American Water Military Services Recognized for Excellence in Water Quality by Partnership for Safe Water
'American Water Military Services is pleased to be recognized in delivering safe, clean and reliable drinking water to the military community at Fort Belvoir,' said Sean Wheatley, President, American Water Military Services Group.
'American Water Military Services is pleased to be recognized in delivering safe, clean and reliable drinking water to the military community at Fort Belvoir,' said Sean Wheatley, President, American Water Military Services Group. 'This achievement reflects the efforts of our incredible team, who are dedicated to maintaining high standards and helping to ensure the health and safety to those who serve.'
Through the Department of Defenses' Utilities Privatization program, American Water Military Services was awarded a 50-year contract to privatize the water and wastewater utilities at Fort Belvoir, Virginia in 2009. Responsibilities include system capital investment, regulatory and environmental compliance, planning, asset recapitalization, and long-term operations and maintenance.
American Water continually demonstrates its ongoing commitment to improving the quality of drinking water delivered to customers by optimizing its system operations across its national footprint. Through PSW, long-term achievements are celebrated with awards for maintaining consistent, high-quality performance and commitment to optimization at the water treatment plant or distribution system.
Learn more about the PSW awards here.
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 6,700 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.
For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.
About Military Services Group
Military Services Group, a subsidiary of American Water (NYSE: AWK), provides safe, clean and reliable water and wastewater services to military installations across the country as part of the federal government's Utilities Privatization (UP) program. Through UP, the Military Services Group currently owns, operates and maintains water and wastewater assets at 18 military installations, providing services to approximately 670,000 members of the military community. Installations include: Fort Rucker, Ala.; Vandenberg Space Force Base, Calif.; Naval Station Mayport, Fla.; Scott Air Force Base, Ill.; Fort Leavenworth, Kan.; Fort Polk, La.; Fort Meade, Md.; Fort Leonard Wood, Mo. Picatinny Arsenal, N.J.; U.S. Army Garrison West Point, N.Y.; Wright-Patterson Air Force Base, Ohio; Fort Sill, Okla.; Fort Hood, Texas; Joint Base San Antonio, Texas; Hill Air Force Base, Utah; Fort A.P. Hill, Va.; Fort Belvoir, Va.; and Joint Base Lewis-McChord, Wash.
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P&G Announces Fourth Quarter and Fiscal Year 2025 Results
Q4 '25: Net Sales +2%; Organic Sales +2%; Diluted EPS +17%; Core EPS +6% FY '25: Net Sales 0%; Organic Sales +2%; Diluted EPS +8%; Core EPS +4% CINCINNATI, July 29, 2025--(BUSINESS WIRE)--The Procter & Gamble Company (NYSE:PG) reported fourth quarter and fiscal year 2025 results. "We grew sales and profit in fiscal 2025 and returned high levels of cash to shareowners in a dynamic, difficult and volatile environment," said Jon Moeller, Chairman of the Board, President and Chief Executive Officer. "We've put in place strong plans to continue to deliver for all stakeholders in the current environment. In fiscal 2026, we expect to deliver another year of organic sales growth, Core EPS growth and strong adjusted free cash flow productivity. We remain committed to our integrated strategy – a focused product portfolio of daily use categories where performance drives brand choice, superiority – across product performance, packaging, brand communication, retail execution and consumer and customer value – productivity, constructive disruption and an agile and accountable organization, all aimed at delivering sustainable, balanced growth and value creation." Fiscal Year ($ billions, except EPS) GAAP 2025 2024 % Change Non-GAAP* 2025 2024 % Change Net Sales $84.3 $84.0 —% Organic Sales n/a n/a +2% Diluted EPS $6.51 $6.02 +8% Core EPS $6.83 $6.59 +4% Fourth Quarter ($ billions, except EPS) GAAP 2025 2024 % Change Non-GAAP* 2025 2024 % Change Net Sales $20.9 $20.5 2% Organic Sales n/a n/a +2% Diluted EPS $1.48 $1.27 17% Core EPS $1.48 $1.40 +6% * Please refer to Exhibit 1 - Non-GAAP Measures for the definition and reconciliation of these measures to the related GAAP measures. Fiscal Year 2025 Results The Company reported fiscal year 2025 net sales of $84.3 billion, unchanged versus the prior year. A one percent increase due to higher pricing was offset by a one percent decrease from unfavorable foreign exchange impacts. All-in volume was unchanged versus prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased two percent. Higher pricing and organic volume each contributed one point of growth to organic sales. Mix was unchanged versus the prior year. Diluted net earnings per share were $6.51, an increase of eight percent versus prior year as a reduction in selling, general and administrative costs (SG&A) in the current year and the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year were partially offset by higher non-core restructuring charges in the current year. Core net earnings per share increased by 4% to $6.83. Currency-neutral core EPS increased 4% versus the prior year core EPS. The Company generated operating cash flow of $17.8 billion and net earnings of $16.1 billion for the fiscal year. Adjusted free cash flow productivity was 87%, which is calculated as operating cash flow less capital spending and certain other items, as a percentage of net earnings excluding the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina. The Company returned over $16 billion of value to shareholders in fiscal 2025 via $9.9 billion in dividend payments and $6.5 billion of share repurchases. With the dividend increase in April 2025, this marks the 69th consecutive year that P&G has increased its dividend and the 135th consecutive year that