizes information concerning outstanding and exercisable options as of December 31, 2025:

																		Options outstanding																		Options exercisable
Range of exercise price																		Number outstanding at December 31, 2025						Weighted- average remaining life (years)						Weighted- average exercise price						Number exercisable at December 31, 2025						Weighted- average remaining life (years)						Weighted- average exercise price
50.01						—						75.00						15,178						0.7						$	66.29					15,178						0.7						$	66.29
75.01						—						100.00						47,116						2.7						87.73						47,116						2.7						87.73
100.01						—						125.00						344,992						6.1						111.12						296,003						6.0						110.85
125.01						—						150.00						312,988						7.7						128.83						91,841						5.5						129.71
																		720,274						6.5						$	116.34					450,138						5.4						$	110.78

At December 31, 2025, there was $4.3 million of total unrecognized compensation cost from stock option arrangements granted under the plan, which is primarily related to unvested stock options held by non-retirement eligible employees. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2025 and 2024, was $16.2 million and $11.4 million, respectively. Generally, stock options expire ten years from their date of grant.

F-27

The following table summarizes RSU activity for the years ended December 31, 2025, 2024 and 2023:

			RSUs						Weighted-average grant date fair value**(a)**
Outstanding and unvested at December 31, 2022			261,048						$	112.79
Granted			137,677						112.38
Vested			(101,516)						115.94
Canceled			(9,844)						112.45
Outstanding and unvested at December 31, 2023			287,365						111.51
Granted			103,774						129.51
Vested			(139,023)						112.15
Canceled			(11,742)						122.14
Outstanding and unvested at December 31, 2024			240,374						118.40
Granted			100,798						130.93
Vested			(126,348)						116.95
Canceled			(5,752)						125.98
Outstanding and unvested at December 31, 2025			209,072						$	125.10

(a)The weighted-average grant date fair value represents the fair value of the awards on the grant date converted to ordinary shares of the Company.

At December 31, 2025, there was $11.2 million of total unrecognized compensation cost from RSU arrangements granted under the plan, which is primarily related to unvested RSUs held by non-retirement eligible employees.

Performance Stock

In February 2023, 2024 and 2025, the Compensation Committee of the Company's Board of Directors granted PSUs that vested based 50% upon a performance condition, measured at each reporting period by earnings per share ("EPS") performance during a three-year performance period in relation to pre-established targets set by the Compensation Committee, and 50% upon a market condition, measured by the Company’s relative total shareholder return ("TSR") against, for 2023, the S&P 400 Capital Goods Index over a three-year performance period, and for 2024 and 2025, a 50/50 weighting of the S&P 400 Capitals Goods Index and the S&P 500 Capital Goods Index over a three-year performance period. The fair values of the market conditions are estimated using a Monte Carlo simulation approach in a risk-neutral framework to model future stock price movements based upon historical volatility, risk-free rates of return and correlation matrix.

The following table summarizes PSU activity for the maximum number of shares that may be issued upon vesting of those awards for the years ended December 31, 2025, 2024 and 2023:

			PSUs						Weighted-average grant date fair value**(a)**
Outstanding and unvested at December 31, 2022			138,385						$	108.71
Granted			77,253						120.69
Vested			(13,028)						149.43
Forfeited			(49,419)						134.62
Outstanding and unvested at December 31, 2023			153,191						102.93
Granted			58,363						155.76
Vested			(39,932)						113.85
Forfeited			(18,665)						128.09
Outstanding and unvested at December 31, 2024			152,957						117.16
Granted			63,970						135.79
Vested			(44,725)						123.26
Forfeited			(2,239)						128.63
Outstanding and unvested at December 31, 2025			169,963						$	122.42

(a)The weighted-average grant date fair value represents the fair value of the awards on the grant date converted to ordinary shares of the Company.

At December 31, 2025, there was $8.6 million of total unrecognized compensation cost from the PSP based on actual performance through such date, which is related to shares underlying unvested awards. This compensation cost will be recognized over the required service period, which is generally the three-year performance/vesting period.

