Johnson Controls International plc reported fiscal fourth‑quarter 2025 results that surpassed analyst expectations on earnings and revenue. Adjusted earnings per share rose to $1.26, beating the consensus estimate of $1.20 by $0.06, while GAAP earnings per share of $0.42 fell short of the $0.84 estimate. Total sales climbed 3 % to $6.4 billion, a 13 % increase over the same quarter a year earlier and a 4 % rise in organic sales, reflecting stronger demand in the company’s core building‑solutions and data‑center cooling businesses.
The company’s Building Solutions North America segment generated $4.3 billion in sales, up 13 % YoY, and delivered an adjusted EBITA margin of 19.5 %, a 10‑basis‑point improvement from the prior year. Across all segments, Johnson Controls expanded its adjusted segment EBITA margin by 90 basis points, driven by higher pricing power in high‑margin data‑center cooling contracts and disciplined cost management amid rising commodity costs.
Record backlog reached $15 billion, up 13 % from the previous year, underscoring sustained demand for the company’s integrated building‑systems solutions. The backlog growth is largely attributable to new data‑center cooling projects and ongoing service contracts, which have higher recurring revenue profiles and contribute to margin resilience.
Management reiterated its fiscal 2025 guidance, maintaining expectations for mid‑single‑digit organic revenue growth and a 90‑basis‑point expansion in adjusted segment EBITA margin. The guidance aligns with the earlier 2025 full‑year update that raised adjusted EPS expectations to $3.65‑$3.68, reflecting confidence in continued demand and cost discipline. CEO Joakim Weidemanis highlighted the company’s “technological leadership in data‑center cooling and decarbonization solutions” as key drivers of future performance.
Analysts noted the adjusted EPS and revenue beats as evidence of strong execution, while the GAAP EPS miss was attributed to higher operating expenses and one‑time charges related to portfolio simplification. The mixed market reaction reflects the balance between the company’s solid growth trajectory and the headwinds of rising input costs and competitive pricing pressure in legacy HVAC markets.
Johnson Controls’ focus on high‑margin data‑center cooling and digital solutions, combined with its ongoing portfolio simplification, positions the company to capture growth in the decarbonization and smart‑building markets while maintaining profitability in a challenging macro environment.
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