Zinger Key Points
- Johnson Controls’ Q2 sales hit $5.68 billion, topping estimates, with adjusted EPS of $0.82 beating expectations.
- The company raised its FY25 adjusted EPS forecast to $3.60, maintaining mid-single-digit organic sales growth.
- Don’t miss this list of 10 overlooked stocks—including one paying a 9% dividend—before Wall Street catches on.
Johnson Controls International plc JCI shares traded lower in premarket on Wednesday after the company reported second-quarter sales growth of 1.4% year over year to $5.676 billion, beating the consensus estimate of $5.63 billion.
Adjusted EPS of 82 cents up from 69 cents YoY, beat the consensus estimate of 59 cents.
Gross profit for the quarter rose 7.6% to $2.07 billion with a gross margin of 36.5%, up 210 bps YoY. Selling, general, and administrative expenses declined 30.9% to $1.43 billion.
Segment Results:
- Building Solutions North America: Sales rose 6% to $2.9 billion, with organic sales up 7%, driven by strong Applied HVAC and Controls. Orders grew 4%, backlog rose 11%, while segment EBITA margin dipped slightly to 13.4% as Systems outpaced Service.
- Building Solutions EMEA/LA: Sales rose 2% to $1.1 billion, with organic sales up 5%, led by strong Service and Applied HVAC growth. Orders and backlog both increased 10%, while the segment EBITA margin expanded by 410 basis points to 12.5% on productivity gains and a favorable mix.
- Building Solutions Asia Pacific: Sales rose 10% to $542 million, with organic sales up 13% on double-digit Service and Systems growth. The backlog grew 21% to $1.5 billion, while the segment EBITA margin improved by 360 basis points to 14.6% on productivity gains.
- Global Products: Sales fell 13% to $1.1 billion, but organic sales rose 8%, driven by strong Applied HVAC growth and higher prices. Segment EBITA margin expanded 780 basis points to 30.1% thanks to operational efficiencies and volume gains, excluding divestiture impacts.
Income from continuing operations stood at $475 million, compared to a loss of $318 million a year ago, and the operating margin was 8.4%.
Cash provided by operating activities from continuing operations for the quarter was $550 million, and the free cash flow was $456 million.
Johnson held $795 million in cash and equivalents as of March 31, 2025.
Also Read: BofA Sees Mostly Inline Q1 For Industrials, Highlights 3M, JCI, GE Vernova As Top Picks
Third-quarter Outlook: Johnson Controls sees third-quarter adjusted EPS of $0.97 – $1.00 against an estimate of $1.00. The company sees organic sales growth of mid-single digits.
JCI expects an Adjusted segment EBITA margin of ~17.5% for the third quarter.
2025 Outlook: The company raised the FY25 adjusted EPS outlook from $3.50-$3.60 to $3.60 (versus consensus $3.60), with an unchanged outlook for organic sales growth of mid-single digits.
JCI expects an Adjusted segment EBITA margin improvement of ~90 basis points year-over-year (previously more than 80 basis points).
Price Action: At the last check on Wednesday, JCI shares were trading lower by 0.75% at $88.14 in the premarket.
Photo: Shutterstock
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.