Johnson Controls 4Q Net Up, Sees 1Q Sales Growth on HVAC Demand

Dow Jones10-27 19:18

Johnson Controls International's fiscal fourth-quarter net income rose and the company forecast more growth ahead amid strong demand for heating, ventilation and air conditioning machinery, particularly in the Americas.

The industrial conglomerate, which makes equipment for HVAC and refrigeration among other industrial goods, posted earnings of $967 million, or $1.60 a share, for the quarter ended in September, down from $1.69 billion, or $2,68 a share, a year earlier.

Stripping out certain one-time items, earnings came in at $1.66 a share, topping the average analyst target of $1.59 a share, as per FactSet.

Sales rose 10% to $7.11 billion, surpassing the average analyst target of $7.04 billion. Sharp increases in sales in the Americas and Asia Pacific regions were offset by a downtick in Europe, Middle East and Africa.

For the first quarter ending in December, Johnson targeted adjusted earnings in a range between $1.15 and $1.20 a share, ahead of the average Wall Street estimate of $1.13 a share. Johnson projected organic sales growth of 12% to 14% for the quarter.

For the fiscal year ending in September 2027, Johnson projected adjusted earnings in a range between $6.15 and $6.30 a share, topping the average analyst expectation of $5.09 a share.

Separately, Los Angeles buyout firm Truelink Capital has agreed to buy Johnson's global intrusion unit, which makes burglar alarms and other home-security products, for undisclosed terms. The transaction is expected to close in the first half of 2027.

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