Early Access

10-QPeriod: Q1 FY2026

Johnson Controls International plc Quarterly Report for Q1 Ended Dec 31, 2025

Filed February 4, 2026For Securities:JCI

Summary

Johnson Controls International plc (JCI) reported strong performance for the three months ended December 31, 2025. Net sales increased by 7% year-over-year to $5.8 billion, driven by organic growth across all segments, particularly in the Americas. Gross profit also saw an 8% increase, indicating effective pricing and productivity initiatives. A significant factor contributing to improved profitability was the substantial decrease in Selling, General, and Administrative (SG&A) expenses, largely due to $130 million in AFFF insurance recoveries and a $70 million gain from the divestiture of the ADT Mexico business. Despite a notable increase in the income tax provision, resulting in a higher effective tax rate of 21.4% compared to 11.5% in the prior year, net income attributable to Johnson Controls rose to $524 million, or $0.85 per diluted share, from $419 million, or $0.63 per diluted share, in the prior year's comparable period. The company also reported robust growth in both backlog and orders, up 20% and 39% respectively, fueled by increased customer investments in data center projects.

Financial Highlights

51 data points
Beta

Revenue

$5.80B

0.4% Gross Margin

Net Income

$524.00M

0.1% Net Margin

EPS (Diluted)

$0.85

Total Assets

$37.98B

Cash & Equivalents

$552.00M

Free Cash Flow

$611.00M

Financial Statements
Beta
Revenue$5.80B
Cost of Revenue$3.72B
Gross Profit$2.07B
SG&A Expenses$1.22B
Operating Income$555.00M
Interest Expense$42.00M
Net Income$524.00M
EPS (Basic)$0.86
EPS (Diluted)$0.85
Shares Outstanding (Basic)611.00M
Shares Outstanding (Diluted)614.00M

Key Highlights

  • 1Net sales increased 7% to $5.8 billion, driven by organic growth across all segments and favorable foreign currency translation.
  • 2Gross profit increased 8% due to margin improvements from pricing, productivity, and project delivery.
  • 3SG&A expenses decreased 13% largely due to significant AFFF insurance recoveries ($130 million) and a gain from the ADT Mexico divestiture ($70 million).
  • 4Net income attributable to Johnson Controls increased to $524 million ($0.85/share) from $419 million ($0.63/share) in the prior year.
  • 5Backlog and orders saw significant year-over-year increases of 20% and 39% respectively, driven by demand in data center projects.
  • 6The company generated $611 million in cash from operating activities, a substantial increase from $249 million in the prior year.
  • 7Divestiture of the ADT Mexico Security business for $207 million with a recognized gain of $70 million was completed on October 31, 2025.

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