Johnson Controls Reports Solid Q1 Earnings, Upgrades FY2025 Projections
Johnson Controls International plc, a leading company in smart and sustainable building solutions, reported impressive earnings for the first quarter of fiscal 2025, showing confidence in its growth trajectory. The company announced that its GAAP earnings per share (EPS) reached $0.55, while the adjusted EPS stood at $0.64.
Sales for the first quarter saw a notable increase of 4% compared to the previous year, totaling $5.4 billion, with an organic sales growth of 10%. This growth was powered by a significant 16% rise in orders year-over-year, particularly in the Building Solutions sector.
George Oliver, Chairman and CEO of Johnson Controls, expressed pride in the company's performance, attributing it to its strategic focus on simplifying operations and enhancing its value proposition. "Our unique ability to serve customers throughout the lifecycle of a building is driving our results, allowing for more predictable and consistent performance," he stated.
The report detailed segment-wise performances, highlighting the following:
In total, the Building Solutions backlog demonstrated positive momentum with a $13.2 billion backlog, a year-over-year increase of 11%. Johnson Controls generated $249 million from operating activities and reported free cash flow of $133 million during the quarter. Furthermore, the company returned value to its shareholders by initiating dividends of $245 million and repurchased 4.1 million of its shares valued at $330 million.
Looking ahead, Johnson Controls raised its guidance for fiscal 2025. The company anticipates organic sales growth in the mid-single digits and expects improved margins. Adjusted EPS for the year is now projected between $3.50 to $3.60.
Johnson Controls’ strong start to fiscal 2025 demonstrates its successful strategy in the building solutions sector, positioning itself as a leader in sustainable and smart building technology. With solid financial results and an optimistic outlook for growth, Johnson Controls continues to innovate and enhance the environments in which people live and work. For more insights, visit Johnson Controls Investor Relations.
Sales for the first quarter saw a notable increase of 4% compared to the previous year, totaling $5.4 billion, with an organic sales growth of 10%. This growth was powered by a significant 16% rise in orders year-over-year, particularly in the Building Solutions sector.
George Oliver, Chairman and CEO of Johnson Controls, expressed pride in the company's performance, attributing it to its strategic focus on simplifying operations and enhancing its value proposition. "Our unique ability to serve customers throughout the lifecycle of a building is driving our results, allowing for more predictable and consistent performance," he stated.
Segment Performance
The report detailed segment-wise performances, highlighting the following:
- - Building Solutions North America: This segment recorded a 10% increase in sales, amounting to $2.7 billion, alongside a 16% year-over-year rise in segment EBITA, showcasing strong demand, especially in Applied HVAC and Controls sectors. The segment's EBITA margin improved by 60 basis points year-over-year.
- - Building Solutions EMEA/LA (Europe, Middle East, Africa/Latin America): Here, sales reached $1.1 billion, a modest 3% rise over the previous year. This segment also noted a remarkable 35% increase in adjusted EBITA, thanks to a 10% growth in service sales and efficiency improvements.
- - Building Solutions Asia Pacific: This segment saw a 4% rise in sales, leading to an EBITA margin increase, propelled by a 14% growth in service sales.
- - Global Products: In contrast, this segment faced an 8% decline in sales to $1.1 billion, although the EBITA margin improved significantly to 30.1%, an increase of 740 basis points, indicating operational efficiency despite the decline in revenue.
Financial Summary and Future Outlook
In total, the Building Solutions backlog demonstrated positive momentum with a $13.2 billion backlog, a year-over-year increase of 11%. Johnson Controls generated $249 million from operating activities and reported free cash flow of $133 million during the quarter. Furthermore, the company returned value to its shareholders by initiating dividends of $245 million and repurchased 4.1 million of its shares valued at $330 million.
Looking ahead, Johnson Controls raised its guidance for fiscal 2025. The company anticipates organic sales growth in the mid-single digits and expects improved margins. Adjusted EPS for the year is now projected between $3.50 to $3.60.
Conclusion
Johnson Controls’ strong start to fiscal 2025 demonstrates its successful strategy in the building solutions sector, positioning itself as a leader in sustainable and smart building technology. With solid financial results and an optimistic outlook for growth, Johnson Controls continues to innovate and enhance the environments in which people live and work. For more insights, visit Johnson Controls Investor Relations.
Topics General Business）
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