Core Insights - Lennox reported a decline in revenue and adjusted earnings per share for Q4 2025, with revenue at $1.2 billion, down 11%, and adjusted diluted EPS at $4.45, down 22% year-over-year [1][2] - The company achieved annual margins over 20% for the first time, attributed to cost reduction actions and favorable product mix [1] - For full year 2026, Lennox anticipates revenue growth of approximately 6% to 7%, with adjusted EPS expected to be in the range of $23.50 to $25.00 [2] Q4 2025 Financial Highlights - Revenue was $1.2 billion, down 11% due to unfavorable sales volumes [1] - GAAP operating income was $196 million, down 22%, with an operating profit margin of 16.4%, down 220 basis points [1] - Segment profit decreased 16% to $212 million, with a segment profit margin of 17.7%, down 110 basis points [1] Full Year 2025 Financial Highlights - Total revenue for 2025 was $5.2 billion, down 3% [2] - GAAP diluted EPS was $22.79, compared to $22.66 in the prior year, showing a slight increase [2] - Operating income remained flat at $1 billion, with a profit margin of 20.0%, up 50 basis points [2] Segment Performance - Home Comfort Solutions segment revenue was $700 million, down 21%, with segment profit down 29% to $137 million [1] - Building Climate Solutions segment revenue grew 8% to $495 million, with segment profit up 11% to $115 million [1] - Corporate expenses were $40 million, down from the prior year [1] Cash Flow and Capital Expenditures - Operating cash flow was $406 million, up from $332 million in the prior year [1] - Net capital expenditures were $29 million, down from $60 million in the prior year [1] - Share repurchases totaled $150 million in Q4 2025 [1] 2026 Guidance - Revenue is expected to increase by approximately 6% to 7%, with growth from completed acquisitions contributing about 4% [2] - Adjusted earnings per share is projected to be between $23.50 and $25.00 [2] - Capital expenditures are estimated at approximately $250 million, with free cash flow expected to be between $750 million and $850 million [2]

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]

Core Insights - Johnson Controls has been recognized on Fortune's 2025 Change the World list for its innovative YORK YVAM Air-Cooled Magnetic Bearing Chiller, designed for hyperscale and AI-intensive data centers, showcasing advancements in sustainability and societal benefits [1][2] Group 1: Product Innovations - The YORK YVAM chiller reduces power consumption by 40% annually while maintaining the same cooling capacity as conventional solutions [6] - The chiller operates using zero on-site water, promoting water conservation and improved water usage effectiveness [6] - It functions quietly at 65 decibels at 10 meters, comparable to background music in a restaurant [6] Group 2: Industry Context - Data center cooling systems are crucial for maintaining safe operating temperatures for high-performance chips, accounting for over 30% of a facility's total energy consumption [2] - The increasing demand for energy-efficient cooling technologies is driven by the need to address rising power demands and reduce daily water usage, which can reach millions of gallons [2] Group 3: Company Recognition and History - This marks the third time Johnson Controls has been included in Fortune's Change the World list, previously recognized in 2023 for heat pump technology that reduces operating costs by over 50% and carbon emissions by 60% [3] - In 2022, the company was acknowledged for its OpenBlue smart building platform, which transforms buildings into dynamic assets [3] - Johnson Controls has a 140-year history of innovation, providing a comprehensive digital offering through OpenBlue [5]