On aerospace demand indicators, Stepniak said the company does not currently see a slowdown in “traffic and hours” tied to the Middle East situation. He added that supply chain conditions can still be “choppy,” making quarter-to-quarter execution more difficult even when full-year expectations remain intact.Stepniak outlined several ways the evolving geopolitical backdrop could influence demand, particularly through energy markets and inflation. If oil prices remain elevated, he said customers could have mo ...

Core Insights - Honeywell's planned separation into three companies has transitioned from a hypothesis to an operational reality, allowing for better strategic clarity and portfolio adjustments [1] - The aerospace segment is experiencing strong bookings, but growth is limited by the company's delivery capacity, which is expected to increase by approximately 12% to 14% per quarter [2] - Long-cycle project demand is strong, particularly in LNG and aerospace, with Honeywell's LNG business booked until late 2027 and early 2028 [3] - Weaker demand persists in petrochemical catalysts due to excess industry capacity, while long-cycle process activities in LNG and refining are seeing increased orders [4] - Building Automation remains robust, with strong demand in North America, although conditions are weaker in Europe and China [5] - Honeywell's momentum from 2025 is continuing into early 2026, with first-quarter performance aligning with recent guidance [6] Business Strategy - Honeywell aims to operate as a pure-play automation company within six months, with a target of achieving a 40% services and software aftermarket mix [6] - The company is focusing on new product introductions as a core growth strategy, with varying adoption cycles across segments [7] - Inflation is a significant factor affecting pricing, with persistent cost pressures in the range of 3% to 3.5% [8] - Honeywell is adapting its pricing strategy to address inflation directly with customers and is emphasizing productivity to avoid relying solely on price increases [9] Technological Developments - Progress at Quantinuum is supported by recent technological advancements, with a hardware platform launched that delivers 48 logical qubits [10] - Honeywell's increased customer engagement in Quantinuum is building confidence in its potential to operate independently [11] - The company owns 52% of Quantinuum, and an eventual exit could eliminate approximately $250 million in annual investment [12] Market Trends - Honeywell's preference for bolt-on M&A and comfort with carve-outs reflects a significant shift in its portfolio, with 15% of revenue exited and 15% added [13] - Data center demand is closely linked to Building Automation, with customers seeking greater standardization and faster execution [13] - Key structural forces shaping the next five years include persistent inflation and a shift from rule-based automation to autonomy [13]

February 10, 2026 4Q & Full Year 2025 Financial Results Overview DuPont de Nemours, Inc . ("DuPont") completed the previously announced separation of its Electronics business (the "Electronics Separation") into an independent public company, Qnity Electronics, Inc . ("Qnity"), by way of the distribution to DuPont's stockholders of record as of October 22, 2025 of all the issued and outstanding common stock of Qnity on November 1, 2025 (the "Qnity Distribution") . As a result, beginning in the fourth quarter ...

Core Insights - Johnson Controls International reported a strong start to fiscal 2026, with record orders and significant growth in data centers and life sciences, leading to an increase in full-year adjusted earnings guidance [4][6]. Financial Performance - Organic revenue rose by 6%, with segment margins increasing by 70 basis points to 15.7%. Adjusted EPS was $0.89, reflecting a nearly 40% year-over-year increase and exceeding company guidance [2][6]. - Orders increased nearly 40% year-over-year, following a 16% increase in the prior-year quarter. Revenue grew by 6%, and adjusted EBIT margins expanded by 190 basis points to 12.4% [3][6]. Market Demand - Demand is primarily driven by data centers and life sciences, contributing to a record backlog of $18 billion, which is up 20% year-over-year. However, some large orders may not convert to near-term revenue due to their long-dated nature [5][9]. - By geography, orders in the Americas increased by 56%, driven by large-scale data center projects, while EMEA and APAC saw orders rise by 8% and 10%, respectively [8][7]. Operational Efficiency - The company highlighted execution and capacity gains through Lean and digital business system rollouts, which have tripled physical chiller and air-handling capacity [5][13]. - Management noted that over 1,000 employees have engaged in priority efforts, with significant training and process improvements implemented [12][11]. Guidance and Outlook - For fiscal second quarter, management guided to organic sales growth of approximately 5% and adjusted EPS of approximately $1.11. Full-year adjusted EPS guidance was raised to approximately $4.70, implying about 25% growth [15][16]. - The company maintains expectations for mid-single-digit organic sales growth and operating leverage of approximately 50% for the full year [10][15]. Balance Sheet and Capital Allocation - Johnson Controls ended the quarter with approximately $600 million in available cash, with net debt declining to 2.2x, remaining within the company's long-term target range [17][17]. - Capital allocation priorities include investing in the business, maintaining balance sheet strength, and returning capital to shareholders [17].

Core Viewpoint - Johnson Controls (JCI) is expected to report quarterly earnings of $0.84 per share, a 31.3% increase year-over-year, with revenues projected at $5.66 billion, reflecting a 4.3% year-over-year growth [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.1% over the past 30 days, indicating analysts have reassessed their projections [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Net Sales- Americas' to be $3.73 billion, representing a 35.9% increase from the prior-year quarter [5]. - The forecast for 'Net Sales- EMEA' is $1.27 billion, indicating an 18.1% year-over-year change [5]. - 'Net Sales- APAC' is projected to reach $661.28 million, reflecting a 25.5% increase year-over-year [5]. EBITA Estimates - 'Total Segment Adjusted EBITA- Americas' is expected to be $646.62 million, significantly up from $332.00 million reported in the same quarter last year [6]. - 'Total Segment Adjusted EBITA- APAC' is forecasted at $103.56 million, compared to $49.00 million in the previous year [6]. - Analysts predict 'Total Segment Adjusted EBITA- EMEA' to be $171.31 million, up from $108.00 million reported in the same quarter last year [7]. Stock Performance - Over the past month, Johnson Controls shares have returned +0.4%, while the Zacks S&P 500 composite has changed by +0.9% [7]. - With a Zacks Rank of 3 (Hold), JCI is expected to perform in line with the overall market in the upcoming period [7].

