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

35.8% Gross Margin

Net Income

$524.00M

9.0% 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.

Frequently Asked Questions

Revenue growth was primarily driven by organic sales increases across all segments, particularly in the Americas, and a favorable impact from foreign currency translation. Growth was seen in both Products & Systems and Services offerings.

The AFFF insurance recoveries of $130 million and the gain on the ADT Mexico divestiture of $70 million significantly reduced Selling, General, and Administrative (SG&A) expenses, thereby boosting profitability for the quarter.

The substantial increase in backlog (20%) and orders (39%) indicates strong future demand for Johnson Controls' products and services, especially driven by customer investments in data center projects. This suggests potential for continued revenue growth in upcoming periods.

Johnson Controls believes its capital resources and liquidity position, including $552 million in cash and cash equivalents, are adequate to fund operations and meet its cash obligations for the foreseeable future. The company also has access to a $2.5 billion revolving credit facility and expects to remain in compliance with its financial covenants.