Wed, May 7, 3:29 PM (12 days ago)
**Johnson Controls International plc (JCI) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $5.7 billion, up 1% YoY, driven by organic sales growth of $381 million, partially offset by foreign exchange impacts and divestitures. - **Profit Margins:** Gross profit increased by 8% YoY to $2.1 billion, with a gross margin of 36.5%. Operating margins improved due to higher margin backlog conversion and productivity improvements. - **Cash Flow:** Operating cash flow was $799 million, reflecting higher net income and changes in working capital. **Earnings Changes:** - **Net Income:** Q1 2025 net income was $526 million, a significant improvement from a loss of $234 million in Q1 2024. - **EPS:** Basic EPS was $0.73, compared to a loss of $0.41 in Q1 2024. **Quarterly Performance Discussion:** - **Segment Performance:** Building Solutions North America and Asia Pacific segments showed strong growth in both Products & Systems and Services. Global Products segment faced headwinds from divestitures but saw organic growth. - **Cost Management:** SG&A expenses decreased by 31% YoY, primarily due to the favorable impact of the prior year's AFFF settlement agreement costs. - **Restructuring:** The company incurred $62 million in restructuring and impairment costs, part of a multi-year plan to optimize global operations. **Trends & Uncertainties:** - **Macroeconomic Factors:** The company faces uncertainties due to geopolitical tensions, trade disputes, and economic volatility, which could impact supply chains and demand. - **Currency Fluctuations:** Foreign exchange rates negatively impacted revenue and profits. - **Divestitures:** The planned sale of the Residential & Light Commercial HVAC business is expected to close in H2 2025, with proceeds to be used for debt reduction and share repurchases. **Future Operations Impact:** - **Growth Initiatives:** The company is focusing on smart, safe, and sustainable buildings, leveraging its OpenBlue digital platform to drive growth in services and recurring revenue. - **Capital Allocation:** The company plans to use proceeds from divestitures to strengthen its balance sheet and return value to shareholders through share repurchases and dividends. **Ticker:** JCI