Johnson Controls Reports Strong Q1 Results; Raises FY25 Guidance
Johnson Controls (NYSE: JCI) reported strong fiscal Q1 2025 results with sales reaching $5.4 billion, up 4% as reported and 10% organically year-over-year. The company achieved GAAP EPS of $0.55 and adjusted EPS of $0.64.
Key highlights include a 16% organic increase in orders and an 11% organic growth in Building Solutions backlog to $13.2 billion. Building Solutions North America saw 10% sales growth to $2.7 billion, while EMEA/LA revenues increased 3% to $1.1 billion. Asia Pacific sales grew 4% to $527 million, though Global Products experienced an 8% decline to $1.1 billion despite 15% organic growth.
The company demonstrated strong cash management with $249 million in operating cash flow and $603 million in adjusted free cash flow. During Q1, JCI returned value to shareholders through $245 million in dividends and $330 million in share repurchases, buying back 4.1 million shares.
Johnson Controls (NYSE: JCI) ha riportato risultati fiscali forti per il primo trimestre del 2025, con vendite che hanno raggiunto i 5,4 miliardi di dollari, in aumento del 4% rispetto all'anno precedente e del 10% in termini organici. L'azienda ha registrato un utile per azione GAAP di 0,55 dollari e un utile per azione rettificato di 0,64 dollari.
Tra i punti salienti, si segnala un aumento organico degli ordini del 16% e una crescita organica del backlog delle Soluzioni Edilizie dell'11%, arrivando a 13,2 miliardi di dollari. Le Soluzioni Edilizie in Nord America hanno visto una crescita delle vendite del 10%, toccando i 2,7 miliardi di dollari, mentre i ricavi dell'EMEA/LA sono aumentati del 3%, raggiungendo 1,1 miliardi di dollari. Le vendite dell'Asia Pacifico sono cresciute del 4%, arrivando a 527 milioni di dollari, mentre i Prodotti Globali hanno subito una flessione dell'8% a 1,1 miliardi di dollari, nonostante una crescita organica del 15%.
L'azienda ha dimostrato una gestione solida del flusso di cassa, con 249 milioni di dollari di flusso di cassa operativo e 603 milioni di dollari di flusso di cassa libero rettificato. Durante il primo trimestre, JCI ha restituito valore agli azionisti tramite 245 milioni di dollari in dividendi e 330 milioni di dollari in riacquisti di azioni, riacquistando 4,1 milioni di azioni.
Johnson Controls (NYSE: JCI) informó resultados sólidos para el primer trimestre fiscal de 2025, con ventas que alcanzaron los 5,4 mil millones de dólares, un aumento del 4% reportado y del 10% de forma orgánica en comparación con el año anterior. La compañía logró una utilidad por acción GAAP de 0,55 dólares y una utilidad por acción ajustada de 0,64 dólares.
Los puntos destacados incluyen un aumento orgánico del 16% en los pedidos y un crecimiento orgánico del 11% en el backlog de Soluciones de Construcción hasta 13,2 mil millones de dólares. Las Soluciones de Construcción en Norteamérica vieron un crecimiento en ventas del 10% hasta 2,7 mil millones de dólares, mientras que los ingresos de EMEA/LA aumentaron un 3% hasta 1,1 mil millones de dólares. Las ventas en Asia Pacífico crecieron un 4% hasta 527 millones de dólares, aunque los Productos Globales experimentaron una disminución del 8% hasta 1,1 mil millones de dólares a pesar de un crecimiento orgánico del 15%.
La empresa demostró una sólida gestión de efectivo con 249 millones de dólares en flujo de caja operativo y 603 millones de dólares en flujo de caja libre ajustado. Durante el primer trimestre, JCI devolvió valor a los accionistas a través de 245 millones de dólares en dividendos y 330 millones de dólares en recompra de acciones, comprando 4,1 millones de acciones.
존슨 컨트롤스 (NYSE: JCI)는 2025 회계 연도 1분기 실적을 발표하며, 매출이 54억 달러에 달해 전년 대비 4%가 증가했으며, 유기적으로는 10% 증가했다고 보고했습니다. 이 회사는 GAAP 기준 주당순이익(EPS) 0.55 달러, 조정 주당순이익(EPS) 0.64 달러를 기록했습니다.
주요 하이라이트로는 16%의 유기적 주문 증가와 11%의 유기적 성장으로 132억 달러에 달하는 건축 솔루션 적체량이 있습니다. 북미의 건축 솔루션 부문은 27억 달러에 달하는 10%의 매출 성장을 보였고, EMEA/LA 분야의 수익은 11억 달러로 3% 증가했습니다. 아시아 태평양 지역의 매출은 5억 2,700만 달러로 4% 성장했으며, 글로벌 제품은 11억 달러로 8% 감소했지만 유기적으로 15% 성장했습니다.
회사는 2억 4,900만 달러의 운영 현금 흐름과 6억 3백만 달러의 조정 자유 현금 흐름으로 강력한 현금 관리를 보여주었습니다. 1분기 동안 JCI는 2억 4,500만 달러의 배당금과 3억 3천만 달러의 자사주 매입을 통해 주주에게 가치를 돌려주었으며, 410만 주의 자사를 매입했습니다.
