Johnson Controls(JCI) - 2024 Q4 - Annual Results

Sales Performance - Q4 sales increased 7% to $7.4 billion, with organic sales growth of 10%[2] - Full year sales rose 2% to$ 27.4 billion, with organic sales growth of 4%[2] - Net sales for the three months ended September 30, 2024, were $4,391 million, an increase of 6.4% from$ 4,128 million in the same period last year[25] - Net sales for 2023 totaled $26,793 million, with North America contributing$ 10,330 million and EMEA/LA $4,096 million, reflecting a 10% growth overall[49] - For 2024, net sales are projected to reach$ 27,418 million, with North America expected to grow to $11,348 million[49] - Net sales for continuing operations reached$ 15,967 million for the twelve months ended September 30, 2024, compared to $15,789 million for the same period in 2023, reflecting a growth of 1.13%[79] - Net sales for Fiscal 2024 reached$ 22,952 million, with Q4 sales at $6,248 million, representing a 2.9% increase from Q4 2023[83] Earnings and Profitability - Q4 GAAP EPS was$ 0.95, while adjusted EPS was $1.28; full year GAAP EPS was$ 2.52, and adjusted EPS was $3.71[1] - The company reported basic earnings per share from continuing operations of$ 0.80 for the three months ended September 30, 2024, compared to $0.71 for the same period last year, marking a 12.7% increase[25] - Net income attributable to Johnson Controls for the three months ended September 30, 2024, was$ 633 million, up from $549 million in the same period last year, representing a 15.3% increase[25] - Net income for the three months ended September 30, 2024, was$ 633 million, compared to $549 million for the same period in 2023, representing a 15.3% increase[67] - Adjusted net income for the twelve months ended September 30, 2024, was$ 858 million, compared to $719 million for the same period in 2023, indicating a 19.4% growth[67] - Net income attributable to JCI for Fiscal 2024 was$ 1,407 million, with Q4 net income at $536 million, showing a significant recovery from a loss of$ 321 million in Q2[83] - Diluted EPS for Fiscal 2024 was $2.08, with Q4 diluted EPS at$ 0.80, recovering from a loss of $0.47 in Q2[83] Segment Performance - Building Solutions backlog reached$ 13.1 billion, reflecting a 7% organic increase year-over-year[1] - Orders in Q4 increased 8% organically year-over-year, with a backlog of $9.1 billion, up 10% year-over-year[4][6] - Building Solutions North America segment sales increased 16% to$ 3.2 billion, with an EBITA margin of 15.0%[3] - Building Solutions EMEA/LA segment sales grew 7% to $1.1 billion, with an adjusted EBITA margin of 11.5%[5] - Global Products segment sales were flat at$ 2.4 billion, but organic sales grew 8%[10] - Adjusted segment EBITA for Global Products was $2,149 million for the twelve months ended September 30, 2024, compared to$ 1,975 million in 2023[64] - Adjusted segment EBITA (Non-GAAP) for Global Products was $1,429 million for Fiscal 2024, with Q4 at$ 459 million, showing a strong performance compared to $358 million in Q4 2023[87] Cash Flow and Financial Position - Cash provided by operating activities from continuing operations was$ 1,352 million for the three months ended September 30, 2023, compared to $1,068 million in the same period last year, indicating a 26.6% increase[30] - Free cash flow for the three months ended September 30, 2024, was$ 1,318 million, compared to $1,217 million for the same period in 2023, indicating a year-over-year increase of 8.3%[58] - The company reported a free cash flow conversion from net income of 208% for the three months ended September 30, 2024, compared to 222% for the same period in 2023[58] - Total assets as of September 30, 2024, were$ 42,695 million, a slight increase from $42,242 million as of September 30, 2023[27] - Cash and cash equivalents decreased to$ 606 million as of September 30, 2024, down from $828 million a year earlier[27] - Total debt as of September 30, 2024, was$ 9,493 million, a decrease from $10,388 million as of June 30, 2024[71] Strategic Initiatives - The company signed an agreement to sell its Residential and Light Commercial HVAC business for approximately$ 8.1 billion, expected to close in Q4 FY25[14] - The company is focused on portfolio simplification and innovation, including the development of new products and technologies to meet market demands[24] - The company signed a definitive agreement in July 2024 to sell its Residential and Light Commercial HVAC business, which will be classified as a discontinued operation[32] - Adjusted free cash flow measures have been re-baselined to exclude the impact of discontinuing accounts receivables factoring programs, enhancing comparability[36] Tax and Expenses - The effective tax rate for the three months ending September 30, 2024, was approximately 13.75%, slightly higher than 13.5% for the same period in 2023[74] - Selling, general and administrative expenses for the twelve months ended September 30, 2024, were $5,661 million, up from$ 5,387 million in 2023, an increase of 5.08%[79] - The company’s net financing charges for the twelve months ended September 30, 2024, were $342 million, compared to$ 258 million in 2023, an increase of 32.52%[79] - Restructuring and impairment costs for the twelve months ended September 30, 2024, were $510 million, down from$ 1,049 million in 2023, a decrease of 51.24%[79]