35 slides from Johnson Controls International's earnings presentation, Nov 5, 2025
Slide 1: Fiscal Q4 2025 Earnings Conference Call
FISCAL Q4 2025 Earnings Conference Call November 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 ▪ Organic sales represents the change in sales excluding the impact of acquisitions, divestitures and foreign currency. ▪ Segment margin is calculated based on earnings before interest, taxes and amortization ("EBITA"). Adjusted segment EBITA excludes items suc
Slide 4: CEO Summary
Delivered strong full-year performance ̵ Organic sales growth of 6% with broad-based strength ̵ Adjusted Segment EBITA margin expanded 100 basis points to 17.1% ̵ Adjusted EPS up 17%; successfully offset dilution from R&LC divestiture ̵ Continued strength in free cash flow conversion ending at 102%,
Slide 5: Outstanding Execution in 2025
Consistent, Predictable Results Outstanding Execution in 2025 NOVEMBER 2024 JULY 2025 FY 2025 GUIDANCE GUIDANCE RESULTS Organic Revenue* Up ~MSD Up ~MSD Up 6% Adjusted Segment EBITA Up >50bps Up ~90bps Up 100bps Margin* Adjusted EPS* ~$3.40 to $3.50 $3.65 to $3.68 $3.76 FCF Conversion* >85% >100% 10
Slide 6: Winning With Customers and Operating with the Right Business System
Turning Daily Actions Into Lasting Results Winning With Customers and Operating with the Right Business System SALES PRODUCTIVITY ON TIME DELIVERY (OTD) Problem Sales teams face significant productivity barriers due to Current delivery performance challenges are impacting customer satisfaction and o
Slide 7: Powering Sustainable Performance Across Mission-Critical Systems
Technology Leadership Powering Sustainable Performance Across Mission-Critical Systems Datacenters Enabling Scalable, Efficient Cooling for the AI Economy Coolant Distribution Unit (CDU) launch in September 2025 • Delivers efficient and scalable liquid cooling solutions from 500kW to 10MW • Differen
Slide 8: Fiscal Q4 Results: Total Enterprise
Fiscal Q4 Results Total Enterprise3 Sales - Organic % Growth* Adjusted Segment EBITA/Margin* ($ in Millions) $225 $47 ($ in Millions) 4% 18.8% 20bps ($78) $6,442 YoY Organic Growth* Adj. EBITA Margin* Expansion Service +6% 18.6% Productivity ~$40M $6,248 Systems +3% Mix ~$10M ̵ Applied1 +HSD M&A ~($
Slide 9: Solutions Orders and Backlog
Fiscal Q4 Results Solutions Orders and Backlog Orders* - Organic % Growth 16% 6% YoY Organic Growth 8% 6% Service +6% 5% Systems +7% 2% Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Backlog* ($ in Billions) Service Systems $14.6 $14.9 13% $14.0 YoY Organic Growth $13.1 $13.2 $2.6 $2.6 $2.5 Service +9% $2.
Slide 10: Segment View
Fiscal Q4 Results Segment View Adj. Segment Orders* Orders / Backlog* Sales Sales Adj. Segment EBITA/Margin† Organic % Growth Comments Organic % YoY† Comments EBITA Comments Change YoY 9% 9% ▪ Orders 3% ▪ Service +5% 50bps ▪ Productivity: ~$30M ̵ Service +3% 19.9% ̵ Systems +12% $4.3B $4.3B ▪ System
Slide 11: Long-Term Growth Algorithm
Value Creation Framework Long-Term Growth Algorithm LONG-TERM GROWTH ALGORITHM ~$4.55 Organic Growth Up ~MSD +17% to Accelerate innovation and expand entitlement by leveraging Organic Growth % +20% leadership in decarbonization and mission-critical solutions $3.76 $3.71 ~30%+ Operating Leverage $3.2
Slide 12: Disciplined Capital Allocation
Strong Balance Sheet and Cash Flow Disciplined Capital Allocation Sustain Committed to Return Portfolio and Drive Investment Capital Optimization Growth Grade Rating Prioritize investments Target 2.0 to 2.5x Return cash to Create value by in organic growth, leverage shareholders through shaping the
Slide 13: Introducing Q1 and Fiscal '26 Full Year Guidance
Outlook Summary Introducing Q1 and Fiscal ‘26 Full Year Guidance Q1’26 FY’26 Organic Revenue* Up ~3% Up ~MSD Operating Leverage* ~55% ~50% Adjusted EPS* ~$0.83 ~$4.55 Adjusted Free Cash Flow ~100% Conversion* 13 *Organic Sales Growth, Operating Leverage, Adjusted EPS, and Adjusted Free Cash Flow con
Slide 14: Appendix
City graphic Appendix
Slide 15: Additional FY 2026 Guidance Items
Additional FY 2026 Guidance Items Q1’26 FY’26 Corporate Expense* ~$100M ~$375M to $400M Amortization Expense ~$85M ~$340M NFC ~$75M ~$320M Tax Rate ~17% ~17% Shares ~611M ~610M *Adjusted Corporate expense is a non-GAAP measure that includes certain stranded costs from divestiture transactions to be
Slide 16: Strong Sales Growth and Margin Expansion in FY25
Fiscal 2025 Results Strong Sales Growth and Margin Expansion in FY25 Orders* - Organic % Growth Sales - Organic % Growth* ($ in Millions) 7% 7% 7% $1,430 6% YoY Organic Growth* YoY Organic Growth* ($786) $0 $23,596 Service +7% $22,952 Service +7% Systems +7% Systems +6% FY24 FY25 FY24 Growth M&A&D F
Slide 17: Disciplined Capital Allocation
Balance Sheet and Adjusted Free Cash Flow Disciplined Capital Allocation Capital Structure ($ billions) Q4 FY24 Q3 FY25 Q4 FY25 Short-term debt and current portion $1.5 $1.9 $1.3 of long-term debt Debt and liquidity Net Debt / EBITDA* ▪ 89% fixed rate debt Long-term debt $8.0 $8.4 $8.6 ▪ 3.6% weight
Slide 18: Consolidated Financial Results