Johnson Controls (NYSE: JCI) a publié de solides résultats pour le premier trimestre de l'exercice fiscal 2025, avec des ventes atteignant 5,4 milliards de dollars, en hausse de 4 % par rapport à l'année précédente et de 10 % organiquement. L'entreprise a réalisé un bénéfice par action GAAP de 0,55 dollar et un bénéfice par action ajusté de 0,64 dollar.
Parmi les points clés, on note une augmentation organique de 16 % des commandes et une croissance organique de 11 % du carnet de commandes des Solutions Bâtiment, atteignant 13,2 milliards de dollars. Les Solutions Bâtiment en Amérique du Nord ont connu une croissance des ventes de 10 %, atteignant 2,7 milliards de dollars, tandis que les revenus de l'EMEA/LA ont augmenté de 3 % pour atteindre 1,1 milliard de dollars. Les ventes de la région Asie-Pacifique ont augmenté de 4 % pour atteindre 527 millions de dollars, tandis que les Produits Mondiaux ont connu une baisse de 8 % à 1,1 milliard de dollars malgré une croissance organique de 15 %.
L'entreprise a démontré une gestion solide de la trésorerie avec un flux de trésorerie d'exploitation de 249 millions de dollars et un flux de trésorerie libre ajusté de 603 millions de dollars. Au cours du premier trimestre, JCI a restitué de la valeur aux actionnaires par le biais de 245 millions de dollars de dividendes et de 330 millions de dollars de rachats d'actions, rachetant 4,1 millions d'actions.
Johnson Controls (NYSE: JCI) hat starke Ergebnisse für das erste Quartal des Geschäftsjahres 2025 berichtet, mit einem Umsatz von 5,4 Milliarden Dollar, was einem Anstieg von 4 % entspricht und organisch 10 % im Vergleich zum Vorjahr. Das Unternehmen erzielte einen GAAP-Gewinn je Aktie von 0,55 Dollar und einen bereinigten Gewinn je Aktie von 0,64 Dollar.
Zu den wichtigsten Höhepunkten gehören ein organisches Wachstum der Aufträge um 16 % und ein organisches Wachstum des Auftragsbestands der Building Solutions von 11 % auf 13,2 Milliarden Dollar. Die Building Solutions in Nordamerika verzeichneten ein Umsatzwachstum von 10 % auf 2,7 Milliarden Dollar, während die Erlöse in EMEA/LA um 3 % auf 1,1 Milliarden Dollar stiegen. Die Umsätze in der Asien-Pazifik-Region stiegen um 4 % auf 527 Millionen Dollar, während die globalen Produkte trotz eines organischen Wachstums von 15 % einen Rückgang um 8 % auf 1,1 Milliarden Dollar erlitten.
Das Unternehmen zeigte ein starkes Cash Management mit einem operativen Cashflow von 249 Millionen Dollar und einem bereinigten freien Cashflow von 603 Millionen Dollar. Im ersten Quartal hat JCI den Aktionären durch 245 Millionen Dollar an Dividenden und 330 Millionen Dollar an Aktienrückkäufen, bei denen 4,1 Millionen Aktien zurückgekauft wurden, Wert zurückgegeben.
- Sales increased 10% organically year-over-year
- Orders grew 16% organically
- Building Solutions backlog increased 11% organically to $13.2 billion
- North America segment EBITA margin expanded 60 basis points to 12.1%
- EMEA/LA segment EBITA margin expanded 240 basis points to 10.1%
- Global Products segment EBITA margin expanded 740 basis points to 30.1%
- Global Products segment sales declined 8% to $1.1 billion
- Corporate expenses increased 23% on GAAP basis
Insights
Johnson Controls' Q1 FY25 results reveal a compelling transformation story, marked by strategic portfolio simplification and operational excellence. The organic sales growth of
The standout metric is the Building Solutions backlog of
Segment performance highlights three key strategic wins:
- North America's
18% order growth and margin expansion reflect successful execution in the critical Applied HVAC and Controls markets - EMEA/LA's 240 basis point margin improvement showcases the effectiveness of operational restructuring and service-led growth strategy
- Global Products' exceptional
30.1% EBITA margin demonstrates the benefits of portfolio optimization and operational leverage
The company's transformation into a pure-play building solutions provider is yielding tangible results through improved predictability and profitability. The robust order intake, particularly in Asia Pacific (
- Q1 sales increased
4% and organic sales increased10% * - Q1 GAAP EPS of
$0.55 $0.64 - Q1 Orders increased
16% organically year-over-year - Building Solutions backlog of
$13.2 billion 11% organically year-over-year - Initiates fiscal Q2 and raises full year fiscal 2025 guidance*
* | This news release contains non-GAAP financial measures. Definitions and reconciliations of the non-GAAP financial measures can be found in the attached footnotes. Non-GAAP measures should be considered in addition to, and not as replacements for, the most comparable GAAP measures. |
Sales in the quarter of
"I am proud of another strong quarter delivered by the Johnson Controls team, which reflects our successful strategy to simplify our portfolio and position our Company as a leading pure-play building solutions provider," said George Oliver, Chairman and CEO. "We are driving results based on our unique value proposition, with an ability to serve our customers over the lifecycle of the building. The significant progress in our transformation is enabling us to achieve more consistent and predictable performance, as well as our ability to deliver value for our stakeholders."
