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Johnson Controls Posts Strong Backlog, Confident Outlook

Johnson Controls International (NYSE:JCI), the diversified global leader in smart, healthy, and sustainable buildings, saw its shares trade modestly lower on Tuesday, despite reporting a strong third quarter that surpassed analyst expectations.

The company, a prominent American-Irish multinational conglomerate specializing in fire, HVAC, and security equipment for buildings, delivered strong top-line growth and improved profitability, leading to an upward revision of its fiscal 2025 earnings guidance.

For the third quarter, Johnson Controls posted total sales of $6.05 billion, a 2.6% increase year-over-year, comfortably exceeding the consensus analyst estimate of $5.97 billion. This revenue expansion translated into adjusted earnings per share (EPS) of $1.05, a notable rise from $0.95 in the prior-year period, also outperforming analyst projections of $1.00.

Also Read: Johnson Controls International Analysts Increase Their Forecasts After Upbeat Earnings

The company’s gross profit for the quarter climbed 6.5% to $2.25 billion, elevating the gross margin by 135 basis points (bps) year-over-year to 37.1%. However, selling, general, and administrative (SG&A) expenses saw a substantial increase of 58.3% to $1.42 billion. Income from continuing operations stood at $618 million, down from $851 million a year ago, with an operating margin of 10.2%.

A closer look at segment performance ...