CORK, Ireland, April 9, 2025 /PRNewswire/ -- Johnson Controls International plc (NYSE: JCI), the global leader for smart, healthy and sustainable buildings, announces the following webcast:  What: Johnson Controls Second Quarter Fiscal 2025 Earnings Conference Call When: Wednesday, May 7, 2025, at 8:30 a.m. ET How: The conference call for investors can be accessed in the following ways: Live via webcast at http://investors.johnsoncontrols.com/news-and-events/events-and-presentations Note: A slide presentat ...

Group 1: Johnson Controls - Johnson Controls is projected to generate approximately $4 billion in revenue from data centers in 2024, with an estimated total revenue of $23.4 billion in 2025, indicating that data centers could account for about 19% of its revenue in 2025 [3][4] - The company is experiencing growth in its data center orders, contributing to a growing backlog, while also focusing on retrofit opportunities in commercial buildings to enhance efficiency and meet net zero emissions goals [5] - Johnson Controls is currently trading at an attractive enterprise value to EBITDA ratio, making it a potential buy on dips [5] Group 2: nVent Electric - nVent Electric, which specializes in electrical protection and connections, is positioned to benefit from the electrification trend in various sectors, including smart buildings and data centers [6][7] - The company reported approximately $3 billion in sales from continuing operations in 2024, with data solutions contributing 20% or $600 million, and a 30% growth in data solutions sales, equating to an increase of $139 million [8][9] - nVent anticipates that its infrastructure end markets, particularly data centers, will drive growth with a low double-digit increase expected in 2025 [9] Group 3: GE HealthCare - GE HealthCare is enhancing its value proposition through the growth of AI-enabled solutions, particularly in imaging equipment, where it competes with Siemens Healthineers and Philips [12][13] - The company has expanded its AI-enabled authorizations from 58 to 85 in 2024, aiming to develop precision care solutions that leverage data from its imaging and patient monitoring equipment [14] - The integration of AI is expected to improve diagnostic and treatment capabilities, ultimately leading to better patient outcomes [15]

Market Overview - The bull run in Wall Street that began in early 2023 faced challenges last month, primarily due to a significant rally in the technology sector driven by generative AI growth [1] - Market participants have experienced increased pain, with U.S. stock markets in negative territory year-to-date and the Nasdaq Composite in correction [2] - Key factors contributing to this downturn include overstretched valuations of AI stocks, recession fears in the U.S. economy, uncertainty regarding future interest rate cuts by the Fed, and competition from low-cost generative AI platforms from China [3] AI-Powered Non-Tech Stocks - Five non-tech companies utilizing extensive AI applications are recommended for investment: PayPal Holdings Inc. (PYPL), Visa Inc. (V), Upstart Holdings Inc. (UPST), Netflix Inc. (NFLX), and Johnson Controls International plc (JCI) [4][5] PayPal Holdings Inc. (PYPL) - PYPL is experiencing robust growth in total payment volume, with improved customer engagement and rising adoption rates across platforms [7] - The company leverages AI to enhance transaction efficiency and consumer insights, with platforms like Fastlane and Ads providing a technological edge [8] - Expected revenue and earnings growth rates for PYPL are 3.7% and 8% respectively, with a Zacks Consensus Estimate for earnings improving by 2.4% in the past 60 days [9] - PYPL's current valuation metrics indicate an attractive position compared to peers, with a forward P/E of 13.58X, P/S of 2.12X, and P/B of 3.30X [10] - The average price target suggests a potential increase of 36.2% from the last closing price of $68.62, indicating a maximum upside of 82.2% [11] Visa Inc. (V) - Visa's strategic acquisitions and alliances are driving long-term growth, with expected net revenue growth in low double-digits for fiscal 2025 [12] - The shift to digital payments and increased demand for AI-driven services, particularly in fraud prevention, are beneficial for Visa [13] - Visa has invested $3.5 billion over the past decade to enhance its data platform, preventing $40 billion in fraud attempts annually [14] - Expected revenue and earnings growth rates for Visa are 10.2% and 12.4% respectively, with a current dividend yield of 0.71% [15] - The average price target indicates a potential increase of 15.2% from the last closing price of $332.84, with a maximum upside of 23.2% [16] Upstart Holdings Inc. (UPST) - UPST operates as an AI lending platform, partnering with banks to provide affordable credit across various lending segments [17] - The company's AI-driven credit risk models allow for more approvals at lower APRs, enhancing efficiency and fraud detection [18] - Expected revenue and earnings growth rates for UPST are 59.3% and over 100% respectively, with earnings estimates improving significantly in the past 30 days [19] - The average price target suggests a potential increase of 61.5% from the last closing price of $49.66, indicating a maximum upside of 117.5% [21] Netflix Inc. (NFLX) - Netflix utilizes AI and machine learning to enhance user experience through personalized content recommendations [22] - The company reported strong engagement levels, with an average of two hours of viewing per member per day [22] - Expected revenue and earnings growth rates for Netflix are 14% and 24% respectively, with earnings estimates improving by 4% in the past 60 days [25] - The average price target indicates a potential increase of 20% from the last closing price of $919.68, suggesting a maximum upside of 62.4% [26] Johnson Controls International plc (JCI) - JCI is benefiting from strong demand in its Building Solutions segment, particularly in HVAC and security [27] - The company is investing in digital offerings, enhancing its AI capabilities through the OpenBlue platform [28] - Expected revenue and earnings growth rates for JCI are -11.9% and -1.9% respectively, with a current dividend yield of 1.92% [30] - The average price target suggests a potential increase of 23.4% from the last closing price of $78.68, indicating a maximum upside of 33.5% [31]

