Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Q2 2026 Earnings Presentation
32 slides from Johnson Controls International's earnings presentation, May 6, 2026
Slide 1: Fiscal Q2 2026 Earnings Conference Call
FISCAL Q2 2026 Earnings Conference Call May 6, 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 suc
Slide 3: Forward-Looking and Cautionary Statements
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 4: CEO Summary
Building on Q1 momentum with strong Q2 execution ̵ Organic sales growth of 6%, led by strength in Applied HVAC ̵ Adjusted EBIT margin expanded 310 basis points to 15.5% ̵ Adjusted EPS up 45% Sustained order growth driving record backlog levels ̵ Orders grew 30%, reflecting strong customer demand, le
Slide 5: Proprietary End-to-End Ownership Enables High-Precision Cooling
Core Proprietary HVAC, Controls, and Digital Capabilities Proprietary End-to-End Ownership Enables High-Precision Cooling— Without the Typical Energy Penalty High-Performance Cooling for Mission-Critical Environments Baseline Energy Consumption Power Electronics Real-time output control for rapid, p
Slide 6: Building the Foundation: Proprietary Business System
Building the Foundation Winning With Customers and Building Capabilities with our Proprietary Business System WHAT TO WORK ON HOW WE WORK - PROCESS HOW WE AUGMENT SIMPLIFY ACCELERATE AMPLIFY 80/20 operating model Building on lean principles Digitization and AI to scale “from weeks to days” “from day
Slide 7: Business System: Winning with Customers and Our People
A Disciplined, Multi-year Journey Business System: Winning with Customers and Our People OUTCOMES ENABLED Demonstrate Scale and OVER TIME Establish a new way measurable expand of thinking and working improvement and wins proven wins A disciplined, repeatable way of working Inspire and Align Teams St
Slide 8: Total Enterprise Fiscal Q2 Results
Fiscal Q2 Results Total Enterprise3 Sales - Organic % Growth* Adjusted Segment EBITA/Margin* ($ in Millions) $128 6% 18.5% 180bps $360 YoY Organic Growth* Adj. EBITA Margin* Expansion $6,142 ($22) Systems +6% Net Growth ~$135M $5,676 Service +6% 16.7% Productivity ~$50M ̵ Applied1 +HSD Mix ~$5M ̵ F&
Slide 9: Solutions Orders and Backlog
Fiscal Q2 Results Solutions Orders and Backlog Orders* - Organic % Growth 39% 30% YoY Organic Growth 30% Systems +45% Service Flat 5% 6% 2% Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Backlog* ($ in Billions) Service Systems $20.0 $18.2 $16.2 $16.4 $2.5 $2.5 26% $15.7 YoY Organic Growth $2.6 $2.6 $2.5 S
Slide 10: Segment View
Fiscal Q2 Results Segment View Adj. Segment Orders* Orders / Backlog* Sales Sales Adj. Segment EBITA/Margin† Organic % Growth Comments Organic % YoY† Comments EBITA Comments Change YoY 40% ▪ Orders 7% ▪ Systems +5% 100bps 40% ̵ Systems +57% 19.5% $4.1B ▪ Service +10% ̵ Service +4% Americas $802 ▪ Ne
Slide 11: Disciplined Capital Allocation
Balance Sheet and Adjusted Free Cash Flow Disciplined Capital Allocation Capital Structure ($ billions) Q2 FY25 Q1 FY26 Q2 FY26 Short-term debt and current portion $1.8 $1.0 $0.9 of long-term debt Debt and liquidity Net Debt / EBITDA* ▪ 86% fixed rate debt Long-term debt $8.2 $8.7 $8.6 ▪ 3.6% weight
Slide 12: Introducing Q3 and Raising Fiscal 26 Full Year Guidance
Outlook Summary Introducing Q3 and Raising Fiscal ‘26 Full Year Guidance Q3’26 FY’26 Organic Revenue* Up ~6% Up ~6% (previous: Up ~MSD) Operating Leverage* ~45% ~50% Adjusted EPS* ~$1.28 ~$4.85 (previous: ~$4.70) Adjusted Free Cash Flow ~100% Conversion* 12 *Organic Sales Growth, Operating Leverage,
Slide 13: Appendix
City graphic Appendix
Slide 14: Additional FY 2026 Guidance Items
Additional FY 2026 Guidance Items Q3’26 FY’26 Adjusted Corporate Expense* ~$95M ~$390M Amortization Expense ~$85M ~$345M NFC ~$80M ~$285M Tax Rate ~17% ~17% Shares ~609M ~610M *Adjusted Corporate expense is a non-GAAP measure that includes certain stranded costs from divestiture transactions to be a
