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Johnson Controls International (JCI) investor relations material

Johnson Controls International Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary5 Nov, 2025

Executive summary

  • Fiscal 2025 delivered 6% organic sales growth, 17% adjusted EPS increase to $3.76, and a record $15B backlog, with strong execution and productivity gains across segments.

  • Orders rose 7% and free cash flow conversion reached 102%, reflecting disciplined capital allocation.

  • Strategic investments in technology, sustainability, and leadership, including new data center cooling platforms and decarbonization projects, support long-term growth.

  • Sale of Residential and Light Commercial HVAC business to Bosch for $8.3B, with $6.9B attributable to the company, completed in July 2025.

  • Operational focus and proprietary business systems drove customer engagement and margin expansion.

Financial highlights

  • FY25 sales reached $23.6B, up 3% year-over-year; organic sales growth was 6%.

  • Adjusted segment EBITA margin expanded to 17.1%, up 100bps; Q4 margin was 18.8%.

  • Adjusted EPS for FY25 was $3.76, up 17% year-over-year; Q4 adjusted EPS was $1.26, up 14%.

  • Adjusted free cash flow for FY25 was $2.5B, with 102% conversion.

  • Net debt/EBITDA ended at 2.4x, within target range.

Outlook and guidance

  • FY26 guidance: mid-single-digit organic sales growth, adjusted EPS of ~$4.55 (over 20% growth), operating leverage ~50%, and free cash flow conversion ~100%.

  • Q1 FY26: organic sales growth ~3%, operating leverage ~55%, adjusted EPS ~$0.83.

  • Corporate expense for FY26 projected at $375M–$400M; tax rate ~17%.

  • Long-term targets: mid-single-digit revenue growth, 30%+ operating leverage, double-digit adjusted EPS growth, ~100% free cash flow conversion.

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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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