Johnson Controls International plc (JCI) Bundle
A Brief History of Johnson Controls International plc
Company Overview
Johnson Controls International plc (NYSE: JCI) is a global leader in smart, healthy, and sustainable buildings. The company focuses on delivering integrated building solutions through innovative technologies, enhancing safety, and improving operational efficiency.
Financial Performance in 2024
In fiscal year 2024, Johnson Controls reported net sales of $27.4 billion, an increase of 2% from the previous year. The company's organic sales growth for the year was 4% .
Quarterly Financial Highlights
| Quarter | Net Sales (in millions) | Net Income Attributable to JCI (in millions) | GAAP EPS | Adjusted EPS |
|---|---|---|---|---|
| Q1 2024 | $5,209 | $340 | $0.50 | $0.46 |
| Q2 2024 | $5,597 | $(321) | $(0.47) | $0.69 |
| Q3 2024 | $5,898 | $852 | $1.25 | $0.95 |
| Q4 2024 | $6,248 | $536 | $0.80 | $1.28 |
Segment Performance
The company operates through various segments, including Building Solutions and Global Products. In Q4 2024, the following segment performances were reported:
| Segment | Sales (in millions) | Segment EBITA (in millions) | EBITA Margin (%) |
|---|---|---|---|
| Building Solutions North America | $3,223 | $484 | 15.0% |
| Building Solutions EMEA/LA | $1,113 | $111 | 10.0% |
| Building Solutions Asia Pacific | $664 | $94 | 14.2% |
| Global Products | $2,394 | $670 | 28.0% |
Cash Flow and Free Cash Flow
In fiscal year 2024, Johnson Controls reported a free cash flow of $1.566 billion, reflecting solid operational efficiency. The free cash flow conversion from net income was 92%.
Debt and Financial Ratios
As of September 30, 2024, Johnson Controls had total debt of $9.493 billion. The company's net debt to adjusted EBITDA ratio was 2.0x, indicating a stable financial condition.
Market Position and Outlook
Johnson Controls continues to strengthen its market position with a backlog of $13.1 billion, representing a 7% year-over-year increase . The company’s strategic focus on expanding its building solutions portfolio positions it well for future growth.
A Who Owns Johnson Controls International plc (JCI)
Major Shareholders
As of 2024, Johnson Controls International plc (JCI) has a diverse ownership structure, with significant shares held by institutional investors and mutual funds. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares (in millions) |
|---|---|---|
| Vanguard Group | 8.7% | 58.3 |
| BlackRock, Inc. | 7.5% | 50.7 |
| State Street Global Advisors | 4.8% | 32.5 |
| FMR LLC (Fidelity) | 4.0% | 27.1 |
| Invesco Ltd. | 3.2% | 21.7 |
| Other Institutional Investors | 31.2% | 210.0 |
| Insiders (Executive Officers and Directors) | 1.3% | 8.8 |
| Public Float | 34.3% | 231.2 |
Stock Performance
As of 2024, JCI's stock has shown resilience in the market, with a year-to-date (YTD) performance reflecting a 10% increase since the beginning of the year. The current share price is approximately $50.25, with a market capitalization of about $37 billion.
Financial Overview
For the fiscal year ending September 30, 2024, Johnson Controls reported:
- Net sales of $27.4 billion, representing a 2% increase from the previous year.
- Net income attributable to JCI of $1.7 billion.
- Adjusted EBITDA of $4.4 billion.
Recent Developments
In November 2024, JCI announced plans to divest its Residential and Light Commercial HVAC business to Bosch Group for approximately $8.1 billion. This strategic move is expected to close in the fourth quarter of fiscal 2025.
Debt and Capital Structure
As of September 30, 2024, JCI's debt structure includes:
- Total debt of $9.5 billion.
- Net debt of $8.9 billion.
- Debt to adjusted EBITDA ratio of 2.0x.
Dividend Policy
JCI has maintained a consistent dividend payout, with a total dividend payment of $1 billion for the fiscal year 2024. The quarterly dividend is currently set at $0.40 per share.
Johnson Controls International plc (JCI) Mission Statement
Mission Statement Overview
Johnson Controls International plc (JCI) is committed to creating smart, healthy, and sustainable buildings. The mission emphasizes enhancing the performance of buildings through innovative technologies and services that improve efficiency, safety, and comfort.
