Question-and-Answer SessionOf course. And I think JCI had some news on an acquisition. So maybe just start off with the background on that and kind of what it brings to JCI's portfolio?Marc VandiepenbeeckExecutive VP & CFO Yes. So this is really a capability acquisition. Alloy is quite an incredible firm with a team of engineering folks in Boston that really have created a differentiated technology to really combine manufacturing process and material technology to create differentiated solution for data cen ...

Johnson Controls International (NYSE:JCI) FY Conference Summary Company Overview - **Company**: Johnson Controls International (JCI) - **Date of Conference**: February 19, 2026 - **Key Speaker**: Marc Vandiepenbeeck, CFO Key Points Acquisition and Technology Development - JCI announced an acquisition of Alloy, a firm specializing in manufacturing process and material technology, enhancing JCI's capabilities in data centers and mission-critical environments [4][6] - The acquisition aims to differentiate JCI's CDU (Cooling Distribution Unit) offerings, with a current pipeline nearing $1 billion and strong initial order bookings [4][6] - Alloy's technology is expected to improve JCI's product line, including chillers and cold plates, contributing to a leadership position in the market [4][6] Order Growth and Market Demand - JCI experienced significant order growth, particularly in the commercial HVAC sector, driven by increased demand from hyperscalers and colocation providers [11][12] - The company reported a 40% increase in orders, with a strong double-digit growth in the pipeline, which is unprecedented in JCI's history [14][15] - The backlog is expected to convert into revenue primarily in 2027, with some orders starting to generate revenue in late 2026 [22][23] Capacity and Revenue Management - JCI has tripled its manufacturing capacity in North America over the past two years to meet demand, with ongoing efforts to increase soft capacity [21][22] - Challenges in electrical infrastructure are causing delays in order fulfillment, impacting the timing of revenue recognition [25][22] - The HVAC equipment segment is projected to see double-digit growth, while the overall Americas business is expected to achieve high single-digit to low double-digit growth [27][34] Market Trends and Competitive Landscape - The market is shifting towards integrated systems rather than standalone components, with customers seeking comprehensive solutions that optimize performance across various systems [40][41] - JCI is well-positioned in the evolving market, particularly with its Metasys solution for data centers [46][40] - Liquid cooling is anticipated to grow significantly over the next few years, with JCI investing in technology to capture market share in this area [47][49] Portfolio Management and Strategic Focus - JCI is focusing on its core strategy of AI data centers, mission-critical verticals, and energy efficiency, while divesting non-core assets [100][106] - The company has divested parts of its residential security business and is considering further divestitures of underperforming segments [106][107] - JCI does not see the need for large acquisitions at this stage but remains open to opportunities that align with its strategic focus [109][111] Financial Performance and Margins - The Americas segment is experiencing mixed performance, with equipment sales growing rapidly but facing margin pressures due to a higher growth rate in lower-margin businesses [74][75] - JCI's restructuring efforts are expected to yield long-term benefits, although short-term margin improvements may be limited [66][81] - The corporate cost structure is on a downward trend, with ongoing efforts to streamline operations and reduce overhead [87][90] Conclusion - JCI is strategically positioned to capitalize on growth in the data center market through technology differentiation and capacity expansion - The company is actively managing its portfolio to focus on high-growth areas while addressing challenges in its service and security segments - Continued investment in innovation and operational efficiency is expected to drive future growth and enhance shareholder value

Question-and-Answer SessionMarc, as I walk over, a lot's been going on over the last year for you guys. I want to start with JCI's transformation over the last couple of years because I think it's been pretty remarkable. You have a much leaner portfolio. The team has been working on cost actions. You've been CFO for some time, and Joakim has been CEO for almost a year now. So maybe you could just highlight for us earlier wins that you've had? And what would you say you and Joakim have had the most impact on ...

Johnson Controls International (NYSE:JCI) 2026 Conference February 19, 2026 08:00 AM ET Company ParticipantsAndy Kaplowitz - Managing Director and Head of the Industrials Sector Research TeamMarc Vandiepenbeeck - EVP and CFOAndy KaplowitzWe're very excited to start day three of our conference with Johnson Controls. We've got Marc Vandiepenbeeck with us, who is the EVP and CFO of Johnson Controls. Marc, as I walk over, a lot's been going on over the last year for you guys. I wanna start with JCI's transforma ...

This story was originally published on Facilities Dive. To receive daily news and insights, subscribe to our free daily Facilities Dive newsletter. Dive Brief: Johnson Controls on Wednesday announced an agreement to acquire Alloy Enterprises, a Boston-based company providing a thermal management platform for high-performance data centers and other mission-critical industrial applications. The Boston-based company’s platform uses direct liquid-cooling components to enable up to a 35% improvement in therm ...

