Johnson Outdoors Inc. · NASDAQ:JOUT
Johnson Outdoors — Q1 2025 Earnings Presentation
35 slides from Johnson Outdoors's earnings presentation, Feb 3, 2025
Slide 1: Fiscal Q1 2025 Earnings Conference Call
FISCAL Q1 2025 Earnings Conference Call February 5, 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”) discontinued operations. ▪ Organic sales represents the change in sales excluding the impact of acquisitions, di
Slide 4: CEO Summary
Delivered strong results and execution across the portfolio ̵ Organic sales growth of 10% with broad-based strength ̵ Segment EBITA margin expanded 200 basis points to 15% ̵ Adjusted EPS up 39% ̵ Strong Q1 cash flow and on track to deliver free cash flow conversion of 90%+ Record backlog and acceler
Slide 5: JCI at a Glance
JCI at a Glance A Simplified Portfolio Across the Building Lifecycle GEOGRAPHY MIX DOMAIN APAC Other Indirect Systems HVAC EMEA Fire $23B* Service Security Americas Controls One End-to-End Business Solutions Operating Model Systems Services Solutions Enabled by Digital KEY STATISTICS KEY MARKETS 4M+
Slide 6: Broad-Based Strength Across the Portfolio
Fiscal Q1 Results Broad-Based Strength Across the Portfolio JCI Sales - Organic % Growth* Balance Sheet and Reported FY25 Adjusted Free Cash Flow* ($ in Millions) ($ in Millions) $480 10% Balance Sheet YoY Organic Growth* $603 ▪ 89% fixed rate debt ($230) ($33) $5,426 ▪ ~$1.2B cash position $5,209 ▪
Slide 7: Margin Expansion Driven by Strong Demand and Robust Leverage
Fiscal Q1 Results Margin Expansion Driven by Strong Demand and Robust Leverage Global Products Sales ($ in Millions) $140 15% YoY Organic Growth* ▪ Price +4% / Volume +11% $1,177 ($233) ($2) $1,082 ▪ Applied HVAC1 +>30% ▪ Fire and Security +MSD ▪ Industrial Refrigeration (MSD) Q1 FY24 Growth M&A&D F
Slide 8: Accelerating Orders and Record Backlog; Supports Continued Momentum
Fiscal Q1 Results Accelerating Orders and Record Backlog; Supports Continued Momentum Building Solutions Orders - Organic % Growth Building Solutions Backlog ($ in Billions) 16% Service Install 16% $13.1 $13.2 11% 12% YoY Organic Growth $12.1 $12.6 $12.9 YoY Organic Growth $2.3 $2.4 $2.4 $2.4 $2.3 8
Slide 9: Building Solutions Performance by Segment
Fiscal Q1 Results Building Solutions Performance by Segment Adj. Segment Orders Orders / Backlog Sales Sales Adj. Segment EBITA/Margin* Organic % Growth Comments Organic % YoY* Comments EBITA Comments Change YoY 18% ▪ Orders 10% ▪ Service +9% 60bps 18% ̵ Service +10% $2.7B ▪ Systems +12% 12.1% ▪ Gro
Slide 10: Introducing Q2 and Raising Fiscal '25 Full Year Guidance
Outlook Summary Introducing Q2 and Raising Fiscal ‘25 Full Year Guidance (Continuing Operations) Q2’25 FY’25 Organic Revenue* Up ~MSD Up ~MSD (unchanged) Adjusted Segment EBITA Margin* ~16.5% Up >80bps (previous: Up >50bps) Adjusted EPS* ~$0.77 to $0.79 ~$3.50 to $3.60 (previous: ~$3.40 to $3.50) *O
Slide 11: The New Johnson Controls
The New Johnson Controls A Faster Growing, More Profitable, Simplified Company Higher-growth business model Increased exposure to robust data center demand Long-cycle backlog underpins greater revenue visibility Higher profit margins with further margin expansion driven by operating leverage and gro
Slide 12: Appendix
City graphic Appendix
Slide 13: Additional FY 2025 Guidance Items (Continuing Operations)
Additional FY 2025 Guidance Items (Continuing Operations) Q2’25 FY25 Corporate Expense* ~$130M ~$440M Amortization Expense ~$120M ~$480M NFC ~$85M ~$340M Tax Rate ~12% ~12% Shares ~662M ~660M Free Cash Flow Conversion 90%+ *Adjusted Corporate expense includes certain stranded costs from divestiture
Slide 14: Broad-Based Global Reach
