Johnson Controls Q2 2022 Earnings Report
Key Takeaways
Johnson Controls reported a strong second quarter with order, revenue, and profit growth. Sales increased by 9% compared to the prior year, with organic sales also growing by 9%. Adjusted EPS was $0.63, up 21% versus the prior year. However, the company is experiencing near-term supply chain disruptions, leading to a revision of the fiscal 2022 adjusted EPS guidance.
GAAP EPS of $0.02; Adjusted EPS of $0.63, up 21% versus prior year
Reported sales +9% versus prior year; +9% organically
Field Orders +11% year-over-year, with broad-based strength across regions; Service orders +8%
Record Backlog of $10.9 billion, increased 12% organically year-over-year
Johnson Controls
Johnson Controls
Johnson Controls Revenue by Segment
Forward Guidance
The Company revised fiscal 2022 full year EPS guidance: Organic revenue growth of 8% to 10% year-over-year; Adjusted segment EBITA margin flat to down 30 basis points, year-over-year; Adjusted EPS before special items of $2.95 to $3.05; representing 11% to 15% growth year-over-year
Positive Outlook
- Organic revenue growth of 8% to 10% year-over-year
- Adjusted segment EBITA margin flat to down 30 basis points, year-over-year
- Adjusted EPS before special items of $2.95 to $3.05
- Adjusted EPS represents 11% to 15% growth year-over-year
- Third quarter guidance: Organic revenue up high-single digits year-over-year
Challenges Ahead
- Adjusted segment EBITA margin decline of 80 to 100 basis points, year-over-year
- Adjusted EPS before special items of $0.82 to $0.87
- Near term uncertainties related to the lockdown in China
- Geopolitical instability
- Impact of ongoing supply chain disruptions
Revenue & Expenses
Visualization of income flow from segment revenue to net income