Core Insights - Johnson Controls (JCI) reported a revenue of $6.05 billion for the quarter ended June 2025, reflecting a year-over-year decline of 16.3% and an EPS of $1.05 compared to $1.14 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $5.99 billion, resulting in a surprise of +1.09%, while the EPS also surpassed the consensus estimate of $1.00 by +5% [1] Financial Performance - The company’s net sales in Building Solutions North America reached $4.04 billion, significantly higher than the $3 billion estimated by analysts, marking a year-over-year increase of +39.4% [4] - In the EMEA/LA region, net sales were reported at $1.27 billion, exceeding the average estimate of $1.11 billion, with a year-over-year change of +17.8% [4] - For the Asia Pacific region, net sales amounted to $737 million, surpassing the average estimate of $600.8 million, representing a +28.2% year-over-year increase [4] Stock Performance - Over the past month, shares of Johnson Controls have returned +5.6%, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Organic sales grew by 6% in Q3 2025, with segment margins expanding by 20 basis points to 17.6% [5][22] - Adjusted EPS increased by 11% year-over-year to $1.05, exceeding guidance [5][22] - Year-to-date adjusted free cash flow nearly doubled to $1.8 billion, with over 100% free cash flow conversion expected for the year [5][22] Business Line Data and Key Metrics Changes - Orders grew by 2%, with strength in The Americas offset by softness in China [6][23] - In the Americas, orders increased by 5%, while EMEA saw a 2% increase, and APAC experienced a decline [23][24] - Sales in the Americas rose by 7% organically, with EMEA growing by 4% and APAC by 6% [24][25] - The backlog grew by 11% to a record $14.6 billion, with both system and service backlogs increasing [6][26] Market Data and Key Metrics Changes - Orders in the Americas increased by 5%, while EMEA saw a 2% increase, and APAC orders declined [23][24] - The service business showed strong growth, particularly in EMEA with an 8% increase [24][25] - The data center market remains robust, contributing to healthy sales growth [94] Company Strategy and Development Direction - The company is focusing on customer centricity, operational efficiency, and innovation to drive growth [8][9] - A new business system is being implemented, emphasizing simplification, acceleration, and scaling through lean principles and digitization [12][13] - The company is evaluating its portfolio for potential acquisitions or exits to ensure sustainable growth [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core vertical markets remaining healthy despite challenges in China [64] - The company anticipates low single-digit organic sales growth for Q4 and is raising its full-year guidance for adjusted EPS and free cash flow [27][28] - There is a focus on improving operational efficiency and addressing growth blockers identified in various business lines [15][16] Other Important Information - The sale of the residential and light commercial HVAC business to Bosch is expected to close in Q4, with most net proceeds returned to shareholders [28] - The company is committed to returning 100% of free cash flow to shareholders through dividends and share repurchases [27][28] Q&A Session Summary Question: Initial observations and KPIs focus - Management highlighted the importance of sharpening customer focus and driving growth through innovation and R&D investments [30][32] Question: Accelerating growth in Fire and Security - Management sees potential for growth in Fire and Security, with plans to apply new business system principles to improve performance [41][44] Question: Free cash flow opportunities - Management noted strong cash flow performance driven by improved accounts receivable management and ongoing lean transformation efforts [47][49] Question: Order trends and long-term outlook - Management acknowledged ongoing softness in China but expressed confidence in healthy pipelines and core vertical markets [62][64] Question: Framework for 2026 and Investor Day plans - Management is working on 2026 plans and aims to provide a clearer long-term outlook as the year progresses [71][73]

