Johnson Controls International plc reported a notable increase in financial performance for the second quarter of fiscal 2026, with net sales reaching $6.14 billion, an 8% increase from $5.68 billion in the same period last year. For the six months ending March 31, 2026, the company also saw an 8% rise in net sales to $11.94 billion, compared to $11.10 billion in the prior year. The growth was attributed to higher organic sales and favorable foreign currency translation, although divestitures had a slight negative impact.
The company's gross profit for the three months ended March 31, 2026, was $2.26 billion, up 9% from $2.07 billion a year earlier, reflecting improved operating leverage and productivity enhancements. Selling, general, and administrative expenses decreased by 2% to $1.40 billion, primarily due to ongoing cost reduction initiatives. The net income attributable to Johnson Controls for the quarter was $613 million, compared to $478 million in the same quarter of the previous year, resulting in a basic earnings per share of $1.01, up from $0.73.
Strategically, Johnson Controls has undergone significant organizational changes, including a realignment into three reportable segments: Americas, EMEA, and APAC, effective April 1, 2025. This restructuring aims to enhance operational efficiency and align with the company's growth strategies. The company also completed the sale of its ADT Mexico Security business, generating net proceeds of $207 million and recognizing a pre-tax gain of $70 million.
Operationally, Johnson Controls reported a 26% increase in backlog, reaching $20 billion as of March 31, 2026, driven by strong demand in its Products and Systems segment. Orders for the quarter increased by 30%, indicating sustained customer demand, particularly in large-scale projects. The company’s employee headcount remained stable, with no significant changes reported in staffing levels.
Looking ahead, Johnson Controls expressed optimism about its growth trajectory, driven by increasing demand for energy-efficient and sustainable building solutions. The company plans to leverage its technological advancements and product offerings to capitalize on market opportunities, particularly in the data center and healthcare sectors. However, it remains cautious about potential macroeconomic challenges, including inflation and geopolitical tensions, which could impact future performance.
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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