Johnson Controls International plc reported a net sales increase of 3% for the fiscal year ending September 30, 2025, reaching $23.6 billion, compared to $22.95 billion in the previous year. The growth was primarily driven by a $1.43 billion increase in organic sales, although this was partially offset by a $786 million negative impact from acquisitions and divestitures. The company’s gross profit also rose by 6% to $8.59 billion, reflecting improved margins in its Products and Systems segment and increased volumes across both Products and Services.
The company underwent significant organizational changes during the fiscal year, including the divestiture of its Residential and Light Commercial (R&LC) HVAC business to Robert Bosch GmbH for approximately $5.6 billion. This strategic move, completed on July 31, 2025, was part of Johnson Controls' ongoing efforts to simplify its portfolio and focus on core commercial building solutions. Following this divestiture, the company realigned its reporting structure from four segments to three: Americas, EMEA, and APAC, effective April 1, 2025.
Operationally, Johnson Controls reported a backlog of $16.6 billion as of September 30, 2025, with a year-over-year increase of 13%. The Americas segment accounted for $10.6 billion of this backlog, reflecting a 13% increase compared to the previous year. The company also noted a 7% increase in orders, totaling $20.7 billion, indicating strong customer demand across its segments. The total employee headcount decreased to approximately 87,000, primarily due to the divestiture of the R&LC HVAC business.
Looking ahead, Johnson Controls expressed optimism about its growth prospects, particularly in the areas of smart, sustainable buildings and energy efficiency solutions. The company aims to capitalize on emerging trends in the commercial building sector, including the increasing demand for data centers and decarbonization initiatives. However, it acknowledged potential risks related to macroeconomic conditions, including inflation, supply chain disruptions, and geopolitical tensions, which could impact its operations and financial performance in the future. The company remains committed to its strategic priorities, focusing on innovation and customer-centric solutions to drive long-term growth.
About Johnson Controls International plc
Johnson Controls International plc is a global leader in building technology, offering HVAC, security, fire safety, and energy management solutions. Its core business includes designing, manufacturing, installing, and servicing systems for commercial, institutional, and industrial clients. The company emphasizes digital, sustainable, and smart building solutions through its OpenBlue platform, serving markets worldwide with a focus on safety, efficiency, and occupant well-being.
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