F-28

NOTE 15 – OTHER INCOME, NET

The components of Other income, net for the years ended December 31, were as follows:

In millions						2025						2024						2023
Interest income						$	(12.0)					$	(20.5)					$	(6.8)
Currency translation loss						3.4						2.2						3.9
Earnings and gains from the sale of equity method investments, net						(1.6)						(1.1)						(1.0)
Net periodic pension and postretirement benefit cost (income), less service cost						1.0						(0.2)						1.0
Other income						(0.7)						(0.5)						1.0
Other income, net						$	(9.9)					$	(20.1)					$	(1.9)

NOTE 16 – INCOME TAXES

As discussed in Note 2, the Company applied the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025, including using Ireland, and its national tax rate of 12.5%, as the starting point for several disclosures as it is the Company’s country of domicile. Disclosures for the years ended December 31, 2024 and 2023 are presented consistent with the prior years and with the income tax disclosure requirements of ASC 740 prior to the adoption of ASU 2023-09.

Earnings before income taxes for the years ended December 31 were taxed within the following jurisdictions:

In millions						2025
Ireland						$	(120.5)
Non-Ireland						888.9
Total						$	768.4

In millions						2024						2023
U.S.						$	298.6					$	220.8
Non-U.S.						400.2						396.4
Total						$	698.8					$	617.2

The components of the Provision for income taxes for the years ended December 31 were as follows:

In millions						2025
Current tax expense:
Ireland						$	6.2
Non-Ireland						128.6
Total:						134.8
Deferred tax benefit:
Ireland						(0.2)
Non-Ireland						(10.0)
Total:						(10.2)
Total tax expense:
Ireland						6.0
Non-Ireland						118.6
Total						$	124.6

F-29

In millions						2024						2023
Current tax expense:
U.S.						$	111.4					$	114.7
Non-U.S.						34.1						29.5
Total:						145.5						144.2
Deferred tax benefit:
U.S.						(39.7)						(59.1)
Non-U.S.						(4.5)						(8.5)
Total:						(44.2)						(67.6)
Total tax expense:
U.S.						71.7						55.6
Non-U.S.						29.6						21.0
Total						$	101.3					$	76.6

The Provision for income taxes differs from the amount of income taxes determined by applying the applicable Irish statutory income tax rate to pretax income, as a result of the following differences:

						2025
						Amount						Percent
Ireland Federal Statutory Tax Rate						$	96.1					12.5		%
State and Local Income Tax, Net of Federal Income Tax Effect						—						—
Foreign Tax Effects:
United States:
Statutory tax rate difference between Ireland and United States						30.7						4.0
State and local income taxes, net of Federal income tax effect						21.7						2.8
Research and development tax credits						(5.8)						(0.7)
Other						9.4						1.2
United Arab Emirates ("UAE"):
Statutory tax rate difference between Ireland and UAE						(13.7)						(1.8)
Exempt income						(35.4)						(4.6)
Other						1.3						0.2
Germany:
Local income tax						6.4						0.8
Effect of changes in tax rate enacted in the current period						(7.3)						(0.9)
Other						3.0						0.4
Luxembourg:
Statutory revaluation of investment in subsidiary						(13.6)						(1.8)
Other						10.7						1.4
Other foreign jurisdictions						(2.8)						(0.4)
Effect of Cross-Border Tax Laws:
Pillar II						6.2						0.8
Nontaxable or Nondeductible Items:
Nondeductible interest expense						12.4						1.6
Other						2.3						0.3
Changes in Unrecognized Tax Benefits						3.1						0.4
Other						(0.1)						—
Effective tax rate						$	124.6					16.2		%

F-30

			Percent of pretax income
						2024						2023
Statutory U.S. rate						21.0		%				21.0		%
Increase (decrease) in rates resulting from:
Non-U.S. tax rate differential(a)						(9.7)						(11.0)
State and local income taxes(a)						2.4						2.4
Global Minimum Tax						1.4						—
Reserves for uncertain tax positions						0.3						(0.1)
Other adjustments						(0.9)						0.1
Effective tax rate						14.5		%				12.4		%

(a)Net of changes in valuation allowances

The majority of the Company's earnings are considered permanently reinvested, and therefore, the Company has not recorded any incremental withholding or income tax liabilities on these permanently reinvested earnings.

