Johnson Controls(US:JCI)2025-11-05 11:57Sales 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]