10-K 0001579241-26-000007 (2026-02-17) vs 10-K 0001579241-25-000008 (2025-02-18)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 9,899 |
10.7% |
| MD&A | Item 7 | 6,996 |
19.0% |
| Legal Proceedings | Item 3, via Note 19 – COMMITMENTS AND CONTINGENCIES | 388 |
13.1% |
| Accounting Policies | 10-K text, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 4,758 |
8.9% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 177 words changed in this paragraph; it is 43% similar to last year's version.
Demand for our security products and solutions relies on the institutional, commercial, and residential construction and remodeling markets, which are marked by cyclicality based on national, regional and local economic conditions, including consumer confidence and disposable income, corporate and government spending, work-from-home trends, availability of credit and demand for new housing and infrastructure. As a result, weakness or instability in one or more of these markets could slow demand for new construction or remodeling projects and cause current and potential customers to delay or cancel capital projects or otherwise choose not to make purchases, which could negatively impact the demand for our products and solutions and result in declines in our revenues, profitability and cash flows. In the recent past, our business operations and performance were also impacted by global macroeconomic challenges, including supply chain disruptions and delays, material, electronic component and labor shortages, prolonged periods of cost inflation, and increased interest rates. Negative macroeconomic trends, future market disruptions or uncertainty related to potential changes to fiscal and monetary policy and/or trade policy, including the imposition, or threatened imposition, of tariffs and potential retaliatory trade restrictions, may make it more challenging for us to manufacture and deliver products to our customers, could cause periodic production interruptions and supply constraints, impact our ability to forecast and plan for future business activities and, if not adequately managed by us, could cause a material adverse impact on our business, results of operations, financial condition and cash flows.
Source: Item 1A, 10-K 0001579241-26-000007 vs Item 1A, 10-K 0001579241-25-000008
Accounting Policies 128 words changed in this paragraph; it is 34% similar to last year's version.
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 (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 will be effective for the annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU should be applied on a prospective basis, but retrospective application is permitted. This ASU will likely result in additional required disclosures in the Company's Consolidated Financial Statements once adopted.
Source: 10-K text, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001579241-26-000007 vs 10-K text, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001579241-25-000008
MD&A 110 words changed in this paragraph; it is 50% similar to last year's version.
We have an unsecured revolving credit agreement facility (the "Revolving Facility") in place, consisting of a $250.0 million term loan facility (the "Term Facility"), of which $212.5 $190.6 million was outstanding at December 31, 2024, 2025. We paid the outstanding $212.5 million principal balance and interest on a revolving credit term loan facility (the "Revolving Facility" and, together with during the Term Facility, the “Credit Facilities”), of which there was no balance outstanding at year ended December 31, 2024. 2025 using cash on hand and borrowings under the Revolving Facility. On May 20, 2024, December 9, 2025, we amended and restated the Credit Facilities Revolving Facility which, among other things, (i) increased the total commitment on the Revolving Facility from $500.0 $750.0 million to $750.0 million, (ii) $1.0 billion, and extended the maturity of the Revolving Facility from November 18, 2026 May 20, 2029 to May 20, 2029, and (iii) transitioned the benchmark interest rate from the Bloomberg Short-Term Bank Yield Index (“BSBY”) to the Secured Overnight Financing Rate (“SOFR”) for the Credit Facilities. 2030.
Source: Item 7, 10-K 0001579241-26-000007 vs Item 7, 10-K 0001579241-25-000008
Legal Proceedings 31 words changed in this paragraph; it is 83% similar to last year's version.
As of December 31, 2024 2025 and 2023, 2024, the Company has recorded reserves for environmental matters of $ 17.8 22.7 million and $ 20.2 17.8 million, respectively. The total reserve at December 31, 2024 2025 and 2023, 2024, included $ 9.9 9.3 million and $ 11.2 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.