P&G has paid a dividend since its incorporation in 1890. April-June Quarter Results The Company reported fiscal year 2025 fourth quarter net sales of $20.9 billion, an increase of two percent versus the prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, also increased two percent. Higher pricing and favorable mix impacts each contributed a one percent increase to sales growth. Volume and foreign exchange each had a neutral impact on sales growth for the quarter. Diluted net earnings per share were $1.48, an increase of seventeen percent versus the prior year driven primarily by higher restructuring charges in the prior year related to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria. Core net earnings per share increased six percent to $1.48. Currency-neutral core EPS increased five percent versus the prior year EPS. Operating cash flow was $5.0 billion and net earnings were $3.6 billion, with adjusted free cash flow productivity of 110%. April-June Quarter Business Discussion April - June 2025 Volume ForeignExchange Price Mix Other (2) Net Sales OrganicVolume OrganicSales Net Sales Drivers (1) Beauty 1% (1)% 1% (1)% —% —% 1% 1% Grooming —% —% 4% (1)% (1)% 2% (1)% 1% Health Care (2)% —% 1% 3% —% 2% (2)% 2% Fabric & Home Care —% 1% 1% —% —% 2% —% 1% Baby, Feminine & Family Care —% 1% 1% —% —% 2% —% 1% Total P&G —% —% 1% 1% —% 2% —% 2% (1) Net sales percentage changes are approximations based on quantitative formulas that are consistently applied. (2) Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales. Beauty segment organic sales increased one percent versus year ago. Hair Care organic sales were unchanged as innovation-driven growth in Latin America and Europe was offset by volume declines in North America and Greater China. Personal Care organic sales increased low single digits driven by volume growth in North America, partially offset by negative impacts from unfavorable geographic mix. Skin Care organic sales were unchanged as volume growth in Greater China was offset by a volume decline in North America and unfavorable mix. Grooming segment organic sales increased one percent versus year ago driven by innovation-based pricing, partially offset by an appliances volume decline. Health Care segment organic sales increased two percent versus year ago. Oral Care organic sales increased low single digits driven by product mix from premium innovation. Personal Health Care organic sales also increased low single digits driven by growth due to pricing, partially offset by a volume decline due to lower average incidence of cough and cold in North America. Fabric and Home Care segment organic sales increased one percent versus year ago. Fabric Care organic sales increased low single digits driven primarily by innovation-driven growth in North America. Home Care organic sales also increased low single digits due to volume growth in North America and Europe. Baby, Feminine and Family Care segment organic sales increased one percent versus year ago. Baby Care organic sales declined low single digits driven by volume declines in North America. Feminine Care organic sales increased low single digits driven by increased pricing and favorable product mix. Family Care organic sales increased low single digits driven by volume growth. Reported gross margin for the quarter decreased 50 basis points versus year ago. Core gross margin for the quarter decreased 70 basis points versus year ago, 50 basis points on a currency-neutral basis. The decrease was driven by 150 basis points of unfavorable product mix, 70 basis points of product/package reinvestments, 40 basis points of higher commodity costs, 40 basis points of higher costs from tariffs and 40 basis points of other miscellaneous items and rounding. These were partially offset by 240 basis points of productivity savings and 50 basis points of pricing benefit. Reported selling, general and administrative expense (SG&A) as a percentage of sales declined 240 basis points versus the prior year. Core and currency-neutral selling, general and administrative expense (SG&A) as a percentage of sales declined 220 basis points versus year ago. The decline was driven by 320 basis points of productivity savings, which includes reductions across marketing and overhead costs and adjustments to expected variable compensation payouts, and 60 basis points of net sales growth leverage and rounding, partially offset by 160 basis points of reinvestments. Reported operating margin for the quarter increased 190 basis points due primarily to productivity savings. Excluding 40 basis points of non-core restructuring charges in the prior year, core operating margin for the quarter increased 150 basis points versus the prior year and 170 basis points on a currency-neutral basis. Core operating margin included gross productivity savings of 560 basis points. Limited Market Portfolio Restructuring In fiscal year 2024, the Company started a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In the July-September 2024 quarter of fiscal year 2025, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina and recorded incremental restructuring charges of $0.8 billion after tax, comprised primarily of non-cash charges for accumulated foreign currency translation losses. Focused Portfolio, Supply Chain and Productivity Plan In June 2025, the Company announced a portfolio and productivity plan to focus its portfolio and organization to improve its cost structure and competitiveness. In connection with this announcement, the Company said that it expects to incur non-core restructuring costs of approximately $1 to $1.6 billion before-tax over a two-year period. These restructuring activities include a plan for a reduction in non-manufacturing overhead personnel of up to 7,000 by the end of fiscal 2027. The Company expects to incur half of the costs under this plan by the end of fiscal 2026, with the remainder incurred in fiscal 2027. Fiscal Year 2026 Guidance P&G expects fiscal year 2026 all-in sales growth in the range of one to five percent versus the prior year. This includes a one percent