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Johnson Controls International (JCI) investor relations material
Johnson Controls International Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved 7% net sales growth year-over-year to $5.8 billion in Q1, with organic sales up 6% and broad-based strength across all regions and segments.
Adjusted EBIT margin expanded by 190 basis points to 12.4%, and adjusted EPS rose nearly 40% year-over-year to $0.89, exceeding guidance.
Orders increased 39% year-over-year, with backlog up 20% to $18.2 billion, driven by strong demand in data centers and high-growth markets, especially in the Americas.
Advanced portfolio with innovations in cooling, connectivity, and digital service capabilities, and completed key divestitures.
Raised full-year adjusted EPS guidance to ~$4.70, reflecting strong execution and momentum.
Financial highlights
Q1 sales were $5.8 billion, up 7% year-over-year; gross profit reached $2.07 billion, with gross margin at 35.8%.
Adjusted EBIT was $719 million, up 27% year-over-year; adjusted EBIT margin reached 12.4%.
Adjusted EPS from continuing operations was $0.89, up 39% from $0.64 in the prior year.
Free cash flow was $531 million; adjusted free cash flow was $428 million, with conversion at 77%.
Net debt to adjusted EBITDA improved to 2.2x, within the long-term target range.
Outlook and guidance
Q2 guidance: organic sales growth ~5%, operating leverage ~45%, adjusted EPS ~$1.11.
Full-year FY26 guidance: mid-single-digit organic sales growth, operating leverage ~50%, adjusted EPS raised to ~$4.70, and adjusted free cash flow conversion ~100%.
Tax rate expected at ~17% for Q2 and full-year FY26.
Backlog grew 20% year-over-year to $18.2 billion, with orders up 39%.
- TimeTickerHeadlineOpen
- 6 FebJKHY
Record revenue and net income growth drive raised guidance and strong segment performance. - 6 FebMGY
Record production, strong free cash flow, and disciplined capital returns defined 2025. - 6 FebQNST
Record Q2 revenue, $50.2M net income, HomeBuddy acquisition, and AI drive growth. - 6 FebOPGN
Shareholders will vote on seven key proposals, including a new equity plan and company name change. - 6 FebCDP
2025 FFO/share up 5.8% with strong leasing; 2026 outlook positive amid record defense spending. - 6 FebVTR
2025 saw double-digit SHOP NOI and FFO growth, a raised dividend, and $2.5B in investments. - 6 FebREG
2025 delivered record NOI and FFO growth, with 2026 guidance projecting further gains. - 6 FebMNTS
All stock issuance proposals passed except the share increase, which was not approved. - 6 FebCPT
2025 beat guidance; 2026 sees lower FFO, Sun Belt focus, and major asset sales with share repurchases. - 6 FebKOG
Record growth, robust backlog, and a NOK 5.70 dividend proposal drive future expansion.
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