Fiscal Q1 Results Broad-Based Global Reach % of Organic Sales Growth* % FY24 North America EMEALA Asia Pac Global Products Consolidated JCI Sales Applied HVAC1 46% +high-teens Flat +MSD +>30% +high-teens Fire and Security4 44% +LSD +HSD +LSD +MSD +MSD Sustainability Infrastructure 4% +LSD +LSD Indus
Slide 15: Disciplined Capital Allocation
Balance Sheet and Adjusted Free Cash Flow Disciplined Capital Allocation Capital Structure ($ billions) Q1 FY24 Q4 FY24 Q1 FY25 Short-term debt and current portion $2.6 $1.5 $1.4 Net Debt / EBITDA* of long-term debt Debt and liquidity ▪ 89% fixed rate debt Long-term debt $8.0 $8.0 $8.6 ▪ 3.5% weight
Slide 16: Consolidated Financial Results
Fiscal Q1 Consolidated Financial Results Q1 FY24 Q1 FY25 Q1 FY24* Q1 FY25* % Change ($ in Millions, except earnings per share) GAAP GAAP NON-GAAP NON-GAAP NON-GAAP Sales $5,209 $5,426 $5,209 $5,426 4% Gross profit $1,778 $1,926 $1,778 $1,926 8% (% of sales) 34.1% 35.5% 34.1% 35.5% SG&A expenses $1,3
Slide 17: Special Items
Fiscal Q1 Special Items ($ in Millions, except EPS) Three Months Ended December 31 Net income (Expense) EPS impact 2024 2025 2024 2025 Mark-to-market adjustments $22 $(1) $0.03 - Restructuring and impairment costs $(35) $(33) $(0.05) $(0.05) AFFF insurance recoveries - $4 - $0.01 Transaction/separat
Slide 18: Historical Quarterly Results – Continuing Operations
Historical Quarterly Results – Continuing Operations Continuing Operations (in $ millions) FY 2024 FY 2023 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Net sales 5,209 5,597 5,898 6,248 22,952 5,155 5,546 5,777 5,853 22,331 Net income attributable to JCI 340 (321) 852 536 1,392 97 44 940 481 1,563 Income attribu
Slide 19: Historical Quarterly Results – Continuing Operations
Historical Quarterly Results – Continuing Operations Continuing Operations FY 2024 FY 2023 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Diluted EPS $ 0.50 $ (0.47) $ 1.25 $ 0.80 $ 2.08 $ 0.14 $ 0.07 $ 1.36 $ 0.70 $ 2.27 Adjustments: Net mark-to-market adjustments (0.03) (0.02) (0.01) (0.01) (0.07) - 0.01 (0.02)
Slide 20: Historical Quarterly Results – Global Products Continuing Operations
Historical Quarterly Results – Global Products Continuing Operations Global Products - Continuing FY2024 FY2023 Operations (in $ millions) Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Segment EBITA* 267 290 387 459 1,403 298 305 355 358 1,317 Adjusting items: Earn out adjustments - (7) - - (7) - (30) - - (30) Gl
Slide 21: Solutions to Bring Value Across the Building Lifecycle
Building Lifecycle Solutions to Bring Value Across the Building Lifecycle 1. Product & Technology Leadership 2. New Construction Systems ▪ Sales support and project engineering ▪ Focus on systems margin expansion IN ST ▪ World class estimating tools ▪ Local execution matched with centralized AL a
Slide 22: 2025 Guidance and Long-Term Outlook
2025 Guidance and Long-Term Outlook Simpler, Higher Growth Company Driving Consistent Adjusted EPS* Growth $3.71 $3.50 to Target Double-Digit $3.60 Adjusted EPS Growth Long-Term $3.21 +9% to Greater revenue visibility underpinned by long-cycle backlog +12% ($0.50) Further margin expansion driven by
Slide 23: 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 24: Consolidated Statements of Income
FINANCIAL STATEMENTS Johnson Controls International plc Consolidated Statements of Income (in millions, except per share data; unaudited) Three Months Ended December 31, 2024 2023 Net sales Products and systems $ 3,685 $ 3,604 Services 1,741 1,605 5,426 5,209 Cost of sales Products and systems 2,456
Slide 25: Condensed Consolidated Statements of Financial Position