Fiscal Q4 Consolidated Financial Results Q4 FY24 Q4 FY25 Q4 FY24* Q4 FY25* % Change ($ in Millions, except earnings per share) GAAP GAAP NON-GAAP NON-GAAP NON-GAAP Sales $6,248 $6,442 $6,248 $6,442 3% Gross profit $2,268 $2,351 $2,270 $2,365 4% (% of sales) 36.3% 36.5% 36.3% 36.7% SG&A expenses $1,3
Slide 19: Special Items
Fiscal Q4 Special Items ($ in Millions, except EPS) Three Months Ended September 30 Net income (Expense) EPS impact 2024 2025 2024 2025 Net mark-to-market adjustments $5 $(13) $0.01 $(0.02) Loss on divestiture $(42) - $(0.06) - Restructuring $(66) $(42) $(0.10) $(0.07) Impairment costs $(67) $(358)
Slide 20: 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 21: 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 22: Consolidated Statements of Income
FINANCIAL STATEMENTS Johnson Controls International plc Consolidated Statements of Income (in millions, except per share data; unaudited) Three Months Ended Twelve Months Ended September 30, September 30, 2025 2024 2025 2024 Net sales Products and systems $ 4,452 $ 4,391 $ 16,124 $ 15,967 Services 1
Slide 23: Condensed Consolidated Statements of Financial Position
Johnson Controls International plc Condensed Consolidated Statements of Financial Position (in millions; unaudited) September 30, 2025 September 30, 2024 Assets Cash and cash equivalents $ 379 $ 606 Accounts receivable - net 6,269 6,051 Inventories 1,820 1,774 Current assets held for sale 14 1,595 O
Slide 24: Consolidated Statements of Cash Flows
Johnson Controls International plc Consolidated Statements of Cash Flows (in millions; unaudited) Three Months Ended Twelve Months Ended September 30, September 30, 2025 2024 2025 2024 Operating Activities of Continuing Operations Income from continuing operations attributable to Johnson Controls $
Slide 25: Footnotes
FOOTNOTES 1. Sale of Residential and Light Commercial HVAC Business In July 2025, the Company sold its Residential and Light Commercial ("R&LC") HVAC business, including the North America Ducted business and the global Residential joint venture with Hitachi Global Life Solutions, Inc. ("Hitachi"), o
Slide 26: Items excluded from certain financial measures
As detailed in the tables included in footnotes four through seven, 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 27: Operating Leverage and Debt Ratios
Operating leverage Operating leverage is defined as the ratio of the change in adjusted EBIT for the current period less the prior period, divided by the change in net revenues for the current period less the prior period. Management believes operating leverage is a useful metric to reflect enterpri
Slide 28: Products and Systems Revenue
Products and systems revenue Three Months Ended September 30, Twelve Months Ended September 30, (in millions) Americas EMEA APAC Total Americas EMEA APAC Total Products and systems revenue - 2024 $ 3,092 $ 703 $ 596 $4,391 $11,206 $2,789 $1,972 $15,967 Base year adjustments Divestitures and other (8
Slide 29: Cash Flow, Free Cash Flow and Free Cash Flow Conversion
4. Cash Flow, Free Cash Flow and Free Cash Flow Conversion The following table includes operating cash flow conversion, free cash flow and free cash flow conversion (unaudited): Three Months Ended Twelve Months September 30, Ended September 30, (in millions) 2025 2024 2025 2024 Cash provided by oper
Slide 30: Segment Profitability and Corporate Expense
5. Segment Profitability and Corporate Expense The Company evaluates the performance of its business units on segment EBITA (primary) and segment EBIT (secondary). Three Months Ended September 30, Twelve Months Ended September 30, Adjusted Adjusted Actual (Non-GAAP) Actual (Non-GAAP) (in millions; u
Slide 31: 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 September 30, (in millions) Americas EMEA APAC 2025 2024 2025 2024 2025 2024 Sales $4,325 $4,265 $1,337 $1,180 $ 780 $ 803 Segment
Slide 32: Corporate Expense and Net Income Reconciliation
The following table reconciles Corporate expense from continuing operations as reported to the comparable adjusted amounts (unaudited): Three Months Ended Twelve Months Ended September 30, September 30, (in millions) 2025 2024 2025 2024 Corporate expense (GAAP) $ 269 $ 131 $ 767 $ 490 Adjusting item
Slide 33: Twelve Months Ended September 30 Diluted EPS Reconciliation
Twelve Months Ended September 30 Income from continuing operations attributable to Diluted earnings JCI per share (in millions, except per share) 2025 2024 2025 2024 As reported (GAAP) $ 1,721 $ 1,407 $ 2.63 $ 2.08 Adjusting items: Net mark-to-market adjustments 6 (47) 0.01 (0.07) Loss on divestitur
Slide 34: Debt Ratios
7. Debt Ratios The following table includes continuing operations and details net debt to income before income taxes and net debt to adjusted EBITDA (unaudited): (in millions) September 30, 2025 June 30, 2025 September 30, 2024 Short-term debt $ 723 $ 1,277 $ 953 Current portion of long-term debt 56
Slide 35: Income Taxes
8. Income Taxes After adjusting for certain non-recurring items, the Company's effective tax rate for continuing operations was approximately 12% for the twelve months ended September 30, 2025 and approximately 11% for the twelve months ended September 30, 2024. 35