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Jun 30, 2023

Johnson Controls Q3 2023 Earnings Report

Johnson Controls delivered strong third quarter results with revenue and EPS growth, and updated FY23 guidance.

Key Takeaways

Johnson Controls reported a strong third quarter with an 8% increase in sales to $7.1 billion and a 21% increase in adjusted EPS to $1.03. The company also updated its full year guidance.

Q3 reported sales increased by 8% versus the prior year, with a 9% organic growth.

GAAP EPS for Q3 was $1.53, while adjusted EPS reached $1.03, a 21% increase compared to the prior year.

Organic orders grew by 8% year-over-year in Q3.

The company's backlog reached a record $12.0 billion, reflecting an 8% organic increase year-over-year.

Total Revenue
$7.13B
Previous year: $6.61B
+7.8%
EPS
$1.03
Previous year: $0.85
+21.2%
Total Backlog
$12B
Gross Profit
$2.43B
Previous year: $2.2B
+10.5%
Cash and Equivalents
$1.06B
Previous year: $1.51B
-29.8%
Total Assets
$42.8B
Previous year: $42.3B
+1.1%

Johnson Controls

Johnson Controls

Johnson Controls Revenue by Segment

Forward Guidance

The Company initiated fiscal 2023 fourth quarter guidance and updated its fiscal 2023 full year EPS guidance.

Positive Outlook

  • Organic revenue growth of ~+4% year-over-year
  • Adjusted segment EBITA margin improvement of ~+60 basis points year-over-year
  • Adjusted EPS before special items of ~$1.10; representing ~11% growth year-over-year
  • Organic revenue growth ~+HSD year-over year
  • Adjusted segment EBITA margin improvement of ~+110 basis points, year-over-year

Revenue & Expenses

Visualization of income flow from segment revenue to net income