At December 31, a summary of the deferred tax accounts was as follows:

In millions						2025						2024
Deferred tax assets:
Inventory and accounts receivable						$	11.7					$	12.7
Fixed assets and intangibles						5.7						4.5
Lease liabilities						41.0						36.2
Postemployment and other benefit liabilities						37.7						31.8
Other reserves and accruals						25.4						23.2
Net operating losses, tax credits and other carryforwards						597.9						557.9
Other						1.7						1.8
Gross deferred tax assets						721.1						668.1
Less: deferred tax valuation allowances						(255.8)						(247.0)
Deferred tax assets net of valuation allowances						$	465.3					$	421.1
Deferred tax liabilities:
Fixed assets and intangibles						$	(193.5)					$	(96.7)
ROU assets						(39.9)						(35.4)
Postemployment and other benefit liabilities						(9.7)						(6.5)
Unremitted earnings of foreign subsidiaries						(6.1)						(4.1)
Other						(7.6)						(5.8)
Gross deferred tax liabilities						(256.8)						(148.5)
Net deferred tax assets						$	208.5					$	272.6

At December 31, 2025, $6.1 million of deferred taxes were recorded for certain undistributed earnings of subsidiaries. Historically, no deferred taxes have been provided for any portion of the remaining undistributed earnings of the Company's subsidiaries since these earnings have been, and will continue to be, permanently reinvested in these subsidiaries. For many reasons, including the number of legal entities and jurisdictions involved, the complexity of the Company's legal entity structure, the complexity of tax laws in the relevant jurisdictions and the impact of projections of income for future years to any calculations, the Company believes it is not practicable to estimate, within any reasonable range, the amount of additional taxes which may be payable upon the distribution of earnings.

At December 31, 2025, the Company had the following tax losses and tax credit carryforwards available to offset taxable income in prior and future years:

In millions						Amount						Expiration Period
Ireland Federal tax loss carryforwards						$	67.7					Unlimited
Non-Ireland Federal and State credit carryforwards						5.2						2026-2037
Non-Ireland tax loss carryforwards						$	1,016.8					2026-Unlimited

The non-Ireland tax loss carryforwards were incurred in various jurisdictions, predominantly in Luxembourg and the United Kingdom.

F-31

The Company evaluates its deferred income tax assets to determine if valuation allowances are required or should be adjusted. GAAP requires that companies assess whether valuation allowances should be established against their deferred tax assets based on consideration of all available evidence, both positive and negative, using a "more likely than not" standard. This assessment considers the nature, frequency and amount of recent losses, the duration of statutory carryforward periods and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified.

Activity associated with the Company’s valuation allowance is as follows:

In millions						2025						2024						2023
Beginning balance						$	247.0					$	281.0					$	264.7
Increase to valuation allowance						10.9						2.9						15.7
Decrease to valuation allowance						(5.9)						(26.5)						—
Tax rate change						1.2						(8.8)						—
Currency translation						2.6						(1.6)						0.6
Ending balance						$	255.8					$	247.0					$	281.0

During the year ended December 31, 2025, the valuation allowance increased by $8.8 million, while during the year ended December 31, 2024, the valuation allowance decreased by $34.0 million. The Company's valuation allowance will fluctuate from year to year as a result of changes in country specific tax laws, internal restructurings, jurisdictional profitability and changes in judgments and facts regarding the realizability of deferred tax assets.