Financial Data and Key Metrics Changes - Organic sales grew by 6% in Q3 2025, with segment margins expanding by 20 basis points to 17.6% [4][22] - Adjusted EPS increased by 11% year-over-year, reaching $1.05, exceeding guidance [23] - Year-to-date adjusted free cash flow nearly doubled to $1.8 billion, with over 100% free cash flow conversion expected for the year [4][29] Business Line Data and Key Metrics Changes - Orders grew by 2%, with strength in The Americas offset by softness in China [5][24] - In The Americas, orders increased by 5%, while EMEA saw a 2% rise, and APAC experienced a decline [24][25] - Adjusted segment EBITDA margins improved across regions, with EMEA up 100 basis points to 14.1% and APAC up 70 basis points to 19.4% [26] Market Data and Key Metrics Changes - The backlog grew by 11% to a record $14.6 billion, with both system and service backlogs increasing [5][27] - Sales in The Americas rose by 7% organically, driven by HVAC and controls [25] - APAC sales grew by 6% organically, with strong double-digit growth in the service business [26] Company Strategy and Development Direction - The company is focusing on customer centricity, operational efficiency, and innovation to drive growth [7][8] - A new business system is being developed, emphasizing simplification, acceleration, and scaling through lean principles and digitization [12][14] - The company is evaluating its portfolio for potential acquisitions or exits to ensure sustainable growth [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of core vertical markets despite challenges in China [63] - The company anticipates low single-digit organic sales growth in Q4, with a reaffirmation of mid-single-digit growth for the full year [27][28] - There is a focus on improving operational efficiency and cash flow conversion, with expectations of maintaining over 100% free cash flow conversion [29][50] Other Important Information - The sale of the residential and light commercial HVAC business to Bosch is expected to close in Q4, with most proceeds returned to shareholders [30] - The company is committed to returning 100% of free cash flow to shareholders through dividends and share repurchases [29] Q&A Session Summary Question: Initial observations and KPIs focus - Management highlighted the need to sharpen customer focus and drive growth through innovation and operational improvements [34][35] Question: Accelerating growth in Fire and Security - Management sees potential in both HVAC and Fire and Security, with plans to apply new business systems to improve performance [45][46] Question: Free cash flow opportunities - Management noted strong cash flow performance driven by improved collection management and operational efficiencies [49][50] Question: Orders and growth outlook - Management expressed confidence in healthy pipelines despite lower-than-expected order growth, particularly in China [62][63] Question: 2026 outlook and Investor Day - Management is working on the 2026 plan and aims to provide a clearer long-term outlook as the year progresses [72][74]

Financial Performance - Organic sales grew by 6%[10, 15], driven by broad-based strength across the company - Adjusted Segment EBITA margin expanded by 20 basis points to 176%[10] - Adjusted EPS increased by 11% year-over-year, reaching $105[10, 17] - The company reported strong free cash flow[10] Orders and Backlog - Orders grew by 2%[10], with growth in the Americas offsetting softness in China - Backlog increased by 11% to $146 billion[10] - Service orders increased by 5% and systems orders increased by 1%[23] - Service backlog grew by 8% and systems backlog grew by 11%[24] Segment Results - Americas sales grew by 5%[27] and backlog increased by 10% to $103 billion[27] - EMEA sales grew by 2%[27] and backlog increased by 9% to $26 billion[27] - APAC sales grew by 7%[27] and backlog increased by 14% to $17 billion[27] Guidance - The company updated its full-year adjusted EPS guidance to a range of $365 to $368[10] - The company expects adjusted free cash flow conversion to be greater than 100%[10] - Q4 2025 adjusted segment EBITA margin is expected to be approximately 186%[29]

Group 1 - The core viewpoint of the article highlights that Johnson Controls reported third-quarter net sales of $6.1 billion, exceeding the estimated $6 billion [1] - The adjusted earnings per share (EPS) for the company was $1.05, surpassing the market expectation of $1.01 [1]

智通财经7月29日电，江森自控第三季度净销售额61亿美元，预估60亿美元；调整后每股收益1.05美 元，超出市场预期的1.01美元。 ...

