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Jun 30, 2025
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.
Revenue by Geographic Location
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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