FISCAL Q1 SEGMENT RESULTS
The financial highlights presented in the tables below exclude discontinued operations and are in accordance with GAAP, unless otherwise indicated. All comparisons are to the fiscal first quarter of 2024.
A slide presentation to accompany the results can be found in the Investor Relations section of Johnson Controls' website at http://investors.johnsoncontrols.com.
Building Solutions North America
Fiscal Q1 | ||||||
(in millions) | 2025 | 2024 | Change | |||
Sales | $ 2,744 | $ 2,487 | 10 % | |||
Segment EBITA | ||||||
GAAP | 332 | 285 | 16 % | |||
Adjusted (non-GAAP) | 332 | 285 | 16 % | |||
Segment EBITA Margin % | ||||||
GAAP | 12.1 % | 11.5 % | 60 bp | |||
Adjusted (non-GAAP) | 12.1 % | 11.5 % | 60 bp | |||
Sales in the quarter of
Excluding M&A and adjusted for foreign currency, orders increased
Segment EBITA margin of
Building Solutions EMEA/LA (
Fiscal Q1 | ||||||
(in millions) | 2025 | 2024 | Change | |||
Sales | $ 1,073 | $ 1,038 | 3 % | |||
Segment EBITA | ||||||
GAAP | 108 | 80 | 35 % | |||
Adjusted (non-GAAP) | 108 | 80 | 35 % | |||
Segment EBITA Margin % | ||||||
GAAP | 10.1 % | 7.7 % | 240 bp | |||
Adjusted (non-GAAP) | 10.1 % | 7.7 % | 240 bp | |||
Sales in the quarter of
Excluding M&A and adjusted for foreign currency, orders increased
Segment EBITA margin of
Building Solutions Asia Pacific
Fiscal Q1 | ||||||
(in millions) | 2025 | 2024 | Change | |||
Sales | $ 527 | $ 507 | 4 % | |||
Segment EBITA | ||||||
GAAP | 49 | 46 | 7 % | |||
Adjusted (non-GAAP) | 49 | 46 | 7 % | |||
Segment EBITA Margin % | ||||||
GAAP | 9.3 % | 9.1 % | 20 bp | |||
Adjusted (non-GAAP) | 9.3 % | 9.1 % | 20 bp | |||
Sales in the quarter of
Excluding M&A and adjusted for foreign currency, orders increased
Segment EBITA margin of
Global Products
Fiscal Q1 | ||||||
(in millions) | 2025 | 2024 | Change | |||
Sales | $ 1,082 | $ 1,177 | (8 %) | |||
Segment EBITA | ||||||
GAAP | 326 | 267 | 22 % | |||
Adjusted (non-GAAP) | 326 | 267 | 22 % | |||
Segment EBITA Margin % | ||||||
GAAP | 30.1 % | 22.7 % | 740 bp | |||
Adjusted (non-GAAP) | 30.1 % | 22.7 % | 740 bp | |||
Sales in the quarter of
Segment EBITA margin of
Corporate
Fiscal Q1 | ||||||
(in millions) | 2025 | 2024 | Change | |||
Corporate Expense | ||||||
GAAP | $ 171 | $ 139 | 23 % | |||
Adjusted (non-GAAP) | 127 | 116 | 9 % | |||
Adjusted Corporate expense in Q1 2025 excludes certain transaction/separation costs and transformation costs. Adjusted Corporate expense in Q1 2024 excludes certain transaction/separation costs and cyber incident costs.
OTHER Q1 ITEMS
- Cash provided by operating activities was
$249 million $133 million $603 million - The Company paid dividends of
$245 million - The Company repurchased 4.1 million shares of common stock for
$330 million
GUIDANCE
The following forward-looking statements regarding organic sales growth, adjusted segment EBITA margin, adjusted segment EBITA margin improvement and adjusted EPS are non-GAAP financial measures and are presented on a continuing operations basis excluding the Residential and Light Commercial HVAC business, which was classified as discontinued operations beginning in the fiscal fourth quarter of 2024. These non-GAAP financial measures are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts excluded is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period and the high variability of certain amounts, such as mark-to-market adjustments. Organic revenue growth excludes the effect of acquisitions, divestitures and foreign currency. The Company is unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to its most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. The unavailable information could have a significant impact on the Company's fiscal 2025 second quarter and full year GAAP financial results from continuing operations.
The Company initiated fiscal 2025 second quarter guidance:
- Organic sales growth of mid-single digits
- Adjusted segment EBITA margin of ~
16.5% - Adjusted EPS before special items of
~ to$0.77 $0.79
The Company raised fiscal 2025 full year guidance:
- Organic sales growth of mid-single digits (unchanged)
- Adjusted segment EBITA margin improvement of more than 80 basis points, year-over-year (previously more than 50 bps)
- Adjusted EPS before special items of
~ to$3.50 $3.60 ~ to$3.40 $3.50
CONFERENCE CALL & WEBCAST INFO
Johnson Controls will host a conference call to discuss this quarter's results at 8:30 a.m. ET today, which can be accessed by dialing 844-763-8274 (in
ABOUT JOHNSON CONTROLS
At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet.