Johnson Controls International plc Condensed Consolidated Statements of Financial Position (in millions; unaudited) December 31, 2024 September 30, 2024 Assets Cash and cash equivalents $ 1,237 $ 606 Accounts receivable - net 5,614 6,051 Inventories 1,739 1,774 Current assets held for sale 1,658 1,5
Slide 26: Consolidated Statements of Cash Flows
Johnson Controls International plc Consolidated Statements of Cash Flows (in millions; unaudited) Three Months Ended December 31, 2024 2023 Operating Activities of Continuing Operations Income from continuing operations attributable to Johnson Controls $ 363 $ 340 Loss from continuing operations att
Slide 27: 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 HVAC business (the “R&LC Business”), which includes the North America Ducted businesses and the global Residential joint venture wit
Slide 28: Adjusted financial measures definitions
Adjusted financial measures include adjusted segment EBITA, adjusted net income, adjusted earnings per share, adjusted EBIT, adjusted EBITDA and adjusted corporate expenses. These non-GAAP measures are derived by excluding certain amounts from the corresponding financial measures determined in accor
Slide 29: Management view on excluded items and debt ratios
Management believes the exclusion of these items is useful to investors due to the unusual nature and/or magnitude of the amounts. When considered together with unadjusted amounts, adjusted financial measures are useful to investors in understanding period-over-period operating results, business tre
Slide 30: Sales Reconciliation
3. Sales The following tables detail the changes in sales from continuing operations attributable to organic growth, foreign currency, acquisitions, divestitures and other (unaudited): Three Months Ended December 31 Net sales Building Solutions North Asia Global Total JCI (in millions) EMEA/LA Total
Slide 31: Service Revenue and Free Cash Flow
Three Months Ended December 31 Service revenue Building Solutions North Asia Global Total JCI (in millions) EMEA/LA Total America Pacific Products plc Service revenue - 2023 $ 969 $ 466 $ 170 $1,605 $ — $ 1,605 Base year adjustments Divestitures and other — — — — — — Foreign currency (3) (13) — (16)
Slide 32: Adjusted Free Cash Flow and Conversion
The following table includes adjusted free cash flow and adjusted free cash flow conversion (unaudited): Three Months Ended December 31, (in millions) 2024 2023 Free cash flow (non-GAAP) $ 133 $ (193) Adjustments: JC Capital cash used by operating activities 66 88 Water systems AFFF settlement cash
Slide 33: Corporate Expense and Net Income and EPS Reconciliation
The following table reconciles Corporate expense from continuing operations as reported to the comparable adjusted amounts (unaudited): Three Months Ended December 31, (in millions) 2024 2023 Corporate expense (GAAP) $ 171 $ 139 Adjusting items: Transaction/separation costs (11) — Transformation cos
Slide 34: Share Count and Debt Ratios
The following table reconciles the denominators used to calculate basic and diluted earnings per share (in millions; unaudited): Three Months Ended December 31, 2024 2023 Weighted average shares outstanding Basic weighted average shares outstanding 662.0 680.7 Effect of dilutive securities: Stock op
Slide 35: Adjusted EBIT and Adjusted EBITDA Reconciliation
The following table reconciles income from continuing operations to adjusted EBIT and adjusted EBITDA (unaudited): Twelve Months Ended December 31, September 30, December 31, (in millions) 2024 2024 2023 Income from continuing operations $ 1,432 $ 1,411 $ 1,820 Income tax provision (benefit) 178 111