Financial Performance - Q2 2025 GAAP earnings per share (EPS) was $0.71, with adjusted EPS at $0.82[1] - Net income attributable to Johnson Controls for Q2 2025 was $478 million, a significant recovery from a net loss of $277 million in Q2 2024[27] - Basic earnings per share for continuing operations in Q2 2025 was $0.72, compared to a loss of $0.47 in Q2 2024[27] - The company achieved a net income attributable to Johnson Controls of $545 million in Q1 2025, compared to a loss of $471 million in Q1 2024[48] - Net income attributable to JCI for the six months ended March 31, 2025, was $836 million, up from $19 million in 2024[50] - Diluted earnings per share increased to $1.26 in 2025 from $0.03 in 2024[50] Sales and Revenue Growth - Sales for the quarter reached $5.7 billion, a 1% increase year-over-year, with organic sales growth of 7%[2] - Net sales for Q2 2025 reached $5,676 million, a 1.4% increase from $5,597 million in Q2 2024[27] - Building Solutions backlog increased to $14.0 billion, reflecting a 12% organic growth year-over-year[5] - Orders in Q2 increased 5% organically compared to the previous year[5] - Building Solutions North America sales were $2.9 billion, up 6% year-over-year, with organic sales growth of 7%[6] - Building Solutions EMEA/LA sales increased 2% to $1.1 billion, with organic sales growth of 5%[8] - Building Solutions Asia Pacific sales rose 10% to $542 million, with organic sales growth of 13%[10] - Global Products segment sales declined 13% to $1.1 billion, but organic sales grew 8%[12] - Future net sales for 2025 are projected to reach $11,102 million, with a growth rate of 7% anticipated[42] Cash Flow and Financial Position - Cash provided by operating activities was $550 million, with free cash flow at $456 million[17] - Cash provided by operating activities from continuing operations for Q2 2025 was $550 million, a turnaround from cash used of $326 million in Q2 2024[31] - The company reported a decrease in cash and cash equivalents to $795 million as of March 31, 2025, down from $838 million at the end of Q2 2024[31] - Free cash flow for Q1 2025 was $456 million, a significant improvement from a negative $454 million in Q1 2024[46] - Adjusted free cash flow for the first half of 2025 was $1,066 million, compared to $7 million in the same period of 2024[47] Debt and Assets - Total assets as of March 31, 2025, were $42,367 million, slightly down from $42,695 million as of September 30, 2024[29] - Short-term debt increased to $1,261 million as of March 31, 2025, compared to $953 million as of September 30, 2024[29] - Total debt as of March 31, 2025, was $9,986 million, slightly down from $9,993 million at the end of 2024[52] - Net debt to income before income taxes improved to 3.6x in March 2025 from 5.4x in December 2024[52] Operational Metrics - Gross profit for Q2 2025 was $2,069 million, compared to $1,922 million in Q2 2024, reflecting a 7.7% increase[27] - Segment EBITA for Building Solutions North America increased to $390 million in Q1 2025, up from $373 million in Q1 2024[48] - Adjusted segment EBITA margin for Global Products was 30.3% in Q1 2025, up from 24.3% in Q1 2024[48] - Adjusted segment EBITA margin for Global Products improved to 30.2% in 2025 compared to 23.5% in 2024[49] - The company reported an operating cash flow conversion rate of 116% for Q1 2025, compared to 96% for the same period last year[46] Strategic Initiatives - The company is focusing on strategic growth initiatives and cost-saving opportunities as part of its transformation strategy[41] - Management emphasizes the importance of organic sales growth, which excludes the impact of acquisitions and divestitures, for understanding sales trends[35] - Johnson Controls signed an agreement in July 2024 to sell its Residential and Light Commercial HVAC business, which is classified as a discontinued operation[33] Restructuring and Costs - The company incurred restructuring and impairment costs, primarily related to goodwill and intangible asset write-downs[41] - Transformation costs for the six months ended March 31, 2025, totaled $79 million, compared to $0 in 2024[50] - Cash payments related to the water systems AFFF settlement and insurance recoveries were noted, impacting cash flow[38] Tax and Corporate Expenses - The effective tax rate for the six months ending March 31, 2025, was approximately 12.0%, slightly higher than 11.7% for the same period in 2024[54] - Corporate expenses (GAAP) for the six months ended March 31, 2025, were $357 million, up from $231 million in 2024[49]

