江森自控Q4业绩大超预期、订单有机增长44%，并给出FY27调整后EPS 6.15-6.30美元强劲指引

----- jci-20261027.htm -----
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
October 27, 2026
JOHNSON CONTROLS INTERNATIONAL PLC
(Exact name of registrant as specified in its charter)
Ireland
001-13836
98-0390500
(State or Other Jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification Number)
One Albert Quay.
Cork
,
Ireland
,
T12 X8N6
(Address of principal executive offices and postal code)
(353)
21-423-5000
Not Applicable
(Registrant’s telephone number)
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol
Name of Each Exchange on Which Registered
Ordinary Shares, Par Value $0.01
JCI
New York Stock Exchange
0.375% Senior Notes due 2027
JCI27
New York Stock Exchange
3.000% Senior Notes due 2028
JCI28
New York Stock Exchange
5.500% Senior Notes due 2029
JCI29
New York Stock Exchange
1.750% Senior Notes due 2030
JCI30
New York Stock Exchange
2.000% Sustainability-Linked Senior Notes due 2031
JCI31
New York Stock Exchange
1.000% Senior Notes due 2032
JCI32
New York Stock Exchange
4.900% Senior Notes due 2032
JCI32A
New York Stock Exchange
3.125% Senior Notes due 2033
JCI33
New York Stock Exchange
4.250% Senior Notes due 2035
JCI35
New York Stock Exchange
6.000% Notes due 2036
JCI36A
New York Stock Exchange
5.70% Senior Notes due 2041
JCI41B
New York Stock Exchange
5.250% Senior Notes due 2041
JCI41C
New York Stock Exchange
4.625% Senior Notes due 2044
JCI44A
New York Stock Exchange
5.125% Notes due 2045
JCI45B
New York Stock Exchange
6.950% Debentures due December 1, 2045
JCI45A
New York Stock Exchange
4.500% Senior Notes due 2047
JCI47
New York Stock Exchange
4.950% Senior Notes due 2064
JCI64A
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02.    Results of Operations and Financial Condition.
On October 27, 2026, Johnson Controls International plc (the "Company") issued a press release containing information about the Company’s results of operations for the three months and fiscal year ended September 30, 2026. A copy of this press release is furnished as Exhibit 99.1 and incorporated by reference in this Item 2.02.
Item 9.01.    Financial Statements and Exhibits.
(d) Exhibits:
Exhibit No.
Description
99.1
Press release issued by Johnson Controls International plc, dated October 27, 2026, relating to the Company’s results of operations.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
JOHNSON CONTROLS INTERNATIONAL PLC
Date: October 27, 2026
By:
/s/ Daniel C. McConeghy
Name:
Daniel C. McConeghy
Title:
Vice President and Chief Accounting and Tax Officer

----- q4exh991xq4fy26earningsrel.htm -----
EX-99.1
2
q4exh991xq4fy26earningsrel.htm
EX-99.1
Document
Exhibit 99.1
FOR IMMEDIATE RELEASE
Johnson Controls Reports Q4 and FY26 Results; Initiates FY27 Guidance
______________________________________________________________________________________
▪
Q4 sales increased 10% and organic sales increased 12%*
▪
Q4 GAAP EPS of $1.60; Q4 Adjusted EPS* of $1.66*
▪
Q4 orders +44% organically year-over-year
▪
Backlog of $23.0 billion increased 43% organically year-over-year
*
This earnings release contains non-GAAP financial measures. Definitions and reconciliations of the non-GAAP financial measures can be found in the attached footnotes. Non-GAAP measures should be considered in addition to, and not as replacements for, the most comparable GAAP measures.
_____________________________________________________________________________________
CORK, Ireland —
October 27, 2026 — Johnson Controls International plc (NYSE: JCI), a global leader in thermal management, mission-critical building systems, energy efficiency, and decarbonization, is proud to announce fiscal fourth quarter 2026 GAAP earnings per share (“EPS”) of $1.60. Adjusted EPS was $1.66.
Q4 sales increased 10% to $7.1 billion and organic sales increased 12%.
For the quarter, GAAP net income from continuing operations attributable to JCI was $967 million and adjusted net income from continuing operations was $1.0 billion. Cash provided by operating activities was $1.3 billion. Free cash flow was $1.1 billion and adjusted free cash flow was $1.1 billion.
“We finished fiscal 2026 with significant momentum, delivering more than 8% organic revenue growth, double-digit adjusted EPS growth and strong free cash flow conversion,” said Joakim Weidemanis, Chief Executive Officer of Johnson Controls. “Our strong topline growth, combined with continued productivity and simplification improvements, led to margin expansion across all three segments. That performance reflects the strength of our differentiated technological capabilities, unmatched field presence and proprietary business system, which help us move with speed, win with customers and strengthen performance. With record backlog and sustained customer demand, we enter fiscal 2027 with confidence in our ability to continue creating value for customers and shareholders.”
FISCAL Q4 SEGMENT RESULTS
The financial highlights presented in the tables below exclude discontinued operations and are in accordance with GAAP, unless otherwise indicated. All comparisons are to the fourth quarter of fiscal 2025. Orders and backlog metrics included in the release relate to the Company's Solutions and Services based businesses. Orders prior to Q1 2026 exclude certain equipment-only sales for longer cycle projects. Backlog has been restated to include this new category.
