#Ireland #Johnson Controls #Cork #Q1 Results #JCI

Johnson Controls Reports Stellar Q1 Performance and Increases Fiscal Guidance

Johnson Controls International plc (NYSE: JCI) is proudly announcing its Q1 fiscal 2026 results, underscoring a significant growth trajectory in several key performance indicators. This global leader in energy efficiency and innovative technologies has not only met but exceeded expectations, showcasing its remarkable resilience and the effectiveness of its strategies in a competitive market.

Strong Financial Results

During the first quarter, Johnson Controls achieved a 7% increase in sales, rising to $5.8 billion, with organic sales growth of 6%. The earnings per share (EPS) stood at $0.90 (GAAP) and $0.89 (adjusted), reflecting a sharp increase in adjusted EPS of nearly 40% compared to the previous year. Moreover, the company's net income from continuing operations amounted to $555 million, which is a significant uptick from the previous fiscal year.

Growth in Demand and Orders

The quarterly report details a staggering 39% growth in orders year-over-year, highlighting a strong customer demand in core markets, specifically driven by a surge in investments across key industries. The company's backlog has also expanded by 20%, reaching $18.2 billion, a testament to the robust pipeline of projects and customer engagements that lie ahead.

CEO Joakim Weidemanis remarked, “Johnson Controls delivered a strong start to the year, with solid revenue growth, meaningful margin expansion, and nearly 40% adjusted EPS increase. Our impressive order growth reflects the strong demand where our innovative technology continues to provide us with a competitive edge.”

Segment Performance

The financial highlights for Q1 2026, as compared to the same quarter of the previous year, are impressive across all segments:

Americas

• - Sales: $3,843 million (up 6%)
• - Segment EBITA Margin: 16.1%
• - Significant growth was driven by the HVAC & Controls sector.

EMEA (Europe, Middle East, Africa)

• - Sales: $1,261 million (up 9%)
• - Segment EBITA Margin: 12.5%
• - Mostly propelled by strong services growth of 8%.

APAC (Asia Pacific)

• - Sales: $693 million (up 8%)
• - Segment EBITA Margin: 16.9%
• - Notable increases in product and systems sales, showing demand across various markets.

Cash Flow and Dividend Strategy

Notably, cash provided by operating activities totaled $611 million, with an adjusted free cash flow of $428 million. The company remains committed to returning value to its shareholders, evidenced by a dividend payment totaling $245 million for the quarter.

In light of these robust earnings results, Johnson Controls has also upgraded its fiscal 2026 guidance. The company anticipates an organic sales growth of approximately 5% for Q2 and aims for an adjusted EPS of around $1.11. For the complete fiscal year, an adjusted EPS of $4.70 is now projected, marking an increase from previously estimated figures.

Looking Ahead

As Johnson Controls embarks on the remainder of fiscal 2026, the company is focused on leveraging its strong market position and technological leadership to drive growth and value creation. With a pronounced emphasis on operational excellence and customer satisfaction, they are poised to enhance their offerings further while navigating the complexities of a fast-evolving business landscape.

Investors can anticipate further developments as Johnson Controls will host a conference call to review these promising results in greater detail, allowing for a comprehensive discussion on strategies and future outlook.

For more updates and detailed financial insights, stakeholders and interested parties can visit the Johnson Controls investor relations page at Johnson Controls Investor Relations.