benefit from the net impacts of foreign exchange rates and acquisitions and divestitures. The Company expects organic sales growth in the range of flat to up four percent versus prior year. Included in organic sales is a growth headwind of 30 to 50 basis points from brand and product form discontinuations. P&G expects fiscal 2026 diluted net earnings per share growth in the range of 3% to 9% versus fiscal 2025 GAAP EPS of $6.51. GAAP EPS includes an expected gain from the exit of the Glad Joint Venture with Clorox in the range of $0.10 to $0.13 per share and non-core restructuring charges of $0.12 to $0.25 per share. P&G expects its fiscal 2026 core earnings per share growth in the range of flat to up four percent versus fiscal 2025 core EPS of $6.83. This outlook equates to a range of $6.83 to $7.09 per share, with a mid-point estimate of $6.96, or an increase of 2%. The Company estimates a headwind of around $200 million after-tax from unfavorable commodity costs and a net headwind of roughly $250 million after-tax from modestly higher net interest expense and its core effective tax rate. In addition, the Company's outlook includes around $1 billion dollars before-tax, or approximately $800 million after-tax, in higher costs from tariffs. The Company said it expects a tailwind from foreign exchange rates of approximately $300 million dollars after-tax. Combined, the net of these impacts equates to a headwind of $0.39 per share for fiscal 2026, or a six percent drag on core EPS growth. The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts given the unpredictability of the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results. P&G said it expects a core effective tax rate to be in the range of 20% to 21% in fiscal 2026, at the mid-point of the range, approximately one point higher than the fiscal 2025 level. Capital spending is estimated to be in the range of four to five percent of fiscal 2026 net sales. P&G said it expects adjusted free cash flow productivity of 85% to 90% and expects to pay around $10 billion in dividends and to repurchase approximately $5 billion of common shares in fiscal 2026. Forward-Looking Statements Certain statements in this release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result" and similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law. Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial risks, including foreign currency fluctuations, changes in global interest rates and rate differentials, currency exchange, pricing controls or tariffs; (2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments; (3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; (4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating; (5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, acts of war or terrorism or disease outbreaks; (6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pension and healthcare; (7) the ability to compete with our local and global competitors in new and existing sales channels, including by successfully responding to competitive factors such as prices, promotional incentives and trade terms for products; (8) the ability to manage and maintain key customer relationships; (9) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, ingredients, efficacy, packaging content, supply chain practices, social or environmental practices or similar matters that may arise; (10) the ability to successfully manage the financial, legal, reputational and operational risk associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business partners; (11) the ability to rely on and maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; (12) the ability to successfully manage the demand, supply and operational challenges, as well as governmental responses or mandates, associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns; (13) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to changing consumer habits, evolving digital marketing and selling platform requirements and technological advances attained by, and patents granted to, competitors; (14) the ability to successfully manage our ongoing acquisition, divestiture and joint venture activities, in each case to achieve the Company's overall business strategy and financial objectives, without impacting the delivery of base business objectives; (15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes while successfully identifying, developing and retaining key employees, including in key growth markets where the availability of skilled or experienced employees may be limited; (16) the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws, regulations, policies and related interpretations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity, data protection and data transfers, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; (17) the ability to manage changes in applicable tax laws and regulations; and (18) the ability to continue delivering progress towards our environmental sustainability ambitions. For additional information concerning factors that could cause actual results and events to differ materially from those projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports. About Procter & Gamble P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit for the latest news and information about P&G and its brands. For other P&G news, visit us at THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Consolidated Earnings Information Three Months Ended June 30 Fiscal Year Ended June 30 2025 2024 % Chg 2025 2024 % Chg NET SALES $ 20,889 $ 20,532 2% $ 84,284 $ 84,039 —% Cost of products sold 10,631 10,348 3% 41,164 40,848 1% GROSS PROFIT 10,258 10,183 1% 43,120 43,191 —% Selling, general and administrative expense 5,903 6,299 (6)% 22,669 23,305 (3)% Indefinite-lived intangible asset impairment charge — — — 1,341 OPERATING INCOME 4,355 3,884 12% 20,451 18,545 10% Interest expense (212 ) (220 ) (4)% (907 ) (925 ) (2)% Interest income 104 107 (3)% 469 473 (1)% Other non-operating income, net 274 98 180% 154 668 (77)% EARNINGS BEFORE INCOME TAXES 4,521 3,870 17% 20,167 18,761 