A slide presentation to accompany the results can be found in the Investor Relations section of Johnson Controls’ website at
http://investors.johnsoncontrols.com.
1
Americas
Fiscal Q4
(in millions)
2026
2025
Change
Sales
$
4,930
$
4,325
14
%
Segment EBIT
992
763
30
%
Segment EBIT Margin %
20.1
%
17.6
%
250
bp
Segment EBITA (non-GAAP)
1,069
844
27
%
Adjusted Segment EBITA (non-GAAP)
1,086
862
26
%
Adjusted Segment EBITA Margin % (non-GAAP)
22.0
%
19.9
%
210
bp
Sales in the quarter of $4.9 billion increased 14% over the prior year. Organic sales also increased 14% led by continued strength in both Applied HVAC & Controls. Products and Systems sales increased 16% and Services increased 10% organically.
Excluding acquisitions and divestitures and adjusted for foreign currency, orders increased 58% year-over-year and backlog of $17.8 billion increased 54% year-over-year
.
The increase in orders and backlog was supported by sustained demand for data centers and our differentiated technology and capabilities.
Segment EBIT margin increased 250 bp
and adjusted Segment EBITA margin increased 210 bp compared to the prior year. The increases were primarily driven by strong operating leverage on higher revenue and favorable business mix. Adjusted Segment EBITA in both Q4 2026 and Q4 2025 excludes transformation costs.
EMEA
(Europe, Middle East, Africa)
Fiscal Q4
(in millions)
2026
2025
Change
Sales
$
1,312
$
1,337
(2
%)
Segment EBIT
198
188
5
%
Segment EBIT Margin %
15.1
%
14.1
%
100
bps
Segment EBITA (non-GAAP)
205
201
2
%
Adjusted Segment EBITA (non-GAAP)
215
208
3
%
Adjusted Segment EBITA Margin % (non-GAAP)
16.4
%
15.6
%
80
bps
Sales in the quarter of $1.3 billion decreased 2% over the prior year. Organic sales grew 3% versus the prior year, with continued pressure in the region due to the conflicts in the Middle East. Products and Systems sales remained flat and Services increased 6% organically.
Excluding acquisitions and divestitures and adjusted for foreign currency, orders increased 12% year-over-year and backlog of $3.1 billion increased 18% year-over-year.
Segment EBIT margin increased 100 bps and adjusted Segment EBITA margin increased 80 bps
compared to the prior year. The increases were primarily driven by favorable pricing and productivity improvements, partially
2
offset by the impact of business divestitures
.
Adjusted Segment EBITA in both Q4 2026 and Q4 2025 excludes transformation costs.
APAC
(Asia Pacific)
Fiscal Q4
(in millions)
2026
2025
Change
Sales
$
871
$
780
12
%
Segment EBIT
162
136
19
%
Segment EBIT Margin %
18.6
%
17.4
%
120
bp
Segment EBITA (non-GAAP)
165
139
19
%
Adjusted Segment EBITA (non-GAAP)
165
139
19
%
Adjusted Segment EBITA Margin % (non-GAAP)
18.9
%
17.8
%
110
bp
Sales in the quarter of $871 million increased 12% versus the prior year. Organic sales increased 13% versus the prior year, led by 15% growth in Product and Systems and continued strength in Applied HVAC.
Excluding acquisitions and divestitures and adjusted for foreign currency, orders increased 11% and backlog of $2.1 billion increased 12% year-over-year.
Segment EBIT margin increased 120 bps and adjusted Segment EBITA margin increased 110 bps compared to the prior year, primarily driven by productivity improvements and higher revenues.
Corporate
Fiscal Q4
(in millions)
2026
2025
Change
Corporate Expense
GAAP
$
178
$
269
(34
%)
Adjusted (non-GAAP)
80
124
(35
%)
Adjusted Corporate expense in both Q4 2026 and Q4 2025 excludes certain transaction/separation costs and transformation costs. In addition, Q4 2025 excludes accelerated depreciation of ERP assets. The decrease year-over-year is primarily due to ongoing cost reduction actions across corporate functions and the timing of certain corporate expenses.
OTHER Q4 ITEMS
▪
The Company paid dividends of $242 million.
3
GUIDANCE
The following forward-looking statements are non-GAAP financial measures. These non-GAAP financial measures are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts excluded is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period and the high variability of certain amounts, such as mark-to-market adjustments. Organic revenue growth excludes the effect of acquisitions, divestitures and foreign currency. The Company is unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to its most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. The unavailable information could have a significant impact on the Company’s fiscal 2027 first quarter and full year GAAP financial results.
The Company initiated fiscal 2027 first quarter continuing operations guidance:
▪
Organic sales growth of 12% to 14%
▪
Operating leverage of 30% to
35%
▪
Adjusted EPS of $1.15 to $1.20
The Company initiated fiscal 2027 full year continuing operations guidance:
▪
Organic sales growth of 11% to 12%
▪
Operating leverage of 30%+
▪
Adjusted EPS of $6.15 to $6.30
▪
Adjusted free cash flow conversion of ~95%
CONFERENCE CALL & WEBCAST INFO
Johnson Controls will host a conference call to discuss this quarter’s results at 8:30 a.m. ET today, which can be accessed via webcast at
https://johnson-controls-q4-2026-earnings.open-exchange.net
. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Johnson Controls website at
https://investors.johnsoncontrols.com/news-and-events/events-and-presentations
. A replay will be made available approximately two hours following the conclusion of the conference call.