Source: Item 3, via Note 19 – COMMITMENTS AND CONTINGENCIES, 10-K 0001579241-26-000007 vs Item 3, via Note 21 – COMMITMENTS AND CONTINGENCIES, 10-K 0001579241-25-000008
Every change, by type
Sentences and paragraphs of ALLE's Risk Factors and MD&A, 10-K 2026-02-17 against 10-K 2025-02-18.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
Throughout 2025, the U.S. government announced tariffs on imports from several countries from which we manufacture and/or import products and components. In 2025, we have offset inflation due to tariffs with pricing actions. We estimate we source approximately 20-25% of Cost of goods sold from Mexico and less than 5% of Cost of goods sold from China. The degree to
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedRisk Factors
industry standards, as well as any international treaties and accords, is uncertain given the wide scope of potential regulatory change in the countries in which we operate.
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedRisk Factors
As artificial intelligence and machine learning (“AI”) technologies advance and are increasingly adopted by threat actors, the frequency, sophistication and scale of cyberattacks may increase. AI‑enabled methods, including automated vulnerability discovery, automated credential‑stuffing, deepfake‑assisted social engineering and other generative‑AI techniques, could make attacks more successful and harder to detect. In addition, our own or third‑party use of AI could introduce new classes of vulnerabilities. These developments could increase the likelihood and potential impact of disruptions, unauthorized disclosures or other compromises of our IT Systems, products or data, and could increase our remediation and compliance costs, harm our reputation and subject us to regulatory or legal liability.
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedRisk Factors
Cybersecurity incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely impact the Company's reputation, operating results, and financial condition.
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedRisk Factors
We are exposed to risks related to compliance with data privacy and governance laws.
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedRisk Factors
Our operations are subject to regulatory risks related to domestic and international, environmental, health and safety laws.
Read it in 10-K 2026-02-17 at sec.gov ↗
RemovedRisk Factors
We procure certain products, including raw materials and other commodities, including steel, zinc, brass and other non-ferrous metals, as well as parts, components (including electronic components) and logistical services from supplier partners located
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
we operate. Although we believe we have provided for all tax exposures, the ultimate outcome of a tax review could differ materially from our provisions.
Read it in 10-K 2025-02-18 at sec.gov ↗
RewordedRisk Factors
If we are unable to effectively manage these relationships, or if these third parties experience delays, disruptions, shortages of materials, labor, electronic and other components, capacity constraints, new or increased tariffs and/or other trade restrictions, regulatory issues or quality control problems in their operations, freight delays and other supply chain constraints and disruptions, or otherwise fail to meet our future requirements for timely delivery, our ability to ship and deliver certain of our products to our customers could be impaired and our business could be harmed.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedRisk Factors
Although we believe our estimates are reasonable, the ultimate tax outcome may differ from the amounts recorded in our Consolidated Financial Statements and may materially affect our financial results in the period or periods for which such determination is made.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedRisk Factors
Further, we have made several public commitments regarding our intended reduction of carbon emissions, including a commitment to achieve carbon neutral emissions by 2050. emissions.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedRisk Factors
In addition, we We have a senior unsecured revolving credit facility (the "Revolving Facility") that permits borrowings of up to $750 million. $1.0 billion.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedRisk Factors
If variable base rates under the Credit Facilities continue to Revolving Facility increase in the future, our Interest expense could increase as well.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedRisk Factors
We may be subject to risks relating to systems failures or disruptions to our information technology and operational technology systems.
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedMD&A
Business and Industry Trends and Outlook and Global Trade and Macroeconomic Environment
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedMD&A
In 2025, we delivered high-single digit revenue growth compared to 2024, driven by favorable pricing and volume growth, as well as the impact from acquisitions made during the year. Demand for electronic security products has also remained strong and continues to be a long-term growth driver.
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedMD&A
We have made several recent business acquisitions across our Allegion Americas and Allegion International segments. The acquisitions align with our strategy of expanding our mechanical and electronic product portfolios and adding complimentary software and services. This includes the acquisition of ELATEC, including Elatec GmbH and other group entities ("ELATEC") on July 1, 2025. ELATEC is a manufacturer of security and access technology based in Germany, and the acquisition helps expand our global electronics portfolio in attractive end markets while also increasing strategic relationships with channel partners.
