What drove JCI's gross profit growth in Q4 2023?

Johnson Controls International plc (JCI) experienced a notable increase in gross profit in Q4 2023, driven by several key factors:

1. **Revenue Growth**: Q4 sales grew by 7% year-over-year, reaching $7.4 billion, surpassing analyst estimates. This organic sales increase, particularly in the Building Solutions segment, contributed significantly to the gross profit growth.
2. **Organic Sales Growth**: Organic sales increased by 10% for the quarter, reflecting strong demand across various product lines. This growth in organic sales is a direct indicator of increased profitability due to higher sales volumes.
3. **Backlog and Orders**: The company's backlog reached a record $13.1 billion, up 7% year-over-year. Strong orders, which increased by 8% organically, provided a solid foundation for future revenue and profitability.
4. **Efficiency and Innovation**: Johnson Controls' focus on efficiency and innovation in its operations and products likely contributed to improved gross margins. The company's investments in digital offerings, such as the OpenBlue platform, are enhancing customer satisfaction and optimizing system performance.

In summary, Johnson Controls' gross profit growth in Q4 2023 is primarily driven by revenue and organic sales growth, increased backlog, and operational efficiency. These factors collectively contribute to the company's robust profitability and future growth prospects.