Building on a proud history of nearly 140 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering.
Today, Johnson Controls offers the world's largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry.
Visit www.johnsoncontrols.com for more information and follow @Johnson Controls on social platforms.
JOHNSON CONTROLS CONTACTS:
INVESTOR CONTACTS: | MEDIA CONTACT: | |
Jim Lucas | Danielle Canzanella | |
Direct: +1 414.340.1752 | Direct: +1 203.499.8297 | |
Email: jim.lucas@jci.com | Email: danielle.canzanella@jci.com | |
Michael Gates | ||
Direct: +1 414.524.5785 | ||
Email: michael.j.gates@jci.com |
JOHNSON CONTROLS INTERNATIONAL PLC CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this communication, statements regarding Johnson Controls future financial position, sales, costs, earnings, cash flows, other measures of results of operations, synergies and integration opportunities, capital expenditures, debt levels and market outlook are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning are also generally intended to identify forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond its control, that could cause its actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: Johnson Controls' ability to develop or acquire new products and technologies that achieve market acceptance and meet applicable quality and regulatory requirements; the ability of Johnson Controls to execute on its operating model and drive organizational improvement; Johnson Controls' ability to successfully execute and complete portfolio simplification, including the completion of the divestiture of the Residential and Light Commercial business, as well as the possibility that the expected benefits of such actions will not be realized or will not be realized within the expected time frame; the ability to hire and retain senior management and other key personnel, including successfully executing Johnson Controls' Chief Executive Officer succession plan; the ability to innovate and adapt to emerging technologies, ideas and trends in the marketplace, including the incorporation of technologies such as artificial intelligence; the ability to manage general economic, business and capital market conditions, including the impact of recessions, economic downturns and global price inflation; fluctuations in the cost and availability of public and private financing for Johnson Controls' customers; the ability to manage macroeconomic and geopolitical volatility, including supply chain shortages, restrictive trade measures and the conflict between
FINANCIAL STATEMENTS | ||||
Johnson Controls International plc | ||||
Consolidated Statements of Income | ||||
(in millions, except per share data; unaudited) | ||||
Three Months Ended December 31, | ||||
2024 | 2023 | |||
Net sales | ||||
Products and systems | $ 3,685 | $ 3,604 | ||
Services | 1,741 | 1,605 | ||
5,426 | 5,209 | |||
Cost of sales | ||||
Products and systems | 2,456 | 2,490 | ||
Services | 1,044 | 941 | ||
3,500 | 3,431 | |||
Gross profit | 1,926 | 1,778 | ||
Selling, general and administrative expenses | 1,399 | 1,334 | ||
Restructuring and impairment costs | 33 | 35 | ||
Net financing charges | 86 | 87 | ||
Equity loss | — | (2) | ||
Income from continuing operations before income taxes | 408 | 320 | ||
Income tax provision (benefit) | 47 | (20) | ||
Income from continuing operations | 361 | 340 | ||
Income from discontinued operations, net of tax (Note 3) | 90 | 64 | ||
Net income | 451 | 404 | ||
Income (loss) attributable to noncontrolling interests | ||||
Continuing operations | (2) | — | ||
Discontinued operations | 34 | 30 | ||
Net income attributable to Johnson Controls | $ 419 | $ 374 | ||
Income attributable to Johnson Controls | ||||
Continuing operations | $ 363 | $ 340 | ||
Discontinued operations | 56 | 34 | ||
Total | $ 419 | $ 374 | ||
Basic earnings per share attributable to Johnson Controls | ||||
Continuing operations | $ 0.55 | $ 0.50 | ||
Discontinued operations | 0.08 | 0.05 | ||
Total | $ 0.63 | $ 0.55 | ||
Diluted earnings per share attributable to Johnson Controls | ||||
Continuing operations | $ 0.55 | $ 0.50 | ||
Discontinued operations | 0.08 | 0.05 | ||
Total | $ 0.63 | $ 0.55 | ||
Johnson Controls International plc | |||
Condensed Consolidated Statements of Financial Position | |||
(in millions; unaudited) | |||
December 31, 2024 | September 30, 2024 | ||
Assets | |||
Cash and cash equivalents | $ 1,237 | $ 606 | |
Accounts receivable - net | 5,614 | 6,051 | |
Inventories | 1,739 | 1,774 | |
Current assets held for sale | 1,658 | 1,595 | |
Other current assets | 1,041 | 1,153 | |
Current assets | 11,289 | 11,179 | |
Property, plant and equipment - net | 2,418 | 2,403 | |
Goodwill | 16,412 | 16,725 | |
Other intangible assets - net | 3,963 | 4,130 | |
Noncurrent assets held for sale | 2,986 | 3,210 | |
Other noncurrent assets | 5,030 | 5,048 | |
Total assets | $ 42,098 | $ 42,695 | |
Liabilities and Equity | |||
Short-term debt | $ 882 | $ 953 | |
Current portion of long-term debt | 522 | 536 | |
Accounts payable | 3,214 | 3,389 | |
Accrued compensation and benefits | 917 | 1,048 | |
