Sales Performance - Q3 reported sales increased 1% and 3% organically, with sales of 7.2billion[2]−BuildingSolutionsNorthAmericasalesincreased92.9 billion, with organic sales up 8%[4] - Building Solutions EMEA/LA sales increased 3% to 1.1billion,withorganicsalesup8575 million, with organic sales down 19%[8] - Global Products sales were flat at 2.7billion,withorganicsalesup35,422 million, compared to 5,431millioninthesameperiodin2023[24]−ServicesrevenueforthethreemonthsendedJune30,2024,increasedto1,809 million from 1,702millioninthesameperiodin2023[24]−NetsalesforQ22024were7,231 million, up 1% from 7,133millioninQ22023[40]−OrganicsalesgrowthforQ22024was320,024 million, with a growth of 1% compared to the previous year[42] - North America net sales grew by 8% to 8,125million,whileAsiaPacificnetsalesdeclinedby231,573 million[42] - Products and systems revenue for 2024 totaled 5,422million,withaslightdeclineof11,809 million, driven by strong growth in North America and EMEA/LA[47] - Adjusted base net sales for 2024 were 19,616million,reflectingorganicgrowthof17,143 million, showing a slight decline of 1%[42] - Acquisitions contributed 135milliontonetsalesin2024[42]−Organicgrowthinservicerevenuewas91,809 million in 2024[47] Earnings and Profitability - Q3 GAAP EPS of 1.45;Q3AdjustedEPSof1.14[1] - Gross profit for the three months ended June 30, 2024, was 2,488million,upfrom2,431 million in the same period in 2023[24] - Net income attributable to Johnson Controls for the three months ended June 30, 2024, was 975million,comparedto1,049 million in the same period in 2023[24] - Earnings per share (diluted) for the three months ended June 30, 2024, were 1.45,comparedto1.53 in the same period in 2023[24] - Net income attributable to Johnson Controls for Q2 2024 was 975million,comparedto1,049 million in Q2 2023, a decrease of 7.1%[28] - Adjusted net income attributable to JCI (non-GAAP) for Q2 2024 was 769million,a8.9706 million in Q2 2023[52] - Net income attributable to JCI for Q2 2024 was 975million,a7.11,049 million in Q2 2023[55] - Diluted earnings per share (non-GAAP) for Q2 2024 was 1.14,comparedto1.03 in Q2 2023, representing a 10.7% increase[63] Cash Flow and Financial Position - Free cash flow was 922million,andadjustedfreecashflowwas1.3 billion[13] - Cash and cash equivalents as of September 30, 2023, were 835million[26]−CashprovidedbyoperatingactivitiesforQ22024was1,021 million, up 25.6% from 813millioninQ22023[28]−CapitalexpendituresforQ22024were99 million, down 10.8% from 111millioninQ22023[28]−FreecashflowforthethreemonthsendedJune30,2024,was922 million, with a free cash flow conversion rate of 95%[51] - Free cash flow for the nine months ended June 30, 2024, was 248million,withaconversionrateof23922 million, compared to 702millioninQ22023,representinga31.31,263 million, up 70.4% from 741millioninQ22023[52]−TotalassetsasofJune30,2024,were43,325 million, up from 42,242millionasofSeptember30,2023[26]−Short−termdebtincreasedto1,523 million as of June 30, 2024, from 385millionasofSeptember30,2023[26]−Long−termdebtasofJune30,2024,was7,867 million, compared to 7,818millionasofSeptember30,2023[26]−Shareholders′equityattributabletoJohnsonControlsdecreasedto15,968 million as of June 30, 2024, from 16,545millionasofSeptember30,2023[26]−Totaldebtincreasedto10,388 million in June 2024 from 9,764millioninJune2023[69]−Netdebtincreasedto9,526 million in June 2024 from 8,707millioninJune2023[69]−Netdebttoincomebeforeincometaxesratioincreasedto5.2xinJune2024from4.9xinJune2023[69]−NetdebttoadjustedEBITDAratioincreasedto2.4xinJune2024from2.1xinJune2023[69]−AdjustedEBITDA(non−GAAP)increasedto4,210 million in June 2024 from 4,078millioninJune2023[72]SegmentPerformance−BuildingSolutionsbacklogof12.9 billion increased 10% organically year-over-year[1] - Building Solutions North America segment EBITA for Q2 2024 was 521million,up35.3385 million in Q2 2023[55] - Global Products segment EBITA for Q2 2024 was 655million,a10.5593 million in Q2 2023[55] - Building Solutions North America segment EBITA for the nine months ended June 30, 2024 was 1,179million,up21.9967 million in the same period of 2023[59] - Global Products segment EBITA for the nine months ended June 30, 2024 was 1,453million,a0.71,463 million in the same period of 2023[59] Guidance and Forecast - Q4 guidance: Organic sales expected to increase ~7% year-over-year, adjusted EPS of ~1.23to1.26[16] - Full-year 2024 guidance tightened: Organic sales growth up ~3%, adjusted EPS of ~3.66to3.69[16] Adjusted Financial Measures - Adjusted free cash flow excludes impacts of discontinued accounts receivables factoring programs and JC Capital cash flows[32] - Adjusted financial measures exclude items like restructuring costs, impairment costs, and cyber incident costs[34][36] - Net debt to adjusted EBITDA is used as a measure of the company's financial condition and reliance on external debt financing[38] - Adjusted corporate expense (non-GAAP) for Q2 2024 was 119million,up52.678 million in Q2 2023[60] Other Financial Metrics - The company incurred costs related to a cybersecurity incident in September 2023, net of insurance recoveries[36] - A product quality issue in the Global Products segment resulted in significant remediation costs[37] - Basic weighted average shares outstanding decreased to 670.3 million in Q3 2024 from 683.3 million in Q3 2023[67] - Diluted weighted average shares outstanding decreased to 672.8 million in Q3 2024 from 686.2 million in Q3 2023[67] - Effective tax rate was approximately 13.75% for the three and nine months ending June 30, 2024[73]
Johnson Controls(JCI)2024-07-31 10:58