Financial Performance Highlights (Fiscal Year 2024)
In fiscal year 2024, JCI reported significant financial achievements:
| Metric | Q4 2024 | Q4 2023 | Change (%) |
|---|---|---|---|
| Sales (in millions) | $7,394 | $6,906 | 7% |
| Organic Sales Growth (%) | 10% | N/A | N/A |
| GAAP Net Income (in millions) | $633 | $549 | 15% |
| Adjusted Net Income (in millions) | $858 | $719 | 19% |
| GAAP EPS | $0.95 | $0.80 | 19% |
| Adjusted EPS | $1.28 | $1.05 | 22% |
Segment Performance Analysis
JCI operates through various segments, with notable performance in the following areas:
| Segment | Q4 2024 Sales (in millions) | Q4 2023 Sales (in millions) | Change (%) |
|---|---|---|---|
| Building Solutions North America | $3,223 | $2,778 | 16% |
| Building Solutions EMEA/LA | $1,113 | $1,045 | 7% |
| Building Solutions Asia Pacific | $664 | $697 | (5%) |
| Global Products | $2,394 | $2,386 | 0% |
Backlog and Orders
As of Q4 2024, JCI's backlog and orders reflect a strong market position:
| Metric | Q4 2024 | Q4 2023 | Change (%) |
|---|---|---|---|
| Backlog (in billions) | $13.1 | $12.2 | 7% |
| Orders Growth (Year-over-Year) | 8% | N/A | N/A |
Cash Flow and Dividends
Cash flow metrics indicate robust operational efficiency:
| Metric | Q4 2024 (in millions) | Q4 2023 (in millions) |
|---|---|---|
| Cash Provided by Operating Activities | $1,526 | $1,390 |
| Free Cash Flow | $1,318 | $1,217 |
| Dividends Paid | $247 | N/A |
Strategic Initiatives
JCI has undertaken several strategic initiatives to align with its mission:
- Portfolio simplification to focus on core building solutions.
- Investment in digital technologies to enhance building efficiency.
- Commitment to sustainability and reducing carbon footprint.
Conclusion on Mission Alignment
JCI's mission to deliver smart, healthy, and sustainable buildings is supported by its strong financial performance, strategic growth initiatives, and commitment to innovation.
How Johnson Controls International plc (JCI) Works
Company Overview
Johnson Controls International plc (JCI) operates as a global leader in smart, healthy, and sustainable building solutions. The company is focused on optimizing building performance through its comprehensive portfolio of products and services.
Financial Performance
As of the fourth quarter of fiscal year 2024, JCI reported:
- Net Sales: $7.4 billion, a 7% increase year-over-year.
- Organic Sales Growth: 10% increase in Q4 2024.
- Full Year Sales: $27.4 billion, a 2% increase compared to the previous year.
- GAAP Net Income: $633 million for Q4 2024 and $1.705 billion for the full year.
- Adjusted Net Income: $858 million for Q4 2024.
| Metric | Q4 2024 | Q4 2023 | Year 2024 | Year 2023 |
|---|---|---|---|---|
| Net Sales (in millions) | $7,394 | $6,906 | $27,418 | $26,793 |
| GAAP Net Income (in millions) | $633 | $549 | $1,705 | $1,849 |
| Adjusted Net Income (in millions) | $858 | $719 | $2,510 | $2,405 |
| GAAP EPS | $0.95 | $0.80 | $2.52 | $2.69 |
| Adjusted EPS | $1.28 | $1.05 | $3.71 | $3.50 |
Operational Segments
JCI operates through the following key segments:
- Building Solutions North America
- Building Solutions EMEA/LA
- Building Solutions Asia Pacific
- Global Products
Segment Performance
In Q4 2024, the performance of each segment was as follows:
| Segment | Sales (in millions) | EBITA (in millions) | EBITA Margin (%) |
|---|---|---|---|
| Building Solutions North America | $3,223 | $484 | 15.0% |
| Building Solutions EMEA/LA | $1,113 | $111 | 10.0% |
| Building Solutions Asia Pacific | $664 | $94 | 14.2% |
| Global Products | $2,394 | $670 | 28.0% |
Cash Flow and Investments
For the fiscal year ending September 30, 2024, JCI reported:
- Cash Provided by Operating Activities: $2,098 million.
- Capital Expenditures: $532 million.
- Free Cash Flow: $1,566 million.
