Johnson Controls(JCI) - 2025 Q1 - Quarterly Results

Financial Performance - Q1 2025 GAAP earnings per share (EPS) was $0.55, with adjusted EPS at $0.64[2] - Sales for the quarter reached $5.4 billion, a 4% increase year-over-year, with organic sales growth of 10%[3] - Net sales for the three months ended December 31, 2024, increased to $5,426 million, up from $5,209 million in the same period of 2023, representing a growth of 4.2%[27] - Gross profit rose to $1,926 million, compared to $1,778 million in the prior year, reflecting an increase of 8.3%[27] - Income from continuing operations attributable to Johnson Controls was $363 million, up from $340 million, marking a growth of 6.8%[27] - The company reported a net income of $451 million, compared to $404 million in the same quarter of the previous year, an increase of 11.6%[27] - Basic earnings per share attributable to Johnson Controls increased to $0.63, compared to $0.55 in the previous year, a rise of 14.5%[27] - Adjusted net income attributable to Johnson Controls for Q4 2024 was $426 million, compared to $315 million in Q4 2023[48] Sales and Orders - Orders increased 16% organically year-over-year, and the Building Solutions backlog rose to $13.2 billion, an 11% organic increase[6] - Building Solutions North America segment sales were $2.744 billion, up 10% year-over-year, with a segment EBITA margin of 12.1%, expanding 60 basis points[7] - Building Solutions EMEA/LA segment sales were $1.073 billion, a 3% increase year-over-year, with a segment EBITA margin of 10.1%, expanding 240 basis points[9] - Building Solutions Asia Pacific segment sales were $527 million, a 4% increase year-over-year, with orders up 32% year-over-year and a backlog of $1.5 billion, increasing 22%[11] - Global Products segment sales declined 8% to $1.082 billion, but organic sales grew 15%, driven by over 30% growth in Applied HVAC[13] - Products and systems revenue increased by 12% to $3,604 million in 2023, driven by organic growth of 12% in North America[43] - Service revenue for 2023 was $1,605 million, reflecting an 8% growth, with organic growth of 9% in North America[43] Cash Flow and Guidance - Cash provided by operating activities was $249 million, with free cash flow at $133 million and adjusted free cash flow at $603 million[18] - The company raised its fiscal 2025 full-year guidance, projecting adjusted EPS of approximately $3.50 to $3.60[23] - The company initiated fiscal Q2 guidance with expectations of mid-single-digit organic sales growth and an adjusted segment EBITA margin improvement of more than 80 basis points year-over-year[23] - Free cash flow for Q4 2024 was $133 million, a significant improvement from a negative $193 million in Q4 2023[44] - Adjusted free cash flow for Q4 2024 reached $603 million, compared to a negative $105 million in Q4 2023[45] Debt and Assets - Total assets decreased to $42,098 million from $42,695 million, a decline of 1.4%[29] - Total liabilities also decreased to $24,968 million from $25,334 million, a reduction of 1.4%[29] - Total debt as of December 31, 2024, is $9,993 million, a 5.3% increase from $9,493 million on September 30, 2024[50] - Net debt decreased to $8,756 million from $8,887 million in the previous quarter, reflecting a 1.5% reduction[50] - Long-term debt increased to $8,589 million as of December 31, 2024, from $8,004 million on September 30, 2024[50] - Current portion of long-term debt decreased to $522 million from $536 million in the previous quarter[50] Operational Changes - 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[34] Tax and Income Metrics - The effective tax rate for the three months ending December 31, 2024, was approximately 12.0%, compared to 11.5% for the same period in 2023[52] - Income from continuing operations for the twelve months ended December 31, 2024, was $1,432 million, slightly up from $1,411 million in the previous quarter[51] - Adjusted EBITDA for the twelve months ended December 31, 2024, reached $3,733 million, up 3.0% from $3,623 million in the previous quarter[51] - Adjusted EBIT for the twelve months ended December 31, 2024, was $2,917 million, a 4.5% increase from $2,792 million in the previous quarter[51]