Johnson Controls Raises Outlook as Growth Accelerates
Backlog climbed 32% organically to $21.0 billion as demand strengthened across the Americas.
Johnson Controls International (JCI), a building-technology company, raised its annual outlook after fiscal third-quarter revenue growth accelerated for a second consecutive quarter.
Revenue rose 9% from a year earlier to $6.614 billion, following growth of 8% in the second quarter and 7% in the first. Organic revenue increased 10%, up from 6% in each of the two preceding quarters, while quarterly revenue advanced sequentially from $6.1 billion and $5.8 billion.
Adjusted earnings increased to $1.42 a share from $1.19 in the second quarter and 89 cents in the first. GAAP earnings reached $1.23 a share, compared with 99 cents and 90 cents in those periods, respectively. Adjusted EBIT rose 30% to $1.121 billion, lifting the margin 260 basis points to 16.9% as profit growth outpaced sales.
The Americas led the acceleration, with sales rising 11% to $4.504 billion after 7% growth in the prior quarter. The region’s adjusted Segment EBITA margin expanded 260 basis points to 21.1%, extending a sequential climb from 19.5% and 16.4% in the previous two quarters. Products and Systems sales increased 11% companywide, while Services grew about 5%.
Growth outside the Americas diverged. EMEA sales fell 1% as conflicts in the Middle East continued to constrain results, and organic growth held at 1%. APAC sales rose 15% organically, led by 20% growth in Products and Systems, while its adjusted Segment EBITA margin increased to 21.2% from 19.8% in the preceding quarter.
Orders remained elevated, though organic order growth moderated for a second straight quarter to 27% from 30% and 39% in the prior two periods. Backlog increased from $20.0 billion in the second quarter and $18.2 billion in the first, supported by 40% growth in Americas backlog to $15.9 billion.
Johnson Controls raised its fiscal 2026 guidance for the third consecutive quarterly release. Operating cash flow from continuing operations increased 64% to $1.289 billion, and free cash flow rose 72% to $1.194 billion. The company repurchased $635 million of shares during the quarter, up from $310 million a year earlier.