Johnson Controls Exceeds Q4 Expectations with Strong Growth

Johnson Controls ( (JCI) ) has released its Q4 earnings. Here is a breakdown of the information Johnson Controls presented to its investors.

Johnson Controls International plc, a global leader in smart, healthy, and sustainable building solutions, specializes in transforming environments through advanced building technology and software solutions. In the latest earnings report, Johnson Controls reported a notable increase in fiscal fourth-quarter and full-year sales, with a 7% rise in Q4 sales and a 2% increase for the full year. The company achieved a Q4 GAAP EPS of $0.95 and an adjusted EPS of $1.28, driven by strong organic sales growth and robust margin expansion.

Key highlights include double-digit growth in organic Q4 sales, with a significant backlog increase to $13.1 billion, reflecting a 7% organic year-over-year rise. The Building Solutions segment in North America saw a 16% increase in sales led by Applied HVAC & Controls, while the EMEA/LA region experienced a 35% rise in segment EBITA due to improved productivity and service growth. Despite a decline in sales in the Asia Pacific region, EBITA margins improved due to positive service mix.

The Global Products segment maintained flat sales but achieved a 33% increase in segment EBITA, attributed to operational efficiencies. The company also announced significant strategic moves, including a definitive agreement to sell its Residential and Light Commercial HVAC business to Bosch Group, expected to close in fiscal 2025, and a multi-year restructuring plan aimed at reducing costs and enhancing global operations.

Looking ahead, Johnson Controls enters fiscal 2025 with momentum, targeting mid-single-digit organic sales growth and an improvement in adjusted segment EBITA margin by more than 50 basis points for the full year. The company’s focus on portfolio simplification and operational efficiency is anticipated to drive continued profitable growth and create greater value for shareholders.