Ireland's Johnson Controls Q4 sales rise 10%, slightly beat estimates

Overview

• Ireland building systems provider's fiscal Q4 sales rose 10%, slightly beating analyst expectations

• Adjusted EPS rose to $1.66, beating analyst expectations

• Company reported 44% organic growth in Q4 orders and 43% increase in backlog

Outlook

• Johnson Controls sees Q1 2027 organic sales growth of 12% to 14%

• Company expects Q1 2027 adjusted EPS of $1.15 to $1.20

• Johnson Controls forecasts FY27 organic sales growth of 11% to 12% and adjusted EPS of $6.15 to $6.30

Result Drivers

• AMERICAS GROWTH - Americas sales rose 14% in Q4, led by continued strength in Applied HVAC & Controls and supported by sustained demand for data centers and differentiated technology

• PRODUCTIVITY AND BUSINESS MIX - Margin expansion across all segments was attributed to productivity improvements and a favorable business mix, according to CEO Joakim Weidemanis

• COST REDUCTION - Lower corporate expenses were primarily due to ongoing cost reduction actions across corporate functions and timing of certain expenses

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Johnson Controls International PLC is $170.50, about 15.6% above its October 26 closing price of $147.50

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 26 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)