ABOUT JOHNSON CONTROLS
Johnson Controls, a global leader in thermal management, mission-critical building systems, energy efficiency, and decarbonization, helps customers use energy more productively, reduce carbon emissions, and operate with the precision and resilience required in rapidly expanding industries such as data centers, healthcare, pharmaceuticals, advanced manufacturing, and higher education.
For more than 140 years, Johnson Controls has delivered performance where it really matters. Backed by advanced technology, lifecycle services and an industry-leading field organization, we elevate customer performance, turn goals into real-world results and help move society forward.
Visit
www.johnsoncontrols.com
for more information and follow @Johnson Controls on social platforms.
4
JOHNSON CONTROLS CONTACTS:
INVESTOR CONTACTS:
MEDIA CONTACT:
Eric Swanson
Danielle Canzanella
Email:
eric.swanson@jci.com
Email:
danielle.canzanella@jci.com
Michael Gates
Email:
michael.j.gates@jci.com
###
5
JOHNSON CONTROLS INTERNATIONAL PLC CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Johnson Controls International plc (the "Company") has made statements in this document that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this document, statements regarding the Company’s future financial position, sales, costs, earnings, cash flows, other measures of results of operations, synergies and integration opportunities, capital expenditures, debt levels and market outlook are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning are also generally intended to identify forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. The Company cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, that could cause the Company’s actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: the ability to develop or acquire new, competitively differentiated products and technologies that achieve market acceptance and meet applicable quality and regulatory requirements; the ability to manage general economic, business and capital market conditions, including the impacts of trade restrictions, recessions, economic downturns and global price inflation; the ability to manage macroeconomic and geopolitical volatility, including changes to laws or policies governing foreign trade, including tariffs, economic sanctions, foreign exchange and capital controls, import/export controls or other trade restrictions as well as any associated supply chain disruptions; fluctuations in demand in key verticals, including data centers and other mission-critical segments, as well as risks associated with customer concentration and the conversion of backlog to revenue; the ability to execute on the Company’s business system and operating model to drive organizational improvement; the ability to innovate and adapt to emerging technologies, ideas and trends in the marketplace, including the incorporation of technologies such as artificial intelligence; fluctuations in the cost and availability of public and private financing for customers; the ability to manage disruptions caused by catastrophic or geopolitical events, such as international conflicts (including the Russia-Ukraine conflict and conflicts in the Middle East), armed conflict, terrorism, political change, natural disasters, extreme weather, pandemics and outbreaks of contagious diseases and other adverse public health developments; the ability to successfully execute and complete portfolio simplification actions, as well as the possibility that the expected benefits of such actions will not be realized or will not be realized within the expected time frame; managing the risks and impacts of potential and actual security breaches, cyberattacks, privacy breaches or data breaches, maintaining and improving the capacity, reliability and security of the Company’s enterprise information technology infrastructure; the ability to manage the lifecycle cybersecurity risk in the development, deployment and operation of the Company’s digital platforms and services; fluctuations in currency exchange rates; the ability to hire and retain senior management and other key personnel; changes or uncertainty in laws, regulations, rates, policies, or interpretations that impact business operations or tax status; the ability to adapt to global climate change, climate change regulation and successfully meet the Company’s public sustainability commitments; the outcome of litigation and governmental proceedings; the risk of infringement or expiration of intellectual property rights; the ability to manage disruptions caused by catastrophic or geopolitical events, such as natural disasters, armed conflict, political change, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments; any delay or inability of the Company to realize the expected benefits and synergies of recent portfolio transactions; the tax treatment of recent portfolio transactions; significant transaction costs and/or unknown liabilities associated with such transactions; labor shortages, work stoppages, union negotiations, labor disputes and other matters associated with the labor force; and the cancellation of or changes to commercial arrangements. A detailed discussion of risks related to Johnson Controls’ business is included in the section entitled "Risk Factors" (refer to Part I, Item 1A, of this Annual Report on Form 10-K). The forward-looking statements included in this document are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this document.