7% Income taxes 895 726 23% 4,102 3,787 8% NET EARNINGS 3,626 3,144 15% 16,065 14,974 7% Less: Net earnings/(loss) attributable to non controlling interests 11 7 57% 91 95 (4)% NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE $ 3,615 $ 3,137 15% $ 15,974 $ 14,879 7% EFFECTIVE TAX RATE 19.8 % 18.8 % 20.3 % 20.2 % NET EARNINGS PER COMMON SHARE: (1) Basic $ 1.51 $ 1.30 16% $ 6.67 $ 6.18 8% Diluted $ 1.48 $ 1.27 17% $ 6.51 $ 6.02 8% DIVIDENDS PER COMMON SHARE $ 1.0568 $ 1.0065 5% $ 4.0763 $ 3.8286 6% Diluted Weighted Average Common Shares Outstanding 2,443.8 2,472.2 2,454.4 2,471.9 COMPARISONS AS A % OF NET SALES Basis Pt Change Basis Pt Change Gross margin 49.1 % 49.6 % (50) 51.2 % 51.4 % (20) Selling, general and administrative expense 28.3 % 30.7 % (240) 26.9 % 27.7 % (80) Operating margin 20.8 % 18.9 % 190 24.3 % 22.1 % 220 Earnings before income taxes 21.6 % 18.8 % 280 23.9 % 22.3 % 160 Net earnings 17.4 % 15.3 % 210 19.1 % 17.8 % 130 Net earnings attributable to Procter & Gamble 17.3 % 15.3 % 200 19.0 % 17.7 % 130 (1) Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. Amounts in millions of dollars except per share amounts or as otherwise specified. Certain columns and rows may not add due to rounding. THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Consolidated Earnings Information Three Months Ended June 30, 2025 Net Sales % ChangeVersus YearAgo Earnings/(Loss) BeforeIncome Taxes % ChangeVersus YearAgo Net Earnings/(Loss) % ChangeVersus YearAgo Beauty $3,733 —% $708 3% $557 4% Grooming 1,683 2% 458 16% 371 19% Health Care 2,722 2% 487 12% 372 14% Fabric & Home Care 7,385 2% 1,751 10% 1,375 11% Baby, Feminine & Family Care 5,093 2% 1,217 10% 948 12% Corporate 274 N/A (100) N/A 4 N/A TOTAL $20,889 2% $4,521 17% $3,626 15% Three Months Ended June 30, 2025 (Percent Change vs. Year Ago) (1) Volume withAcquisitions &Divestitures Volume ExcludingAcquisitions &Divestitures ForeignExchange Price Mix Other (2) Net SalesGrowth Beauty 1% 1% (1)% 1% (1)% —% —% Grooming —% (1)% —% 4% (1)% (1)% 2% Health Care (2)% (2)% —% 1% 3% —% 2% Fabric & Home Care —% —% 1% 1% —% —% 2% Baby, Feminine & Family Care —% —% 1% 1% —% —% 2% TOTAL —% —% —% 1% 1% —% 2% Fiscal Year Ended June 30, 2025 Net Sales % ChangeVersus YearAgo Earnings/(Loss) BeforeIncome Taxes % ChangeVersus YearAgo Net Earnings/(Loss) % ChangeVersus YearAgo Beauty $14,964 (2)% $3,454 (9)% $2,715 (8)% Grooming 6,662 —% 1,952 6% 1,577 7% Health Care 11,998 2% 3,149 7% 2,440 8% Fabric & Home Care 29,617 —% 7,459 2% 5,848 3% Baby, Feminine & Family Care 20,248 —% 5,214 (1)% 4,013 —% Corporate 794 N/A (1,061) N/A (527) N/A TOTAL $84,284 —% $20,167 7% $16,065 7% Fiscal Year Ended June 30, 2025 (Percent Change vs. Year Ago) (1) Volume withAcquisitions &Divestitures Volume ExcludingAcquisitions &Divestitures ForeignExchange Price Mix Other (2) Net SalesGrowth Beauty (1)% 1% (1)% 2% (2)% —% (2)% Grooming 2% 2% (2)% 2% (1)% (1)% —% Health Care (1)% (1)% (1)% 1% 3% —% 2% Fabric & Home Care —% 1% (1)% —% 1% —% —% Baby, Feminine & Family Care —% —% (1)% —% 1% —% —% TOTAL —% 1% (1)% 1% —% —% —% (1) Net sales percentage changes are approximations based on quantitative formulas that are consistently applied. (2) Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales. Amounts in millions of dollars except per share amounts or as otherwise specified. Certain columns and rows may not add due to rounding. THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Consolidated Statements of Cash Flows Fiscal Year Ended June 30 2025 2024 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR $ 9,482 $ 8,246 OPERATING ACTIVITIES (1) Net earnings 16,065 14,974 Depreciation and amortization 2,847 2,896 Share-based compensation expense 476 562 Deferred income taxes 149 (244 ) Loss/(gain) on sale of assets 755 (215 ) Indefinite-lived intangible asset impairment charge — 1,341 Change in accounts receivable 45 (766 ) Change in inventories (324 ) (70 ) Change in accounts payable (542 ) 878 Other (1,653 ) 491 TOTAL OPERATING ACTIVITIES 17,817 19,846 INVESTING ACTIVITIES Capital expenditures (3,773 ) (3,322 ) Proceeds from asset sales 107 346 Acquisitions, net of cash acquired (11 ) (21 ) Other investing activity (141 ) (507 ) TOTAL INVESTING ACTIVITIES (3,818 ) (3,504 ) FINANCING ACTIVITIES Dividends to shareholders (9,872 ) (9,312 ) Additions to short-term debt with original maturities of more than three months 8,020 3,528 Reductions in short-term debt with original maturities of more than three months (6,512 ) (7,689 ) Net additions/(reductions) to other short-term debt (1,138 ) 857 Additions to long-term debt 2,237 3,197 Reductions of long-term debt (1,977 ) (2,335 ) Treasury stock purchases (6,500 ) (5,006 ) Impact of stock options and other 1,707 1,905 TOTAL FINANCING ACTIVITIES (14,036 ) (14,855 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH 112 (251 ) CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 75 1,235 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR $ 9,556 $ 9,482 (1) Certain prior period amounts within Operating Activities have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the previously reported Total Operating Activities. Amounts in millions of dollars except per share amounts or as otherwise specified. Certain columns and rows may not add due to rounding. THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Condensed Consolidated Balance Sheets June 30, 2025 June 30, 2024 Cash and cash equivalents $ 9,556 $ 9,482 Accounts receivable 6,185 6,118 Inventories 7,551 7,016 Prepaid expenses and other current assets 2,100 2,095 TOTAL CURRENT ASSETS 25,392 24,709 PROPERTY, PLANT AND EQUIPMENT, NET 23,897 22,152 GOODWILL 41,650 40,303 TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET 21,910 22,047 OTHER NONCURRENT ASSETS 12,381 13,158 TOTAL ASSETS $ 125,231 $ 122,370 Accounts payable $ 15,227 $ 15,364 Accrued and other liabilities 11,318 11,073 Debt due within one year 9,513 7,191 TOTAL CURRENT LIABILITIES 36,058 33,627 LONG-TERM DEBT 24,995 25,269 DEFERRED INCOME TAXES 5,774 6,516 OTHER NONCURRENT LIABILITIES 6,120 6,398 TOTAL