Sales Performance - Q4 sales increased 3% to $6.4 billion, with organic sales up 4%[3] - Full year sales rose 3% to $23.6 billion, and organic sales increased 6%[3] - EMEA segment sales grew 13% to $1.3 billion, with organic sales up 9%[9] - APAC segment sales declined 3% to $780 million, with organic sales also down 3% due to lower volumes in China[11] - For the three months ended September 30, 2025, net sales reached $6,442 million, a 3.1% increase from $6,248 million in the same period of 2024[28] - The company achieved a total net sales of $23,596 million for the twelve months ended September 30, 2025, representing a 3% growth[44] - Net sales for Q3 2024 reached $6,248 million, a 3% increase compared to the previous year, driven by organic growth of $225 million[44] Earnings and Profitability - Q4 GAAP EPS was $0.42, while adjusted EPS was $1.26; full year GAAP EPS was $2.63, and adjusted EPS was $3.76[6] - Gross profit for the twelve months ended September 30, 2025, was $8,592 million, up from $8,077 million in 2024, reflecting a year-over-year increase of 6.4%[28] - Net income attributable to Johnson Controls for the three months ended September 30, 2025, was $1,693 million, compared to $633 million in the same period of 2024, representing a significant increase of 167.5%[28] - The company reported a total of $1,724 million in net income for the twelve months ended September 30, compared to $1,411 million for the previous year, indicating a year-over-year increase of 22%[32] - The net income attributable to Johnson Controls for the twelve months ended September 30, 2025, was $1,721 million, an increase from $1,407 million in 2024, representing a growth of 22.3%[52] - Diluted earnings per share from continuing operations for Q3 2025 was $1.26, compared to $1.11 in Q3 2024, marking an increase of 13.5%[51] Cash Flow and Liquidity - Total cash provided by operating activities was $968 million, with free cash flow of $838 million[14] - Cash provided by operating activities from continuing operations was $968 million for the three months ended September 30, down from $1,352 million year-over-year[32] - Free cash flow for Q3 2025 was reported at $838 million, reflecting a conversion rate of 314% from net income[46] - Operating cash flow conversion for Q3 2025 was 363%, significantly higher than the 252% reported in Q3 2024[46] - Adjusted free cash flow for the twelve months ended September 30, 2025, was $2,501 million, with a conversion rate of 102%[46] - The company experienced a cash decrease of $358 million in cash, cash equivalents, and restricted cash during the quarter[32] - The company reported a significant cash inflow of $6,598 million from discontinued operations, primarily from the sale of its Residential and Light Commercial HVAC business[34] Debt and Equity - Long-term debt increased to $8,591 million as of September 30, 2025, from $8,004 million in 2024, reflecting a rise of 7.3%[30] - Total debt decreased to $9,880 million as of September 30, 2025, from $10,293 million on June 30, 2025, representing a reduction of approximately 4%[53] - Net debt as of September 30, 2025, was $9,501 million, slightly down from $9,562 million on June 30, 2025[53] - Total equity attributable to Johnson Controls decreased to $12,927 million as of September 30, 2025, from $16,098 million in 2024, a decline of 19.5%[30] Restructuring and Impairment - The company reported restructuring and impairment costs of $400 million for the three months ended September 30, 2025, compared to $133 million in the same period of 2024, an increase of 200%[28] - Non-cash restructuring and impairment charges amounted to $371 million for the three months ended September 30, compared to $78 million in the same period last year[32] - The restructuring and impairment costs for the three months ended September 30, 2025, amounted to $400 million, compared to $133 million in the same period of 2024, highlighting significant restructuring efforts[48] Segment Performance - Orders in Q4 increased 6% organically year-over-year, with a systems and services backlog of $14.9 billion[6] - For the three months ended September 30, 2025, the Americas segment EBITA was $844 million, up from $826 million in the same period of 2024, while the EMEA segment EBITA increased to $201 million from $164 million[48] - The total sales for the Americas segment reached $4,325 million in Q3 2025, compared to $4,265 million in Q3 2024, reflecting a growth of approximately 1.4%[49] - Adjusted segment EBITA for the Americas was $862 million, with an adjusted EBITA margin of 19.9% for Q3 2025, compared to 19.4% in Q3 2024[49] - The EMEA segment EBITA margin for Q3 2025 was 15.0%, up from 13.9% in Q3 2024, indicating improved operational efficiency[49] Guidance and Future Outlook - Fiscal 2026 guidance includes organic sales growth of mid-single digits and adjusted EPS of approximately $4.55[19] - The company reported a net debt to adjusted EBITDA ratio, indicating reliance on external debt financing, which is a measure of risk to shareholders[43] - Effective tax rate for continuing operations was approximately 12% for the twelve months ended September 30, 2025, compared to 11% for the same period in 2024[54] - Income from continuing operations was $1,724 million for the twelve months ended September 30, 2025, down from $1,992 million in the previous quarter[53]

