30 slides from Johnson Controls International's earnings presentation, Jul 29, 2025
Slide 1: Fiscal Q3 2025 Earnings Conference Call
FISCAL Q3 2025 Earnings Conference Call July 29, 2025
Slide 2: Forward-Looking and Cautionary Statements/Non-GAAP Financial Information
FORWARD-LOOKING AND CAUTIONARY STATEMENTS/NON-GAAP FINANCIAL INFORMATION Johnson Controls International plc cautionary statement regarding forward-looking statements Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to ris
Slide 3: Key Reminders and Non-GAAP Definitions
Key Reminders and Non-GAAP Definitions ▪ Fiscal year 2025 guidance is being provided on a continuing operations basis, excluding the results of the Residential & Light Commercial (“R&LC”) business, which is classified as a discontinued operation. ▪ Organic sales represents the change in sales exclud
Slide 4: CEO Summary
Results driven by execution and continued growth ̵ Organic sales growth of 6% with broad-based strength ̵ Adjusted Segment EBITA margin expanded 20 basis points to 17.6% ̵ Adjusted EPS up 11% ̵ Strong free cash flow Bolstered growth with consistent orders and record backlog ̵ Orders grew 2%; America
Slide 5: Building the Foundation
Building the Foundation Winning With Customers and Operating With the Right Business System WHAT TO WORK ON HOW WE WORK - PROCESS HOW WE AUGMENT SIMPLIFY ACCELERATE SCALE 80/20 operating model Building lean principles Digitization and AI to scale learnings and successes Inspiration from world class
Slide 6: Fiscal Q3 Results: JCI Enterprise
Fiscal Q3 Results JCI Enterprise JCI Sales - Organic % Growth* JCI Adjusted Segment EBITA/Margin* ($ in Millions) ($ in Millions) $343 6% 20bps $55 Adj. EBITA Margin* Expansion YoY Organic Growth* 17.4% 17.6% ($244) $6,052 $5,898 Service +6% Productivity ~$50M $1,025 $1,068 Systems +6% Net Growth ~$
Slide 7: JCI Solutions Orders and Backlog
Fiscal Q3 Results JCI Solutions Orders and Backlog Orders* - Organic % Growth 16% 2% YoY Organic Growth 8% 5% 5% Service +5% 2% Systems +1% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Backlog* ($ in Billions) Service Systems $14.0 $14.6 $13.1 $13.2 $12.9 $2.5 $2.6 11% $2.4 $2.4 $2.4 YoY Organic Growth $
Slide 8: Segment View
Fiscal Q3 Results Segment View Adj. Segment Orders* Orders / Backlog* Sales Sales Adj. Segment EBITA/Margin† Organic % Growth Comments Organic % YoY† Comments EBITA Comments Change YoY 5% ▪ Orders 7% ▪ Service +4% 10bps ▪ Net Growth: ~$40M ̵ Service +3% 18.5% 5% 5% ̵ Systems +6% $4.0B $4.0B ▪ System
Slide 9: Introducing Q4 and Raising Fiscal '25 Full Year Guidance
Outlook Summary Introducing Q4 and Raising Fiscal ‘25 Full Year Guidance (Continuing Operations) Q4’25 FY’25 Organic Revenue* Up ~LSD Up ~MSD (unchanged) Adjusted Segment EBITA Margin* ~18.6% Up ~90bps (unchanged) Adjusted EPS* $1.14 to $1.17 $3.65 to $3.68 (previous: ~$3.60) Adjusted Free Cash Flow
Slide 10: Appendix
City graphic Appendix
Slide 11: Additional FY 2025 Guidance Items (Continuing Operations)
Additional FY 2025 Guidance Items (Continuing Operations) Q4’25 FY25 Corporate Expense* ~$85M ~$440M Amortization Expense ~$115M ~$460M NFC ~$80M ~$325M Tax Rate ~12% ~12% Shares ~656M ~660M *Adjusted Corporate expense includes certain stranded costs from divestiture transactions to be addressed by
Slide 12: Disciplined Capital Allocation
Balance Sheet and Adjusted Free Cash Flow Disciplined Capital Allocation Capital Structure ($ billions) Q3 FY24 Q2 FY25 Q3 FY25 Short-term debt and current portion $2.5 $1.8 $1.8 of long-term debt Debt and liquidity Net Debt / EBITDA* ▪ 85% fixed rate debt Long-term debt $7.9 $8.2 $8.4 ▪ 3.6% weight
Slide 13: Consolidated Financial Results
Fiscal Q3 Consolidated Financial Results Q3 FY24 Q3 FY25 Q3 FY24* Q3 FY25* % Change ($ in Millions, except earnings per share) GAAP GAAP NON-GAAP NON-GAAP NON-GAAP Sales $5,898 $6,052 $5,898 $6,052 3% Gross profit $2,109 $2,246 $2,109 $2,246 7% (% of sales) 35.8% 37.1% 35.8% 37.1% SG&A expenses $895
Slide 14: Special Items
Fiscal Q3 Special Items ($ in Millions, except EPS) Three Months Ended June 30 Net income (Expense) EPS impact 2024 2025 2024 2025 Net mark-to-market adjustments $5 $21 $0.01 $0.03 Earn-out adjustments $61 - $0.09 - Restructuring and impairment costs $(103) $(51) $(0.15) $(0.08) Water systems AFFF i
Slide 15: JCI at a Glance
JCI at a Glance A Comprehensive Portfolio of Lifecycle Solutions TOTAL JCI AMERICAS REVENUE* Other REVENUE* MIX DOMAIN ~$23B Service MIX Security HVAC ~$16B Other DOMAIN Service Security HVAC ADJ. EBITA ADJ. EBITA Systems Controls Systems MARGIN1 Controls MARGIN1 16.1% Fire Fire 16.9% EMEA APAC REVE
Slide 16: We're celebrating 140 years of industry firsts!
