Financial Data and Key Metrics Changes - Allegion reported Q4 revenue exceeding $1 billion, marking a 9.3% increase compared to 2024, with organic revenue rising 3.3% [9] - Adjusted earnings per share (EPS) for Q4 was $1.94, an increase of 4.3% year-over-year [10] - Year-to-date available cash flow was $685.7 million, up 17.6% from the previous year [13] Business Line Data and Key Metrics Changes - The Americas segment generated revenue of $795.5 million, up 6.1% reported and 4.8% organically, driven by non-residential business growth [10][11] - The international segment reported revenue of $237.7 million, a 21.5% increase reported but down 2.3% organically, with acquisitions contributing significantly to revenue growth [12] Market Data and Key Metrics Changes - Demand in the U.S. residential market was softer than expected, with a decline in revenue, while the non-residential market showed resilience [4][11] - International growth was primarily driven by electronics, particularly in the DACH region, despite sluggish mechanical markets [35] Company Strategy and Development Direction - Allegion's strategy focuses on profitable growth through organic investments and acquisitions, with a disciplined approach to capital allocation [7][54] - The company aims to maintain its position as a leading player in security and access, with ongoing investments in innovation and product offerings [5][7] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued growth in non-residential markets in the Americas, while expecting softness in residential markets to persist into 2026 [15] - The company projects total revenue growth of 5%-7% and organic growth of 2%-4% for 2026, with a focus on electronics outpacing mechanical growth [16][18] Other Important Information - Allegion paid $175 million in dividends in 2025 and announced its 12th consecutive annual increase in dividends [8] - The company remains committed to a balanced capital deployment strategy, including share repurchases and investments in growth [7][54] Q&A Session Summary Question: Can you elaborate on the residential market performance in Q4? - Management noted that the residential market ended the year softer than anticipated, with no immediate pricing adjustments made in response to demand softness [22][24] Question: What is the outlook for price and volume growth in the Americas? - Management expects both price and volume growth, with a greater emphasis on pricing for 2026, and anticipates seasonal revenue patterns similar to previous years [25][26] Question: How are margins being maintained despite higher costs? - Management highlighted contributions from pricing, productivity, and acquisition synergies, with expectations for positive margin expansion in 2026 [32][34] Question: What is the current status of the M&A pipeline? - The M&A pipeline is active, with a focus on strategic acquisitions that align with the company's core portfolio and growth objectives [47] Question: How is the Interflex business performing? - The Interflex business is performing well, with growth expected as resources are allocated to expand its offerings across Europe [56][57]