Core Insights - Johnson Controls International plc reported fiscal Q4 2025 GAAP earnings per share (EPS) of $0.42 and adjusted EPS of $1.26, with Q4 sales increasing by 3% to $6.4 billion and organic sales rising by 4% [2][11] - The company achieved a record backlog of $15 billion, reflecting a 13% increase year-over-year, driven by sustained demand in core verticals [4][11] - Full year sales reached $23.6 billion, marking a 3% increase, while organic sales grew by 6% [2][11] Financial Performance - Q4 net income from continuing operations attributable to Johnson Controls was $267 million, with adjusted net income at $798 million [3] - Total cash provided by operating activities was $968 million, with free cash flow at $838 million and adjusted free cash flow at $710 million [19] - The company paid dividends totaling $243 million and initiated accelerated share repurchase transactions amounting to $5.0 billion [19] Segment Results Americas - Q4 sales in the Americas segment were $4.3 billion, a 1% increase from the previous year, with organic sales up by 3% [6] - Segment EBITA margin improved to 19.5%, reflecting productivity gains despite transformation costs [7] EMEA (Europe, Middle East, Africa) - EMEA segment sales increased by 13% to $1.3 billion, with organic sales growing by 9% [8] - Segment EBITA margin expanded to 15.0%, benefiting from positive operating leverage [9] APAC (Asia Pacific) - APAC segment sales declined by 3% to $780 million, with organic sales also down by 3% due to lower volumes in China [10][12] - Segment EBITA margin decreased to 17.8%, reflecting pressures on factory absorption [12] Corporate Developments - The company completed the sale of its Residential and Light Commercial HVAC business to Bosch Group for $8.3 billion, with Johnson Controls receiving approximately $6.9 billion [19][25] - Corporate expenses increased significantly, with GAAP expenses at $269 million, a 105% rise compared to the previous year [13] Guidance and Future Outlook - The company initiated guidance for fiscal 2026, projecting organic sales growth in mid-single digits and adjusted EPS of approximately $4.55 [20] - The deployment of proprietary business systems is expected to enhance the company's ability to deliver consistent results and long-term value [4]

Earnings Results - Johnson Controls International plc is set to release its fourth-quarter earnings results on November 5, with analysts expecting earnings of $1.20 per share, a decrease from $1.28 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $6.33 billion, down from $7.39 billion a year earlier [1] Recent Developments - On September 24, Johnson Controls announced the appointment of Todd Grabowski as vice president and president for the Americas [2] - The company's shares fell by 1.9%, closing at $111.04 on Tuesday [2] Analyst Ratings - JP Morgan analyst Stephen Tusa maintained an Overweight rating and raised the price target from $105 to $125 [4] - Citigroup analyst Andrew Kaplowitz maintained a Neutral rating and increased the price target from $112 to $119 [4] - Morgan Stanley analyst Chris Snyder maintained an Overweight rating and raised the price target from $115 to $125 [4] - RBC Capital analyst Deane Dray maintained a Sector Perform rating and increased the price target from $112 to $114 [4] - Barclays analyst Julian Mitchell maintained an Equal-Weight rating and raised the price target from $100 to $101 [4]

Core Insights - Johnson Controls International plc is set to release its fourth-quarter earnings results on November 5, with expected earnings of $1.20 per share, a decrease from $1.28 per share in the same quarter last year [1] - The anticipated quarterly revenue for Johnson Controls is $6.33 billion, down from $7.39 billion a year earlier [1] Company Developments - On September 24, Johnson Controls appointed Todd Grabowski as vice president and president for the Americas [2] - The company's shares fell by 1.9%, closing at $111.04 on Tuesday [2] Analyst Ratings - JP Morgan analyst Stephen Tusa maintained an Overweight rating and raised the price target from $105 to $125 [4] - Citigroup analyst Andrew Kaplowitz maintained a Neutral rating and increased the price target from $112 to $119 [4] - Morgan Stanley analyst Chris Snyder maintained an Overweight rating and raised the price target from $115 to $125 [4] - RBC Capital analyst Deane Dray maintained a Sector Perform rating and increased the price target from $112 to $114 [4] - Barclays analyst Julian Mitchell maintained an Equal-Weight rating and raised the price target from $100 to $101 [4]

