Johnson Controls International (JCI) investor relations material

Executive summary

• FY26 organic revenue grew 8% to $25.666B, adjusted EPS rose 37% to $5.16, and adjusted free cash flow conversion reached 103%.

• Q4 organic revenue grew 12%; adjusted EPS increased 32% to $1.66, and adjusted EBIT margin expanded 300 bps to 18.3%.

• Orders rose 44% organically and backlog increased 43% to a record $23B, supporting FY27 guidance for 11%–12% organic revenue growth and adjusted EPS of $6.15–$6.30.

• Strategy prioritizes thermal technology and high-growth markets including AI and data centers, advanced manufacturing, and biopharma.

Financial highlights

• Q4 sales were $7.113B, up 10% reported and 12% organically; adjusted gross profit was $2.668B, or 37.5% of sales, versus 36.7% a year earlier.

• Q4 adjusted EBIT was $1.299B, up 31%; adjusted net income from continuing operations was $1.008B.

• FY26 adjusted free cash flow was $3.229B; Q4 operating cash flow was $1.300B and adjusted free cash flow was $1.096B.

• FY26 GAAP net income attributable to shareholders was $2.853B; continuing-operations income attributable to shareholders was $2.880B.

Outlook and guidance

• Q1 FY27 guidance: organic revenue growth of 12%–14%, operating leverage of 30%–35%, and adjusted EPS of $1.15–$1.20.

• FY27 guidance: organic revenue growth of 11%–12%, operating leverage of 30%+, adjusted EPS of $6.15–$6.30, and adjusted free cash flow conversion of ~95%.

• Backlog conversion is expected to be 70%–80% over the next 12 months; customer power and electrical infrastructure constraints can affect project timing, with remaining projects extending beyond FY27.

• FY27 guidance includes adjusted corporate expense of ~$385M, amortization of ~$320M, net financing charges of ~$295M, a tax rate of ~18.5%, and 598M shares.