LIABILITIES 72,946 71,811 TOTAL SHAREHOLDERS' EQUITY 52,284 50,559 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 125,231 $ 122,370 The Procter & Gamble Company Exhibit 1: Non-GAAP Measures The following provides definitions of the non-GAAP measures used in Procter & Gamble's July 29, 2025, earnings release and the reconciliation to the most closely related GAAP measure. We believe that these measures provide useful perspective on underlying business trends (i.e., trends excluding non-recurring or unusual items) and results and provide a supplemental measure of period-to-period results. The non-GAAP measures described below are used by management in making operating decisions, allocating financial resources and for business strategy purposes. These measures may be useful to investors, as they provide supplemental information about business performance and provide investors a view of our business results through the eyes of management. These measures are also used to evaluate senior management and are a factor in determining their at-risk compensation. These non-GAAP measures are not intended to be considered by the user in place of the related GAAP measures but rather as supplemental information to our business results. These non-GAAP measures may not be the same as similar measures used by other companies due to possible differences in method and in the items or events being adjusted. The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures because the Company cannot predict the timing and amounts of discrete items such as acquisition and divestitures, which could significantly impact GAAP results. Note that certain columns and rows may not add due to rounding. The Core earnings measures included in the following reconciliation tables refer to the equivalent GAAP measures adjusted as applicable for the following items: Incremental restructuring: The Company has historically had an ongoing level of restructuring activities of approximately $250 - $500 million before tax. In the fiscal year ended June 30, 2024, the Company started a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. During the period ended September 30, 2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina. The adjustment to Core earnings includes the restructuring charges that exceed the normal, recurring level of restructuring charges. Intangible asset impairment: In the fiscal year ended June 30, 2024, the Company recognized a non-cash, after-tax impairment charge of $1.0 billion ($1.3 billion before tax) to adjust the carrying value of the Gillette intangible asset acquired as part of the Company's 2005 acquisition of The Gillette Company. We do not view the above items to be part of our sustainable results, and their exclusion from core earnings measures provides a more comparable measure of year-on-year results. These items are also excluded when evaluating senior management in determining their at-risk compensation. Organic sales growth: Organic sales growth is a non-GAAP measure of sales growth excluding the impacts of acquisitions and divestitures and foreign exchange from year-over-year comparisons. We believe this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis. This measure is used in assessing the achievement of management goals for at-risk compensation. Core EPS and Currency-neutral Core EPS: Core net earnings per share, or Core EPS, is a measure of diluted net earnings per common share (diluted EPS) adjusted for items as indicated. Currency-neutral Core EPS is a measure of the Company's Core EPS excluding the incremental current year impact of foreign exchange. We view these non-GAAP measures as useful supplemental measures of Company performance over time. Core gross margin and Currency-neutral Core gross margin: Core gross margin is a measure of the Company's gross margin adjusted for items as indicated. Currency-neutral Core gross margin is a measure of the Company's Core gross margin excluding the incremental current year impact of foreign exchange. We believe these non-GAAP measures provide a supplemental perspective to the Company's operating efficiency over time. Core selling, general and administrative (SG&A) expense as a percentage of sales and Currency-neutral Core SG&A expense as a percentage of sales: Core SG&A expense as a percentage of sales is a measure of the Company's selling, general and administrative expense as a percentage of net sales adjusted for items as indicated. Currency-neutral Core SG&A expense as a percentage of sales is a measure of the Company's Core selling, general and administrative expense as a percentage of net sales excluding the incremental current year impact of foreign exchange. We believe these non-GAAP measures provides a supplemental perspective to the Company's operating efficiency over time. Core operating margin and Currency-neutral Core operating margin: Core operating margin is a measure of the Company's operating margin adjusted for items as indicated. Currency-neutral Core operating margin is a measure of the Company's Core operating margin excluding the incremental current year impact of foreign exchange. We believe these non-GAAP measures provide a supplemental perspective to the Company's operating efficiency over time. Adjusted free cash flow: Adjusted free cash flow is defined as operating cash flow less capital spending and excluding payments for the transitional tax resulting from the 2017 U.S. Tax Act. Adjusted free cash flow represents the cash that the Company is able to generate after taking into account planned maintenance and asset expansion. We view adjusted free cash flow as an important measure because it is one factor used in determining the amount of cash available for dividends, share repurchases, acquisitions and other discretionary investments. Adjusted free cash flow productivity: Adjusted free cash flow productivity is defined as the ratio of adjusted free cash flow to net earnings excluding the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria and Argentina, and the Gillette intangible asset impairment charge. We view adjusted