The Company has total unrecognized tax benefits of $54.8 million and $44.5 million as of December 31, 2025 and 2024, respectively. The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $54.8 million as of December 31, 2025. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

In millions						2025						2024						2023
Beginning balance						$	44.5					$	45.1					$	45.2
Additions based on tax positions related to the current year						12.6						12.2						10.8
Additions based on tax positions related to prior years						6.9						0.1						1.4
Reductions based on tax positions related to prior years						(5.1)						(2.4)						(1.9)
Reductions related to settlements with tax authorities						(0.2)						(1.0)						—
Reductions related to lapses of statute of limitations						(6.0)						(8.4)						(10.9)
Currency translation						2.1						(1.1)						0.5
Ending balance						$	54.8					$	44.5					$	45.1

The Company records interest and penalties associated with the uncertain tax positions within its provision for income taxes. The Company had reserves associated with interest and penalties, net of tax, of $12.0 million and $9.2 million at December 31, 2025 and 2024, respectively. For the year ended December 31, 2025, the Company recognized $2.0 million in interest and penalties, net of tax, related to these uncertain tax positions. For the year ended December 31, 2024, the Company recognized $1.0 million in interest and penalties, net of tax, related to these uncertain tax positions.

The provision for income taxes involves a significant amount of management judgment regarding interpretation of relevant facts and laws in the jurisdictions in which the Company operates. Future changes in applicable laws, projected levels of taxable income and tax planning could change the effective tax rate and tax balances recorded by the Company. In addition, tax authorities periodically review income tax returns filed by the Company and can raise issues regarding its filing positions, timing and amount of income or deductions and the allocation of income among the jurisdictions in which the Company operates. A significant period of time may elapse between the filing of an income tax return and the ultimate resolution of an issue raised by a tax authority with respect to that return. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Canada, France, Germany, Italy, Mexico, the Netherlands, Poland and the U.S. In general, the examination of the material tax returns of subsidiaries of the Company is complete for the years prior to 2016, with certain matters being resolved through appeals and litigation.

NOTE 17 – EARNINGS PER SHARE (EPS)

Basic EPS is calculated by dividing Net earnings attributable to Allegion plc by the weighted-average number of ordinary shares outstanding for the applicable period. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potentially dilutive ordinary shares, which in the Company’s case, includes shares issuable under its share-based compensation plans.

F-32

The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations:

In millions						2025						2024						2023
Weighted-average number of basic shares						86.1						87.2						87.9
Shares issuable under share-based compensation plans						0.5						0.4						0.4
Weighted-average number of diluted shares						86.6						87.6						88.3

As of December 31, 2025 and 2024, 0.2 million and 0.1 million stock options were excluded from the computation of weighted-average diluted shares outstanding, respectively, because the effect of including these shares would have been anti-dilutive.

NOTE 18 – NET REVENUES

The following table shows the Company's Net revenues related to both tangible product sales and services and software for the years ended December 31, 2025, 2024 and 2023, respectively, disaggregated by business segment. Net revenues are shown by tangible product sales and services and software, as contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flows are substantially similar within each of these two revenue streams:

			2025
In millions			Allegion Americas						Allegion International						Total
Products			$	3,047.8					$	741.0					$	3,788.8
Services and software			170.9						107.4						278.3
Total Net revenues			$	3,218.8					$	848.5					$	4,067.3

			2024
In millions			Allegion Americas						Allegion International						Total
Products			$	2,855.4					$	663.2					$	3,518.6
Services and software			157.0						96.6						253.6
Total Net revenues			$	3,012.4					$	759.8					$	3,772.2

			2023
In millions			Allegion Americas						Allegion International						Total
Products			$	2,756.7					$	644.6					$	3,401.3
Services and software			156.9						92.6						249.5
Total Net revenues			$	2,913.6					$	737.2					$	3,650.8

As of December 31, 2025 and 2024, the contract assets related to the Company's right to consideration for work completed but not billed were not material. The Company does not have any material costs to obtain or fulfill a contract that are capitalized on its Consolidated Balance Sheets.

