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Mar 31, 2023
Johnson Controls Q2 2023 Earnings Report
Reported strong second quarter results with double-digit growth in sales and high single-digit order growth, exceeding guidance due to healthy margin expansion, contributing to strong double-digit adjusted EPS growth.
Key Takeaways
Johnson Controls reported strong Q2 2023 results with a 10% increase in sales compared to the prior year, and adjusted EPS of $0.75, up 19% versus the prior year. The company's order pipeline remains healthy across all vectors of growth, with a record backlog of $11.7 billion, increased 9% organically year-over year.
Q2 reported sales increased by 10% versus prior year, with a 13% organic increase.
GAAP EPS for Q2 was $0.19, while adjusted EPS was $0.75, a 19% increase versus prior year.
Orders for Q2 increased by 8% organically year-over-year.
Record backlog reached $11.7 billion, a 9% organic increase year-over-year.
Forward Guidance
The Company initiated fiscal 2023 third quarter guidance and updated its fiscal 2023 full year EPS guidance.
Positive Outlook
- Organic revenue growth of ~10% year-over-year
- Adjusted segment EBITA margin improvement of 120 to 130 basis points year-over-year
- Adjusted EPS before special items of $1.01 to $1.03; representing 19% to 21% growth year-over-year
- Organic revenue growth ~10% year-over year (previously guided at a range from high single-digits to low double-digits growth)
- Adjusted segment EBITA margin improvement of 100 to 120 basis points, year-over-year (previously guided to 90 to 120 basis point improvement)
Challenges Ahead
- Adjusted EPS before special items of $3.50 to $3.60; representing 17% to 20% growth year-over-year (previously guided to $3.30 to $3.60)
Historical Earnings Impact
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Avg. Return Before/After Earnings
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