We’re celebrating 140 years of industry firsts! • The first room thermostat • The first building automation system • The first air-conditioned commercial building • The first automatic sprinkler • The first security panel with a remote arming keypad Johnson Controls - CONFIDENTIAL AND PROPRIETARY
Slide 17: IR Contacts
IR Contacts Jim Lucas Vice President, Investor Relations jim.lucas@jci.com Michael Gates Senior Director, Investor Relations michael.j.gates@jci.com linkedin-logo-high-res-1254-1024x1024 - High resolution facebook Logos YouTube is getting a new logo every week this month – here's why | Creative Bloq
Slide 18: Consolidated Statements of Income
FINANCIAL STATEMENTS Johnson Controls International plc Consolidated Statements of Income (in millions, except per share data; unaudited) Three Months Ended Nine Months Ended June 30, June 30, 2025 2024 2025 2024 Net sales Products and systems $ 4,122 $ 4,089 $ 11,672 $ 11,576 Services 1,930 1,809 5
Slide 19: Condensed Consolidated Statements of Financial Position
Johnson Controls International plc Condensed Consolidated Statements of Financial Position (in millions; unaudited) June 30, 2025 September 30, 2024 Assets Cash and cash equivalents $ 731 $ 606 Accounts receivable - net 6,151 6,051 Inventories 1,829 1,774 Current assets held for sale 1,993 1,595 Oth
Slide 20: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (in millions; unaudited) Three Months Nine Months Ended June 30, Ended June 30, 2025 2024 2025 2024 Operating Activities of Continuing Operations Income from continuing operations attributable to Johnson Controls $ 618 $ 852 $ 1,454 $ 871 Income (loss) from cont
Slide 21: Footnotes
FOOTNOTES 1. Sale of Residential and Light Commercial HVAC Business The Company signed a definitive agreement in July 2024 to sell its Residential and Light Commercial ("R&LC") HVAC business, which includes the North America Ducted businesses and the global Residential joint venture with Hitachi Glo
Slide 22: Items excluded from certain financial measures
As detailed in the tables included in footnotes five through eight, the following items were excluded from certain financial measures: • Net mark-to-market adjustments are the result of adjusting restricted asbestos investments and pension and postretirement plan assets to their current market value
Slide 23: Sales Changes: Organic Growth, FX, Acquisitions, Divestitures
3. Sales The following tables detail the changes in sales from continuing operations attributable to organic growth, foreign currency, acquisitions, divestitures and other (unaudited): Net sales Three Months Ended June 30 Nine Months Ended June 30 (in millions) Americas EMEA APAC Total Americas EMEA
Slide 24: Service Revenue and Cash Flow Conversion
Service revenue Three Months Ended June 30 Nine Months Ended June 30 (in millions) America EMEA APAC Total America EMEA APAC Total s s Service revenue - 2024 $ 1,148 $ 467 $ 194 $1,809 $ 3,227 $1,354 $ 547 $5,128 Base year adjustments Foreign currency (1) 10 2 11 (10) (20) (2) (32) Adjusted base ser
Slide 25: Adjusted Free Cash Flow and Conversion
The following table includes adjusted free cash flow and adjusted free cash flow conversion (unaudited): Three Months Ended Nine Months Ended June 30, June 30, (in millions) 2025 2024 2025 2024 Free cash flow (non-GAAP) $ 693 $ 564 $ 1,282 $ (83) Adjustments: JC Capital cash used by operating activi
Slide 26: Segment EBITA Reconciliation
The following tables include the reconciliations of segment EBITA as reported to adjusted segment EBITA and adjusted segment EBITA margin (unaudited): Three Months Ended June 30, (in millions) Americas EMEA APAC 2025 2024 2025 2024 2025 2024 Sales $4,042 $4,035 $1,273 $1,177 $ 737 $ 686 Segment EBIT
Slide 27: Year Ended September 30, 2024 Segment EBITA and Corporate Expense
Year Ended September 30, 2024 (in millions) Americas EMEA APAC Sales $ 15,606 $ 4,620 $ 2,726 Segment EBITA $ 2,679 $ 561 $ 478 Adjusting items: Earn-out adjustments (68) — — Product quality costs 26 4 3 EMEA joint venture loss — 17 — Adjusted segment EBITA (non-GAAP) $ 2,637 $ 582 $ 481 Segment EBI
Slide 28: Net Income and Diluted Earnings Per Share
6. Net Income and Diluted Earnings Per Share The following tables reconcile income from continuing operations attributable to JCI and diluted earnings per share from continuing operations as reported to the comparable adjusted amounts (unaudited): Three Months Ended June 30, Income from continuing D
Slide 29: Diluted Share Reconciliation and Debt Ratios
The following table reconciles the denominators used to calculate basic and diluted earnings per share (in millions; unaudited): Three Months Ended Nine Months Ended June 30, June 30, 2025 2024 2025 2024 Weighted average shares outstanding Basic weighted average shares outstanding 655.4 670.3 $ 658.
Slide 30: Adjusted EBIT and Adjusted EBITDA Reconciliation
The following table reconciles income from continuing operations to adjusted EBIT and adjusted EBITDA (unaudited): Twelve Months Ended (in millions) June 30, 2025 March 31, 2025 June 30, 2024 Income from continuing operations $ 1,992 $ 2,225 $ 1,361 Income tax provision (benefit) 270 357 (91) Income