Johnson Controls International PLC Earnings
Johnson Controls International PLC (NYSE: JCI), a global leader in smart, healthy, and sustainable buildings, has released its fiscal fourth quarter and full year earnings for 2025. The company reported a robust performance, anchored by increased demand and its strategic innovations in technology. Despite facing challenges from various economic currents, the company's results underscore its operational strengths and focused execution strategy.
Johnson Controls International PLC Results
In the fiscal fourth quarter of 2025, Johnson Controls reported GAAP earnings per share (EPS) of $0.42 and an adjusted EPS of $1.26. The company's quarterly sales increased by 3% to $6.4 billion, with organic sales up by 4%. Full-year sales also saw a 3% increase to $23.6 billion, with organic growth at a healthy 6%. Here's a look at some of the key financial metrics:
| Metric | FY2025 Q4 | FY2025 | YoY Change (Q4) | YoY Change (Full Year) |
|---|---|---|---|---|
| GAAP EPS | $0.42 | $2.63 | N/A | N/A |
| Adjusted EPS | $1.26 | $3.76 | N/A | N/A |
| Total Sales | $6.4 billion | $23.6 billion | +3% | +3% |
| Organic Sales Growth | +4% | +6% | N/A | N/A |
| Orders (Organic Growth, YoY) | +6% | N/A | N/A | N/A |
| Systems & Services Backlog | $14.9 billion | N/A | +13% (YoY) | N/A |
Revenue Breakdown
The breakdown of revenue performance across major segments highlights varied performance by region, reflecting both challenges and strategic successes.
| Segment | Q4 Sales | YoY Change | Organic Sales Change | Backlog | EBITA Margin |
|---|---|---|---|---|---|
| Americas | $4.3 billion | +1% | +3% | $10.6 billion | 19.5% (+10 bps) |
| EMEA | $1.3 billion | +13% | +9% | $2.5 billion | 15.0% (+110 bps) |
| APAC | $780 million | -3% | -3% | $1.8 billion | 17.8% (-190 bps) |
In-depth Analysis
Americas : While the Americas region saw a modest 1% growth in sales, a stronger organic growth rate of 3% reflects underlying demand, particularly in Applied HVAC & Controls. Backlog growth of 13% is noteworthy, indicating strong forward demand.
EMEA : The EMEA region demonstrated robust sales growth at 13%, driven by systems and services. The positive sales momentum, coupled with an expanded EBITA margin of 15.0%, highlights improved operational efficiency.
APAC : Sales in the Asia Pacific were unsatisfactory, with a 3% decline mainly attributable to lower volumes in China. The EBITA margin decline underscores current market pressures, although backlog improvements suggest a potential turnaround.
Key Developments
A significant highlight for Johnson Controls was the completion of the sale of its Residential and Light Commercial HVAC business to Bosch Group for $8.3 billion. This move is expected to streamline operations and focus resources on core business areas. Furthermore, the company maintained a strong free cash flow of $838 million, signaling healthy liquidity.
Comments from Company Officers
Joakim Weidemanis, CEO of Johnson Controls, emphasized the company's achievements and future outlook. "Johnson Controls delivered a strong year, with double-digit EPS growth and a record backlog of $15 billion, up 13%, reflecting sustained demand in our core verticals," he said. Weidemanis also noted the company's progress in deploying its proprietary business system to achieve consistent results and long-term value.
Dividends and Share Repurchases
Johnson Controls maintained its commitment to returning value to shareholders, with dividends paid totaling $243 million in the fourth quarter. Additionally, the company initiated accelerated share repurchase transactions, with an aggregate of $5.0 billion of its common shares slated for buyback.
Johnson Controls International PLC Stock Forecast
Based on its strong backlog, strategic divestitures, and robust operating cash flow, Johnson Controls appears well-positioned for continued growth. The continued focus on technology leadership and sustainability should bolster its competitive position. Considering its fiscal health and innovation-driven strategy, stock price forecasts reflect both optimism and potential market variability.
- High Projection : $90 per share, driven by strong financial performance and growth in backlog and new technologies.
- Low Projection : $75 per share, factoring potential challenges in the APAC market and broader economic uncertainties.
In conclusion, Johnson Controls International PLC's recent earnings report reveals a company on solid footing, leveraging strong demand and strategic moves to propel future growth. As the company continues to navigate its challenges and capitalize on its strengths, the outlook remains promising.
