Q3 2025 Johnson Controls International PLC Earnings Call Transcript
Key Points
- Johnson Controls International PLC (JCI) reported strong third-quarter results with organic sales growth of 6% and adjusted EPS growth of 11%, exceeding guidance.
- The company achieved a significant improvement in adjusted free cash flow, nearly doubling to $1.8 billion year-to-date, with a target of over 100% free cash flow conversion for the year.
- JCI's backlog grew 11% to a record $14.6 billion, indicating strong demand for both Systems and Service solutions.
- The company is implementing a new business system focused on simplifying operations, accelerating growth, and scaling impact, which includes Lean principles and digitization.
- JCI is raising its full-year guidance for adjusted EPS and free cash flow conversion, reflecting confidence in continued strong performance.
- The company faces ongoing softness in the Chinese market, which has impacted overall order growth.
- Tariff impacts have been a challenge, with some difficulty in recovering margins in certain markets.
- The sale of the Residential and Light Commercial HVAC business to Bosch is expected to have minimal impact on this year's share count, with benefits primarily accruing next fiscal year.
- JCI's Fire & Security segment is experiencing lower growth compared to HVAC, with opportunities for improvement identified but not yet realized.
- The company is undergoing a strategic review of its portfolio, which may lead to changes in business lines and potential exits, creating some uncertainty.
Hello, everyone, and welcome to the Johnson Controls Q3 2025 earnings conference call. My name is Nadia, and I'll be coordinating the call today. (Operator Instructions)
I will now hand the call over to Jim Lucas, Vice President, Investor Relations, to begin. Jim, please go ahead.
Good morning, and thank you for joining our conference call to discuss Johnson Controls' fiscal third quarter 2025 results. Joining me on the call today are Johnson Controls' Chief Executive Officer, Joakim Weidemanis; and Marc Vandiepenbeeck, our Chief Financial Officer.
Before we begin, let me remind you that during our presentation today, we will make forward-looking statements that reflect our current views about our future performance and financial results. These statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Please refer to our SEC filings for a list of these important risk factors that could cause actual results to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
