How did JCI's operating profit surge in Q1 2025?
3/31/2025 01:16pm
Johnson Controls International plc (JCI) did not report any operating profit for Q1 2025. However, the company's financial performance in Q1 2025 was robust, with significant growth in various financial metrics. Here are the key points to consider:
1. **Revenue Growth**: Johnson Controls reported a 4% increase in sales, reaching $5.4 billion. The organic sales grew by 10%, driven by strong performance across different segments.
2. **Segment Performance**: The Building Solutions segments, including North America and Asia Pacific, showed notable growth in sales, orders, and backlog. The Building Solutions North America segment experienced a 10% increase in sales, while the EMEA/LA region saw a substantial expansion in EBITA margin.
3. **Adjusted Earnings Per Share (EPS)**: The company reported an adjusted EPS of $0.64 for Q1 2025, which represents a significant year-over-year increase of nearly 40%.
4. **Free Cash Flow**: Johnson Controls' free cash flow reached $133 million, driven by strategic cost management and strong operational performance.
5. **Guidance Increase**: The company raised its full-year 2025 EPS guidance to $3.50-$3.60, reflecting a 9%-12% growth, and anticipated adjusted segment EBITDA margin expansion by over 80 basis points.
In conclusion, while Johnson Controls did not report an operating profit for Q1 2025, the company's revenue growth, segment performance, adjusted EPS, free cash flow, and guidance increase indicate a strong financial performance for the period.