10-KPeriod: FY2025

Johnson Controls International plc Annual Report, Year Ended Sep 30, 2025

Filed November 14, 2025For Securities:JCI

Summary

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.

Financial Highlights

52 data points
Beta

Revenue

$23.60B

36.4% Gross Margin

Net Income

$3.29B

13.9% Net Margin

EPS (Diluted)

$5.03

Total Assets

$37.94B

Cash & Equivalents

$379.00M

Free Cash Flow

$2.55B

Financial Statements
Beta
Revenue$23.60B
Cost of Revenue$15.00B
Gross Profit$8.59B
R&D Expenses$273.00M
SG&A Expenses$5.76B
Operating Income$1.72B
Net Income$3.29B
EPS (Basic)$5.04
EPS (Diluted)$5.03
Shares Outstanding (Basic)651.80M
Shares Outstanding (Diluted)654.10M

Key Highlights

  • 1Divestiture of Residential and Light Commercial (R&LC) HVAC business for $5.6 billion net cash proceeds.
  • 2Realignment of reporting segments into three regions: Americas, EMEA, and APAC.
  • 3Net sales increased by 3% year-over-year, reaching $23.6 billion.
  • 4Gross profit increased by 6% to $8.6 billion, with a margin improvement to 36.4%.
  • 5Significant share repurchase activity, including $5.0 billion in accelerated share repurchases.
  • 6Backlog stood at $16.6 billion, with orders totaling $20.7 billion.
  • 7Strong focus on growth vectors like data centers, decarbonization, and sustainable buildings.

Frequently Asked Questions

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.

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.

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.

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.