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedMD&A
The aggregate consideration, inclusive of contingent consideration and net of cash acquired, for all acquisitions completed in 2025 and 2024 was approximately $631.6 million and $147.2 million, respectively. Businesses acquired in 2025 generated $93.0 million of Net revenues since the acquisition dates, which is included within our Consolidated Statements of Comprehensive Income.
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedMD&A
Excluding Net revenues of businesses acquired in 2025, Net revenues from non-residential products grew by a high-single digits percent compared to the prior year, driven by increased pricing and higher volumes, and Net revenues from residential
Read it in 10-K 2026-02-17 at sec.gov ↗
AddedMD&A
products decreased by a low-single digits percent compared to the prior year, driven by lower volumes, partially offset by increased pricing.
Read it in 10-K 2026-02-17 at sec.gov ↗
RemovedMD&A
In 2024, we delivered low-single-digit revenue growth in both our Allegion Americas and Allegion International segments, as well as operating margin expansion and strong cash flows from operations. We continued to execute our strategy of balanced capital allocation, evidenced by our acquisition activity, dividends paid and shares repurchased throughout the year.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
Within our Allegion Americas segment, both the non-residential and residential businesses grew by a low single-digits percent compared to the prior year. Our Allegion International segment also grew by a low single-digits percent. We experienced a softening of demand within certain businesses in our Allegion International segment.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
Electronic security products and solutions revenue declined by a low single-digit percent in 2024, as comparisons to the prior year were impacted by supply chain dynamics. We expect growth in global electronic security product and solutions to continue to outperform growth in mechanical products and solutions over the long-term, as end-users continue to adopt newer technologies in their facilities and homes.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
We expect continued growth in 2025, and for the security products industry to benefit from increased concerns about safety and security and technology-driven innovation.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
On February 1, 2024, we, through our subsidiaries, acquired 100% of Boss Door Controls, a door solutions provider in the United Kingdom. Boss Door Controls is reported in the Allegion International segment.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
On March 4, 2024, we, through our 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 Allegion International segment.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
On June 3, 2024, we, through our 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.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
On June 10, 2024, we, through our 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.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
On October 18, 2024, we, 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.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
On January 3, 2023, we, through our subsidiaries, acquired plano. group ("plano"), a SaaS workforce management solution business based in Germany. Plano is reported in our Allegion International segment.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
As discussed in Note 7 to the Consolidated Financial Statements, the results of our 2023 impairment test indicated that the estimated fair value of two indefinite-lived trade names in our International segment were determined to be less than book value. Consequently, intangible asset impairment charges totaling $7.5 million were recorded in 2023 in our Allegion International segment. The impairments related to declines in volumes which reduced the brands' expected future cash flows.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
Net proceeds from the 5.600% Senior Notes were used to repay the $400.0 million outstanding on our 3.200% Senior Notes due 2024 (the "3.200% Senior Notes") on October 1, 2024.
Read it in 10-K 2025-02-18 at sec.gov ↗
RewordedMD&A
Dollar amounts in millions, except per share amounts 2024 2025 % of Net 2023 2024 % of Net revenues revenues Net revenues $ 4,067.3 $ 3,772.2 $ 3,650.8 Cost of goods sold 2,229.0 54.8% 2,103.7 55.8% 2,069.3 56.7% Selling and administrative expenses 978.8 24.1% 887.8 23.5% 865.6 23.7% Impairment of intangible assets — —% 7.5 0.2% Operating income 859.5 21.1% 780.7 20.7% 708.4 19.4% 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: Diluted net earnings per ordinary share: $ 7.44 $ 6.82
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
In millions Operating Income Operating Margin December 31, 2023 2024 $ 708.4 19.4% Pricing 66.3 8.7% Inflation and productivity investment spending in excess of inflation pricing and investment spending 44.5 0.7% productivity (0.2) (0.1)% Volume / product mix (1.2) (0.7) —% Currency exchange rates 1.9 0.1% 6.6 0.7% Acquisitions 10.0 —% / divestitures 11.9 0.7% Restructuring / integration / acquisition expenses 9.6 0.3% Impairment of intangible assets 7.5 0.2% (7.4) (1.0)% December 31, 2024 2025 $ 780.7 20.7% 76.5 9.0%
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
As of December 31, 2024, 2025, we also have $400.0 million outstanding of our 3.550% Senior Notes due 2027 (the “3.550% Senior Notes”), $400.0 million outstanding of 3.500% Senior Notes due 2029 (the “3.500% Senior Notes”), $600.0 million outstanding of our 5.411% Senior Notes due 2032 (the “5.411% Senior Notes”), $400.0 million outstanding of the 5.600% Senior Notes due 2034 (the "5.600% Senior Notes") and $400.0 million outstanding of our 5.600% its 3.500% Senior Notes (all due 2029 (the “3.500% Senior Notes”, and all four senior notes collectively, the "Senior Notes").