[Q3 2025 Earnings Release](index=1&type=section&id=Q3%202025%20Earnings%20Release) Johnson Controls reports strong Q3 2025 results with increased sales, robust backlog, and raised full-year guidance [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Johnson Controls reported **$6.1 billion** sales with **6% organic growth**, **$0.94** GAAP EPS, and a record **$14.6 billion** Systems and Services backlog Q3 2025 Key Financial Metrics | Metric | Q3 2025 Value | YoY Change (as reported) | YoY Change (organic) | | :--- | :--- | :--- | :--- | | Sales | $6.1B | +3% | +6% | | GAAP EPS | $0.94 | - | - | | Adjusted EPS | $1.05 | - | - | | Orders | - | - | +2% | | Systems & Services Backlog | $14.6B | - | +11% | - CEO Joakim Weidemanis highlighted the company's 140-year history, attributing strong results to customer prioritization, employee empowerment, and R&D investment, emphasizing a new business system for accelerated performance and long-term shareholder value[3](index=3&type=chunk) [Segment Performance](index=2&type=section&id=FISCAL%20Q3%20SEGMENT%20RESULTS) Americas and APAC segments led organic growth, with mixed margins reflecting productivity and regional adjustments [Americas](index=2&type=section&id=Americas) Americas sales were flat reported but **7% organic growth** to **$4.0 billion**, with GAAP EBITA margin down and adjusted margin up Americas Q3 Performance (vs. Q3 2024) | Metric | Q3 2025 (million) | Q3 2024 (million) | Change | | :--- | :--- | :--- | :--- | | Sales | $4,042 | $4,035 | 0% | | GAAP Segment EBITA | $742 | $804 | -8% | | Adjusted Segment EBITA | $746 | $743 | 0% | | GAAP Segment EBITA Margin | 18.4% | 19.9% | -150 bp | | Adjusted Segment EBITA Margin | 18.5% | 18.4% | +10 bp | - Organic orders increased by **5%** year-over-year, and the backlog grew by **10%** to **$10.3 billion**, indicating continued demand in the region[7](index=7&type=chunk) [EMEA (Europe, Middle East, Africa)](index=2&type=section&id=EMEA%20(Europe%2C%20Middle%20East%2C%20Africa)) EMEA sales grew **8%** to **$1.3 billion** with **4% organic growth**, driven by Service, expanding GAAP and adjusted EBITA margins EMEA Q3 Performance (vs. Q3 2024) | Metric | Q3 2025 (million) | Q3 2024 (million) | Change | | :--- | :--- | :--- | :--- | | Sales | $1,273 | $1,177 | +8% | | GAAP Segment EBITA | $177 | $154 | +15% | | Adjusted Segment EBITA | $179 | $154 | +16% | | GAAP Segment EBITA Margin | 13.9% | 13.1% | +80 bp | | Adjusted Segment EBITA Margin | 14.1% | 13.1% | +100 bp | - Organic orders saw a modest increase of **2%** year-over-year, while the backlog grew by **9%** to **$2.6 billion**[9](index=9&type=chunk) [APAC (Asia Pacific)](index=3&type=section&id=APAC%20(Asia%20Pacific)) APAC sales increased **7%** to **$737 million** with **6% organic growth** and improved EBITA margin, despite **8% lower** organic orders APAC Q3 Performance (vs. Q3 2024) | Metric | Q3 2025 (million) | Q3 2024 (million) | Change | | :--- | :--- | :--- | :--- | | Sales | $737 | $686 | +7% | | GAAP & Adjusted Segment EBITA | $143 | $128 | +12% | | GAAP & Adjusted Segment EBITA Margin | 19.4% | 18.7% | +70 bp | - While sales and backlog (**$1.7B**, **+14% YoY**) were strong, organic orders declined by **8%** compared to the prior year[11](index=11&type=chunk) [Corporate](index=3&type=section&id=Corporate) GAAP corporate expenses increased **10%** to **$141 million**, while adjusted expenses decreased **22%** to **$93 million** after exclusions Corporate Expense Q3 (vs. Q3 2024) | Metric | Q3 2025 (million) | Q3 2024 (million) | Change | | :--- | :--- | :--- | :--- | | GAAP Corporate Expense | $141 | $128 | +10% | | Adjusted Corporate Expense | $93 | $119 | -22% | [Other Q3 Financial Items](index=3&type=section&id=OTHER%20Q3%20ITEMS) Johnson Controls generated **$787 million** operating cash flow and **$693 million** free cash flow, returning capital via dividends and share repurchases - **Cash Flow**: Generated **$787 million** in cash from operating activities and **$693 million** in free cash flow (**$725 million** adjusted)[13](index=13&type=chunk) - **Dividends**: Paid **$243 million** to shareholders[13](index=13&type=chunk) - **Share Repurchases**: Bought back **3.8 million** shares for **$310 million**[13](index=13&type=chunk) [Fiscal 2025 Guidance](index=4&type=section&id=GUIDANCE) Johnson Controls initiated Q4 2025 guidance, raising full-year adjusted EPS to **$3.65-$3.68** and free cash flow conversion to **>100%** Q4 Fiscal 2025 Guidance | Metric | Guidance | | :--- | :--- | | Organic Sales Growth | Low single digits | | Adjusted Segment EBITA Margin | ~18.6% | | Adjusted EPS | $1.14 to $1.17 | Full Year Fiscal 2025 Guidance (Raised) | Metric | Guidance | Previous Guidance | | :--- | :--- | :--- | | Organic Sales Growth | Mid-single digits | Unchanged | | Adjusted Segment EBITA Margin Improvement | ~90 bps YoY | Unchanged | | Adjusted EPS | $3.65 to $3.68 | ~$3.60 | | Adjusted Free Cash Flow Conversion | >100% | ~100% | [Consolidated Financial Statements](index=8&type=section&id=FINANCIAL%20STATEMENTS) Consolidated financial statements show **3%** net sales growth, stable balance sheet, and significant operating cash flow increase from continuing operations [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) Net sales increased to **$6.05 billion**, but income from continuing operations decreased to **$618 million**, resulting in **$0.94** diluted EPS Q3 Income Statement Highlights (in millions, except EPS) | Metric | Three Months Ended June 30, 2025 (million) | Three Months Ended June 30, 2024 (million) | | :--- | :--- | :--- | | Net Sales | $6,052 | $5,898 | | Gross Profit | $2,246 | $2,109 | | Income from continuing operations | $618 | $851 | | Net Income attributable to JCI | $701 | $975 | | Diluted EPS (Continuing ops) | $0.94 | $1.27 | [Condensed Consolidated Statements of Financial Position](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Total assets increased to **$43.4 billion** and liabilities to **$26.3 billion** as of June 30, 2025, with minor equity decrease Balance Sheet Summary (in millions) | Metric | June 30, 2025 (million) | September 30, 2024 (million) | | :--- | :--- | :--- | | Total Assets | $43,393 | $42,695 | | Total Liabilities | $26,348 | $25,334 | | Total Equity | $17,045 | $17,361 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash from operating activities (continuing operations) increased to **$787 million**, with **$637 million** used in financing for repurchases and dividends Q3 Cash Flow Highlights (in millions) | Metric | Three Months Ended June 30, 2025 (million) | Three Months Ended June 30, 2024 (million) | | :--- | :--- | :--- | | Cash from Operating Activities (Continuing ops) | $787 | $653 | | Cash used by Investing Activities (Continuing ops) | ($85) | ($90) | | Cash used by Financing Activities (Continuing ops) | ($637) | ($930) | [Footnotes and Non-GAAP Reconciliations](index=11&type=section&id=FOOTNOTES) Footnotes clarify financial reporting basis, discontinued operations, and provide non-GAAP reconciliations, outlining key adjustments from GAAP - The company uses non-GAAP measures like organic sales (excluding M&A and currency impacts) and adjusted free cash flow to help investors understand underlying business trends and cash generation capabilities[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - Significant items excluded from GAAP results to arrive at adjusted figures include: - Restructuring and impairment costs - Transaction/separation costs - Transformation costs - Earn-out adjustments - Water systems AFFF settlement and insurance recoveries - Net mark-to-market adjustments[36](index=36&type=chunk)[38](index=38&type=chunk) - The sale of the Residential and Light Commercial (R&LC) HVAC business is treated as a discontinued operation, with its historical financial results removed from continuing operations and its assets/liabilities classified as held for sale[30](index=30&type=chunk)

