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Johnson Controls International (JCI) investor relations material

Johnson Controls International Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary29 Jul, 2025

Executive summary

  • Organic sales grew 6% year-over-year, with Q3 net sales up 3% to $6.1B and record backlog of $14.6B, up 11%.

  • Adjusted EPS rose 11% to $1.05, exceeding guidance, and segment margins expanded to 17.6%.

  • Completed $5.0B divestiture of Residential & Light Commercial HVAC business, focusing on commercial buildings.

  • Leadership is implementing a new business system with lean principles, digitization, and AI to drive growth and efficiency.

  • Launched multi-year restructuring targeting $400M in costs and $500M in annual savings by 2026.

Financial highlights

  • Adjusted EPS for the quarter was $1.05, up 11% year-over-year and above guidance.

  • Gross profit for Q3 was $2.25B, with gross margin up to 37.1%.

  • Adjusted free cash flow for Q3 was $0.7B; year-to-date adjusted free cash flow reached $1.8B.

  • Net debt to adjusted EBITDA stood at 2.5x, within the target range.

  • Available cash at quarter-end was $700M, with $3B undrawn credit facilities.

Outlook and guidance

  • Full-year guidance raised: mid-single-digit organic sales growth, ~90 bps adjusted segment EBITDA margin expansion, and adjusted EPS of $3.65–$3.68.

  • Q4 guidance: low single-digit organic sales growth, adjusted segment EBITDA margin ~18.6%, and adjusted EPS $1.14–$1.17.

  • Adjusted free cash flow conversion expected to exceed 100% for the full year.

  • Expects $500M in annual cost savings from restructuring by fiscal 2027.

  • Capital resources and liquidity position deemed adequate for foreseeable obligations.

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Frequently asked questions

Johnson Controls International plc operates in two segments, Products and Solutions, and Building Efficiency. The Products and Solutions segment manufactures automotive seating components, systems and electronics, as well as batteries for automobiles, light trucks, and hybrid electric vehicles. The Building Efficiency segment designs, produces, markets and installs heating, ventilating and air conditioning controls; fire, security and building management systems; electronic security systems; call accounting software; nurse call systems; energy conservation equipment; intruder alarms; and central station monitoring services.

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