###
6
FINANCIAL STATEMENTS
Johnson Controls International plc
Consolidated Statements of Income
(in millions, except per share data; unaudited)
Three Months Ended September 30,
Twelve Months Ended September 30,
2026
2025
2026
2025
Net sales
Products and systems
$
5,014
$
4,452
$
17,701
$
16,124
Services
2,099
1,990
7,965
7,472
7,113
6,442
25,666
23,596
Cost of sales
Products and systems
3,249
2,908
11,697
10,543
Services
1,159
1,183
4,454
4,461
4,408
4,091
16,151
15,004
Gross profit
2,705
2,351
9,515
8,592
Selling, general and administrative expenses
1,481
1,521
5,510
5,764
Restructuring and impairment costs
87
400
311
546
Net financing charges
82
76
279
319
Equity income
8
1
11
6
Income from continuing operations before income taxes
1,063
355
3,426
1,969
Income tax provision
93
85
536
245
Income from continuing operations
970
270
2,890
1,724
Income (loss) from discontinued operations, net of tax
—
1,488
(27)
1,789
Net income
970
1,758
2,863
3,513
Income attributable to noncontrolling interests
Continuing operations
3
3
10
3
Discontinued operations
—
62
—
219
Net income attributable to Johnson Controls
$
967
$
1,693
$
2,853
$
3,291
Income (loss) attributable to Johnson Controls
Continuing operations
$
967
$
267
$
2,880
$
1,721
Discontinued operations
—
1,426
(27)
1,570
Total
$
967
$
1,693
$
2,853
$
3,291
Basic earnings (loss) per share attributable to Johnson Controls
Continuing operations
$
1.60
$
0.42
$
4.73
$
2.64
Discontinued operations
—
2.26
(0.04)
2.40
Total
$
1.60
$
2.68
$
4.69
$
5.04
Diluted earnings (loss) per share attributable to Johnson Controls
Continuing operations
$
1.60
$
0.42
$
4.72
$
2.63
Discontinued operations
—
2.25
(0.04)
2.40
Total
$
1.60
$
2.67
$
4.68
$
5.03
7
Johnson Controls International plc
Condensed Consolidated Statements of Financial Position
(in millions; unaudited)
September 30, 2026
September 30, 2025
Assets
Cash and cash equivalents
$
618
$
379
Accounts receivable - net
7,316
6,269
Inventories
1,999
1,820
Current assets held for sale
4
14
Other current assets
1,741
1,680
Current assets
11,678
10,162
Property, plant and equipment - net
2,106
2,193
Goodwill
16,640
16,633
Other intangible assets - net
3,482
3,613
Noncurrent assets held for sale
231
140
Other noncurrent assets
6,065
5,198
Total assets
$
40,202
$
37,939
Liabilities and Equity
Short-term debt
$
678
$
723
Current portion of long-term debt
1,066
566
Accounts payable
4,381
3,614
Accrued compensation and benefits
1,198
1,268
Deferred revenue
3,370
2,470
Current liabilities held for sale
6
12
Other current liabilities
2,220
2,288
Current liabilities
12,919
10,941
Long-term debt
7,533
8,591
Pension and postretirement benefits
204
211
Noncurrent liabilities held for sale
34
9
Other noncurrent liabilities
5,866
5,233
Noncurrent liabilities
13,637
14,044
Shareholders’ equity attributable to Johnson Controls
13,611
12,927
Noncontrolling interests
35
27
Total equity
13,646
12,954
Total liabilities and equity
$
40,202
$
37,939
8
Johnson Controls International plc
Consolidated Statements of Cash Flows
(in millions; unaudited)
Three Months Ended September 30,
Twelve Months Ended September 30,
2026
2025
2026
2025
Operating Activities of Continuing Operations
Income from continuing operations:
Attributable to Johnson Controls
$
967
$
267
$
2,880
$
1,721
Attributable to noncontrolling interests
3
3
10
3
Total
970
270
2,890
1,724
Adjustments to reconcile net income to cash provided by operating activities of continuing operations:
Depreciation and amortization
159
280
654
865
Pension and postretirement benefits
(76)
11
(115)
(41)
Deferred income taxes
(740)
341
(798)
195
Non-cash restructuring and impairment charges
35
371
195
427
Equity-based compensation
29
33
124
140
Other - net
(3)
(36)
(87)
(28)
Changes in assets and liabilities:
Accounts receivable
(339)
(132)
(1,096)
(211)
Inventories
(44)
4
(210)
(75)
Other assets
(140)
(292)
(78)
(581)
Restructuring reserves
24
(1)
(1)
1
Accounts payable and accrued liabilities
951
663
1,715
694
Accrued income taxes
474
(544)
679
(556)
Cash provided by operating activities from continuing operations
1,300
968
3,872
2,554
Investing Activities of Continuing Operations
Capital expenditures
(222)
(130)
(465)
(434)
Acquisition of businesses, net of cash acquired
—
(1)
(291)
(10)
Divestitures of businesses, net of cash divested
—
3
331
5
Other - net
(11)
18
(43)
27
Cash used by investing activities from continuing operations
(233)
(110)
(468)
(412)
Financing Activities of Continuing Operations
Net proceeds from (repayments of) borrowings with maturities less than three months
24
(245)
(170)
38
Proceeds from debt
—
396
545
1,765
Repayments of debt
(220)
(552)
(859)
(1,648)
Stock repurchases and retirements
(655)
(5,021)
(1,505)
(5,991)
Payment of cash dividends
(242)
(243)
(976)
(976)
Other - net
(9)
(8)
(83)
28
Cash used by financing activities from continuing operations
(1,102)
(5,673)
(3,048)
(6,784)
Discontinued Operations
Cash used by operating activities
—
(1,410)
(98)
(1,155)
Cash provided (used) by investing activities
—
6,598
(155)
6,546
Cash used by financing activities
—
(430)
—
(604)
Cash provided (used) by discontinued operations
—
4,758
(253)
4,787
Effect of exchange rate changes on cash, cash equivalents and restricted cash
7
(43)
129
(259)
Change in cash, cash equivalents and restricted cash held for sale
—
(258)
—
(255)
Increase (decrease) in cash, cash equivalents and restricted cash
(28)
(358)
232
(369)
Cash, cash equivalents and restricted cash at beginning of period
658
756
398
767
Cash, cash equivalents and restricted cash at end of period
630
398
630
398
Less: Restricted cash
12
19
12
19
Cash and cash equivalents at end of period
$
618
$
379
$
618
$
379
9
FOOTNOTES
1.