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]

Group 1: Western Union - Western Union announced the acquisition of Intermex for approximately $500 million to strengthen its position in high-growth Latin American markets [1] - Western Union shares fell 1.7% to settle at $8.20 [7] Group 2: Johnson Controls - Johnson Controls raised its dividend from 37 cents to 40 cents per share [2] - Johnson Controls shares gained 1% to close at $108.48 [7] Group 3: MNTN, Inc. - MNTN reported a second-quarter loss of 65 cents per share, an improvement from a loss of 69 cents per share a year ago, with quarterly sales of $68.460 million, exceeding analyst estimates of $64.483 million [2] - MNTN shares rose 0.1% to settle at $20.08 [7] Group 4: Nordic American Tankers - Nordic American Tankers posted weaker-than-expected quarterly sales, leading to a negative outlook [3] - Nordic American shares fell 0.3% to $3.30 [7] Group 5: Occidental Petroleum - UBS analyst maintained Occidental Petroleum with a Neutral rating and raised the price target from $45 to $46 [3] - Occidental Petroleum shares rose 0.4% to close at $47.36 [7] Group 6: Kenvue Inc. - Kenvue was maintained with a Neutral rating by Citigroup, with the price target lowered from $22 to $20 [4] - Kenvue shares fell 1.3% to settle at $18.10 [7]

Financial Performance - Organic sales grew by 6%[10, 15], driven by broad-based strength across the company - Adjusted Segment EBITA margin expanded by 20 basis points to 176%[10] - Adjusted EPS increased by 11% year-over-year, reaching $105[10, 17] - The company reported strong free cash flow[10] Orders and Backlog - Orders grew by 2%[10], with growth in the Americas offsetting softness in China - Backlog increased by 11% to $146 billion[10] - Service orders increased by 5% and systems orders increased by 1%[23] - Service backlog grew by 8% and systems backlog grew by 11%[24] Segment Results - Americas sales grew by 5%[27] and backlog increased by 10% to $103 billion[27] - EMEA sales grew by 2%[27] and backlog increased by 9% to $26 billion[27] - APAC sales grew by 7%[27] and backlog increased by 14% to $17 billion[27] Guidance - The company updated its full-year adjusted EPS guidance to a range of $365 to $368[10] - The company expects adjusted free cash flow conversion to be greater than 100%[10] - Q4 2025 adjusted segment EBITA margin is expected to be approximately 186%[29]

Summary of Johnson Controls Conference Call Company Overview - **Company**: Johnson Controls - **Event**: Oppenheimer's 20th Annual Industrial Growth Conference Key Points Leadership Transition and Strategy - New CEO Joaquin has been proactive in his first two months, visiting eight countries and engaging with customers and factory operations [3][4] - Focus on lean initiatives and value creation opportunities, emphasizing a long-term journey rather than immediate results [4][6] - The company is redefining its strategy and portfolio, identifying areas for growth and potential divestitures [5][6] Operational Changes - Revised reporting structure aligns with industry peers, aiming for cost reduction and improved accountability [8][10] - The new structure aims to eliminate redundancy and improve customer focus, transitioning from a dual operating model to a unified approach [11][12] - Anticipated reduction in corporate costs, with guidance for Q3 at approximately $80 million, down from $130 million in Q2 [15][16] Financial Performance and Growth Targets - Long-term goal of double-digit earnings growth, leveraging existing cost structures and improving operational efficiency [21][25] - Gross margins are strong, but SG&A costs have historically been higher than competitors, indicating room for improvement [22][20] - Lean management initiatives expected to enhance gross margins and operational performance over the next few years [24][25] Service Revenue and Resilience - Service revenue is characterized as true recurring income, with multiyear contracts linked to sold systems [29][30] - Historical resilience during economic downturns, with a potential increase in service demand as maintenance is deferred [30][31] OpenBlue Technology Platform - OpenBlue is a differentiated offering with significant growth potential, currently under 1% penetration of the installed base [33][40] - The platform provides operational insights and efficiency improvements, with a compelling ROI of up to 55% over three years [32][33] Market Demand and Pipeline - Observed softness in certain verticals, but overall health in core markets remains strong [44][46] - Data centers and complex manufacturing are experiencing robust growth, while commercial real estate shows mixed signals [50][51] - Tariff impacts expected to affect revenues by about 2%, but the company has strategies in place to mitigate these effects [58][60] Cash Flow and Capital Structure - Achieved 100% free cash flow conversion, driven by improved supply chain and procurement practices [64][65] - Lean management expected to enhance inventory management and reduce capital intensity over time [66][67] Conclusion - Johnson Controls is undergoing significant transformation under new leadership, focusing on operational efficiency, customer-centric strategies, and leveraging technology for growth. The company is well-positioned to navigate market challenges while pursuing long-term financial goals.