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Dec 31, 2020

Johnson Controls Q1 2021 Earnings Report

Reported a strong start to fiscal year 2021 with increased profitability and free cash flow.

Key Takeaways

Johnson Controls reported a decrease in sales by 4% to $5.3 billion, but net income from continuing operations increased to $327 million. Adjusted EPS was $0.43, up 8% versus the prior year. The company provides fiscal 2021 second quarter adjusted earnings per share guidance range of $0.47 to $0.49 and full year adjusted earnings per share guidance range of $2.45 to $2.55.

GAAP EPS of $0.45; Adjusted EPS of $0.43, up 8% versus prior year

Continued sequential quarterly improvement in sales, orders and profitability

Backlog of $9.5B increases 3% organically year-over-year

Cash provided by operating activities was $0.5 billion; Free cash flow of $0.4 billion

Total Revenue
$5.34B
Previous year: $5.58B
-4.2%
EPS
$0.43
Previous year: $0.4
+7.5%
Total Backlog
$9.5B
Previous year: $5.8B
+63.8%
Gross Profit
$1.73B
Previous year: $1.8B
-4.2%
Cash and Equivalents
$1.84B
Previous year: $2.16B
-14.9%
Free Cash Flow
$400M
Total Assets
$41.4B
Previous year: $42.5B
-2.6%

Johnson Controls

Johnson Controls

Johnson Controls Revenue by Segment

Forward Guidance

The Company initiated fiscal 2021 second quarter guidance: Organic revenue growth up slightly, Adjusted EBITA margin expansion of 80 to 100 basis points, year-over-year and Adjusted EPS before special items of $0.47 to $0.49; represents 12 to 17% growth year-over-year. The Company initiated fiscal 2021 full year guidance: Organic revenue growth up low-to-mid single digits, Adjusted EBITA margin expansion of 40 to 60 basis points, year-over-year and Adjusted EPS before special items of $2.45 to $2.55; represents 9 to 14% growth year-over-year.

Positive Outlook

  • Organic revenue growth up slightly (Q2)
  • Adjusted EBITA margin expansion of 80 to 100 basis points, year-over-year (Q2)
  • Adjusted EPS before special items of $0.47 to $0.49 (Q2)
  • Organic revenue growth up low-to-mid single digits (FY21)
  • Adjusted EBITA margin expansion of 40 to 60 basis points, year-over-year (FY21)

Challenges Ahead

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Revenue & Expenses

Visualization of income flow from segment revenue to net income