Sale of Residential and Light Commercial HVAC Business
In July 2025, the Company sold its Residential and Light Commercial ("R&LC") HVAC business, including the North America Ducted business and the global Residential joint venture with Hitachi Global Life Solutions, Inc. ("Hitachi"), of which Johnson Controls owned 60% and Hitachi owned 40%. The R&LC HVAC business met the criteria to be classified as a discontinued operation and, as a result, its historical financial results are reflected in the consolidated financial statements as a discontinued operation.
2.
Non-GAAP Measures
The Company reports various non-GAAP measures in this earnings release and the related earnings presentation. Non-GAAP measures should be considered in addition to, and not as replacements for, the most comparable GAAP measures. Refer to the following footnotes for further information on the calculations of the non-GAAP measures and reconciliations of the non-GAAP measures to the most comparable GAAP measures.
Organic sales
Organic sales growth excludes the impact of acquisitions, divestitures and foreign currency. Management believes organic sales growth is useful to investors in understanding period-over-period sales results and trends.
Cash flow
Management believes free cash flow and adjusted free cash flow measures are useful to investors in understanding the strength of the Company and its ability to generate cash. These non-GAAP measures can also be used to evaluate the Company’s ability to generate cash flow from operations and the impact that this cash flow has on its liquidity. Management also believes adjusted free cash flows are useful to investors in understanding period-over-period cash flows, cash trends and ongoing cash flows of the Company.
Adjusted free cash flow and adjusted free cash flow conversion are non-GAAP measures which exclude the impacts of the following:
•
JC Capital cash flows primarily include activity associated with finance/notes receivables and inventory and/or capital expenditures related to lease arrangements. JC Capital net income is primarily related to interest income on the finance/notes receivable and profit recognized on arrangements with sales-type lease components.
•
The impact of the accounts receivables factoring program which was discontinued in March 2024.
•
Cash payments related to the water systems AFFF settlement and cash receipts for AFFF-related insurance recoveries.
•
Prepayment of royalty fees associated with certain IP licensed to divested businesses.
•
Discrete tax payments are non-recurring tax settlements for certain non-US jurisdictions.
Adjusted financial measures
Adjusted financial measures are non-GAAP measures that are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the excluded amounts is a matter of management judgment and depends upon the nature and variability of the underlying expense or income amounts and other factors.
10
As detailed in the tables included in footnotes four through seven, the following items were excluded from certain financial measures:
•
Net mark-to-market adjustments
are the result of adjusting restricted asbestos investments and pension and postretirement plan assets to their current market value. These adjustments may have a favorable or unfavorable impact on results.
•
Restructuring and impairment costs
represents restructuring costs attributable to Johnson Controls including costs associated with exit plans or other restructuring plans that will have a more significant impact on the underlying cost structure of the organization. Impairment costs primarily relate to write-downs of goodwill, intangible assets and assets held for sale to their fair value.
•
Water systems AFFF settlement and insurance recoveries
include amounts related to a settlement with a nationwide class of public water systems concerning the use of AFFF manufactured and sold by a subsidiary of the Company, and AFFF-related insurance recoveries.
•
Transaction/separation costs
include costs associated with significant mergers and acquisitions.
•
Transformation costs
represent incremental expenses incurred in association with strategic growth initiatives and cost saving opportunities in order to realize the benefits of portfolio simplification and the Company's lifecycle solutions strategy.
•
ERP asset - accelerated depreciation
represents a change in ERP strategy within the EMEA segment, which led to certain assets being abandoned and the useful lives reduced.
•
Gain on divestiture
relates to the sale of the ADT Mexico Security business.
•
Discrete tax items, net
includes the net impact of discrete tax items within the period, including the following types of items: changes in estimates associated with valuation allowances, changes in estimates associated with reserves for uncertain tax positions, withholding taxes recorded upon changes in indefinite re-investment assertions for businesses to be disposed of and impacts from statutory rate changes.
•
Related tax impact
includes the tax impact of the various excluded items.
Management believes the exclusion of these items is useful to investors due to the unusual nature and/or magnitude of the amounts. When considered together with unadjusted amounts, adjusted financial measures are useful to investors in understanding period-over-period operating results, business trends and ongoing operations of the Company. Management may also use these metrics as guides in forecasting, budgeting and long-term planning processes and for compensation purposes.
Operating leverage
Operating leverage is defined as the change in adjusted EBIT for the period, divided by the corresponding change in net revenues. Management believes operating leverage is a useful metric to reflect enterprise value creation, capturing the impact of scale and cost discipline across the organization.
Debt ratios
Management believes that net debt to adjusted EBITDA, a non-GAAP measure, is useful to understanding the Company's financial condition as the ratio provides an overview of the extent to which the Company relies on external debt financing for its funding and also is a measure of risk to its shareholders.
