Johnson Controls (JCI) Q4 2024 Earnings Report

Johnson Controls delivered a strong finish to fiscal 2024, underscored by a resilient, end-to-end operating model and a record backlog of $13.1 billion. In Q4 2024, organic revenue grew 10% with segment margin up 260 basis points to 18.6%, reflecting productivity gains and favorable mix from higher-margin backlog. Adjusted EPS for the quarter was $1.28, up 22% year over year, and full-year adjusted free cash flow conversion reached 96% with adjusted FCF of $2.4 billion, signaling improved working capital management and disciplined capital allocation. Management highlighted data center demand as a key growth driver, with orders more than doubling the prior year, and signaled a path to sustained shareholder value through portfolio simplification, backlog-driven visibility, and a disciplined 2025 outlook.

Looking ahead, Johnson Controls reiterated a constructive medium-term trajectory anchored by a continued focus on high-margin, end-to-end building solutions and data-enabled services. The company introduced fiscal 2025 guidance on continuing operations: adjusted earnings per share (EPS) of $3.40–$3.50, with mid-single-digit organic revenue growth and adjusted EBITA margin expansion of at least 50 basis points. Free cash flow conversion is expected at 85% or greater, with a multi-year restructuring plan aimed at cost savings (~$500 million annually) and approximately $400 million of restructuring costs over three years. The pending sale of the Residential & Light Commercial business to Bosch is expected to close in the fiscal fourth quarter and is not included in the 2025 outlook. Investors should monitor backlog progression, data-center project execution, the closing of the Bosch transaction, and the pace of margin recovery as catalysts for upside in 2025.