free cash flow productivity as a useful measure to help investors understand P&G's ability to generate cash. This measure is used by management in making operating decisions, in allocating financial resources and for budget planning purposes. This measure is also used in assessing the achievement of management goals for at-risk compensation. THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES Reconciliation of Non-GAAP Measures Three MonthsEnded June 30, 2025 Three Months Ended June 30, 2024 Amounts in millions except per share amounts As Reported(GAAP) (1) As Reported (GAAP) Incremental Restructuring Core (Non-GAAP) Cost of products sold $ 10,631 $ 10,348 $ (45 ) $ 10,303 Gross profit 10,258 10,183 45 10,229 Gross margin 49.1 % 49.6 % 0.2 % 49.8 % Currency impact to gross margin 0.2 % Currency-neutral gross margin 49.3 % Selling, general and administrative expense 5,903 6,299 (28 ) 6,271 Selling, general and administrative expense as a % of net sales 28.3 % 30.7 % (0.2 )% 30.5 % Currency impact to selling, general and administrative expense as a % of net sales 0.1 % Currency-neutral selling, general and administrative expense as a % of net sales 28.3 % Operating income 4,355 3,884 73 3,958 Operating margin 20.8 % 18.9 % 0.4 % 19.3 % Currency impact to operating margin 0.1 % Currency-neutral operating margin 21.0 % Other non-operating income, net 274 98 248 346 Income taxes 895 726 (6 ) 720 Net earnings attributable to P&G 3,615 3,137 327 3,464 Core EPS Diluted net earnings per common share (2) $ 1.48 $ 1.27 $ 0.13 $ 1.40 Currency impact to earnings $ (0.01 ) Currency-neutral EPS $ 1.47 Diluted weighted average common shares outstanding 2,443.8 2,472.2 Common shares outstanding - June 30, 2025 2,342.0 (1) For the period ending June 30, 2025, there were no adjustments to or reconciling items for Core EPS. (2) Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. CHANGE VERSUS YEAR AGO Gross margin (50 ) BPS Core gross margin (70 ) BPS Currency-neutral Core gross margin (50 ) BPS Selling, general and administrative expense as a % of net sales (240 ) BPS Core selling, general and administrative expense as a % of net sales (220 ) BPS Currency-neutral Core selling, general and administrative as a % of net sales (220 ) BPS Operating margin 190 BPS Core operating margin 150 BPS Currency-neutral Core operating margin 170 BPS Diluted EPS 17 % Core EPS 6 % Currency-neutral Core EPS 5 % THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES Reconciliation of Non-GAAP Measures Fiscal Year Ended June 30, 2025 Fiscal Year Ended June 30, 2024 Amounts in millions except per share amounts AsReported(GAAP) Incremental Restructuring Core(Non-GAAP) AsReported(GAAP) Incremental Restructuring IntangibleImpairment Core(Non-GAAP) Cost of products sold $ 41,164 $ 20 $ 41,184 $ 40,848 $ (70 ) $ — $ 40,778 Gross profit 43,120 (20 ) 43,099 43,191 70 — 43,261 Gross margin 51.2 % — % 51.1 % 51.4 % 0.1 % — % 51.5 % Currency impact to Core gross margin 0.2 % Currency-neutral Core gross margin 51.3 % Selling, general and administrative expense 22,669 (25 ) 22,643 23,305 (33 ) — 23,273 Selling, general and administrative expense as a % of net sales 26.9 % — % 26.9 % 27.7 % — % — % 27.7 % Currency impact to Core selling, general and administrative expense as a % of net sales 0.2 % Currency-neutral Core selling, general and administrative expense as a % of net sales 27.0 % Operating income 20,451 5 20,456 18,545 103 1,341 19,988 Operating margin 24.3 % — % 24.3 % 22.1 % 0.1 % 1.6 % 23.8 % Currency impact to Core operating margin — % Currency-neutral Core operating margin 24.3 % Other non-operating income, net 154 789 943 668 248 — 916 Income taxes 4,102 (7 ) 4,094 3,787 (25 ) 315 4,077 Net earnings attributable to P&G 15,974 801 16,775 14,879 376 1,026 16,281 Core EPS Core EPS Diluted net earnings per common share (1) $ 6.51 $ 0.33 $ 6.83 $ 6.02 $ 0.15 $ 0.42 $ 6.59 Currency impact to Core EPS $ 0.02 Currency-neutral Core EPS $ 6.85 Diluted weighted average common shares outstanding 2,454.4 2,471.9 Common shares outstanding - June 30, 2025 2,342.0 (1) Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. CHANGE VERSUS YEAR AGO Gross margin (20 ) BPS Core gross margin (40 ) BPS Currency-neutral Core gross margin (20 ) BPS Selling, general and administrative expense as a % of net sales (80 ) BPS Core selling, general and administrative expense as a % of net sales (80 ) BPS Currency-neutral Core selling, general and administrative as a % of net sales (70 ) BPS Operating margin 220 BPS Core operating margin 50 BPS Currency-neutral Core operating margin 50 BPS Diluted EPS 8 % Core EPS 4 % Currency-neutral Core EPS 4 % Organic sales growth: The reconciliation of reported sales growth to organic sales is as follows: April - June 2025 Net Sales Growth Foreign ExchangeImpact Acquisition &DivestitureImpact/Other (1) Organic Sales Growth Beauty —% 1% —% 1% Grooming 2% —% (1)% 1% Health Care 2% —% —% 2% Fabric & Home Care 2% (1)% —% 1% Baby, Feminine & Family Care 2% (1)% —% 1% Total Company 2% —% —% 2% (1) Acquisition & Divestiture Impact/Other includes the volume and mix impact of acquisitions and divestitures and rounding impacts necessary to reconcile net sales to organic sales. Total Company Net Sales Growth Foreign Exchange Impact Acquisition & DivestitureImpact/Other (1) Organic Sales Growth FY 2025 —% 1% 1% 2% (1) Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales. Total Company Net Sales Growth Combined Foreign Exchange &Acquisition/Divestiture Impact Organic Sales Growth FY 2026 (Estimate) +1% to +5% -1% -% to +4% Core EPS growth: Total Company Diluted EPS Growth Impact of change in Non-Core Items Core EPS Growth FY 2026 (Estimate) +3% to +9% -3% to -5% -% to +4% Adjusted free cash flow (dollars in millions): Three Months Ended June 30, 2025 Operating Cash Flow Capital Spending Adjusted Free Cash Flow $4,985 $(996) $3,989 Fiscal Year Ended June 30, 2025 Operating Cash Flow Capital Spending 2017 U.S. Tax Act Payments Adjusted Free Cash Flow $17,817 $(3,773) $562 $14,606 Adjusted free cash flow productivity (dollars in millions): Three Months Ended June 30, 2025 Adjusted Free Cash Flow Net Earnings Adjusted Free Cash Flow Productivity $3,989 $3,626 110% Fiscal Year Ended June 30, 2025 Adjusted Free Cash Flow Net Earnings Adjustments to NetEarnings (1) Net Earnings as Adjusted Adjusted Free Cash FlowProductivity $14,606 $16,065 $752 $16,817 87% (1) Adjustments to Net Earnings relate to a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina. Category: PG-IR View source version on Contacts P&G Media Contacts: Wendy Kennedy, 513.780.7212Henry Molski, 513.505.3587 P&G Investor Relations Contact: John Chevalier, 513.983.9974 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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VeriSign Stock Falls After Berkshire Hathaway Cuts Holdings
