On May 7, 2025, Johnson Controls International PLC (JCI, Financial) released its 8-K filing, showcasing a robust fiscal second quarter performance. The company, a leader in smart, safe, healthy, and sustainable building solutions, reported a GAAP earnings per share (EPS) of $0.71 and an adjusted EPS of $0.82, surpassing the analyst estimate of $0.80. The company's revenue for the quarter reached $5.7 billion, slightly above the estimated $5,634.63 million. This marks a 1% increase from the previous year and a 7% organic growth.
Company Overview
Johnson Controls International PLC (JCI, Financial) is a prominent player in the construction industry, specializing in the manufacturing, installation, and servicing of commercial HVAC systems, building management platforms, fire and security solutions, and industrial refrigeration units. The company generates approximately 45% of its sales from commercial HVAC and fire and security solutions, with the remaining 10% from industrial refrigeration and other solutions. In fiscal 2024, JCI reported nearly $23 billion in pro forma revenue.
Performance Highlights and Challenges
The second quarter of fiscal 2025 was marked by significant achievements for JCI, including a 5% organic increase in orders and a 12% organic growth in the Building Solutions backlog, which now stands at $14.0 billion. These results underscore the company's strong execution and sustained demand for its differentiated solutions. However, challenges such as corporate expense increases due to certain accruals and stranded costs from planned divestitures were noted.
Financial Achievements and Industry Impact
JCI's financial achievements in Q2 2025 are noteworthy, particularly in the context of the construction industry. The company's ability to achieve a 7% organic sales growth and expand its backlog highlights its competitive edge and operational efficiency. The adjusted segment EBITA margin improvements across various regions, such as a 410 basis point expansion in EMEA/LA, demonstrate JCI's focus on productivity and positive service mix.
Key Financial Metrics
In the second quarter, JCI reported a GAAP income from continuing operations of $473 million and an adjusted income of $545 million. The company's cash flow from operations was $550 million, with a free cash flow of $456 million and an adjusted free cash flow of $463 million. These metrics are crucial as they reflect the company's liquidity and ability to generate cash, which are vital for sustaining operations and funding growth initiatives.
Segment Performance
| Segment | Sales (2025) | Sales (2024) | Change | Segment EBITA Margin (2025) | Segment EBITA Margin (2024) | Change |
|---|---|---|---|---|---|---|
| Building Solutions North America | $2,916 million | $2,739 million | 6% | 13.4% | 13.6% | -20 bp |
| Building Solutions EMEA/LA | $1,085 million | $1,064 million | 2% | 12.5% | 8.4% | 410 bp |
| Building Solutions Asia Pacific | $542 million | $491 million | 10% | 14.6% | 11.0% | 360 bp |
Analysis and Future Outlook
Johnson Controls International PLC (JCI, Financial) has demonstrated resilience and strategic growth in Q2 2025, with strong organic sales and backlog expansion. The company's focus on enhancing operational efficiencies and customer-centric approaches positions it well for future growth. The raised full-year guidance, with an expected adjusted EPS of $3.60, reflects confidence in continued performance improvements. As JCI continues to innovate and adapt to market demands, it remains a key player in the construction industry, offering value to stakeholders and investors alike.
Explore the complete 8-K earnings release (here) from Johnson Controls International PLC for further details.
