The following is a summary of the Johnson Controls International Plc (JCI) Q4 2024 Earnings Call Transcript:

Financial Performance:

• JCI concluded Q4 2024 with double-digit organic revenue growth and a strong margin expansion. EPS increased 22% year-over-year to $1.28.

• Annual adjusted free cash flow conversion improved to 96%, highlighting efficient capital management and a robust balance sheet.

• Full-year revenue, significantly bolstered by the services and systems sector, specifically from high demand in data centers, healthcare, and government sectors.

Business Progress:

• JCI has completed a major transformation to focus purely on commercial building solutions, enhancing its position in the market.

• The company is undergoing the sale of its Residential & Light Commercial business, expected to close in Q4, aiming for greater operational simplicity and focus on core competencies.

• Despite divestitures, JCI has sustained a record backlog amounting to $13.1 billion, driven by a strong order intake across multiple sectors, indicating continued customer trust and market demand.

Opportunities:

• With a strong emphasis on sustainability and efficiency solutions, JCI is poised to benefit from growing global demand for green building solutions and energy-efficient systems.

• The significant backlog, which includes multi-year high-value contracts for data center cooling, positions JCI well for sustained revenue growth and enhances its leading market position.

Risks:

• The ongoing transformation and pending divestitures may lead to transitional challenges, including managing stranded costs and aligning the new operating model efficiently across global operations.

More details: Johnson Controls IR

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