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
In millions Operating Income Operating Margin December 31, 2023 2024 $ 708.4 19.4% 780.7 20.7% Pricing and productivity in excess of inflation and investment spending 44.5 0.7% 8.7 (0.4)% Volume / product mix (1.2) —% 41.1 0.9% Currency exchange rates 1.9 0.1% 9.1 —% Acquisitions 10.0 / divestitures 24.4 —% Restructuring / integration / acquisition expenses 9.6 0.3% Impairment of intangible assets 7.5 0.2% (4.5) (0.1)% December 31, 2024 2025 $ 780.7 20.7% 859.5 21.1%
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
The increase in the effective income tax rate was primarily due to the enactment of Global Minimum Tax and the unfavorable mix of income earned in higher tax rate jurisdictions. jurisdictions and year over year changes in amounts recognized for uncertain tax positions and income tax credits, which were partially offset by the enactment of legislative changes.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
The increase in Segment operating income was primarily driven by favorable volume/product mix, pricing and productivity improvements in excess of inflation and investment spending, the favorable volume/product mix, impact of recent acquisitions, lower restructuring, integration, and acquisition expenses and favorable foreign currency exchange rate movements, operating income from our acquired businesses and a year-over-year decrease in restructuring, integration, and acquisition expenses. movements.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
For the year ended December 31, 2024, 2025, Other income, net, increased $18.2 decreased $10.2 million compared to 2023, 2024, primarily due to higher less interest income generated as a result of less cash on hand and higher interest rates earned on deposits. throughout the year due to the increase in acquisition activity.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
In millions Operating Income Operating Margin December 31, 2023 2024 $ 757.2 26.0% 816.2 27.1% Pricing and productivity in excess of inflation and investment spending 46.4 0.9% 18.5 (0.3)% Volume / product mix 0.7 —% 41.8 0.9% Currency exchange rates 1.4 2.3 0.1% Acquisitions 8.0 —% Restructuring/ 12.5 (0.1)% Restructuring / integration / acquisition expenses 2.5 0.1% 5.2 0.2% December 31, 2024 2025 $ 816.2 27.1% 896.5 27.9%
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
The 3.550% Senior Notes, Notes and 3.500% Senior Notes, 5.411% Senior Notes, and 5.600% Senior Notes all both require semi-annual interest payments, payments on April 1 and October 1 of each year and mature on October 1, 2027, 2027 and October 1, 2029, July 1, 2032, and May 29, 2034, respectively.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
The increases in Segment operating income and Segment operating margin were primarily driven by pricing the favorable impact from acquisitions/divestitures and productivity improvements in excess of inflation and investment spending, favorable movements in foreign currency exchange rates, current year acquisition activity and impairment charges on intangible assets recorded in the prior year. rates.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
Cost of goods sold as a percentage of Net revenues decreased primarily due to favorable product mix, favorable foreign currency exchange rate movements, a year-over-year decrease in restructuring, integration, and acquisition expenses and pricing and productivity, which exceeded the impacts from inflation and investment spending, favorable product mix and favorable foreign currency exchange rate movements. spending.
Read it in 10-K 2026-02-17 at sec.gov ↗
RewordedMD&A
The increase in Segment operating Operating margin was driven by favorable volume/product mix, which was partially offset by lower operating margin from pricing and productivity improvements in excess of inflation and investment spending, favorable foreign currency exchange rate movements, spending and a year-over-year decrease in higher restructuring, integration and acquisition expenses.
Read it in 10-K 2026-02-17 at sec.gov ↗