Core Viewpoint - Johnson Controls International plc has announced a quarterly dividend of $0.37 per share, reflecting its commitment to returning value to shareholders and maintaining a long history of consecutive dividend payments since 1887 [1]. Company Overview - Johnson Controls is a global leader in smart, healthy, and sustainable buildings, focusing on transforming environments for living, working, learning, and playing [2]. - The company has a legacy of nearly 140 years of innovation and offers a comprehensive digital solution called OpenBlue, which serves various industries including healthcare, education, data centers, airports, and manufacturing [3]. - Johnson Controls boasts the largest portfolio of building technology and software, along with service solutions from trusted industry names [3].

Core Insights - Johnson Controls has been recognized as one of the 2025 World's Most Ethical Companies by Ethisphere, marking the 18th time the company has received this honor, making it one of only five companies to achieve this milestone [1][4] Company Commitment to Ethics - The company emphasizes the importance of integrity in business practices, with a strong commitment from employees globally to uphold ethical standards [2] - Johnson Controls' Code of Ethics, known as Values First, serves as the foundation of its Ethics & Compliance Program, ensuring high standards of integrity in operations and culture [2] Assessment Criteria - The recognition is based on Ethisphere's proprietary Ethics Quotient®, which includes over 240 proof points related to ethics, compliance, governance, and social impact [3] - In 2025, a total of 136 companies were honored across 19 countries and 44 industries, showcasing a diverse commitment to ethical practices [3] Industry Impact - Ethisphere's Chief Strategy Officer highlighted that the recognition reflects a genuine dedication to advancing business integrity, which is beneficial for both employees and stakeholders [4] - The recognition reinforces the importance of ethical practices in building trust and delivering business success in the marketplace [10]

Group 1 - Johnson Controls (NYSE: JCI) has shown robust growth in its core business, driven by energy conservation trends and digital offerings [2] - The stock performance of Johnson Controls has been strong since the last coverage in January 2021 [2] Group 2 - The article emphasizes the importance of due diligence for readers before making any investment decisions [3] - Seeking Alpha clarifies that past performance is not indicative of future results and does not provide specific investment recommendations [4]