Deferred revenue | 2,211 | 2,160 | |
Current liabilities held for sale | 1,322 | 1,431 | |
Other current liabilities | 2,015 | 2,438 | |
Current liabilities | 11,083 | 11,955 | |
Long-term debt | 8,589 | 8,004 | |
Pension and postretirement benefits | 192 | 217 | |
Noncurrent liabilities held for sale | 407 | 405 | |
Other noncurrent liabilities | 4,697 | 4,753 | |
Long-term liabilities | 13,885 | 13,379 | |
Shareholders' equity attributable to Johnson Controls | 15,900 | 16,098 | |
Noncontrolling interests | 1,230 | 1,263 | |
Total equity | 17,130 | 17,361 | |
Total liabilities and equity | $ 42,098 | $ 42,695 | |
Johnson Controls International plc | |||
Consolidated Statements of Cash Flows | |||
(in millions; unaudited) | |||
Three Months Ended December 31, | |||
2024 | 2023 | ||
Operating Activities of Continuing Operations | |||
Income from continuing operations attributable to Johnson Controls | $ 363 | $ 340 | |
Loss from continuing operations attributable to noncontrolling interests | (2) | — | |
Income from continuing operations | 361 | 340 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 193 | 208 | |
Pension and postretirement income and contributions | (16) | (16) | |
Deferred income taxes | (54) | (80) | |
Noncash restructuring and impairment charges | 8 | 9 | |
Equity-based compensation | 28 | 29 | |
Other - net | 8 | (22) | |
Changes in assets and liabilities, excluding acquisitions and divestitures: | |||
Accounts receivable | 284 | 40 | |
Inventories | (15) | (106) | |
Other assets | (171) | (195) | |
Restructuring reserves | 2 | (14) | |
Accounts payable and accrued liabilities | (407) | (315) | |
Accrued income taxes | 28 | 11 | |
Cash provided (used) by operating activities from continuing | 249 | (111) | |
Investing Activities of Continuing Operations | |||
Capital expenditures | (116) | (82) | |
Other - net | 11 | 18 | |
Cash used by investing activities from continuing operations | (105) | (64) | |
Financing Activities of Continuing Operations | |||
Net proceeds from borrowings with maturities less than three months | 12 | 1,116 | |
Proceeds from debt | 775 | 422 | |
Stock repurchases and retirements | (330) | — | |
Payment of cash dividends | (245) | (252) | |
Employee equity-based compensation withholding taxes | (29) | (23) | |
Other - net | 18 | (27) | |
Cash provided by financing activities from continuing operations | 201 | 1,236 | |
Discontinued Operations | |||
Cash used by operating activities | (2) | (135) | |
Cash used by investing activities | (10) | (10) | |
Cash used by financing activities | — | (8) | |
Cash used by discontinued operations | (12) | (153) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 154 | 60 | |
Change in cash, cash equivalents and restricted cash held for sale | 4 | 5 | |
Increase in cash, cash equivalents and restricted cash | 491 | 973 | |
Cash, cash equivalents and restricted cash at beginning of period | 767 | 917 | |
Cash, cash equivalents and restricted cash at end of period | 1,258 | 1,890 | |
Less: Restricted cash | 21 | 91 | |
Cash and cash equivalents at end of period | $ 1,237 | $ 1,799 | |
FOOTNOTES
1. Sale of Residential and Light Commercial HVAC Business
The Company signed a definitive agreement in July 2024 to sell its Residential and Light Commercial HVAC business (the "R&LC Business"), which includes the North America Ducted businesses and the global Residential joint venture with Hitachi Global Life Solutions, Inc. ("Hitachi"), of which Johnson Controls owns
2. Non-GAAP Measures
The Company reports various non-GAAP measures in this earnings release and the related earnings presentation. Non-GAAP measures should be considered in addition to, and not as replacements for, the most comparable GAAP measures. Refer to footnotes three through eight for further information on the calculations of the non-GAAP measures and reconciliations of the non-GAAP measures to the most comparable GAAP measures.
Organic sales
Organic sales growth excludes the impact of acquisitions, divestitures and foreign currency. Management believes organic sales growth is useful to investors in understanding period-over-period sales results and trends.
Cash flow
Management believes free cash flow and adjusted free cash flow measures are useful to investors in understanding the strength of the Company and its ability to generate cash. These non-GAAP measures can also be used to evaluate the Company's ability to generate cash flow from operations and the impact that this cash flow has on its liquidity. Management also believes adjusted free cash flows are useful to investors in understanding period-over-period cash flows, cash trends and ongoing cash flows of the Company.
Adjusted free cash flow and adjusted free cash flow conversion are non-GAAP measures which exclude the impacts of the following:
- JC Capital cash flows primarily include activity associated with finance/notes receivables and inventory and/or capital expenditures related to lease arrangements. JC Capital net income is primarily related to interest income on the finance/notes receivable and profit recognized on arrangements with sales-type lease components.