11
3. Sales
The following tables detail the changes in sales from continuing operations attributable to organic growth, foreign currency, acquisitions, divestitures and other (unaudited):
Net sales
Three Months Ended September 30,
(in millions)
Americas
EMEA
APAC
Total
Net sales - 2025
$
4,325
$
1,337
$
780
$
6,442
Base year adjustments
Divestitures and other
—
(42)
(13)
(55)
Foreign currency
(2)
(16)
7
(11)
Adjusted base net sales
4,323
1,279
774
6,376
Acquisitions
2
—
—
2
Organic growth
605
33
97
735
Net sales - 2026
$
4,930
$
1,312
$
871
$
7,113
Growth %:
Net sales
14
%
(2)
%
12
%
10
%
Organic growth
14
%
3
%
13
%
12
%
Net sales
Twelve Months Ended September 30,
(in millions)
Americas
EMEA
APAC
Total
Net sales - 2025
$
15,831
$
4,968
$
2,797
$
23,596
Base year adjustments
Divestitures and other
—
(120)
(18)
(138)
Foreign currency
36
153
26
215
Adjusted base net sales
15,867
5,001
2,805
23,673
Acquisitions
2
3
—
5
Organic growth
1,529
115
344
1,988
Net sales - 2026
$
17,398
$
5,119
$
3,149
$
25,666
Growth %:
Net sales
10
%
3
%
13
%
9
%
Organic growth
10
%
2
%
12
%
8
%
12
Products and systems revenue
Three Months Ended September 30,
(in millions)
Americas
EMEA
APAC
Total
Products and systems revenue - 2025
$
3,093
$
800
$
559
$
4,452
Base year adjustments
Divestitures and other
—
—
(2)
(2)
Foreign currency
(8)
(8)
7
(9)
Adjusted products and systems revenue
3,085
792
564
4,441
Acquisitions
2
—
—
2
Organic growth
483
3
85
571
Products and systems revenue - 2026
$
3,570
$
795
$
649
$
5,014
Growth %:
Products and systems revenue
15
%
(1)
%
16
%
13
%
Organic growth
16
%
—
%
15
%
13
%
Products and systems revenue
Twelve Months Ended September 30,
(in millions)
Americas
EMEA
APAC
Total
Products and systems revenue - 2025
$
11,187
$
2,977
$
1,960
$
16,124
Base year adjustments
Divestitures and other
—
—
(3)
(3)
Foreign currency
26
105
22
153
Adjusted products and systems revenue
11,213
3,082
1,979
16,274
Acquisitions
2
3
—
5
Organic growth
1,064
48
310
1,422
Products and systems revenue - 2026
$
12,279
$
3,133
$
2,289
$
17,701
Growth %:
Products and systems revenue
10
%
5
%
17
%
10
%
Organic growth
9
%
2
%
16
%
9
%
13
Service revenue
Three Months Ended September 30,
(in millions)
Americas
EMEA
APAC
Total
Service revenue - 2025
$
1,232
$
537
$
221
$
1,990
Base year adjustments
Divestitures and other
—
(42)
(11)
(53)
Foreign currency
6
(8)
—
(2)
Adjusted base service revenue
1,238
487
210
1,935
Organic growth
122
30
12
164
Service revenue - 2026
$
1,360
$
517
$
222
$
2,099
Growth %:
Service revenue
10
%
(4)
%
—
%
5
%
Organic growth
10
%
6
%
6
%
8
%
Service revenue
Twelve Months Ended September 30,
(in millions)
Americas
EMEA
APAC
Total
Service revenue - 2025
$
4,644
$
1,991
$
837
$
7,472
Base year adjustments
Divestitures and other
—
(120)
(15)
(135)
Foreign currency
10
48
4
62
Adjusted base service revenue
4,654
1,919
826
7,399
Organic growth
465
67
34
566
Service revenue - 2026
$
5,119
$
1,986
$
860
$
7,965
Growth %:
Service revenue
10
%
—
%
3
%
7
%
Organic growth
10
%
3
%
4
%
8
%
14
4. Cash Flow, Free Cash Flow and Free Cash Flow Conversion
The following table includes operating cash flow conversion, free cash flow and free cash flow conversion (unaudited):
Three Months Ended September 30,
Twelve Months Ended September 30,
(in millions)
2026
2025
2026
2025
Cash provided by operating activities from continuing operations
$
1,300
$
968
$
3,872
$
2,554
Income from continuing operations attributable to Johnson Controls
967
267
2,880
1,721
Operating cash flow conversion
134%
363%
134%
148%
Cash provided by operating activities from continuing operations
$
1,300
$
968
$
3,872
$
2,554
Capital expenditures
(222)
(130)
(465)
(434)
Free cash flow (non-GAAP)
$
1,078
$
838
$
3,407
$
2,120
Income from continuing operations attributable to Johnson Controls
$
967
$
267
$
2,880
$
1,721
Free cash flow conversion from net income (non-GAAP)
111%
314%
118
%
123
%
The following table includes adjusted free cash flow and adjusted free cash flow conversion (unaudited):
Three Months Ended September 30,
Twelve Months Ended September 30,
(in millions)
2026
2025
2026
2025
Free cash flow (non-GAAP)
$
1,078
$
838
$
3,407
$
2,120
Adjustments:
JC Capital cash (provided) used by operating activities
9
38
(24)
149
