AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 28/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Recognized, long-tenured brands that pioneered core categories, combined with system complexity at the door opening, support a structural differentiation advantage.
durability · 2/4 · Century-old brands suggest staying power, but technology-driven competition and mixed International results temper durability.
customer dependency · 1/4 · Disclosures flag reliance on maintaining beneficial relationships with large customers and channel shifts, indicating potential bargaining power against the company.
erosion resilience · 2/4 · Americas price realization and PPII margin tailwinds show resilience; however, International organic declines and margin compression weigh against a stronger grade.
Pricing power56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 3/4 · Multiple quarters explicitly cite price realization alongside volume growth as drivers of organic revenue, demonstrating realized pricing power.
retention · 2/4 · Indirect evidence from concurrent pricing and volume growth plus ongoing maintenance and SaaS offerings implies continuing customer engagement; no churn or renewal metrics are disclosed.
margin resilience · 2/4 · PPII provided margin tailwinds, but International margin declines offset some resilience.
contractual freedom · 2/4 · Observed price increases indicate practical ability to reprice; disclosures about large customers point to limits on unilateral pricing.
Predictability100
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 4.07
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 1.61
Financial strength73
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 73.03
- netDebtEbitGrade
- 62.21
- interestCoverageGrade
- 68.27
- currentRatioGrade
- 87.40
- Debt / FCF (x)
- 2.89
- Net debt / operating income (x)
- 1.89
- Interest coverage (x)
- 8.51
- Current ratio (x)
- 1.84
Capital allocation100
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 25.86
- 3-year average dilution (%)
- -0.72
- 3-year average SBC / revenue (%)
- 0.73
- cashConversionGrade
- 100.00
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · 2025 operating cash flow materially exceeded capex, with active repurchase activity; aggregate returns on acquisitions/repurchases are not evidenced.
incentive alignment · 3/4 · PSUs tie awards to EPS targets and three-year relative TSR; shareholders approved say-on-pay.
execution · 3/4 · Y/Y increases in EPS and revenue, with price and productivity driving margins, indicate solid operational execution.
governance · 3/4 · An independent Non-Executive Chair, stated board oversight of key risks, and shareholder support for compensation reflect robust governance practices.
Evidence
Our security businesses have long and distinguished operating histories.
Business - History and Developments · Filed 18/02/2025
•Von Duprin, established in 1908, was awarded the first exit device patent;
Business - History and Developments · Filed 18/02/2025
•Schlage, established in 1920, was awarded the first patents granted for the cylindrical lock and the push button lock;
Business - History and Developments · Filed 18/02/2025
•CISA, established in 1926, devised the first electronically controlled lock;
Business - History and Developments · Filed 18/02/2025
We offer an extensive and versatile portfolio of security and access control products and solutions across a range of market-leading brands.
Business - Overview/Brands · Filed 17/02/2026
Each door must fit exactly within its frame, be prepared precisely for its hinges, synchronize with its specific lockset and corresponding latch and align with a specific key to secure the door.
Business - Product/system configuration complexity · Filed 17/02/2026
Moreover, with the growing adoption of connected hardware and software solutions, security products – including credentials – are increasingly linked electronically, integrated into access control software and popular consumer technology platforms and controlled with mobile applications, creating additional functionality and complexity.
Business - Electronic/software integration complexity · Filed 17/02/2026
The security and access control product markets we serve often have unique certification and specification requirements, reflecting local regulatory requirements and highly variable end-user needs.
Risk Factors - Certification/specification requirements · Filed 17/02/2026
•Services and software: Our Stanley Access Technologies business offers extensive planned inspection, maintenance and repair services for its automatic entrance solutions throughout the U.S.
Business - Services (maintenance/repair footprint) · Filed 17/02/2026
Additionally, we offer software as a service ("SaaS") offerings throughout the U.S.
Business - SaaS offerings · Filed 17/02/2026
The organic revenue increase was driven by volume growth and price realization.
Q2 2026 press release - Organic growth drivers · Filed 23/07/2026
The organic revenue increase was driven by volume growth and price realization.
Q3 2026 press release - Organic growth drivers · Filed 22/10/2026
The adjusted operating margin increase is attributable to favorable volume leverage as well as price and productivity net of inflation and investment (PPII), inclusive of transactional foreign currency, which was positive on a dollar basis and a tailwind to margin rate.
Q2 2026 press release - Margin drivers (PPII) · Filed 23/07/2026
The adjusted operating margin increase is attributable to favorable volume leverage as well as price and productivity net of inflation and investment (PPII), inclusive of transactional foreign currency, which was positive on a dollar basis and a tailwind to margin rate.
Q3 2026 press release - Margin drivers (PPII) · Filed 22/10/2026
The International segment revenues were up 16.2% (down 1.2% on an organic basis).