Core Insights - Johnson Controls has been recognized as a top thermal management provider for data centers by ABI Research, highlighting its innovation and customer-centric approach in the industry [1][2] Group 1: Company Recognition and Positioning - Johnson Controls consistently exceeds market expectations in thermal management across various industries, particularly in mission-critical infrastructure like data centers [2] - The company’s comprehensive product portfolio and ability to deliver end-to-end solutions solidify its leadership in the thermal management space [2][3] - The recognition from ABI Research reflects Johnson Controls' commitment to providing innovative and scalable solutions tailored to the evolving needs of the data center industry [3] Group 2: Product Innovations - Johnson Controls offers a range of air-cooled and water-cooled chillers designed for hyperscale and colocation data centers, with the YORK® YVAM chiller capable of reducing energy consumption by up to 40% [2] - The YVAM chiller operates with zero water on-site and utilizes ultra-low GWP refrigerant, ensuring reliability and efficiency with a noise level of 65 dBA [2] - Quick Start technology in the YVAM allows it to return to full load in just three minutes after a power interruption, enhancing operational efficiency [2] Group 3: Strategic Developments - In June 2024, Johnson Controls launched a Global Data Center Solutions organization to address rapid industry growth, enhancing production capacity and reducing lead times [5] - This specialized organization enables the company to provide consistent, high-quality solutions globally while adapting to regional needs in North America, EMEA, and APAC [5] Group 4: Customer-Centric Approach - Customers have praised Johnson Controls for its "one-stop" integrated approach that caters to the entire lifecycle of buildings, including thermal management, building automation, and energy efficiency [3]

Core Viewpoint - Johnson Controls International plc will present at Citi's 2025 Global Industrial Tech and Mobility Conference, highlighting its leadership in smart, healthy, and sustainable buildings [1]. Company Overview - Johnson Controls is recognized as the global leader in smart, healthy, and sustainable buildings, aiming to enhance building performance for people, places, and the planet [3]. - The company has a rich history of 140 years of innovation and offers a comprehensive digital solution called OpenBlue, which serves various industries including healthcare, education, data centers, airports, and manufacturing [4]. - Johnson Controls provides the largest portfolio of building technology and software, along with service solutions from trusted industry names [4].

Financial Performance - Net sales for the three months ended December 31, 2024, increased by 4% to $5,426 million compared to $5,209 million in the same period of 2023, driven by higher organic sales of $480 million [190]. - Gross profit rose by 8% to $1,926 million, with a gross margin of 35.5%, up from 34.1% in the prior year, primarily due to margin improvements in the Building Solutions segments [192]. - Total net sales increased by 4% to $5.426 billion in Q4 2024 from $5.209 billion in Q4 2023 [201]. - The Company reported a 10% increase in net sales when excluding the impact of foreign currency translation and business acquisitions and divestitures, driven by strong growth in Products and Systems [190]. - Segment EBITA for Building Solutions North America rose by 16% to $332 million in Q4 2024 from $285 million in Q4 2023 [202]. - Cash provided by operating activities was $249 million in Q4 2024, a significant improvement from $(111) million in Q4 2023 [208]. Restructuring and Costs - The Company expects to incur approximately $400 million in one-time restructuring costs over fiscal 2025, 2026, and 2027, with anticipated annual cost savings of approximately $500 million upon full completion of the restructuring plan [186]. - Selling, General and Administrative (SG&A) expenses increased by 5% to $1,399 million, representing 25.8% of sales, primarily due to transformation and transaction/separation costs [194]. - Restructuring and impairment costs decreased to $33 million in Q4 2024 from $35 million in Q4 2023 [196]. Debt and Liabilities - Total debt increased to $9.993 billion as of December 31, 2024, compared to $9.493 billion as of September 30, 2024 [209]. - Current assets of the Obligor Group as of December 31, 2024, were $696 million, while current liabilities were $7,536 million [217]. - Noncurrent liabilities for the Obligor Group as of December 31, 2024, totaled $8,395 million, compared to $7,836 million as of September 30, 2024 [217]. - The Obligor Group's total current liabilities increased by approximately 12% from $6,726 million as of September 30, 2024, to $7,536 million as of December 31, 2024 [217]. - The Company has various senior notes with aggregate principal amounts including €500 million at 0.375% due 2027 and $700 million at 5.500% due 2029 [216]. Market and Economic Conditions - The Company anticipates that ongoing geopolitical tensions and tariffs may negatively impact revenue growth and margins in future periods [183]. - The Building Solutions Asia Pacific segment's performance is expected to be impacted by the stabilization of economic conditions in China, which remains tempered [178]. - The Company experienced a negative impact of $33 million from foreign currency translation on net sales during the three months ended December 31, 2024 [190]. Dividends and Cash Proceeds - The company declared a dividend of $0.37 per common share in Q4 2024 and plans to continue dividends throughout fiscal 2025 [211]. - The company expects to receive approximately $5.0 billion in net cash proceeds from the sale of its R&LC HVAC business, anticipated to close in Q4 2025 [211]. Tax and Financing - Income tax provision increased to $47 million in Q4 2024 compared to a benefit of $(20) million in Q4 2023, with an effective tax rate of 11.5% [198]. - Net financing charges slightly decreased to $86 million in Q4 2024 from $87 million in Q4 2023 [197]. Other Considerations - The Company is leveraging its OpenBlue digital software platform to enhance energy efficiency and sustainability in buildings, aligning with increasing demand driven by government regulations [180]. - The Obligor Group does not have sales or gross profit reported, highlighting a focus on debt management rather than revenue generation [216]. - There have been no material changes in the Company's critical accounting estimates since the last Annual Report [219]. - The Company has not experienced any adverse changes in market risk exposures as of December 31, 2024 [220]. - The Company may purchase its outstanding debt depending on market conditions and liquidity requirements, indicating potential material amounts involved [216].