Water systems AFFF settlement cash payments and insurance recoveries
9
3
(156)
386
IP license prepayments
—
(240)
(29)
(240)
Discrete tax payments
—
71
31
71
Impact of discontinued factoring program
—
—
—
15
Adjusted free cash flow (non-GAAP)
$
1,096
$
710
$
3,229
$
2,501
Adjusted net income attributable to JCI (non-GAAP)
$
1,008
$
798
$
3,153
$
2,462
JC Capital net (income) loss
(28)
1
(6)
(3)
Adjusted net income attributable to JCI, excluding JC Capital (non-GAAP)
$
980
$
799
$
3,147
$
2,459
Adjusted free cash flow conversion (non-GAAP)
112%
89%
103%
102
%
15
5. EBIT, Segment Profitability and Corporate Expense
The following table reconciles income from continuing operations before income taxes to EBIT and adjusted EBIT (unaudited):
Three Months Ended September 30,
Twelve Months Ended September 30,
(in millions)
2026
2025
2026
2025
Income from continuing operations:
Attributable to Johnson Controls
$
967
$
267
$
2,880
$
1,721
Attributable to noncontrolling interests
3
3
10
3
Income from continuing operations
970
270
2,890
1,724
Less: Income tax provision
(1)
93
85
536
245
Income before income taxes
1,063
355
3,426
1,969
Net financing charges
82
76
279
319
EBIT
$
1,145
$
431
$
3,705
$
2,288
EBIT margin
16.1
%
6.7
%
14.4
%
9.7
%
Adjusting items:
Net mark-to-market adjustments
57
(13)
73
(6)
Restructuring and impairment costs
(87)
(400)
(311)
(546)
Water systems AFFF insurance recoveries
1
26
149
39
Transaction/separation costs
(30)
(12)
(73)
(39)
Transformation costs
(95)
(56)
(292)
(180)
ERP asset - accelerated depreciation
—
(102)
—
(102)
Gain on divestiture
—
—
70
—
Adjusted EBIT (non-GAAP)
$
1,299
$
988
$
4,089
$
3,122
Adjusted EBIT margin (non-GAAP)
18.3
%
15.3
%
15.9
%
13.2
%
(1)
Adjusted income tax provision excludes the net tax impacts of pre-tax adjusting items and discrete tax items.
16
The following tables reconcile Segment EBIT to Segment EBITA (non-GAAP) as reported and reconcile Segment EBIT and Segment EBITA (non-GAAP) as reported to adjusted Segment EBIT and Segment EBITA (non-GAAP) and adjusted Segment EBIT and Segment EBITA (non-GAAP) margin (unaudited):
Three Months Ended September 30,
(in millions)
Americas
EMEA
APAC
2026
2025
2026
2025
2026
2025
Sales
$
4,930
$
4,325
$
1,312
$
1,337
$
871
$
780
Segment EBIT
992
763
198
188
162
136
Amortization
77
81
7
13
3
3
Segment EBITA (non-GAAP)
1,069
844
205
201
165
139
Adjusting items:
Transformation costs
17
18
10
7
—
—
Adjusted Segment EBIT (non-GAAP)
1,009
781
208
195
162
136
Adjusted Segment EBITA (non-GAAP)
1,086
862
215
208
165
139
Segment EBIT margin %
20.1
%
17.6
%
15.1
%
14.1
%
18.6
%
17.4
%
Adjusted Segment EBIT margin % (non-GAAP)
20.5
%
18.1
%
15.9
%
14.6
%
18.6
%
17.4
%
Segment EBITA margin % (non-GAAP)
21.7
%
19.5
%
15.6
%
15.0
%
18.9
%
17.8
%
Adjusted Segment EBITA margin % (non-GAAP)
22.0
%
19.9
%
16.4
%
15.6
%
18.9
%
17.8
%
Twelve Months Ended September 30,
(in millions)
Americas
EMEA
APAC
2026
2025
2026
2025
2026
2025
Sales
$
17,398
$
15,831
$
5,119
$
4,968
$
3,149
$
2,797
Segment EBIT
3,088
2,526
700
581
589
461
Amortization
309
356
28
68
14
15
Segment EBITA (non-GAAP)
3,397
2,882
728
649
603
476
Adjusting items:
Transformation costs
74
24
23
9
4
—
Adjusted Segment EBIT (non-GAAP)
3,162
2,550
723
590
593
461
Adjusted Segment EBITA (non-GAAP)
3,471
2,906
751
658
607
476
Segment EBIT margin %
17.7
%
16.0
%
13.7
%
11.7
%
18.7
%
16.5
%
Adjusted Segment EBIT margin % (non-GAAP)
18.2
%
16.1
%
14.1
%
11.9
%
18.8
%
16.5
%
Segment EBITA margin % (non-GAAP)
19.5
%
18.2
%
14.2
%
13.1
%
19.1
%
17.0
%
Adjusted Segment EBITA margin % (non-GAAP)
20.0
%
18.4
%
14.7
%
13.2
%
19.3
%
17.0
%
17
The following table reconciles adjusted Segment EBITA (non-GAAP) to adjusted Segment EBITA margin (non-GAAP) (unaudited):
Three Months Ended September 30,
Twelve Months Ended September 30,
(in millions)
2026
2025
2026
2025
Adjusted Segment EBITA (non-GAAP)
Americas
$
1,086
$
862
$
3,471
$
2,906
EMEA
215
208
751
658
APAC
165
139
607
476
Sales
7,113
6,442
25,666
23,596
Adjusted Segment EBITA margin (non-GAAP)
20.6
%
18.8
%
18.8
%
17.1
%
The following table reconciles Corporate expense from continuing operations as reported to the comparable adjusted amounts (unaudited):
Three Months Ended September 30,
Twelve Months Ended September 30,
(in millions)
2026
2025
2026