VeriSign Inc. (NASDAQ:VRSN) shares dropped Tuesday following news that affiliates of Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) are selling a large chunk of their holdings. The investment firm is offloading 4.3 million shares of the internet infrastructure company at $285 per share, a transaction valued at approximately $1.22 billion. The sale aims to bring Berkshire's ownership below the 10% regulatory threshold, which would otherwise trigger additional disclosure and compliance is not offering any new shares in this deal and will not receive any proceeds. An additional 515,032 shares may be sold if underwriters exercise their option to purchase more. Once the offering closes on July 30, Berkshire has agreed to a 365-day lock-up period on its remaining stake. VeriSign's Operational Performance Separately, VeriSign posted second-quarter earnings of $2.21 per share, topping forecasts. However, revenue came in at $409.9 million, narrowly missing expectations. The company also raised its full-year revenue forecast to between $1.645 billion and $1.655 billion, reflecting continued operational strength. VeriSign operates key internet infrastructure, including .com and .net domain registries and two of the internet's 13 global root servers. Related ETFs include the First Trust Dow Jones Internet Index Fund (NYSE:FDN) and the Global X Cybersecurity ETF (NASDAQ:BUG). VRSN has a 52-week high of $308.00 and a 52-week low of $172.49. Year to date, VRSN is up approximately 49%, and it currently trades about 8.2% above its 50-day simple moving average. Despite the recent pullback following the secondary offering, the stock remains on a modest upward trajectory. Price Action: VRSN shares are trading lower by 6.20% to $287 premarket at last check Tuesday. Read Next:Photo via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? VERISIGN (VRSN): Free Stock Analysis Report This article VeriSign Stock Falls After Berkshire Hathaway Cuts Holdings originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
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Johnson Controls Reports Strong Q3 Results; Raises FY25 Guidance
Q3 sales increased 3% and organic sales increased 6%* Q3 GAAP EPS of $0.94; Q3 Adjusted EPS* of $1.05 Q3 orders increased 2% organically year-over-year Systems and Services backlog of $14.6 billion increased 11% organically year-over-year Initiates fiscal Q4 and raises full year fiscal 2025 guidance* * This news release contains non-GAAP financial measures. Definitions and reconciliations of the non-GAAP financial measures can be found in the attached footnotes. Non-GAAP measures should be considered in addition to, and not as replacements for, the most comparable GAAP measures. CORK, Ireland, July 29, 2025 /PRNewswire/ -- Johnson Controls International plc (NYSE: JCI), a global leader for smart, safe, healthy and sustainable buildings, today reported fiscal third quarter 2025 GAAP earnings per share ("EPS") of $0.94. Adjusted EPS was $1.05. Sales in the quarter of $6.1 billion increased 3% over the prior year on an as reported basis and 6% organically. GAAP income from continuing operations was $618 million. Adjusted income from continuing operations was $693 million. "As we celebrate 140 years of innovation and customer commitment, our strong third quarter results and record backlog reflect the momentum we've built and the opportunities ahead," said Joakim Weidemanis, CEO. "By prioritizing our customers, empowering our 40,000 frontline colleagues, and investing in R&D, we are strengthening our capabilities to win – both now and in the future. Looking ahead, we believe implementing the right business system will allow us to accelerate performance, drive consistency, and deliver sustained long-term value for our shareholders." FISCAL Q3 SEGMENT RESULTS The financial highlights presented in the tables below exclude discontinued operations and are in accordance with GAAP, unless otherwise indicated. All comparisons are to the third quarter of fiscal 2024. Orders and backlog metrics included in the release relate to the Company's Systems and Services based businesses. A slide presentation to accompany the results can be found in the Investor Relations section of Johnson Controls' website at Americas Fiscal Q3 (in millions)20252024Change Sales$ 4,042$ 4,035— % Segment EBITA GAAP742804(8 %) Adjusted (non-GAAP)746743— % Segment EBITA Margin % GAAP18.4 %19.9 % (150 bp) Adjusted (non-GAAP)18.5 %18.4 % 10 bp Sales in the quarter of $4.0 billion remained flat over the prior year. Organic sales increased 7% over the prior year, led by continued strength across Applied HVAC and Controls. Excluding M&A and adjusted for foreign currency, orders increased 5% year-over-year and backlog of $10.3 billion increased 10% year-over-year. Segment EBITA margin of 18.4% declined 150 basis points versus the prior year due to the impact of divestitures and prior year earn-out adjustments. Adjusted segment EBITA in Q3 2025 excludes transformation costs. Adjusted segment EBITA in Q3 2024 excludes earn-out adjustments. EMEA (Europe, Middle East, Africa) Fiscal Q3 (in millions)20252024Change Sales$ 1,273$ 1,1778 % Segment EBITA GAAP17715415 % Adjusted (non-GAAP)17915416 % Segment EBITA Margin % GAAP13.9 %13.1 % 80 bp Adjusted (non-GAAP)14.1 %13.1 % 100 bp Sales in the