Conditioning)][News Releases in Similar Topics]---- -- potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this communication are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumsta ...

Core Viewpoint - Johnson Controls International (JCI) has shown a positive stock price trend in early February 2026, with significant trading activity and a notable increase in stock price over the past week [1][2]. Financial Performance - The latest financial report indicates that the company achieved a revenue of $23.596 billion, a net profit of $1.721 billion, and earnings per share of $2.75, with a price-to-earnings ratio of 22.15 [2]. Recent Events - On January 6, 2026, JCI's stock experienced a significant drop of 8.34%, closing at $111.39, although there were no major announcements in the following week [3]. - The company declared a quarterly dividend of $0.40 per share on December 2025, which was fully paid by January 16, 2026 [3]. - JCI was ranked 82nd in the 2025 list of America's Best Managed Companies, announced on January 9, 2026 [3].

Core Viewpoint - The article emphasizes a long-term investment strategy focusing on a balanced portfolio that includes growth, value, and dividend-paying stocks, with a particular inclination towards value stocks [1]. Group 1 - The investor typically adopts a 5-10 year investment horizon, aiming for simplicity in investment choices [1]. - The portfolio strategy is characterized by a mix of different stock types, although there is a stronger focus on value stocks compared to others [1]. - The investor occasionally engages in selling options as part of their investment approach [1].

Investment Rating - The report rates the machinery equipment industry as "Overweight" [1] Core Insights - The machinery equipment sector is experiencing significant growth driven by increased demand for efficient cooling solutions in data centers and AI infrastructure [3][22] - Major companies like Trane Technologies and Johnson Controls are reporting strong order growth, indicating a robust market environment [9][15] - Google's substantial capital expenditure plans for 2026 highlight the increasing investment in AI and cloud infrastructure, which is expected to further boost demand for related equipment [21] Summary by Sections 1. Trane Technologies Financial Review - Trane Technologies reported Q4 2025 revenue of $5.1 billion, a 6% year-over-year increase, with adjusted EPS of $2.86, up 10% [9] - The company saw a 24% increase in new orders, with a record backlog of $7.8 billion, indicating strong future revenue potential [10] - The commercial HVAC business is a key growth driver, with orders up over 35% in Q4 2025 [10] 2. Johnson Controls Performance - Johnson Controls achieved Q1 2026 revenue of $5.8 billion, a 7% increase year-over-year, with a 39% rise in self-owned business orders [15] - The company has raised its adjusted EPS guidance for FY 2026 to approximately $4.70, reflecting a 25% year-over-year growth [15] - The introduction of new products like the YORK YDAM chiller is aimed at enhancing data center cooling solutions [20] 3. Google's Cloud Business - Alphabet reported Q4 2025 revenue of $113.8 billion, an 18% increase, with cloud revenue growing 48% due to AI infrastructure demand [21] - The company plans to invest $175 to $185 billion in capital expenditures for 2026, nearly doubling its previous year's investment [21] 4. Investment Recommendations - The report suggests that the growth in data centers will create opportunities for Chinese cooling equipment manufacturers, such as Ice Wheel Environment and Linde Co., to capitalize on the demand for cooling solutions [22] - Companies like Invek, which provide comprehensive liquid cooling solutions, are also highlighted as potential beneficiaries of this trend [22] 5. Caterpillar Financial Review - Caterpillar reported 2025 revenue of $67.6 billion, a 4% increase, with Q4 revenue reaching a record $19.1 billion [28] - The power and energy segment saw a 23% increase in sales, driven by demand from data centers [29] - The construction machinery segment also grew, but profit margins were pressured by rising costs [29]

Core Viewpoint - Johnson Controls International plc (NYSE:JCI) has demonstrated strong performance in its fiscal Q1 results, leading to an increased price target from JPMorgan and a positive outlook for future profits driven by demand in the data center sector [2][3][4]. Financial Performance - For the quarter ended December 31, Johnson Controls reported adjusted earnings of $0.89 per share, up from $0.64 a year earlier [5]. - Revenue for the first quarter increased to $5.79 billion, compared to $5.43 billion in the prior-year period [5]. - The company raised its full-year adjusted profit forecast to $4.70 per share from $4.55, surpassing analysts' average estimate of $4.61 [4]. Market Outlook - The company guided 2026 profit above Wall Street expectations, indicating steady demand for its thermal management and cooling equipment, particularly in data centers [3]. - As AI computing capacity expands, the demand for energy-efficient thermal management solutions is rising, benefiting Johnson Controls [4]. Analyst Ratings - JPMorgan raised its price target on Johnson Controls to $158 from $138 and maintained an Overweight rating, citing a "break out in performance" under the new CEO [2][8].