- Dividends Paid: $247 million.
| Cash Flow Metric | Q4 2024 (in millions) | Q4 2023 (in millions) |
|---|---|---|
| Cash Provided by Operating Activities | $1,526 | $1,390 |
| Free Cash Flow | $1,318 | $1,217 |
| Adjusted Free Cash Flow | $1,087 | $989 |
Debt and Financial Ratios
As of September 30, 2024, JCI's financial position included:
- Total Assets: $42.695 billion.
- Total Liabilities: $26.597 billion.
- Net Debt to Adjusted EBITDA: 2.0x.
| Financial Metric | Value |
|---|---|
| Total Assets (in millions) | $42,695 |
| Total Liabilities (in millions) | $26,597 |
| Net Debt to Adjusted EBITDA | 2.0x |
Market Positioning and Strategic Initiatives
JCI has initiated a multi-year restructuring plan aimed at enhancing operational efficiency and reducing costs. The anticipated restructuring costs are approximately $400 million over the next three years, which is expected to yield annual savings of about $500 million.
The company is also focused on divesting non-core assets, including the sale of its Residential and Light Commercial HVAC business to Bosch Group for approximately $8.1 billion, expected to close in fiscal 2025.
How Johnson Controls International plc (JCI) Makes Money
Revenue Streams
Johnson Controls International plc (JCI) generates revenue through two primary segments: Building Solutions and Global Products. For the fiscal year ending September 30, 2024, JCI reported total net sales of $27.4 billion, representing a 2% increase from the previous year. Organic sales growth was 4% during the same period.
Building Solutions Segment
The Building Solutions segment includes services related to building management systems, HVAC, fire and security, and energy storage. In Q4 2024, this segment achieved sales of $5 billion, up 11% from Q4 2023. The annual sales for this segment were $22.95 billion, with a notable contribution from North America, which alone accounted for $11.35 billion of the total sales.
| Segment | Q4 Sales (in millions) | Annual Sales (in millions) | Growth % (Q4 YoY) |
|---|---|---|---|
| Building Solutions North America | $3,223 | $11,348 | 16% |
| Building Solutions EMEA/LA | $1,113 | $4,296 | 7% |
| Building Solutions Asia Pacific | $664 | $2,237 | (5%) |
Global Products Segment
The Global Products segment encompasses products such as HVAC systems, security systems, and industrial refrigeration. The segment generated $2.4 billion in Q4 2024, representing flat growth compared to Q4 2023. However, the annual revenue for this segment reached $9.54 billion, driven by strong performance in Commercial and Residential HVAC.
| Segment | Q4 Sales (in millions) | Annual Sales (in millions) | Growth % (Q4 YoY) |
|---|---|---|---|
| Global Products | $2,394 | $9,537 | 0% |
Profitability Metrics
For the fiscal year 2024, JCI reported a GAAP net income of $1.705 billion, translating to a diluted earnings per share (EPS) of $2.52. The adjusted EPS for the same period was $3.71. The company maintained a gross profit margin of approximately 32.5% across its segments.
Cost Structure
As of Q4 2024, the total cost of sales was reported at $18.175 billion. The breakdown includes:
- Products and systems: $13.977 billion
- Services: $4.198 billion
Cash Flow and Investments
JCI generated $1.318 billion in free cash flow for Q4 2024. The company reported cash provided by operating activities of $1.526 billion for the same quarter. Capital expenditures were noted at $208 million.
Market Position and Future Outlook
JCI's backlog at the end of Q4 2024 was $13.1 billion, which reflects a 7% increase year-over-year. The company is positioned to continue its focus on building solutions, leveraging its strong market presence to drive future growth.
| Financial Metrics | Q4 2024 | Full Year 2024 |
|---|---|---|
| Net Income (GAAP) | $633 million | $1.705 billion |
| Adjusted Net Income | $858 million | $2.510 billion |
| Free Cash Flow | $1.318 billion | $1.566 billion |
| Dividends Paid | $247 million | $1.00 billion |
Overall, Johnson Controls International plc's business model is centered around providing comprehensive building solutions and high-quality products, enabling the company to achieve consistent revenue growth and solid profitability metrics.
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Updated on 16 Nov 2024
Resources:
- Johnson Controls International plc (JCI) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Johnson Controls International plc (JCI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Johnson Controls International plc (JCI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.