Johnson Controls Q1: Earnings Beat, Raised Annual EPS Outlook, New CEO & More

Johnson Controls International plc JCI shares traded higher in premarket on Wednesday.

The company reported first-quarter sales growth of 4% year-on-year to $5.43 billion, beating the consensus estimate of $5.29 billion.

Adjusted EPS of $0.64 beat the consensus estimate of $0.59.

Gross profit for the quarter rose 8.3% to $1.92 billion with a gross margin of 35.5%. Selling, general and administrative expenses increased 4.8% to $1.39 billion.

Income from continuing operations increased 6.2% to $361 million and the operating margin expanded 10 basis points to 6.6%.

The company’s Board of Directors has appointed Joakim Weidemanis as Chief Executive Officer effective March 12, 2025.

He succeeds George Oliver following a thorough succession planning process. Oliver will continue to serve as Non-Executive Chairman of the Board until July 31, 2025. At that time, he will be succeeded as Chairman by Mark Vergnano, who has served on the company’s Board since 2016. 

Johnson held $1.23 billion in cash and equivalents as of December 31, 2024.

“I am proud of another strong quarter delivered by the Johnson Controls team, which reflects our successful strategy to simplify our portfolio and position our Company as a leading pure-play building solutions provider,” said Chairman and CEO George Oliver.

“We are driving results based on our unique value proposition, with an ability to serve our customers over the lifecycle of the building.”

Outlook: Johnson Controls sees second-quarter adjusted EPS of $0.77 – $0.79 against an estimate of $0.73. The company sees second-quarter organic sales growth of mid-single digits.

The company raised the FY25 adjusted EPS outlook from $3.40 – $3.50 to $3.50 – $3.60 (consensus $3.50), with an unchanged outlook for organic sales growth of mid-single digits.

Price Action: JCI shares are trading higher by 7.71% at $83.25 in premarket at the last check Wednesday.

Photo: Grand Warszawski/Shutterstock.com.