- Effective January 1, 2024, the Company has excluded the impact of discontinuing its accounts receivables factoring programs from adjusted free cash flow and adjusted free cash flow conversion. The Company has also re-baselined the prior year adjusted free cash flow measures to present a more comparative measure without the impact of factoring.
- Cash payments related to the water systems AFFF settlement and cash receipts for AFFF-related insurance recoveries.
Adjusted financial measures
Adjusted financial measures include adjusted segment EBITA, adjusted net income, adjusted earnings per share, adjusted EBIT, adjusted EBITDA and adjusted corporate expenses. These non-GAAP measures are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the excluded amounts is a matter of management judgment and depends upon the nature and variability of the underlying expense or income amounts and other factors.
As detailed in the tables included in footnotes five through eight, the following items were excluded from certain financial measures:
- Net mark-to-market adjustments are the result of adjusting restricted asbestos investments and pension and postretirement plan assets to their current market value. These adjustments may have a favorable or unfavorable impact on results.
- Restructuring and impairment costs, net of NCI represents restructuring costs attributable to Johnson Controls including costs associated with exit plans or other restructuring plans that will have a more significant impact on the underlying cost structure of the organization. Impairment costs primarily relate to write-downs of goodwill, intangible assets and assets held for sale to their fair value.
- Water systems AFFF settlement and insurance recoveries include amounts related to a settlement with a nationwide class of public water systems concerning the use of AFFF manufactured and sold by a subsidiary of the Company, and AFFF-related insurance recoveries.
- Transaction/separation costs include costs associated with significant mergers and acquisitions.
- Transformation costs represent incremental expenses incurred in association with strategic growth initiatives and cost saving opportunities in order to realize the benefits of portfolio simplification and the Company's lifecycle solutions strategy.
- Earn-out adjustments relate to earn-out liabilities associated with certain significant acquisitions and may have a favorable or unfavorable impact on results.
- Cyber incident costs primarily represent expenses, net of insurance recoveries, associated with the response to, and remediation of, a cybersecurity incident which occurred in September 2023.
- Global products product quality issue are costs related to a product quality issue within the Global Products segment that is unusual due to the magnitude of the expected cost to remediate in comparison to typical product quality issues experienced by the Company.
- Loss on divestiture relates to the sale of the ADTi business.
- EMEA/LA joint venture loss relates to certain non-recurring losses associated with the equity method accounting of a joint venture company.
- Discrete tax items, net includes the net impact of discrete tax items within the period, including the following types of items: changes in estimates associated with valuation allowances, changes in estimates associated with reserves for uncertain tax positions, withholding taxes recorded upon changes in indefinite re-investment assertions for businesses to be disposed of, impacts from statutory rate changes, and the recording of significant tax credits.
- Related tax impact includes the tax impact of the various excluded items.
Management believes the exclusion of these items is useful to investors due to the unusual nature and/or magnitude of the amounts. When considered together with unadjusted amounts, adjusted financial measures are useful to investors in understanding period-over-period operating results, business trends and ongoing operations of the Company. Management may also use these metrics as guides in forecasting, budgeting and long-term planning processes and for compensation purposes.
Debt ratios
Management believes that net debt to adjusted EBITDA, a non-GAAP measure, is useful to understanding the Company's financial condition as the ratio provides an overview of the extent to which the Company relies on external debt financing for its funding and also is a measure of risk to its shareholders.
3. Sales
The following tables detail the changes in sales from continuing operations attributable to organic growth, foreign currency, acquisitions, divestitures and other (unaudited):
Three Months Ended December 31 | |||||||||||
Net sales | Building Solutions | ||||||||||
(in millions) | North | EMEA/LA |
| Total | Global | Total JCI | |||||