Core Insights - Johnson Controls International plc reported fiscal Q2 2025 GAAP earnings per share (EPS) of $0.71 and adjusted EPS of $0.82, with sales of $5.7 billion, reflecting a 1% increase year-over-year and a 7% organic growth [2][7][21] - The company experienced strong demand for its solutions, leading to margin expansion and a record backlog of $14.0 billion, which increased 12% organically year-over-year [3][7] - The company raised its full-year fiscal 2025 guidance, indicating confidence in continued growth and operational improvements [21][17] Financial Performance - Q2 2025 sales were $5.7 billion, up 1% from the previous year, with organic sales growth of 7% [2][7] - GAAP income from continuing operations was $473 million, while adjusted income was $545 million [2][7] - The company generated $550 million in cash from operating activities and reported free cash flow of $456 million [20] Segment Results - **Building Solutions North America**: Sales increased by 6% to $2.9 billion, with a segment EBITA margin of 13.4%, down 20 basis points year-over-year [5][6] - **Building Solutions EMEA/LA**: Sales rose 2% to $1.1 billion, with a significant EBITA margin increase of 410 basis points to 12.5% [6][8] - **Building Solutions Asia Pacific**: Sales grew by 10% to $542 million, with an EBITA margin of 14.6%, up 360 basis points [10][11] - **Global Products**: Sales declined by 13% to $1.1 billion, but organic sales grew by 8%, driven by price and volume growth [12][13] Guidance and Future Outlook - The company initiated guidance for fiscal Q3 and raised full-year fiscal 2025 expectations, projecting organic sales growth in the mid-single digits and adjusted EPS of approximately $3.60 [21][17] - Adjusted segment EBITA margin improvement is expected to be around 90 basis points year-over-year [21] Corporate Developments - Corporate expenses increased by 102% year-over-year to $186 million, attributed to certain corporate accruals and stranded costs from the divestiture of the R&LC HVAC business [14][15] - The company continues to focus on operational efficiencies and strategic growth initiatives to enhance value for stakeholders [3][21]

Johnson Controls International plc JCI will release earnings results for the second quarter, before the opening bell on Wednesday, May 7. Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Considering buying JCI stock? Here's what analysts think: Analysts expect the Cork, Ireland-based company to report quarterly earnings at 80 cents per share, up from 78 cents per share in the year-ago period. Johnson Controls International projects to report quarterly r ...

Core Viewpoint - Johnson Controls International plc (JCI) is set to release its second-quarter fiscal 2025 financial results on May 7, with expectations of a mixed performance in revenues and earnings compared to the previous year [1][5]. Revenue Estimates - The consensus estimate for JCI's revenues is $5.64 billion, reflecting a decrease of 15.8% from the same quarter last year [2]. - The Building Solutions North America segment is anticipated to benefit from strong demand for HVAC platforms in data centers [2]. - The Building Solutions Europe, the Middle East, Africa/Latin America segment is expected to see revenues of $1.1 billion, indicating a 0.5% increase year-over-year [3]. - The Building Solutions Asia Pacific segment is projected to experience a revenue decline of 14.3% year-over-year to $434.8 million [4]. - The Global Products segment is expected to see an 8.3% increase in revenues year-over-year to $531.5 million [4]. Earnings Estimates - The consensus estimate for adjusted earnings is set at 77 cents per share, a decrease of 1.3% from the previous year [2]. - JCI has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 5.1% [1]. Key Factors Influencing Performance - Investments in digital offerings, such as the OpenBlue platform, are expected to drive revenue growth [5]. - However, rising selling, general and administrative (SG&A) expenses, particularly due to higher insurance recovery costs, may negatively impact margins [6]. - The company faces foreign currency headwinds due to its significant international operations, which could further affect profitability [6]. Earnings Prediction Model - JCI currently has an Earnings ESP of 0.00%, indicating no clear prediction for an earnings beat this time [8]. - The company holds a Zacks Rank of 4 (Sell), which suggests a less favorable outlook compared to higher-ranked peers [8].

Core Viewpoint - Analysts expect Johnson Controls (JCI) to report quarterly earnings of $0.77 per share, reflecting a year-over-year decline of 1.3%, with revenues projected at $5.64 billion, down 15.8% from the previous year [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 1.2%, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Key Metrics Forecast - Analysts predict 'Net Sales- Global Products' to be $1.25 billion, indicating a year-over-year decline of 47.9% [5] - 'Net Sales- Building Solutions North America' is expected to reach $2.84 billion, reflecting a year-over-year increase of 3.6% [5] - 'Net Sales- Building Solutions EMEA/LA' is forecasted at $1.08 billion, suggesting a year-over-year change of 1.8% [5] - 'Net Sales- Building Solutions Asia Pacific' is estimated to be $514.05 million, indicating a year-over-year increase of 4.7% [6] Adjusted EBITA Estimates - The consensus for 'Total Segment Adjusted EBITA- Global Products' is $348.77 million, down from $455 million reported in the same quarter last year [6] - 'Total Segment Adjusted EBITA- Building Solutions North America' is forecasted at $393.45 million, compared to $373 million from the previous year [7] - 'Total Segment Adjusted EBITA- Building Solutions Asia Pacific' is estimated at $55.77 million, slightly up from $54 million reported last year [7] - The average prediction for 'Total Segment Adjusted EBITA- Building Solutions EMEA/LA' is $102.53 million, compared to $89 million from the previous year [8] Stock Performance - Over the past month, Johnson Controls shares have increased by 13%, while the Zacks S&P 500 composite has decreased by 0.5% [8] - Based on its Zacks Rank 3 (Hold), JCI is expected to perform in line with the overall market in the upcoming period [8]

