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Sep 30, 2020

Johnson Controls Q4 2020 Earnings Report

Johnson Controls reported Q4 2020 earnings, demonstrating strong execution in a challenging environment.

Key Takeaways

Johnson Controls reported a decrease in sales by 5% compared to the prior year, with organic sales declining by 6%. However, the company performed well across all end markets, delivering revenue and EBIT above prior guidance due to strong execution on cost-out initiatives and reinvestment into growth platforms.

GAAP EPS of $0.60; Q4 adjusted EPS of $0.76, down 3% versus prior year

Sequential quarterly improvement in sales, orders and profitability

Continued focus on cost mitigation actions in response to global pandemic

Completed approximately $750 million of planned share repurchases in Q4

Total Revenue
$5.95B
Previous year: $6.27B
-5.1%
EPS
$0.76
Previous year: $0.78
-2.6%
Gross Profit
$1.98B
Previous year: $1.98B
-0.3%
Cash and Equivalents
$1.95B
Previous year: $2.81B
-30.4%
Total Assets
$40.8B
Previous year: $42.3B
-3.5%

Johnson Controls

Johnson Controls

Johnson Controls Revenue by Segment

Forward Guidance

The Company announced fiscal 2021 first quarter guidance:

Positive Outlook

  • Adjusted EBIT margin expansion of 20 to 40 basis points, year-over-year

Challenges Ahead

  • Organic revenue decline in the range of 5 to 7%
  • Adjusted EPS before special items of $0.39 to $0.41

Revenue & Expenses

Visualization of income flow from segment revenue to net income