Johnson Controls Q3 Earnings & Revenues Top Estimates, Increase Y/Y

Johnson Controls International plc JCI reported third-quarter fiscal 2025 (ended June 2025) adjusted earnings of $1.05 per share, which beat the Zacks Consensus Estimate of $1. The bottom line increased 11% year over year.

Total revenues (continuing operations) of $6.10 billion surpassed the consensus estimate of $5.99 billion. The top line increased 3% year over year, whereas organic revenues increased 6%.

Q3 Segmental Results

Effective from the third quarter of fiscal 2025, the company started reporting under three segments, namely Americas, EMEA and APAC.

Americas: Revenues were $4.04 billion, flat year over year. Organic sales increased 7%, driven by the strong performance of the applied heating, ventilation and air conditioning (HVAC) and controls businesses.  Adjusted EBITA increased 0.4% year over year to $746 million.

EMEA: Revenues totaled $1.27 billion, up 8% year over year. Organic sales climbed 4% due to growth in the Applied HVAC and fire and security businesses. Adjusted EBITA was $179 million, up 16% year over year.

APAC: Revenues increased 7% to $737 million. Sales grew 6% organically, driven by growth in the service business. Adjusted EBITA was $143 million, up 12% year over year.

JCI’s Margin Profile

In the fiscal third quarter, Johnson Controls’ cost of sales increased 0.4% year over year to approximately $3.81 billion. Gross profit increased 6.5% year over year to $2.25 billion and the margin rose 130 basis points (bps) to 37.1%. Selling, general and administrative expenses were $1.42 billion, up 58.3% year over year.

Financial Position

Johnson Controls had cash and cash equivalents of $731 million as of June 30, 2025, compared with $606 million at the end of fiscal 2024 (ended Sept. 30, 2024). Long-term debt was $8.45 billion compared with $8 billion at the end of fiscal 2024.

In the first nine months of fiscal 2025, the company generated net cash of $1.59 billion from operating activities compared with $216 million in the year-ago period. It reported a free cash flow of $1.28 billion in the same period against a free cash outflow of $83 million in the year-ago period.

The company repurchased shares for approximately $970 million in the first nine months of fiscal 2025.

JCI’s Q4 Guidance

Johnson Controls anticipates low-single-digit organic revenue growth from the year-ago level. Adjusted segment EBITA margin is estimated to be approximately 18.6%. JCI expects adjusted earnings to be in the range of $1.14-$1.17 per share.

FY25 Guidance

Johnson Controls anticipates organic revenue growth to be in the mid-single-digit range from the prior-year level. Adjusted segment EBITA margin is expected to improve 90 bps from the year-ago actual. JCI expects adjusted earnings per share to be $3.65-$3.68 compared with about $3.60 expected earlier. It expects adjusted free cash flow conversion of more than 100%.

JCI’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Dover Corporation DOV reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago.

Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion.

Teck Resources Limited TECK came out with earnings of $0.27 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $0.2. This compares with earnings of $0.58 per share a year ago.

Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion. 

Packaging Corporation of America PKG reported earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.44. This compares with earnings of $2.2 per share a year ago.

Packaging Corp. posted revenues of $2.17 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.5%. This compares with year-ago revenues of $2.08 billion.

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