Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Q3 2026 Earnings Presentation
29 slides from Johnson Controls International's earnings presentation, Jul 29, 2026
Slide 1: Fiscal Q3 2026 Earnings Conference Call
Fiscal Q3 2026 Earnings Conference Call July 29, 2026
Slide 2: 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 such as
Slide 3: 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 information technology infrastructure; the ability to manage the lifecycle Non-GAAP financial information forward-looking statements cybersecurity risk in the de
Slide 4: CEO Summary
Q3 2026 Earnings CEO Summary Proprietary Business Q3 Execution Driving Record Backlog Winning with System That Raising Full-Year Accelerating Supported by Strong Customers Turns Strategy Into Guidance for 2026 Performance Orders Results High-growth end ~8% Organic revenue 10% Organic sales markets 2
Slide 5: Johnson Controls Has the Technology, Field Presence and Business System to Win
Johnson Controls Has the Technology, Field Presence and Business System to Win OUR COMPETITIVE ADVANTAGES DEVELOPED OVER 140 YEARS Unparalleled, Differentiated Technology Innovation Comprehensive Global Field Presence STRATEGIC DRIVERS ACCELERATING GROWTH Prioritizing Where We Win Deploying Our Busi
Slide 6: Early Proof Points Demonstrate What is Possible as the Business System Scales
Going to Gemba Day Early Proof Points Demonstrate What is Possible as the Business System Scales LONG-TERM GROWTH ALGORITHM1 High Single-Digit Global Engineering Center Manufacturing Site Local Market Office Organic Revenue Growth % Innovating at the Cutting Edge Manufacturing at Scale Winning with
Slide 7: Fiscal Q3 Results
Fiscal Q3 Results Total Enterprise3 SALES — ORGANIC % GROWTH*, ADJUSTED SEGMENT EBITA/MARGIN* ($ IN MILLIONS) $582 $26 $6,614 10% YoY Organic Growth* 220bps 19.8% Adj. EBITA Margin* Expansion $6,052 ($46) Systems Service Net Growth ~$215M +11% +7% 17.6% Productivity ~$35M Applied1 F&S2 Mix ~$10M +hi
Slide 8: Solutions Orders and Backlog
Fiscal Q3 Results Solutions Orders and Backlog ORDERS* — ORGANIC % GROWTH 39% 30% 27% 27% YoY Organic Growth 2% 6% Systems Service Q3 FY25 Q4 FY25 Q1FY26 Q2FY26 Q3FY26 +40% +4% BACKLOG* ($ IN BILLIONS) $16.2 $16.4 $18.2 $20.0 $2.5 $21.0 $2.6 32% YoY Organic $2.5 Service Growth $2.6 $2.6 $17.5 $18.4
Slide 9: Segment View
Fiscal Q3 Results Segment View Orders* Sales Adj. Segment EBITA Margin† Organic % Growth Comments Organic % YoY† Comments Change YoY Comments Orders Systems +12% Net Growth: 37% 37% • Systems +55% 11% $4.5B Service +10% 260bps ~$185M • Service +4% • Applied1: +high-teens Productivity: $4.0B 21.1% Am
Slide 10: Disciplined Capital Allocation
Balance Sheet and Adjusted Free Cash Flow Disciplined Capital Allocation DEBT AND LIQUIDITY Capital Structure ($ billions) Q3 FY25 Q2 FY26 Q3 FY26 86% 3.6% ~$0.6B Short-term debt and current portion of long- fixed rate debt weighted avg interest cash position $1.8 $0.9 $1.2 rate term debt Long-term
Slide 11: Outlook Summary
Outlook Summary Introducing Q4 and Raising Fiscal ‘26 Full Year Guidance Q4’26 FY’26 Organic Revenue* Up 9% to 10% Up ~8% (previous: Up ~6%) Operating Leverage* 45% to 50% 45% to 50% (previous: ~50%) Adjusted EPS* ~$1.55 ~$5.05 (previous: ~$4.85) Adjusted Free Cash Flow Conversion* ~100% ▪*Organic S
Slide 12: Appendix
Appendix 12
Slide 13: Additional FY 2026 Guidance Items
Additional FY 2026 Guidance Items Q4’26 FY’26 Adjusted Corporate Expense* ~$90M ~$400M Amortization Expense ~$90M ~$355M NFC ~$85M ~$285M Tax Rate ~17% ~17% Shares ~605M ~610M ▪*Adjusted Corporate expense is a non-GAAP measure that includes certain stranded costs from 13 divestiture transactions to
Slide 14: Consolidated Financial Results
Consolidated Financial Results Fiscal Q3 ($ in Millions, except earnings per share) Q3 FY25 GAAP Q3 FY26 GAAP Q3 FY25* Non-GAAP Q3 FY26* Non-GAAP % Change Non-GAAP Sales $6,052 $6,614 $6,052 $6,614 9% Gross profit $2,246 $2,474 $2,246 $2,474 10% (% of sales) 37.1% 37.4% 37.1% 37.4% SG&A expenses $1,
