Summary
Johnson Controls International plc (JCI) reported its third-quarter fiscal year 2025 results, demonstrating a 3% increase in net sales to $6.1 billion year-over-year, driven by organic growth and favorable foreign currency translation. The company successfully completed the divestiture of its Residential and Light Commercial (R&LC) HVAC business for approximately $5.0 billion, a strategic move intended to focus on its core building solutions. Despite a year-over-year decrease in net income attributable to Johnson Controls to $701 million from $975 million, primarily impacted by the prior year's water systems AFFF insurance recoveries and earn-out adjustments, the company maintained a strong gross profit margin of 37.1%, up from 35.8% in the prior year quarter. Management highlighted improved backlog and order trends, particularly in the Americas segment, and reaffirmed its commitment to capital return to shareholders through an accelerated share repurchase program funded by the recent divestiture. The company's liquidity remains robust, and it is in compliance with its financial covenants, positioning it to navigate ongoing macroeconomic uncertainties and pursue its strategic growth initiatives in smart, safe, healthy, and sustainable buildings.
Financial Highlights
51 data points| Revenue | $6.05B |
| Cost of Revenue | $3.81B |
| Gross Profit | $2.25B |
| SG&A Expenses | $1.42B |
| Operating Income | $1.45B |
| Net Income | $701.00M |
| EPS (Basic) | $1.07 |
| EPS (Diluted) | $1.07 |
| Shares Outstanding (Basic) | 655.40M |
| Shares Outstanding (Diluted) | 657.40M |
Key Highlights
- 1Net sales increased by 3% to $6.1 billion for the three months ended June 30, 2025, compared to the prior year quarter, driven by organic growth and favorable foreign currency translation.
- 2The company completed the divestiture of its Residential and Light Commercial (R&LC) HVAC business on July 31, 2025, for net cash proceeds of approximately $5.0 billion, a strategic step to focus on core commercial building solutions.
- 3Gross profit margin improved to 37.1% from 35.8% in the prior year quarter, reflecting margin improvements from higher-margin backlog conversion and optimized service mix.
- 4Net income attributable to Johnson Controls decreased to $701 million from $975 million year-over-year, largely due to the absence of prior year benefits related to water systems AFFF insurance recoveries and earn-out adjustments.
- 5The company announced a $9.0 billion increase to its share repurchase authorization and plans to initiate a $5.0 billion accelerated share repurchase program funded by the R&LC HVAC divestiture proceeds.
- 6Backlog and orders showed positive trends, with total backlog at $16.2 billion and orders up 2% year-over-year, excluding divestitures and foreign currency impacts, indicating strong future demand, especially in the Americas.
- 7The company reaffirmed its commitment to sustainability and growth in smart, safe, healthy, and sustainable building solutions, leveraging its digital capabilities and outcome-based service offerings.