Core Insights - Johnson Controls International plc (JCI) reported adjusted earnings of 64 cents per share for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate of 59 cents, marking a 39.1% year-over-year increase [1] - Total revenues for continuing operations reached $5.43 billion, surpassing the consensus estimate of $5.33 billion, with a year-over-year increase of 4.2% and organic revenue growth of 10% [1] Q1 Segmental Results - **Building Solutions North America**: Revenues were $2.74 billion, up 10% year over year, with organic sales also increasing by 10%. Adjusted EBITA rose 16% to $332 million [2] - **Building Solutions Europe, Middle East, Africa/Latin America**: Revenues totaled $1.07 billion, a 3% increase year over year, with organic sales climbing 6%. Adjusted EBITA was $108 million, up 35% [3] - **Building Solutions Asia Pacific**: Revenues increased 4% to $527 million, with organic sales growing 5%. Adjusted EBITA was $49 million, up 7% [3] - **Global Products**: Revenues were $1.08 billion, down 8% year over year, but organic sales increased by 15%. Adjusted EBITA rose 21.6% to $326 million [4] Margin Profile - JCI's cost of sales increased 2% year over year to approximately $3.5 billion. Gross profit rose 8.3% to $1.9 billion, with a margin increase of 140 basis points to 35.5%. Selling, general and administrative expenses were $1.4 billion, up 4.9% year over year [5] Financial Position - As of December 31, 2024, JCI had cash and cash equivalents of $1.24 billion, up from $606 million at the end of fiscal 2024. Long-term debt increased to $8.6 billion from $8 billion [6] Cash Flow and Share Repurchase - In Q1 fiscal 2025, JCI generated net cash of $249 million from operating activities, compared to a cash outflow of $111 million in the same period last year. Free cash flow was $133 million, a turnaround from a free cash outflow of $193 million in the prior year. The company repurchased 4.1 million shares for approximately $330 million [7] Guidance - For Q2, JCI anticipates mid-single digit organic revenue growth and an adjusted segment EBITA margin of approximately 16.5%. Adjusted earnings are expected to be in the range of 77-79 cents per share [8] - For FY25, JCI expects organic revenue growth in the mid-single digit range and an adjusted segment EBITA margin improvement of more than 80 basis points. Adjusted earnings are projected to be between $3.50 and $3.60 per share [9][10]