As of December 31, 2025 and 2024, the contract liabilities related to revenues allocated to remaining performance obligations totaled $41.2 million and $33.2 million, respectively, and are classified as Accrued expenses and other current liabilities and Other noncurrent liabilities within the Consolidated Balance Sheets. The Company's total current contract liabilities related to revenues as of December 31, 2025 and 2024 totaled $36.0 million and $28.1 million, respectively, and the remainder was classified as noncurrent.

During the years ended December 31, 2025 and 2024, no adjustments related to performance obligations satisfied in previous periods were recorded.

NOTE 19 – COMMITMENTS AND CONTINGENCIES

The Company is involved in various litigation, claims and administrative proceedings, including those related to environmental and product warranty matters. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available. Subject to the uncertainties inherent in estimating future costs for contingent liabilities, except as expressly set forth in this note, management believes that any liability which may result from these legal matters would not have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company.

F-33

Environmental Matters

As of December 31, 2025 and 2024, the Company has recorded reserves for environmental matters of $22.7 million and $17.8 million, respectively. The total reserve at December 31, 2025 and 2024, included $9.3 million and $9.9 million, respectively, related to remediation of sites previously disposed by the Company. Environmental reserves are classified as Accrued expenses and other current liabilities or Other noncurrent liabilities within the Consolidated Balance Sheets based on the timing of their expected future payment. The Company's total current environmental reserve at December 31, 2025 and 2024, was $6.0 million and $2.4 million, respectively, and the remainder is classified as noncurrent.

The Company incurred $7.1 million, $1.1 million and $0.5 million of expenses during the years ended December 31, 2025, 2024 and 2023, respectively, for environmental remediation at sites presently or formerly owned or leased by the Company. Environmental remediation costs are recorded in Cost of goods sold within the Consolidated Statements of Comprehensive Income. Given the evolving nature of environmental laws, regulations and technology, the ultimate cost of future compliance is uncertain.

Warranty Liability

The changes in the standard product warranty liability for the years ended December 31, were as follows:

In millions			2025						2024						2023
Balance at beginning of period			$	22.8					$	20.7					$	18.2
Reductions for payments			(11.7)						(12.6)						(9.5)
Accruals for warranties issued during the current period			12.9						15.8						12.6
Changes to accruals related to preexisting warranties			(0.1)						(0.7)						(0.7)
Acquisitions			1.7						—						—
Translation			0.6						(0.4)						0.1
Balance at end of period			$	26.2					$	22.8					$	20.7

Standard product warranty liabilities are classified as Accrued expenses and other current liabilities or Other noncurrent liabilities within the Consolidated Balance Sheets based on the timing of the expected future payments. The amount included within current liabilities at December 31, 2025 and 2024, was $20.1 million and $16.9 million, respectively, and the remainder is classified as noncurrent.

Contractual Obligations

As of December 31, 2025, the Company has arrangements with certain software and information technology service providers that require future minimum purchases of $74.7 million over the period of 2026 through 2030.

NOTE 20 – 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.

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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

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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

NOTE 21 – SUBSEQUENT EVENTS

On February 4, 2026, the Company's Board of Directors declared a quarterly dividend of $0.55 cents per ordinary share. The dividend is payable March 31, 2026, to shareholders of record on March 13, 2026.

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SCHEDULE II

ALLEGION PLC

VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

(Amounts in millions)

Allowances for Doubtful Accounts:
Balance December 31, 2022			$	6.0
Additions charged to costs and expenses			11.7
Deductions*			(3.7)
Currency translation and other			—
Balance December 31, 2023			14.0
Additions charged to costs and expenses			5.3
Deductions*			(4.2)
Currency translation and other			5.1
Balance December 31, 2024			20.2
Additions charged to costs and expenses			2.0
Deductions*			(9.8)
Currency translation and other			0.5
Balance December 31, 2025			$	12.9

*			"Deductions" include accounts and advances written off, less recoveries.

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