Slide 15: Consolidated Financial Results
Fiscal Q2 Consolidated Financial Results Q2 FY25 Q2 FY26 Q2 FY25* Q2 FY26* % Change ($ in Millions, except earnings per share) GAAP GAAP NON-GAAP NON-GAAP NON-GAAP Sales $5,676 $6,142 $5,676 $6,142 8% Gross profit $2,069 $2,262 $2,069 $2,262 9% (% of sales) 36.5% 36.8% 36.5% 36.8% SG&A expenses $1,4
Slide 16: Special Items
Fiscal Q2 Special Items ($ in Millions, except EPS) Three Months Ended March 31 Net income (Expense) EPS impact 2025 2026 2025 2026 Net mark-to-market adjustments $(13) $(14) $(0.02) $(0.02) Restructuring & impairment costs $(62) $(57) $(0.09) $(0.09) Water systems AFFF insurance recoveries $8 $1 $0
Slide 17: 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 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 Six Months Ended March 31 March 31 2026 2025 2026 2025 Net sales Products and systems $ 4,199 $ 3,865 $ 8,091 $ 7,550 Services 1,943 1,811 3,84
Slide 19: Consolidated Statements of Financial Position
Johnson Controls International plc Condensed Consolidated Statements of Financial Position (in millions; unaudited) March 31, 2026 September 30, 2025 Assets Cash and cash equivalents $ 698 $ 379 Accounts receivable - net 6,614 6,269 Inventories 1,933 1,820 Current assets held for sale 21 14 Other cu
Slide 20: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (in millions; unaudited) Three Months Ended Six Months Ended March 31 March 31 2026 2025 2026 2025 Operating Activities of Continuing Operations Income from continuing operations: Attributable to Johnson Controls $ 609 $ 473 $ 1,164 $ 836 Attributable to noncont
Slide 21: 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 22: 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 23: 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 March 31 (in millions) Americas EMEA APAC Total Net sales - 2025 $ 3,837 $ 1,201 $ 638
Slide 24: Products and Systems Revenue
Products and systems revenue Three Months Ended March 31 (in millions) Americas EMEA APAC Total Products and systems revenue - 2025 $ 2,711 $ 721 $ 433 $ 3,865 Base year adjustments Divestitures and other — 1 — 1 Foreign currency 20 57 11 88 Adjusted products and systems revenue 2,731 779 444 3,954
Slide 25: Service Revenue
Service revenue Three Months Ended March 31 (in millions) Americas EMEA APAC Total Service revenue - 2025 $ 1,126 $ 480 $ 205 $ 1,811 Base year adjustments Divestitures and other — (23) — (23) Foreign currency 4 32 4 40 Adjusted base service revenue 1,130 489 209 1,828 Organic growth 116 (6) 5 115 S
Slide 26: 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 Six Months Ended March 31 March 31 (in millions) 2026 2025 2026 2025 Cash provided by operating activit
Slide 27: 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 March 31 Six Months Ended March 31 (in millions; unaudited) 2026 2025 2026 2025 Income from continuing operations: A
Slide 28: Segment EBITA 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 29: 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 March 31 Six Months Ended March 31 (in millions) 2026 2025 2026 2025 Adjusted Segment EBITA (non-GAAP) Americas $ 802 $ 709 $ 1,434 $ 1,298 EMEA 191 135 355 2
Slide 30: Net Income and Diluted Earnings Per Share
Six Months Ended March 31 Income from continuing Diluted earnings operations attributable to JCI per share (in millions, except per share) 2026 2025 2026 2025 As reported (GAAP) $ 1,164 $ 836 $ 1.90 $ 1.26 Adjusting items: Net mark-to-market adjustments 12 14 0.02 0.02 Restructuring and impairment c
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) March 31, 2026 December 31, 2025 March 31, 2025 Short-term debt $ 882 $ 436 $ 1,261 Current portion of long-term debt 28 568
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 and six months ending March 31, 2026 and approximately 12% for the three and six months ending March 31, 2025. 32
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