Johnson Controls Q4 Earnings & Revenues Top Estimates, Increase Y/Y

Johnson Controls International plc JCI reported fourth-quarter fiscal 2025 (ended September 2025) adjusted earnings of $1.26 per share, which beat the Zacks Consensus Estimate of $1.20. The bottom line increased 13.5% year over year.Total revenues (continuing operations) of $6.44 billion surpassed the consensus estimate of $6.32 billion in the quarter. The top line increased 3% year over year, whereas organic revenues increased 4%.For fiscal 2025, the company’s adjusted earnings were $3.76 per share, up 17.1% year over year. Total revenues of $23.6 billion reflected an increase of 2.8% year over year.Q4 Segmental ResultsEffective from the third quarter of fiscal 2025, the company started reporting under three segments, namely Americas, EMEA and APAC.Americas: Revenues were $4.33 billion, up 1% year over year. Organic sales increased 3%, driven by the strong performance of the applied heating, ventilation and air conditioning (HVAC) and controls businesses.  Adjusted EBITA increased 4% year over year to $862 million. Our estimate for segmental revenues was pinned at $4.27 billion.EMEA: Revenues totaled $1.34 billion, up 13% year over year. Organic sales climbed 9% due to strong growth in systems and service businesses. Adjusted EBITA was $208 million, up 15% year over year. Our estimate for segmental revenues was pegged at $1.30 billion.APAC: Revenues decreased 3% to $780 million. Sales declined 3% organically, due to decreased volumes in China. Adjusted EBITA was $139 million, down 12% year over year. Our estimate for segmental revenues was pinned at $785 million.Johnson Controls International plc Price, Consensus and EPS Surprise Johnson Controls International plc price-consensus-eps-surprise-chart | Johnson Controls International plc QuoteJCI’s Margin ProfileIn the fiscal fourth quarter, Johnson Controls’ cost of sales increased 2.8% year over year to approximately $4.09 billion. Gross profit increased 3.7% year over year to $2.35 billion and the margin rose 20 basis points (bps) to 36.5%. Selling, general and administrative expenses were $1.52 billion, up 11.2% year over year.Financial PositionJohnson Controls had cash and cash equivalents of $379 million as of Sept. 30, 2025, compared with $606 million at the end of fiscal 2024 (ended Sept. 30, 2024). Long-term debt was $8.59 billion compared with $8 billion at the end of fiscal 2024.In fiscal 2025, the company generated net cash of $2.55 billion from operating activities compared with $1.57 billion in the year-ago period. It reported a free cash flow (on an adjusted basis) of $2.12 billion in the same period compared with $1.07 billion in the year-ago period.The company paid dividends of $976 million and repurchased shares for approximately $5.99 billion in fiscal 2025.JCI’s Q1 GuidanceJohnson Controls anticipates organic revenue growth of approximately 3% from the year-ago level. Operating leverage is estimated to be approximately 55%. JCI expects adjusted earnings to be about $0.83 per share.FY26 GuidanceJohnson Controls anticipates organic revenue growth to be in the mid-single-digit range from the prior-year level. Operating leverage is expected to be about 50%. JCI expects adjusted earnings per share to be approximately $4.55. It expects adjusted free cash flow conversion of about 100%.JCI’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Some better-ranked stocks are discussed below:Flowserve Corporation FLS presently carries a Zacks Rank #2 (Buy). FLS’ earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 1.8%.RBC Bearings Incorporated RBC currently carries a Zacks Rank of 2. RBC has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 5.2%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ 2025 earnings has increased a penny.Helios Technologies HLIO currently carries a Zacks Rank of 2. HLIO has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 16.8%.  In the past 60 days, the Zacks Consensus Estimate for Helios’ 2025 earnings has increased a penny.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson Controls International plc (JCI): Free Stock Analysis Report RBC Bearings Incorporated (RBC): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Helios Technologies, Inc (HLIO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks