Johnson Controls shows ‘great momentum and a clear focus’ in Q1, Oliver says

CORK, Ireland—With a leadership change on the horizon, Johnson Controls International (JCI) reported strong numbers in fiscal Q1 2025, which certainly pleased outgoing Chairman and CEO George Oliver.  

Sales in the quarter of $5.4 billion increased 4% over the prior year on an as reported basis and 10% organically. Q1 Generally Accepted Accounting Principles (GAAP) earnings per share (EPS) were $0.55, with an adjusted EPS of $0.64. 

"Johnson Controls is starting 2025 with great momentum and a clear focus as validated by our first quarter results," Oliver told investors during the Feb. 5 earnings call. "Importantly, each of our businesses contributed to robust revenue growth and significant margin expansion and remain positioned for ongoing shareholder value creation. These results reinforce the considerable progress we have made through our transformation efforts and demonstrate the success of our strategic initiatives, which have driven increased demand for our core systems and service offerings.”   

To break down sales by region, Q1 sales for Building Solutions North America were $2.7 billion, an increase of 10% over the prior year. Organic sales also increased 10% over the prior year, led by high-teens growth in Applied HVAC and Controls. Excluding M&A and adjusted for foreign currency, orders increased 18% year over year, and the backlog of $9.3 billion increased 12% year over year.  

The only blip in the Q1 financials came in global product sales, which were $1.1 billion, a decline of 8% versus the prior year. Organic sales grew 15% versus the prior year led by over 30% growth in Applied HVAC.  

On the same day that JCI revealed its Q1 earnings, the company announced that its board of directors appointed Joakim Weidemanis as CEO, effective March 12, 2025, succeeding Oliver, who will continue to serve as non-executive chairman of the board until July 31, 2025. 

“It has been the honor of my career to lead Johnson Controls for eight years, working alongside an incredible team and to have been a part of the JCI-Tyco merger before that,” Oliver stated during the call. “We have accomplished a tremendous amount during that time, and I could not be more pleased with the company we have built.”