2025
Corporate expense (GAAP)
$
178
$
269
$
653
$
767
Adjusting items:
Transaction/separation costs
(30)
(12)
(73)
(39)
Transformation costs
(68)
(31)
(191)
(147)
ERP asset - accelerated depreciation
—
(102)
—
(102)
Adjusted corporate expense (non-GAAP)
$
80
$
124
$
389
$
479
18
6. Net Income and Diluted Earnings Per Share
The following tables reconcile net income from continuing operations attributable to JCI and diluted earnings per share from continuing operations as reported to the comparable adjusted amounts (unaudited):
Three Months Ended September 30,
Income from continuing operations attributable to JCI
Diluted earnings
per share
(in millions, except per share)
2026
2025
2026
2025
As reported (GAAP)
$
967
$
267
$
1.60
$
0.42
Adjusting items:
Net mark-to-market adjustments
(57)
13
(0.09)
0.02
Restructuring and impairment costs
87
400
0.14
0.63
Water systems AFFF insurance recoveries
(1)
(26)
—
(0.04)
Transaction/separation costs
30
12
0.05
0.02
ERP asset - accelerated depreciation
—
102
—
0.16
Transformation costs
95
56
0.16
0.09
Discrete tax items
(90)
50
(0.15)
0.08
Related tax impact
(23)
(76)
(0.04)
(0.12)
Adjusted (non-GAAP)*
$
1,008
$
798
$
1.66
$
1.26
* May not sum due to rounding
Twelve Months Ended September 30
Income from continuing operations attributable to JCI
Diluted earnings
per share
(in millions, except per share)
2026
2025
2026
2025
As reported (GAAP)
$
2,880
$
1,721
$
4.72
$
2.63
Adjusting items:
Net mark-to-market adjustments
(73)
6
(0.12)
0.01
Gain on divestiture
(70)
—
(0.11)
—
Restructuring and impairment costs
311
546
0.51
0.83
Water systems AFFF insurance recoveries
(149)
(39)
(0.24)
(0.06)
Transaction/separation costs
73
39
0.12
0.06
ERP asset - accelerated depreciation
—
102
—
0.16
Transformation costs
292
180
0.48
0.28
Discrete tax items
(79)
(36)
(0.13)
(0.06)
Related tax impact
(32)
(57)
(0.05)
(0.07)
Adjusted (non-GAAP)*
$
3,153
$
2,462
$
5.16
$
3.76
* May not sum due to rounding
19
The following table reconciles the denominators used to calculate basic and diluted earnings per share (in millions; unaudited):
Three Months Ended September 30,
Twelve Months Ended September 30,
2026
2025
2026
2025
Weighted average shares outstanding
Basic weighted average shares outstanding
604
631
609
652
Effect of dilutive securities:
Stock options, unvested restricted stock and unvested performance share awards
2
2
2
2
Diluted weighted average shares outstanding
606
633
611
654
7. Debt Ratios
The following table includes continuing operations and details net debt to income before income taxes and net debt to adjusted EBITDA (unaudited):
(in millions)
September 30, 2026
June 30, 2026
September 30, 2025
Short-term debt
$
678
$
865
$
723
Current portion of long-term debt
1,066
311
566
Long-term debt
7,533
8,299
8,591
Total debt
9,277
9,475
9,880
Less: cash and cash equivalents
618
641
379
Net debt
$
8,659
$
8,834
$
9,501
Last twelve months income before income taxes
$
3,426
$
2,718
$
1,969
Net debt to income before income taxes
2.5
x
3.3
x
4.8
x
Last twelve months adjusted EBITDA (non-GAAP)
$
4,743
$
4,553
$
3,987
Net debt to adjusted EBITDA (non-GAAP)
1.8x
1.9x
2.4x
20
The following table reconciles income from continuing operations to adjusted EBIT and adjusted EBITDA (unaudited):
Twelve Months Ended
(in millions)
September 30, 2026
June 30, 2026
September 30, 2025
Income from continuing operations
$
2,890
$
2,190
$
1,724
Income tax provision
536
528
245
Income before income taxes
3,426
2,718
1,969
Net financing charges
279
273
319
EBIT
3,705
2,991
2,288
Adjusting items:
Net mark-to-market adjustments
(73)
(3)
6
Restructuring and impairment costs
311
624
546
Water systems AFFF insurance recoveries
(149)
(174)
(39)
Transaction/separation costs
73
55
39
Transformation costs
292
253
180
ERP asset - accelerated depreciation
—
102
102
Gain on divestiture
(70)
(70)
—
Adjusted EBIT (non-GAAP)
4,089
3,778
3,122
Depreciation and amortization
654
775
865
Adjusted EBITDA (non-GAAP)
$
4,743
$
4,553
$
3,987
8. Income Taxes
After adjusting for certain non-recurring items, the Company's effective tax rate for continuing operations was approximately 17% for the three and twelve months ended September 30, 2026 and approximately 12% for the three and twelve months ended September 30, 2025.
21