Johnson Controls International plc JCI reported fourth-quarter fiscal 2024 (ended September 2024) adjusted earnings of $1.28 per share, which beat the Zacks Consensus Estimate of $1.25. The bottom line increased 21.9% year over year.

Total revenues (continuing operations) of $6.25 billion missed the consensus estimate of $7.26 billion. The top line increased 6.7% year over year, while organic revenues increased 10%.

For fiscal 2024, the company’s adjusted earnings were $3.71 per share, up 6% year over year. Total revenues of $23 billion reflected an increase of 2.8% year over year.

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Q4 Segmental Results

Building Solutions North America: Revenues were $3.2 billion, up 16% year over year. Our estimate was $2.9 billion. Organic sales jumped 16%, driven by the strong performance of applied heating, ventilation and air conditioning (HVAC) and controls businesses.  Adjusted EBITA increased 13% year over year to $484 million.

Building Solutions Europe, Middle East, Africa/Latin America: Revenues totaled $1.1 billion, up 7% year over year. Our estimate was $1.1 billion. Organic sales climbed 10% due to growth in controls, security and industrial refrigeration businesses. Adjusted EBITA was $128 million, up 56% year over year.

Building Solutions Asia Pacific: Revenues decreased 5% to $664 million. Sales declined 5% organically due to weakness in the systems business in China. Adjusted EBITA was $94 million, flat year over year.

Global Products: The segment reported revenues of $2.4 billion, flat year over year. Our estimate was $2.6 billion. Organic sales were up 8% due to an increase in the commercial and residential HVAC businesses. Adjusted EBITA was $670 million, up 33% year over year.

Johnson Controls International plc Price, Consensus and EPS Surprise

Johnson Controls International plc price-consensus-eps-surprise-chart | Johnson Controls International plc Quote

JCI’s Margin Profile

In the fiscal fourth quarter, Johnson Controls’ cost of sales increased 2.6% year over year to approximately $4 billion. Gross profit increased 15% year over year to $2.3 billion and the margin increased 260 basis points (bps) to 36.3%. Selling, general and administrative expenses were $1.4 billion, up 4.5% year over year.

Financial Position

Johnson Controls had cash and cash equivalents of $606 million as of Sept. 30, 2024, compared with $828 million at the end of fiscal 2023. Long-term debt was $8 billion compared with $7.82 billion at the end of fiscal 2023.

In fiscal 2024, the company generated net cash of $1.57 billion from operating activities compared with $1.86 billion in the year-ago period. It reported a free cash flow of $1.57 billion in the fiscal year compared with $1.68 billion in the year-ago period.

The company repurchased 5.4 million shares for approximately $370 million in the fiscal fourth quarter.