Johnson Controls International (JCI) Q4 2024 earnings summary

Executive summary

• Achieved double-digit organic revenue growth and robust margin expansion in Q4 2024, with adjusted free cash flow conversion reaching 96% and a record $13.1 billion backlog driven by strong data center demand.

• Transformation to a pure-play commercial building solutions provider is nearly complete, with the sale of the Residential and Light Commercial business to Bosch expected to close in fiscal Q4 2025; R&LC business classified as discontinued operations.

• Introduced fiscal 2025 guidance for adjusted EPS of $3.40–$3.50 from continuing operations, reflecting confidence in sustained growth and margin expansion.

• Returned $2.2 billion to shareholders in FY24 via dividends and share repurchases.

• Record long-cycle backlog of $13.1B at year-end, driven by 8% order growth and strong data center demand.

Financial highlights

• Q4 organic revenue grew 10% year-over-year to $7.4B; segment margin expanded 260 basis points to 18.6%.

• Adjusted EPS for Q4 FY24 was $1.28, up 22% year-over-year, exceeding guidance.

• Adjusted free cash flow conversion reached 96%, with $2.4 billion in adjusted free cash flow, up nearly $800 million year-over-year.

• Gross profit margin improved to 36.3% (non-GAAP) in Q4 FY24.

• Net income attributable to the company for Q4 FY24 was $858M (non-GAAP), up 19% year-over-year.

Outlook and guidance

• Fiscal 2025 guidance: mid-single-digit organic sales growth, adjusted segment margin expansion of over 50 basis points, and adjusted EPS of $3.40–$3.50 (6%–9% growth).

• Q1 2025 guidance: organic sales growth in mid-single digits, margin expansion to ~14.5%, and adjusted EPS of $0.57–$0.60 (24%–30% growth).

• Free cash flow conversion expected at 85% or greater; plan to return 100% of free cash flow to shareholders.

• Multi-year restructuring plan to deliver $500 million in annual cost savings, with $400 million in expenses over three years.

• No capital deployment from divestiture proceeds included in FY25 outlook; plan to return proceeds efficiently post-transaction.