Market Outperformance and Share Gains
Excluding China, the company outperformed the market by ~130 basis points for the full year and ~300 basis points in Q4; point-of-sale growth outpaced the market across segments; net builder gains were 67 for the year (16 in Q4).
Digital & Security Momentum
Flo grew in excess of 50% for the year and launched a subscription model with new insurance partnerships; Yale delivered double-digit growth and the new Yale Smart Lock with Matter saw >50% sequential growth in Q4; Security Q4 sales +6%, operating income +52%, and operating margin improved +410 bps to 13.4%.
Tariff Mitigation and Pricing Actions
Management leveraged global supply chain and pricing (RGM) to fully mitigate the dollar impact of tariffs in 2025 and implemented much of the tariff-related pricing early in 2025, preserving pricing integrity and customer relationships.
Cost Savings and Restructuring Actions
Headquarters workforce reduced ~10% in 2025; captured $60.0M in continuous improvement savings in 2025; identified initiatives estimated to deliver $35.0M of annualized operating income savings by year-end (not included in 2026 guide); announced broader cost program for 2027–2028.
Strong Cash Generation and Capital Deployment
Full-year free cash flow was $367.0M (cash conversion >120%); full-year CapEx $112.0M; repurchased $248.0M of shares in 2025; liquidity of ~$1.1B (including >$860M of undrawn revolver) and successful extension of $1.25B revolver.
Brand-Level Wins and Channel Recoveries
House of Rohl luxury portfolio delivered low double-digit net sales growth; Moen ecommerce improved (Black Friday/Cyber Monday sales up double digits); Larson gained share following an in-aisle reset.