32 slides from Johnson Controls International's earnings presentation, Feb 4, 2026
Slide 1: Fiscal Q1 2026 Earnings Conference Call
FISCAL Q1 2026 Earnings Conference Call February 4, 2026
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
Accelerated performance through disciplined execution ̵ Organic sales growth of 6% with broad-based strength ̵ Adjusted EBIT margin expanded 190 basis points to 12.4% ̵ Adjusted EPS up ~40% Delivered record orders on sustained customer demand ̵ Orders grew ~40%, with notable strength in the Americas
Slide 5: Accelerating Our Speed of Innovation for Mission-Critical Applications
Technology Leadership Accelerating Our Speed of Innovation for Mission-Critical Applications YORK YDAM delivers YORK YK-HT unlocks SMART READY CHILLERS breakthrough 3.5MW cooling water-free, high-temperature cooling cut unplanned service calls by 32% with capacity for AI and high-density and heat re
Slide 6: Building the Foundation: Winning With Customers and Operating With the Right Business System
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 AMPLIFY 80/20 operating model Building lean principles Digitization and AI to scale learnings and successes 6
Slide 7: Creating a More Capable, Disciplined Company That Delivers for Customers
Building the Foundation Creating a More Capable, Disciplined Company That Delivers for Customers The Culture We Are Building Together … And We Are Gaining Momentum Driving continuous improvement at speed to better deliver for our customers 1,000+ Unlocking our potential colleagues engaged Stronger c
Slide 8: Fiscal Q1 Results: Total Enterprise
Fiscal Q1 Results Total Enterprise3 Sales - Organic % Growth* Adjusted Segment EBITA/Margin* ($ in Millions) $311 $72 6% 15.7% 70bps YoY Organic Growth* Adj. EBITA Margin* Expansion ($12) $5,797 Service +9% Productivity ~$70M $5,426 Net Growth ~$30M Systems +4% 15.0% ̵ Applied1 +HSD ̵ F&S2 +LSD Q1 F
Slide 9: Solutions Orders and Backlog
Fiscal Q1 Results Solutions Orders and Backlog Orders* - Organic % Growth 39% 39% YoY Organic Growth Service +5% 16% Systems +58% 5% 6% 2% Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Backlog* ($ in Billions) Service Systems $18.2 $15.7 $16.2 $16.4 $2.5 20% $14.9 YoY Organic Growth $2.6 $2.6 $2.5 $2.4 Se
Slide 10: Segment View
Fiscal Q1 Results Segment View Adj. Segment Orders* Orders / Backlog* Sales Sales Adj. Segment EBITA/Margin† Organic % Growth Comments Organic % YoY† Comments EBITA Comments Change YoY 56% ▪ Orders 6% ▪ Service +10% 20bps ▪ Productivity: ~$50M 56% ̵ Service +3% $3.8B 16.4% ̵ Systems +84% ▪ Systems +
Slide 11: Disciplined Capital Allocation: Balance Sheet and Adjusted Free Cash Flow
Balance Sheet and Adjusted Free Cash Flow Disciplined Capital Allocation Capital Structure ($ billions) Q1 FY25 Q4 FY25 Q1 FY26 Short-term debt and current portion $1.4 $1.3 $1.0 Net Debt / EBITDA* of long-term debt Debt and liquidity ▪ 91% fixed rate debt Long-term debt $8.6 $8.6 $8.7 ▪ 3.6% weight
Slide 12: Introducing Q2 and Raising Fiscal '26 Full Year Guidance
Outlook Summary Introducing Q2 and Raising Fiscal ‘26 Full Year Guidance Q2’26 FY’26 Organic Revenue* Up ~5% Up ~MSD Operating Leverage* ~45% ~50% Adjusted EPS* ~$1.11 ~$4.70 (previous: ~$4.55) Adjusted Free Cash Flow ~100% Conversion* 12 *Organic Sales Growth, Operating Leverage, Adjusted EPS, and
Slide 13: Appendix
City graphic Appendix
Slide 14: Additional FY 2026 Guidance Items
Additional FY 2026 Guidance Items Q2’26 FY’26 Adjusted Corporate Expense* ~$100M ~$375M to $400M Amortization Expense ~$85M ~$340M NFC ~$70M ~$290M Tax Rate ~17% ~17% Shares ~610M ~610M *Adjusted Corporate expense is a non-GAAP measure that includes certain stranded costs from divestiture transactio
Slide 15: Consolidated Financial Results
Fiscal Q1 Consolidated Financial Results Q1 FY25 Q1 FY26 Q1 FY25* Q1 FY26* % Change ($ in Millions, except earnings per share) GAAP GAAP NON-GAAP NON-GAAP NON-GAAP Sales $5,426 $5,797 $5,426 $5,797 7% Gross profit $1,926 $2,074 $1,926 $2,074 8% (% of sales) 35.5% 35.8% 35.5% 35.8% SG&A expenses $1,3
Slide 16: Special Items
Fiscal Q1 Special Items ($ in Millions, except EPS) Three Months Ended December 31 Net income (Expense) EPS impact 2025 2026 2025 2026 Net mark-to-market adjustments $(1) $2 - - Gain on divestiture - $70 - $0.11 Restructuring $(33) $(37) $(0.05) $(0.06) Impairment costs - $(50) - $(0.08) Water syste
