Johnson Controls International (JCI) Q4 2025 earnings summary

Executive summary

• Achieved 6% organic sales growth and 17% adjusted EPS growth for the full year, with Q4 adjusted EPS at $1.26 and a record backlog of ~$15B, driven by operational improvements and broad-based segment strength.

• Proprietary business system leveraging 80/20, lean, digital, and AI principles is enhancing productivity and customer focus.

• Leadership changes and talent development initiatives are underway to accelerate growth and productivity.

• Orders grew 7% for the year, with Americas performance offsetting softness in China.

• Strong free cash flow conversion at 102%, reflecting disciplined capital allocation.

Financial highlights

• Q4 organic revenue grew 4% year-over-year to $6.44B; segment margin expanded to 18.8%.

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

• Full-year sales grew 6% organically to $23.6B; segment margins expanded 100 bps to 17.1%.

• Adjusted free cash flow conversion reached 102% for the year, with adjusted free cash flow at $2.5B.

• Orders grew 7% for the year, backlog expanded 13% to ~$15B.

Outlook and guidance

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

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

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

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