Core Insights - Johnson Controls International plc (JCI) has demonstrated strong performance in 2025, significantly outperforming the broader market and the S&P 500 Index [2][3]. Financial Performance - JCI's Q3 results exceeded expectations, with a 2.6% year-over-year revenue growth to $6.1 billion, surpassing analyst estimates by 1.1% [4]. - The adjusted EPS for Q3 rose 10.5% year-over-year to $1.05, exceeding consensus estimates by 5% [4]. - For fiscal 2025, analysts project an adjusted EPS of $3.70, slightly down from $3.71 in 2024, but JCI has a history of surpassing earnings estimates [5]. Market Position - JCI's systems and services backlog increased by 11% organically to $14.6 billion, which has positively influenced investor confidence [4]. - The stock has a consensus "Moderate Buy" rating, with 12 "Strong Buy" and nine "Hold" recommendations from analysts [5]. Analyst Ratings and Price Targets - JP Morgan analyst Stephen Tusa has reiterated an "Overweight" rating on JCI, raising the price target from $105 to $125, indicating a potential upside [7]. - The mean price target for JCI is $118.61, suggesting a modest 3.9% upside, while the highest target of $133 represents a 16.5% premium [7].

Core Insights - The U.S. construction sector is experiencing slow expansion in Q3 2025, driven by infrastructure development, data center construction, and utility projects, while housing and conventional commercial categories remain weak [1][2] Construction Sector Performance - Demand is primarily supported by infrastructure and technology initiatives, while traditional commercial and residential markets face financing constraints and reduced demand [2] - Companies in essential sectors are performing well, whereas those focused on discretionary or office spaces are facing significant challenges [2] Earnings Trends - Approximately 25% of S&P 500 companies have reported Q3 earnings, with the construction sector's total earnings down 30.4% year-over-year on 4.8% lower revenues; 75% of these companies beat EPS estimates, and 50% exceeded revenue estimates [4] - Construction sector earnings are expected to decline by 13.8% in Q3 compared to the previous year, a worsening from the 10.4% decline in Q2 2025, while revenues are projected to grow by 1.1% [9] Factors Influencing Construction Activity - AI-related data center development is a significant driver of construction activity, with hyperscale operators expanding capacity, leading to increased building work and upgrades in electrical and power transmission [5] - Public investment, particularly from federal infrastructure programs, is converting planned projects into actual construction, supported by incentives for clean energy and federal spending through various acts [6] - Industrial reshoring continues to support domestic manufacturing and logistics, with steady demand from technology, healthcare, and institutional sectors [7] Challenges in the Sector - Residential construction is struggling due to high borrowing costs, affordability issues, and weak demand, particularly in multifamily housing [8] - Labor shortages remain a critical constraint, affecting project schedules, while rising materials and equipment costs continue to pressure margins and new starts [8] Company Highlights - Companies such as MasTec, AAON, Vulcan Materials, Johnson Controls, and EMCOR are expected to perform well in the upcoming earnings season, with several poised to beat earnings expectations [3][12][14][15][16][19] - MasTec is projected to report a 41.7% increase in EPS year-over-year, while Vulcan anticipates a 20.7% improvement [13][16] - EMCOR is expected to show a 14.7% growth in EPS compared to the previous year [19]

Core Insights - Johnson Controls International plc (JCI) is a global leader in smart, sustainable building solutions with a market cap of $72.8 billion, providing advanced HVAC, fire, security, and energy management systems [1] Financial Performance - The company is expected to announce its fiscal Q4 2025 results on November 5, with analysts predicting an adjusted EPS of $1.20, a decrease of 6.3% from $1.28 in the same quarter last year [2] - For fiscal 2025, adjusted EPS is forecasted at $3.70, slightly down from $3.71 in fiscal 2024, but anticipated to rise 18.4% year-over-year to $4.38 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, JCI shares have increased by 42.4%, outperforming the S&P 500 Index's gain of 14.9% and the Industrial Select Sector SPDR Fund's return of 12.1% [4] Recent Developments - In Q3 2025, JCI reported an adjusted EPS of $1.05 and total revenue of $6.1 billion, but shares fell by 7.4% due to a 2% year-over-year increase in organic orders and an 8% decline in APAC orders [5] - The Americas segment, which is the largest revenue contributor, showed flat reported sales and a 150 basis point decline in EBITA margin to 18.4% [5] - The company raised its full-year adjusted EPS guidance to $3.65–$3.68, but the Q4 organic sales growth outlook of "low single digits" and modest margin expansion targets did not meet investor expectations [6] Analyst Sentiment - Analysts maintain a cautiously optimistic view on JCI stock, with a consensus "Moderate Buy" rating; among 21 analysts, 12 recommend a "Strong Buy" and 9 suggest a "Hold" [7] - The average analyst price target for Johnson Controls is $116.53, indicating a potential upside of 7.3% from current levels [7]