Core Insights - Johnson Controls is celebrating its 140th anniversary, marking a significant milestone in its history of innovation and leadership in the building technology sector [1][2][3] Company Achievements - The company has a rich history of achievements, including the introduction of the first automatic sprinkler and room thermostat, and currently holds nearly 8,000 patents [1][2] - Johnson Controls has invested billions of dollars in engineering, research, and development to enhance its product offerings and services [2] Product and Service Portfolio - Johnson Controls offers one of the largest portfolios of heating, ventilation, and air conditioning (HVAC) equipment and controls globally, along with fire protection and smart security solutions [1][4] - The company is focused on serving a diverse range of customers, including data centers, advanced manufacturing, education, hospitals, and pharmaceutical labs [1][4] Future Outlook - The CEO emphasized the company's commitment to accelerating technology-based innovation and continuous improvement, aiming to transform the industry for the next 140 years [4] - Johnson Controls is integrating IoT, AI, and machine learning into its services, providing enhanced real-time analytics to create smarter buildings [4][7] Digital Transformation - The company is leveraging its OpenBlue digital offering to deliver comprehensive solutions for various industries, including healthcare, schools, and manufacturing [7] - Johnson Controls aims to simplify its portfolio while enhancing customer service, ultimately helping customers save money, energy, and time [4]

Core Viewpoint - Johnson Controls International plc, a leader in smart, healthy, and sustainable buildings, will participate in three upcoming conferences in May 2025 [1]. Company Overview - Johnson Controls focuses on transforming environments for living, working, learning, and playing, aiming to enhance building performance for people, places, and the planet [3]. - The company has a 140-year history 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, software, and service solutions in the industry [4]. Upcoming Conferences - The company will participate in the Oppenheimer 20th Annual Industrial Growth Conference on May 8, 2025, featuring a virtual fireside chat with CFO Marc Vandiepenbeeck [5]. - CFO Marc Vandiepenbeeck will also participate in the BofA Securities Industrials, Transportation & Airlines Key Leaders Conference on May 14, 2025, in New York [5]. - CEO Joakim Weidemanis and CFO Marc Vandiepenbeeck will take part in the Wolfe Research 18th Annual Global Transportation & Industrials Conference on May 21, 2025, in New York [5].

Core Insights - Johnson Controls released a study by Forrester Consulting highlighting the Total Economic Impact™ of its OpenBlue platform, indicating a potential ROI of up to 155% over three years for organizations using the platform [1][2][9] Group 1: OpenBlue Platform Overview - OpenBlue is an AI-optimized smart building ecosystem that enhances operational efficiency through real-time data visibility and tailored energy-saving recommendations [3][4] - The integration of OpenBlue with FM:Systems solutions improves data visibility and supports strategic real estate decisions [3][4] Group 2: Economic Benefits - The study found that organizations using OpenBlue could achieve up to 10% savings on energy costs, with specific examples showing savings of $17,000 per floor due to insights on out-of-hours lighting [4][6] - Additional findings include a 67% reduction in chiller maintenance costs, equating to nearly $1.5 million saved over three years, and a 7% rental premium leading to a present value of $3.2 million over three years [6] Group 3: AI Capabilities and Enhancements - Johnson Controls expanded its AI capabilities within the OpenBlue Enterprise Manager suite, introducing generative AI applications and more autonomous building controls [5][7] - The enhancements aim to provide clearer insights and better performance, contributing to overall energy efficiency and operational savings [6][7] Group 4: Study Methodology - Forrester interviewed five decision-makers from a composite organization with 1,800 employees and 50 million square feet of assets to assess the benefits and costs associated with OpenBlue and FM:Systems solutions [9][10] - The study constructed a Total Economic Impact™ framework to evaluate the investment's cost, benefit, flexibility, and risk factors [10]

Core Viewpoint - Johnson Controls International plc, a leader in smart, healthy, and sustainable buildings, is set to hold its Second Quarter Fiscal 2025 Earnings Conference Call on May 7, 2025, at 8:30 a.m. ET [1] Company Overview - Johnson Controls has a 140-year history of innovation and offers a comprehensive digital solution called OpenBlue, aimed at transforming various industries including healthcare, education, data centers, and more [2] - The company provides the largest portfolio of building technology, software, and service solutions from trusted industry names [2] Conference Call Details - The conference call can be accessed live via webcast and telephone, with a replay available for those unable to attend [3] - A slide presentation will be available for download on the morning of the call [3]

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]