Slide 17: Long-Term Growth Algorithm
Value Creation Framework Long-Term Growth Algorithm LONG-TERM GROWTH ALGORITHM ~$4.70 Organic Growth Up ~MSD Accelerate innovation and expand entitlement by leveraging Organic Growth % leadership in decarbonization and mission-critical solutions $3.76 $3.71 ~30%+ Operating Leverage $3.21 Operational
Slide 18: 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 19: IR Contacts
IR Contacts 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 National Due Diligence Services www.johnsoncontrols.com © 2026
Slide 20: 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, 2025 2024 Net sales Products and systems $ 3,892 $ 3,685 Services 1,905 1,741 5,797 5,426 Cost of sales Products and systems 2,648
Slide 21: Condensed Consolidated Statements of Financial Position
Johnson Controls International plc Condensed Consolidated Statements of Financial Position (in millions; unaudited) December 31, 2025 September 30, 2025 Assets Cash and cash equivalents $ 552 $ 379 Accounts receivable - net 6,190 6,269 Inventories 1,932 1,820 Current assets held for sale 20 14 Other
Slide 22: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (in millions; unaudited) Three Months Ended December 31, 2025 2024 Operating Activities of Continuing Operations Income (loss) from continuing operations: Attributable to Johnson Controls $ 555 $ 363 Attributable to noncontrolling interests 1 (2) Total 556 361 A
Slide 23: 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 24: Footnotes: Non-GAAP Adjusting Items
• Net mark-to-market adjustments are the result of adjusting restricted asbestos investments and pension and postretirement plan assets to their current market value. These adjustments may have a favorable or unfavorable impact on results. • Restructuring and impairment costs represents restructurin
Slide 25: Debt Ratios and Sales
Debt ratios Management believes that net debt to adjusted EBITDA, a non-GAAP measure, is useful to understanding the Company's financial condition as the ratio provides an overview of the extent to which the Company relies on external debt financing for its funding and also is a measure of risk to i
Slide 26: Service Revenue and Free Cash Flow
Service revenue Three Months Ended December 31 (in millions) Americas EMEA APAC Total Service revenue - 2024 $ 1,091 $ 457 $ 193 $ 1,741 Base year adjustments Divestitures and other — (15) — (15) Foreign currency (1) 20 — 19 Adjusted base service revenue 1,090 462 193 1,745 Organic growth 113 37 10
Slide 27: 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) 2025 2024 Free cash flow (non-GAAP) $ 531 $ 133 Adjustments: JC Capital cash used by operating activities (31) 66 Water systems AFFF settlement cash
Slide 28: Segment Profitability and Corporate Expense
5. Segment Profitability and Corporate Expense The Company evaluates the performance of its business units primarily on segment EBITA and segment EBIT. The following tables reconcile segment EBITA to EBIT and Income (loss) from continuing operations (the most comparable GAAP measure) to EBIT. Three
Slide 29: Reconciliations of Segment EBITA and EBIT
The following tables include the reconciliations of segment EBITA and EBIT as reported to adjusted segment EBITA and EBIT and adjusted segment EBITA and EBIT margin (unaudited): Three Months Ended December 31, (in millions) Americas EMEA APAC 2025 2024 2025 2024 2025 2024 Sales $3,843 $3,627 $1,261
Slide 30: Net Income and Diluted Earnings Per Share
6. Net Income and Diluted Earnings Per Share The following tables reconcile net 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 December 31, Income from cont
Slide 31: 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) December 31, 2025 September 30, 2025 December 31, 2024 Short-term debt $ 436 $ 723 $ 882 Current portion of long-term debt 5
Slide 32: Income Taxes
8. Income Taxes After adjusting for certain non-recurring items, the Company's effective tax rate for continuing operations was approximately 17% for the three months ending December 31, 2025 and approximately 12% for the three months ending December 31, 2024. 32