Core Insights - The AI revolution is driving significant demand for semiconductor technologies, but the long-term winners may be companies providing essential infrastructure solutions, such as cooling systems for data centers [1][3] - Johnson Controls International (JCI) is strategically positioned to capitalize on this trend by focusing on the data center market and addressing the challenges of energy consumption and heat management [3][4] Company Strategy - Johnson Controls has undergone a corporate transformation, selling its Residential and Light Commercial HVAC business for approximately $5.0 billion to focus on complex commercial building solutions [4] - The company plans to use the proceeds from the sale for a $5.0 billion accelerated share repurchase program, part of a broader capital return strategy with about $9.8 billion available for repurchase as of June 30, 2025 [5][6] Financial Performance - Johnson Controls reported a record backlog of $14.6 billion in its third quarter 2025 earnings report, indicating strong demand and revenue visibility [9] - The company exceeded analyst estimates with an adjusted EPS of $1.05 and raised its full-year guidance for adjusted EPS to a range of $3.65-$3.68, reflecting a year-over-year increase of 14-15% [11] Technological Advancements - JCI launched the Silent-Aire Coolant Distribution Unit (CDU) platform for scalable liquid cooling, addressing the heat loads of AI racks [10] - The company made a multi-million dollar investment in Accelsius, focusing on two-phase, direct-to-chip cooling technology essential for future AI processors [10] Leadership Impact - The appointment of CEO Joakim Weidemanis has led to a new business system focused on operational efficiency, aiming to cut manufacturing lead times for key data center products [7][8] - This operational improvement is expected to provide a competitive advantage in a rapidly growing market [8] Market Position - Johnson Controls offers a more grounded investment opportunity compared to AI chipmakers, with a forward P/E ratio under 30, reflecting strong fundamentals [12] - The company's strategic focus on infrastructure solutions positions it as a critical enabler of the AI revolution, appealing to investors seeking stability in the sector [13]

Core Insights - Johnson Controls International plc (NYSE:JCI) is gaining attention as a key player in the data center trade, particularly in the HVAC and security equipment sectors [1][2]. Group 1: Analyst Opinions - Tim Seymour, Chief Investment Officer of Seymour Asset Management, expressed a favorable view on JCI, highlighting its importance in the data center market and its role in electrical components [1]. - ClearBridge Growth Strategy noted that JCI holds a leading position in commercial HVAC for data centers, with a business larger than its next two competitors combined [2]. Group 2: Market Context - The growing focus on AI and the necessary infrastructure investments are benefiting JCI, as it is positioned to capitalize on these trends within the industrial sector [2]. - While JCI is recognized for its potential, some analysts believe that certain AI stocks may offer higher returns with less risk, indicating a competitive landscape for investment opportunities [2].

Market Overview - Major averages are experiencing a rebound, with the Dow up approximately 350 points (0.75%), the S&P up nearly 1%, and the Nasdaq up about 1.1% [2] - The Russell 2000 index has reached a new record high, increasing by about 1.4% for the session and up 13% year-to-date [3] Banking Sector Performance - Bank of America and Morgan Stanley reported stronger-than-expected third-quarter results, driven by a surge in deal-making on Wall Street [8] - Morgan Stanley achieved a record quarter in its equity underwriting business, while Bank of America set a record for its lending margin and net interest income [9][10] - Goldman Sachs reported over $1 trillion in M&A volume advised year-to-date, indicating strong performance across major banks [10] - Analysts expect street estimates for bank earnings to rise for 2026, reflecting positive trends in loan demand and credit quality [12][15] Trade Tensions and Economic Implications - U.S. Treasury Secretary and U.S. Trade Representative criticized China for new restrictions on rare earth exports, labeling it as economic coercion [28][29] - The U.S. aims to diversify supply chains rather than decouple from China, with ongoing discussions at staff levels [30] - President Trump indicated potential retribution against China regarding cooking oil imports, which could impact U.S. farmers [32][39] ETF Market Trends - ETF net inflows surpassed $1 trillion, significantly ahead of last year's total, with strong interest in thematic and fixed-income ETFs [82][83] - The shift from mutual funds to ETFs is evident, with significant inflows into S&P 500 index-based products and thematic ETFs related to artificial intelligence and nuclear energy [84][86] - Retail investors are driving demand for thematic strategies, indicating a resurgence in retail-driven trading [88] Oil Seed Processing Sector - Bungi, a major oil seed processor, reported positive earnings and updated guidance, benefiting from potential reductions in Chinese used cooking oil imports [40][41] - The sector is expected to gain from a shift away from Chinese imports, with companies like ADM and Darling Ingredients also positioned to benefit [42]