01—Abstract
Summary
Summary of the 10-K filed November 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Johnson Controls International plc (JCI) reported its fiscal year results ending September 30, 2025, highlighting a strategic shift towards a more focused commercial building solutions portfolio.
The company successfully divested its Residential and Light Commercial (R&LC) HVAC business in July 2025, which contributed a significant gain, bolstering the company's financial position. This divestiture, alongside other portfolio optimization efforts, is intended to accelerate growth, drive profitability, and improve cash flow by concentrating on core commercial building technologies and services. The company realigned its reporting segments to Americas, EMEA, and APAC, reflecting its updated operational structure.
Net sales saw a modest increase, driven by organic growth in services and products, particularly in the Americas and EMEA regions. The company also demonstrated strong operational execution, with improvements in gross profit and segment EBITA, especially in the Americas and EMEA segments.
JCI continues to invest in digital capabilities, including its OpenBlue platform, to enhance smart building solutions and capitalize on trends such as data centers, decarbonization, and energy efficiency. The company also announced a substantial increase in its share repurchase authorization and actively repurchased shares, returning capital to shareholders.
02—Key points
Key Highlights
- Divestiture of Residential and Light Commercial (R&LC) HVAC business for $5.6 billion net cash proceeds.
- Realignment of reporting segments into three regions: Americas, EMEA, and APAC.
- Net sales increased by 3% year-over-year, reaching $23.6 billion.
- Gross profit increased by 6% to $8.6 billion, with a margin improvement to 36.4%.
- Significant share repurchase activity, including $5.0 billion in accelerated share repurchases.
- Backlog stood at $16.6 billion, with orders totaling $20.7 billion.
- Strong focus on growth vectors like data centers, decarbonization, and sustainable buildings.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Johnson Controls International plc kept $0.14.
- Revenue$23.60B100.0%
- Cost of revenue−$15.00B63.6%
- Gross profit$8.59B36.4%
- Operating costs−$6.87B29.1%
- Operating income$1.72B7.3%
- Interest, other & tax$1.57B6.7%
- Net income$3.29B13.9%
Where FY2025 revenue went
$23.60B- Cost of revenue: $15.00B, 64% of revenue
- SG&A: $5.76B, 24% of revenue
- Operating income: $1.72B, 7.3% of revenue
- R&D: $273.0M, 1.2% of revenue
- Other operating costs: $834.0M, 3.5% of revenue
Kept 7.3% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed November 14, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $23.60B$22.95B | +2.8% |
| Cost of Revenue | $15.00B$14.88B | +0.9% |
| Gross Profit | $8.59B$8.08B | +6.4% |
| R&D Expenses | $273.00M$267.00M | +2.2% |
| SG&A Expenses | $5.76B$5.66B | +1.8% |
| Operating Income | $1.72B$1.41B | +22.3% |
| Net Income | $3.29B$1.71B | +93.0% |
| EPS (Basic) | $5.04$2.53 | +99.2% |
| EPS (Diluted) | $5.03$2.52 | +99.6% |
| Shares Outstanding (Basic) | 651.80M673.80M | −3.3% |
| Shares Outstanding (Diluted) | 654.10M676.00M | −3.2% |
05—Questions
Frequently Asked Questions
What was the impact of the R&LC HVAC business divestiture?
The divestiture of the Residential and Light Commercial (R&LC) HVAC business on July 31, 2025, generated approximately $5.6 billion in net cash proceeds. This transaction was presented as income from discontinued operations and resulted in a significant gain, contributing positively to the company's financial performance for the fiscal year.
How has Johnson Controls restructured its business segments?
Effective April 1, 2025, Johnson Controls realigned its reporting structure from four segments to three: Americas, EMEA, and APAC. This change was implemented to drive simplification, accelerate growth, better reflect the operational structure, and align with how the chief operating decision maker assesses performance and allocates resources following portfolio optimization.
What is the company's strategy for future growth?
Johnson Controls' core strategy is to advance smart, healthy, and sustainable buildings. Key growth priorities include capitalizing on trends like data centers, decarbonization, energy efficiency, and mission-critical environments. The company plans to leverage its OpenBlue digital platform, broad product portfolio, and extensive service network to deliver differentiated, outcome-based solutions to customers.
How is the company returning capital to shareholders?
Johnson Controls has a significant share repurchase program. In fiscal year 2025, the company approved a $9.0 billion increase to its share repurchase authorization and completed accelerated share repurchase transactions totaling $5.0 billion. The company also continued to pay quarterly dividends.
06—Continue