Johnson Controls builds 'momentum' heading into fiscal 2025

CORK, Ireland—Johnson Controls Chairman and CEO George Oliver says he’s “very pleased” with the strong end to the company’s Q4 and fiscal year results, giving it “momentum” going into fiscal 2025.  

During the Q4 earnings call, Oliver cited double-digit organic sales growth and robust margin expansion as the catalysts to the solid numbers Johnson Controls shared with investors on Nov. 6.  

“Today, we are a faster-growing, more profitable, simpler company,” he said. “Our differentiated solutions to enhance efficiency and sustainability in commercial buildings continue to resonate with our customers across the key verticals we serve.” 

Q4 sales increased 7% to $7.4 billion and organic sales increased 10%. Full-year sales increased 2% to $27.4 billion and organic sales increased 4%. Q4 GAAP net income was $633 million and adjusted net income was $858 million. Q4 GAAP earnings per share (EPS) was $0.95, with an adjusted EPS of $1.28 (excluding special items), which exceeded the high end of the company’s guidance range by $0.02.   

Oliver pointed out actions taken during the year to simplify the company’s portfolio, which he said, “allows us to focus our resources on expanding Johnson Controls as a leading pure-play building solutions provider.”  

“We are driving greater outcomes for our customers globally across the building lifecycle while unlocking shareholder value,” he explained. “For example, we extended our leading position in cooling for data centers with orders for the full year more than doubling the sales we delivered. Also, our pending sale of the residential and light commercial business to Bosch is progressing, and we expect the transaction to close in the fiscal fourth quarter.”  

CFO Marc Vandiepenbeeck noted that while Q4 sales in the company’s global products business were flat ($2.394 billion versus $2.386 billion year over year), overall, it delivered a “strong finish” to the year as organic sales grew 8%, with five points of volume growth. 

“Low double-digit growth in HVAC, both commercial and residential, offset declines in fire and security and industrial refrigeration,” he said.  

Looking ahead, Vandiepenbeeck said the company’s Building Solutions record backlog of $13.1 billion in fiscal year 2024, a 7% increase organically year-over-year, offers “great visibility into the new year.” 

“We are entering fiscal 2025 with momentum,” he noted. “Our service business remains well positioned and provides a favorable mix to margins. For the full year, we expect organic sales growth of mid-single digits, which is consistent with our long-term growth algorithm.”  

Oliver concluded by introducing the company’s fiscal 2025 guidance from continuing operations of $3.40 to $3.50, noting that Johnson Controls is well positioned going forward to deliver long-term shareholder value.

“Our business transformation is almost complete, and we are benefiting from more consistent, predictable performance,” he stated. “Johnson Controls is better positioned than ever before to help customers create safer, more sustainable buildings while also maximizing the occupant experience. Our strong finish to fiscal 2024, coupled with our record backlog, reinforces our confidence that Johnson Controls will continue to lead globally in building solutions.”