Net sales - 2023 | $ 2,487 | $ 1,038 | $ 507 | $ 4,032 | $ 1,177 | $ 5,209 | |||||
Base year adjustments | |||||||||||
Divestitures and other | — | — | — | — | (233) | (233) | |||||
Foreign currency | (3) | (25) | (3) | (31) | (2) | (33) | |||||
Adjusted base net sales | 2,484 | 1,013 | 504 | 4,001 | 942 | 4,943 | |||||
Acquisitions | — | 3 | — | 3 | — | 3 | |||||
Organic growth | 260 | 57 | 23 | 340 | 140 | 480 | |||||
Net sales - 2024 | $ 2,744 | $ 1,073 | $ 527 | $ 4,344 | $ 1,082 | $ 5,426 | |||||
Growth %: | |||||||||||
Net sales | 10 % | 3 % | 4 % | 8 % | (8) % | 4 % | |||||
Organic growth | 10 % | 6 % | 5 % | 8 % | 15 % | 10 % | |||||
Three Months Ended December 31 | |||||||||||
Products and systems revenue | Building Solutions | ||||||||||
(in millions) | North | EMEA/LA |
| Total | Global | Total JCI | |||||
Products and systems revenue - 2023 | $ 1,518 | $ 572 | $ 337 | $ 1,177 | $ 3,604 | ||||||
Base year adjustments | |||||||||||
Divestitures and other | — | — | — | — | (233) | (233) | |||||
Foreign currency | — | (12) | (3) | (15) | (2) | (17) | |||||
Adjusted products and systems revenue | 1,518 | 560 | 334 | 2,412 | 942 | 3,354 | |||||
Acquisitions | — | 2 | — | 2 | — | 2 | |||||
Organic growth | 176 | 13 | — | 189 | 140 | 329 | |||||
Products and systems revenue - 2024 | $ 1,694 | $ 575 | $ 334 | $ 1,082 | $ 3,685 | ||||||
Growth %: | |||||||||||
Products and systems revenue | 12 % | 1 % | (1) % | 7 % | (8) % | 2 % | |||||
Organic growth | 12 % | 2 % | — % | 8 % | 15 % | 10 % | |||||
Three Months Ended December 31 | |||||||||||
Service revenue | Building Solutions | ||||||||||
(in millions) | North | EMEA/LA |
| Total | Global | Total JCI | |||||
Service revenue - 2023 | $ 969 | $ 466 | $ 170 | $ — | $ 1,605 | ||||||
Base year adjustments | |||||||||||
Divestitures and other | — | — | — | — | — | — | |||||
Foreign currency | (3) | (13) | — | (16) | — | (16) | |||||
Adjusted base service revenue | 966 | 453 | 170 | 1,589 | — | 1,589 | |||||
Acquisitions | — | 1 | — | 1 | — | 1 | |||||
Organic growth | 84 | 44 | 23 | 151 | — | 151 | |||||
Service revenue - 2024 | $ 1,050 | $ 498 | $ 193 | $ — | $ 1,741 | ||||||
Growth %: | |||||||||||
Service revenue | 8 % | 7 % | 14 % | 8 % | — % | 8 % | |||||
Organic growth | 9 % | 10 % | 14 % | 10 % | — % | 10 % | |||||
4. Cash Flow, Free Cash Flow and Free Cash Flow Conversion
The following table includes free cash flow and free cash flow conversion (unaudited):
Three Months Ended December 31, | ||||
(in millions) | 2024 | 2023 | ||
Cash provided (used) by operating activities from continuing operations | $ 249 | $ (111) | ||
Capital expenditures | (116) | (82) | ||
Free cash flow (non-GAAP) | $ 133 | $ (193) | ||
Income from continuing operations attributable to Johnson Controls | $ 363 | $ 340 | ||
Free cash flow conversion from net income (non-GAAP) | 37 % | (57) % | ||
The following table includes adjusted free cash flow and adjusted free cash flow conversion (unaudited):
Three Months Ended December 31, | ||||
(in millions) | 2024 | 2023 | ||
Free cash flow (non-GAAP) | $ 133 | $ (193) | ||
Adjustments: | ||||
JC Capital cash used by operating activities | 66 | 88 | ||
Water systems AFFF settlement cash payments and | 397 | — | ||
Impact from discontinuation of factoring programs | 7 | — | ||
Adjusted free cash flow (non-GAAP) | 603 | (105) | ||
Prior year impact from factoring programs | — | (85) | ||
Re-baselined adjusted free cash flow (non-GAAP) | $ 603 | $ (190) | ||
Adjusted net income attributable to JCI (non-GAAP) | $ 426 | $ 315 | ||
JC Capital net income | (5) | (2) | ||
Adjusted net income attributable to JCI, excluding JC | $ 421 | $ 313 | ||
Adjusted free cash flow conversion (non-GAAP) | 143 % | (61) % | ||
5. EBITA, EBIT and Corporate Expense
The Company evaluates the performance of its business units primarily on segment EBITA. The following table includes continuing operations:
Three Months Ended December 31, | ||||||||
Actual | Adjusted (Non-GAAP) | |||||||
(in millions; unaudited) | 2024 | 2023 | 2024 | 2023 | ||||
Segment EBITA | ||||||||
Building Solutions North America | $ 332 | $ 285 | $ 332 | $ 285 | ||||
Building Solutions EMEA/LA | 108 | 80 | 108 | 80 | ||||
Building Solutions Asia Pacific | 49 | 46 | 49 | 46 | ||||
Global Products | 326 | 267 | 326 | 267 | ||||
EBIT (non-GAAP) | ||||||||
Income (loss) from continuing operations: | ||||||||
Attributable to Johnson Controls | $ 363 | $ 340 | $ 426 | $ 315 | ||||
Attributable to noncontrolling interests (1) | (2) | — | (2) | — | ||||
Income from continuing operations | 361 | 340 | 424 | 315 | ||||
Less: Income tax provision (benefit) (2) | 47 | (20) | 58 | 41 | ||||
Income before income taxes | 408 | 320 | 482 | 356 | ||||
Net financing charges | 86 | 87 | 86 | 87 | ||||
EBIT (non-GAAP) | $ 494 | $ 407 | $ 568 | $ 443 | ||||
