Group 1 - The core viewpoint of the report is that artificial intelligence is transitioning from experimental phases to large-scale deployment across various industries, enhancing operational efficiency and reshaping competitive advantages [1] - The report highlights that AI applications in both digital and physical domains are rapidly advancing, optimizing supply chains, improving customer service, enhancing financial forecasting, and accelerating R&D processes [1] - A survey of chief information officers indicates that 60% of respondents expect workloads based on generative AI to be in production by the end of 2025, maintaining the same percentage as earlier this year [1] Group 2 - The report identifies five categories of AI investment opportunities, ranging from companies with strong pricing power and deep AI integration capabilities to those whose AI revenue potential is underestimated in the options market [1] - Adobe, Amazon, and Johnson Controls are highlighted as high-quality large-cap AI application pioneers, with AI playing an increasingly central role in their business strategies [2] - Other notable large-scale adopters include Nvidia, Microsoft, Alphabet, Meta Platforms, and Tesla, which are recognized for their dual advantages as both AI technology enablers and users [2]

Transaction accelerates the company's transformation as a pure-play provider of innovative building solutions CORK, Ireland, Aug. 1, 2025 /PRNewswire/ -- Johnson Controls International plc (NYSE: JCI), a global leader for smart, safe, healthy and sustainable buildings, today announced it has completed the sale of its Residential and Light Commercial (R&LC) HVAC business in an all-cash transaction to the Bosch Group. "The completion of this transaction is an important milestone for Johnson Controls and posit ...

Core Insights - Johnson Controls International plc (JCI) reported adjusted earnings of $1.05 per share for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.00, with an 11% year-over-year increase [1][9] - Total revenues for continuing operations reached $6.10 billion, surpassing the consensus estimate of $5.99 billion, marking a 3% year-over-year increase, while organic revenues grew by 6% [1][9] Q3 Segmental Results - **Americas**: Revenues were $4.04 billion, flat year over year, with organic sales increasing by 7%, driven by strong performance in HVAC and controls businesses. Adjusted EBITA rose by 0.4% year over year to $746 million [2] - **EMEA**: Revenues totaled $1.27 billion, up 8% year over year, with organic sales climbing 4% due to growth in Applied HVAC and fire and security businesses. Adjusted EBITA increased by 16% year over year to $179 million [3] - **APAC**: Revenues increased by 7% to $737 million, with organic sales growing by 6%, driven by the service business. Adjusted EBITA was $143 million, up 12% year over year [3] Margin Profile - JCI's cost of sales increased by 0.4% year over year to approximately $3.81 billion. Gross profit rose by 6.5% year over year to $2.25 billion, with the margin improving by 130 basis points to 37.1%. Selling, general and administrative expenses were $1.42 billion, up 58.3% year over year [4] Financial Position - As of June 30, 2025, JCI had cash and cash equivalents of $731 million, up from $606 million at the end of fiscal 2024. Long-term debt increased to $8.45 billion from $8 billion at the end of fiscal 2024 [5] - In the first nine months of fiscal 2025, the company generated net cash of $1.59 billion from operating activities, compared to $216 million in the prior year. Free cash flow reached $1.28 billion, reversing an $83 million outflow from the previous year [6] Q4 Guidance - JCI anticipates low-single-digit organic revenue growth compared to the previous year. Adjusted segment EBITA margin is estimated to be approximately 18.6%, with adjusted earnings expected to be in the range of $1.14-$1.17 per share [7] FY25 Guidance - The company expects organic revenue growth to be in the mid-single-digit range from the prior year, with an adjusted segment EBITA margin improvement of 90 basis points. Adjusted earnings per share are projected to be $3.65-$3.68, with adjusted free cash flow conversion expected to exceed 100% [10]

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]

FISCAL Q3 2025 Earnings Conference Call July 29, 2025 FORWARD-LOOKING AND CAUTIONARY STATEMENTS/NON-GAAP FINANCIAL INFORMATION Johnson Controls International plc cautionary statement regarding forward-looking statements Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the meani ...

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)