Q2 2026 press release - International organic decline · Filed 23/07/2026
The International segment revenues were up 1.8% (down 0.2% on an organic basis).
Q3 2026 press release - International organic -0.2% · Filed 22/10/2026
Adjusted operating margin in the region decreased 40 basis points to 13.9%, driven by volume declines and unfavorable mix offset partially by a PPII tailwind and favorable impacts from acquisitions.
Q3 2026 press release - International margin -40 bps · Filed 22/10/2026
Margin rate increased 440 basis points sequentially as the company worked to improve production rates following the ERP disruption experienced in first-quarter 2026.
Q2 2026 press release - ERP disruption reference · Filed 23/07/2026
•increased competition, including from technological developments;
Risk Factors - Increased competition/technology · Filed 17/02/2026
•changes in customer and consumer preferences and our ability to maintain beneficial relationships with large customers;
Risk Factors - Large customer relationships · Filed 17/02/2026
If we or our major customers are not successful in navigating the shifting consumer preferences to distribution channels such as e-commerce, our expected future revenues may be negatively impacted.
Risk Factors - Shift to e-commerce channels · Filed 17/02/2026
•our ability to effectively manage real or perceived issues related to product quality, safety, corporate social responsibility and other reputational matters;
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•our ability to protect our brand reputation and trademarks;
Risk Factors - Brand reputation/trademarks · Filed 17/02/2026
A-2
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RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO AVAILABLE CASH FLOW
(In millions)
Year ended December 31,
2025
2024
Net cash from operating activities
$
783.8
$
675.0
Capital expenditures
(98.1)
(92.1)
Available cash flow
$
685.7
$
582.9
A-3
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Table of Contents
Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date
Proxy Appendix A - 2025 cash flow and capex · Filed 17/04/2026
Approximate dollar value of shares that may yet be purchased under the plans or programs (000s)(a)
April 1 - April 30
—
$
—
—
$
500,000
May 1 - May 31
381
131.28
381
449,993
June 1 - June 30
528
132.65
528
379,993
Total
909
$
132.06
909
$
379,993
(a) On April 15, 2026, the Board replenished the funds available for the repurchase of the Company’s ordinary shares under its existing share repurchase program and, as a result, authorized the repurchase of a total amount of up to $500.0 million of the Company’s ordinary shares under the program.
Q2 2026 10-Q - Share repurchase authorization/usage · Filed 23/07/2026
Approximate dollar value of shares that may yet be purchased under the plans or programs (000s)(a)
July 1 - July 31
66
$
157.95
66
$
369,593
August 1 - August 31
334
163.34
334
315,000
September 1 - September 30
355
154.13
355
260,270
Total
755
$
158.54
755
$
260,270
(a) On April 15, 2026, the Board reauthorized the Company’s existing share repurchase program and, as a result, authorized the repurchase of a total amount of up to, and including, $500.0 million of the Company’s ordinary shares under the program.
Q3 2026 10-Q - Share repurchases in quarter · Filed 22/10/2026
In February 2024, 2025 and 2026, the Company’s Compensation and Human Capital Committee granted PSUs that were earned based 50% upon a performance condition, measured at each reporting period by earnings per share (“EPS”) performance in relation to pre-established targets for each performance period set by the Compensation and Human Capital Committee of the Board, and 50% upon a market condition, measured by the Company’s relative total shareholder return against a 50/50 blend of the S&P 400 Capital Goods Index and the S&P 500 Capital Goods Index over a three-year performance period.
Q2 2026 10-Q - PSU design (EPS and relative TSR) · Filed 23/07/2026
•Net earnings per share (EPS) of $2.59, up 18.8% compared with $2.18; Adjusted EPS of $2.60, up 13.0% compared with $2.30
Q3 2026 press release - EPS growth YoY · Filed 22/10/2026
•Net earnings per share (EPS) of $2.15, up 16.2% compared with $1.85; Adjusted EPS of $2.40, up 17.6% compared with $2.04
Q2 2026 press release - EPS growth YoY · Filed 23/07/2026
| 64
Non-Executive Chair since: 2024
Director since: 2021
Audit and Finance Committee Chair: 2022-2024
Proxy - Non-Executive Chair · Filed 17/04/2026
The Board has oversight of risk management, including information technology, cybersecurity, artificial intelligence, privacy, disruptive technology and other top enterprise risks, and receives regular briefings from management on such matters.
Proxy - Board oversight of risk/IT/cyber/AI · Filed 17/04/2026
Advisory approval of the compensation of the Company’s named executive officers:
For
Against
Abstain
Broker Non-Votes
66,946,375
6,827,766
88,251
4,474,715
Proposal 3.
8-K AGM results - Say-on-pay approval · Filed 09/06/2026