(1) | Adjusted income attributable to noncontrolling interests excludes the impact of restructuring and impairment costs. |
(2) | Adjusted income tax provision (benefit) excludes the related tax impacts of pre-tax adjusting items. |
The following table reconciles Corporate expense from continuing operations as reported to the comparable adjusted amounts (unaudited):
Three Months Ended December 31, | ||||
(in millions) | 2024 | 2023 | ||
Corporate expense (GAAP) | $ 171 | $ 139 | ||
Adjusting items: | ||||
Transaction/separation costs | (11) | — | ||
Transformation costs | (33) | — | ||
Cyber incident costs | — | (23) | ||
Adjusted corporate expense (non-GAAP) | $ 127 | $ 116 | ||
6. Net Income and Diluted Earnings Per Share
The following tables reconcile income from continuing operations attributable to JCI and diluted earnings per share from continuing operations as reported to the comparable adjusted amounts (unaudited):
Three Months Ended December 31, | |||||||
Income from continuing | Diluted earnings per share | ||||||
(in millions, except per share) | 2024 | 2023 | 2024 | 2023 | |||
As reported (GAAP) | $ 363 | $ 340 | $ 0.55 | $ 0.50 | |||
Adjusting items: | |||||||
Net mark-to-market adjustments | 1 | (22) | — | (0.03) | |||
Restructuring and impairment costs, net of NCI | 33 | 35 | 0.05 | 0.05 | |||
Water systems AFFF insurance recoveries | (4) | — | (0.01) | — | |||
Transaction/separation costs | 11 | — | 0.02 | — | |||
Transformation costs | 33 | — | 0.05 | — | |||
Cyber incident costs | — | 23 | — | 0.03 | |||
Discrete tax items | — | (57) | — | (0.08) | |||
Related tax impact | (11) | (4) | (0.02) | (0.01) | |||
Adjusted (non-GAAP)* | $ 426 | $ 315 | $ 0.64 | $ 0.46 | |||
* | May not sum due to rounding |
The following table reconciles the denominators used to calculate basic and diluted earnings per share (in millions; unaudited):
Three Months Ended | ||||
2024 | 2023 | |||
Weighted average shares outstanding | ||||
Basic weighted average shares outstanding | 662.0 | 680.7 | ||
Effect of dilutive securities: | ||||
Stock options, unvested restricted stock and | 3.0 | 1.7 | ||
Diluted weighted average shares outstanding | 665.0 | 682.4 | ||
7. Debt Ratios
The following table includes continuing operations and details net debt to income before income taxes and net debt to adjusted EBITDA (unaudited):
(in millions) | December 31, | September 30, | December 31, | ||
Short-term debt | $ 882 | $ 953 | $ 1,981 | ||
Current portion of long-term debt | 522 | 536 | 652 | ||
Long-term debt | 8,589 | 8,004 | 7,959 | ||
Total debt | 9,993 | 9,493 | 10,592 | ||
Less: cash and cash equivalents | 1,237 | 606 | 1,799 | ||
Net debt | $ 8,756 | $ 8,887 | $ 8,793 | ||
Last twelve months income before income taxes | $ 1,610 | $ 1,522 | $ 1,335 | ||
Net debt to income before income taxes | 5.4x | 5.8x | 6.6x | ||
Last twelve months adjusted EBITDA (non-GAAP) | $ 3,733 | $ 3,623 | $ 3,295 | ||
Net debt to adjusted EBITDA (non-GAAP) | 2.3x | 2.5x | 2.7x |
The following table reconciles income from continuing operations to adjusted EBIT and adjusted EBITDA (unaudited):
Twelve Months Ended | |||||
(in millions) | December 31, | September 30, | December 31, | ||
Income from continuing operations | $ 1,432 | $ 1,411 | $ 1,820 | ||
Income tax provision (benefit) | 178 | 111 | (485) | ||
Income before income taxes | 1,610 | 1,522 | 1,335 | ||
Net financing charges | 341 | 342 | 283 | ||
EBIT | 1,951 | 1,864 | 1,618 | ||
Adjusting items: | |||||
Net mark-to-market adjustments | (24) | (47) | 76 | ||
Restructuring and impairment costs | 507 | 509 | 741 | ||
Water systems AFFF settlement | 750 | 750 | — | ||
Water systems AFFF insurance recoveries | (371) | (367) | — | ||
Earn-out adjustments | (68) | (68) | (30) | ||
Transaction/separation costs | 43 | 32 | 92 | ||
Transformation costs | 33 | — | — | ||
Cyber incident costs | 4 | 27 | 23 | ||
Global Products product quality issue | 33 | 33 | — | ||
Loss on divestiture | 42 | 42 | — | ||
EMEA/LA joint venture loss | 17 | 17 | — | ||
Adjusted EBIT (non-GAAP) | 2,917 | 2,792 | 2,520 | ||
Depreciation and amortization | 816 | 831 | 775 | ||
Adjusted EBITDA (non-GAAP) | $ 3,733 | $ 3,623 | $ 3,295 | ||
8. Income Taxes
The Company's effective tax rate before consideration of certain excluded items was approximately
View original content to download multimedia:https://www.prnewswire.com/news-releases/johnson-controls-reports-strong-q1-results-raises-fy25-guidance-302368272.html
SOURCE Johnson Controls International plc
FAQ
What was Johnson Controls (JCI) Q1 2025 revenue and organic growth?
How much did JCI's Building Solutions backlog grow in Q1 2025?
What was JCI's shareholder return in Q1 2025?
What was Johnson Controls' Q1 2025 EPS?
How did JCI's Global Products segment perform in Q1 2025?
