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- **Revenue Growth**: 6% FY2025, $15B record backlog, 3% FY2026 guidance.
- **Margin Expansion**: 50%+ operating leverage, 100% free cash flow conversion.
- **Data Center Dominance**: CDU launch, 95% on-time delivery, $15B backlog.
- **Business System Impact**: 60%+ time with customers, 50% cost reduction in factories.
- **Long-Term Vision**: Mid-single-digit growth, double-digit EPS, 100% free cash flow.

**【CEO Summary Section】**
- Delivered 6% organic revenue growth in FY2025, driven by strong execution in data centers and mission-critical solutions.
- Introduced proprietary business system (simplify, accelerate, scale) to improve operational efficiency and customer engagement.
- Updated long-term algorithm: mid-single-digit revenue growth, double-digit EPS growth, and 100% free cash flow conversion.
- FY2025 free cash flow conversion of 102%, with $2.5B cash flow from operations.
- Record backlog of $15B, up 13% YoY, reflecting strong demand in data centers and decarbonization.

**【CFO Financial Commentary】**
- FY2025 GAAP net income: $420M; Non-GAAP EPS: $1.26 (14% YoY growth).
- FY2026 guidance: 3% organic sales growth, 50% operating leverage, and $4.55 EPS (20% YoY growth).
- 100% free cash flow conversion target, supported by disciplined working capital management.
- Restructuring program delivering $500M+ benefits over 2-3 years, with $200M+ spent in FY2025.

**【Q&A Key Highlights】**
- **Operating Leverage**: 50%+ in FY2026 driven by stranded cost removal, restructuring, and business system efficiency gains.
- **Data Center Growth**: CDU launch enables 60%+ time spent with customers; Accelsius platform positions for 2027+ AI chip demand.
- **Margin Expansion**: EMEA/Asia margins improving 30-50bps YoY, Americas at 20%+ segment margin.
- **Backlog Visibility**: 13% growth to $15B, with 95%+ on-time delivery in key factories.
- **M&A Strategy**: Disciplined approach to portfolio optimization, with focus on high-growth verticals.
- **Service Model**: Technology-enabled service automation reducing cost-to-serve by 50%+.

Johnson Controls International plc (JCI) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

JCI

JCI fundamentals

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