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Jun 30
Johnson Controls Q3 2025 Earnings Report
Johnson Controls reported strong Q3 2025 results and raised its full-year guidance.
Key Takeaways
Johnson Controls delivered solid third-quarter performance with revenue growth, record backlog, and increased adjusted EPS, while raising its full-year guidance due to operational strength and demand momentum.
Q3 revenue reached $6.1 billion, growing 3% YoY and 6% organically.
Adjusted EPS was $1.05, above GAAP EPS of $0.94.
Backlog rose 11% organically YoY to a record $14.6 billion.
Free cash flow came in at $693 million with adjusted free cash flow of $725 million.
Johnson Controls
Johnson Controls
Johnson Controls Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPAC Revenue
CapyFin.com Forward Guidance
Johnson Controls raised its FY25 outlook, expecting EPS between $3.65 to $3.68, EBITA margin improvements, and strong cash conversion.
Positive Outlook
- Raised FY25 adjusted EPS guidance to $3.65–$3.68
- Q4 adjusted EPS expected between $1.14–$1.17
- FY25 adjusted free cash flow conversion now >100%
- Q4 EBITA margin expected around 18.6%
- Sustained organic sales growth driven by Services and HVAC
Challenges Ahead
- Impact from discontinued operations (R&LC HVAC) not included in forward metrics
- Some pressure from foreign exchange movements
- Potential risks from geopolitical and macroeconomic factors
- Continued transformation and separation costs
- Volatility in net income due to non-operational adjustments (e.g., AFFF insurance recoveries)
Revenue & Expenses
Visualization of income flow from segment revenue to net income