Slide 15: Special Items
($ in Millions, except EPS) Special Items Net income (Expense) EPS impact Three Months Ended June 30 2025 2026 2025 2026 Net mark-to-market adjustments $21 $28 $0.03 $0.05 Restructuring & impairment costs $(51) $(80) $(0.08) $(0.13) Water systems AFFF insurance recoveries $1 $17 — $0.03 Transaction/
Slide 16: 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, 2026 2025 2026 2025 Net sales Products and systems $ 4,596 $ 4,122 $ 12,687 $ 11,672 Services 2,018 1,930 5
Slide 17: Condensed Consolidated Statements of Financial Position
Johnson Controls International plc Condensed Consolidated Statements of Financial Position (in millions; unaudited) June 30, 2026 September 30, 2025 Assets Cash and cash equivalents $ 641 $ 379 Accounts receivable - net 6,970 6,269 Inventories 1,955 1,820 Current assets held for sale 4 14 Other curr
Slide 18: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (in millions; unaudited) Three Months Ended Nine Months Ended June 30, June 30, 2026 2025 2026 2025 Operating Activities of Continuing Operations Income from continuing operations: Attributable to Johnson Controls $ 749 $ 618 $ 1,913 $ 1,454 Attributable to nonc
Slide 19: 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 20: 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 21: Sales
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 (in millions) Americas EMEA APAC Total Net sales - 2025 $ 4,042 $ 1,273 $ 737
Slide 22: Products and systems revenue
Products and systems revenue Three Months Ended June 30 (in millions) Americas EMEA APAC Total Products and systems revenue - 2025 $ 2,847 $ 756 $ 519 $ 4,122 Base year adjustments Divestitures and other — (1) (1) (2) Foreign currency 8 11 3 22 Adjusted products and systems revenue 2,855 766 521 4,1
Slide 23: Service revenue
Service revenue Three Months Ended June 30 (in millions) Americas EMEA APAC Total Service revenue - 2025 $ 1,195 $ 517 $ 218 $ 1,930 Base year adjustments Divestitures and other — (40) (4) (44) Foreign currency — 4 — 4 Adjusted base service revenue 1,195 481 214 1,890 Organic growth 115 6 7 128 Serv
Slide 24: 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 Nine Months Ended June 30, June 30, (in millions) 2026 2025 2026 2025 Cash provided by operating activi
Slide 25: EBIT, Segment Profitability and Corporate Expense
5. EBIT, Segment Profitability and Corporate Expense The following table reconciles income from continuing operations before income taxes to EBIT and adjusted EBIT. Three Months Ended June 30, Nine Months Ended June 30, (in millions; unaudited) 2026 2025 2026 2025 Income from continuing operations:
Slide 26: Segment EBITA and margin reconciliation
The following tables reconcile Segment EBIT to Segment EBITA (non-GAAP) as reported and reconcile Segment EBIT and Segment EBITA (non-GAAP) as reported to adjusted Segment EBIT and Segment EBITA (non-GAAP) and adjusted Segment EBIT and Segment EBITA (non-GAAP) margin (unaudited): Three Months Ended
Slide 27: Adjusted Segment EBITA and Corporate Expense
The following table reconciles adjusted Segment EBITA (non-GAAP) to adjusted Segment EBITA margin (non- GAAP) (unaudited): Three Months Ended Nine Months Ended June 30, June 30, (in millions) 2026 2025 2026 2025 Adjusted Segment EBITA (non-GAAP) Americas $ 951 $ 746 $ 2,385 $ 2,044 EMEA 181 179 536
Slide 28: Net Income and Diluted Earnings
Nine Months Ended June 30, Income from continuing Diluted earnings operations attributable to JCI per share (in millions, except per share) 2026 2025 2026 2025 As reported (GAAP) $ 1,913 $ 1,454 $ 3.12 $ 2.20 Adjusting items: Net mark-to-market adjustments (16) (7) (0.03) (0.01) Restructuring and im
Slide 29: 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) June 30, 2026 March 31, 2026 June 30, 2025 Short-term debt $ 865 $ 882 $ 1,277 Current portion of long-term debt 311 28 570
Johnson Controls International — Q3 2026 Earnings Presentation on 6ix