Core Viewpoint - Johnson Controls International plc reported strong fiscal third quarter 2025 results, with a notable increase in sales and adjusted earnings per share, reflecting the company's focus on innovation and customer commitment [2][3][7]. Financial Performance - The company achieved GAAP earnings per share (EPS) of $0.94 and adjusted EPS of $1.05 for the third quarter [2]. - Total sales for the quarter reached $6.1 billion, marking a 3% increase year-over-year, with organic sales growth of 6% [2][7]. - GAAP income from continuing operations was $618 million, while adjusted income from continuing operations was $693 million [2]. Segment Results - **Americas**: Sales remained flat at $4.0 billion, with organic sales increasing by 7%. GAAP segment EBITA was $742 million, down 8% year-over-year [5][6]. - **EMEA**: Sales increased by 8% to $1.3 billion, with a 15% rise in GAAP segment EBITA [8][9]. - **APAC**: Sales grew by 7% to $737 million, with a 12% increase in GAAP segment EBITA [9][10]. Orders and Backlog - Excluding M&A and adjusted for foreign currency, orders increased by 5% year-over-year, and the backlog reached $10.3 billion, up 10% year-over-year [6][7]. Cash Flow and Shareholder Returns - Cash provided by operating activities was $787 million, with free cash flow of $693 million and adjusted free cash flow of $725 million [12][39]. - The company paid dividends totaling $243 million and repurchased 3.8 million shares for $310 million [12]. Guidance - The company raised its full-year fiscal 2025 guidance, projecting organic sales growth of mid-single digits and adjusted EPS of $3.65 to $3.68 [19][14].

In its upcoming report, Johnson Controls (JCI) is predicted by Wall Street analysts to post quarterly earnings of $1.00 per share, reflecting a decline of 12.3% compared to the same period last year. Revenues are forecasted to be $5.99 billion, representing a year-over-year decrease of 17.2%.Over the last 30 days, there has been a downward revision of 1.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their in ...

Group 1 - Johnson Controls has appointed Chris Scalia as executive vice president and chief human resources officer (CHRO) to enhance the company's growth strategy [1][2] - Scalia brings over 20 years of experience from The Hershey Company, where he held dual roles as CHRO and Chief Transformation Officer, leading significant transformations and portfolio evolution [2][4] - CEO Joakim Weidemanis emphasized Scalia's expertise in people and culture strategy, operational excellence, and team building as essential for transforming Johnson Controls into a customer-centric organization [3] Group 2 - Scalia's career includes extensive experience in labor relations and management employment law, with a strong focus on change management across various operational areas [4] - He holds an Executive Master's degree in Human Resources from Cornell University, a Juris Doctorate from Penn State, and a Bachelor of Arts from Juniata College, showcasing a solid educational background [4] - Johnson Controls aims to leverage Scalia's leadership to create a world-class employee experience and attract top talent, which is critical for the company's competitive edge [3]