quarter of $1.3 billion increased 8% over the prior year. Organic sales grew 4% versus the prior year quarter led by 8% growth in Service, including solid growth in Applied HVAC and Fire and Security sales. Excluding M&A and adjusted for foreign currency, orders increased 2% year-over-year and backlog of $2.6 billion increased 9% year-over-year. Segment EBITA margin of 13.9% expanded 80 basis points versus the prior year driven by productivity improvements and positive mix from growth in Service. Adjusted segment EBITA in Q3 2025 excludes transformation costs. APAC (Asia Pacific) Fiscal Q3 (in millions)20252024Change Sales$ 737$ 6867 % Segment EBITA GAAP14312812 % Adjusted (non-GAAP)14312812 % Segment EBITA Margin % GAAP19.4 %18.7 % 70 bp Adjusted (non-GAAP)19.4 %18.7 % 70 bp Sales in the quarter of $737 million increased 7% versus the prior year. Organic sales increased 6% versus the prior year led by strong double-digit growth from the Service business. Excluding M&A and adjusted for foreign currency, orders decreased 8% and backlog of $1.7 billion increased 14% year-over-year. Segment EBITA margin of 19.4% increased 70 basis points versus the prior year driven by productivity improvements. Corporate Fiscal Q3 (in millions)20252024Change Corporate Expense GAAP$ 141$ 12810 % Adjusted (non-GAAP)93119(22 %) Adjusted Corporate expense in Q3 2025 excludes certain transaction/separation costs and transformation costs. Adjusted Corporate expense in Q3 2024 excludes certain transaction/separation costs. OTHER Q3 ITEMS Cash provided by operating activities was $787 million. Free cash flow was $693 million and adjusted free cash flow was $725 million. The Company paid dividends of $243 million. The Company repurchased 3.8 million shares of common stock for $310 million. GUIDANCE The following forward-looking statements regarding organic sales growth, adjusted segment EBITA margin, adjusted segment EBITA margin improvement, adjusted EPS and adjusted free cash flow conversion are non-GAAP financial measures and are presented on a continuing operations basis excluding the Residential and Light Commercial HVAC business, which was classified as discontinued operations beginning in the fiscal fourth quarter of 2024. These non-GAAP financial measures are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts excluded is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period and the high variability of certain amounts, such as mark-to-market adjustments. Organic revenue growth excludes the effect of acquisitions, divestitures and foreign currency. The Company is unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to its most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. The unavailable information could have a significant impact on the Company's fiscal 2025 fourth quarter and full year GAAP financial results from continuing operations. The Company initiated fiscal 2025 fourth quarter guidance: Organic sales growth of low single digits Adjusted segment EBITA margin of ~18.6% Adjusted EPS before special items of $1.14 to $1.17 The Company raised fiscal 2025 full year guidance: Organic sales growth of mid-single digits (unchanged) Adjusted segment EBITA margin improvement of ~90 basis points year-over-year (unchanged) Adjusted EPS before special items of $3.65 to $3.68 (previously ~$3.60) Adjusted free cash flow conversion of >100% (previously ~100%) CONFERENCE CALL & WEBCAST INFO Johnson Controls will host a conference call to discuss this quarter's results at 8:30 a.m. ET today, which can be accessed by dialing 855-979-6654 (in the United States) or +1-646-233-4753 (outside the United States) along with passcode 330296, or via webcast. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Johnson Controls website at A replay will be made available approximately two hours following the conclusion of the conference call. ABOUT JOHNSON CONTROLS At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet. Building on a proud history of nearly 140 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering. Today, Johnson Controls offers the world`s largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry. Visit for more information and follow @Johnsoncontrols on social platforms. JOHNSON CONTROLS CONTACTS: INVESTOR CONTACTS: MEDIA CONTACT: Jim Lucas Danielle Canzanella Direct: +1 414.340.1752 Direct: +1 203.499.8297 Email: Email: Michael GatesDirect: +1 414.524.5785Email: JOHNSON CONTROLS INTERNATIONAL PLC CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this communication, statements regarding Johnson Controls' future financial position, sales, costs, earnings, cash flows, other measures of results of operations, synergies and integration opportunities, capital expenditures, debt levels and market outlook are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning are also generally intended to identify forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond its control, that could cause its actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: Johnson Controls' ability to manage macroeconomic and geopolitical volatility, including changes to laws or policies governing foreign trade, including tariffs, economic sanctions, foreign exchange and capital controls, import/export controls or other trade restrictions as well as any associated supply chain disruptions; the ability of Johnson Controls to manage general economic, business and capital market conditions, including the impacts of trade restrictions, recessions, economic downturns and global price inflation; Johnson Controls' ability to develop or acquire new products and technologies that achieve market acceptance and meet applicable quality and regulatory requirements; the ability of Johnson Controls to execute on its operating model and drive organizational improvement; Johnson Controls' ability to successfully execute and complete portfolio simplification actions, as well as the possibility that the expected benefits of such actions will not be realized or will not be realized within the expected time frame; the ability to innovate and adapt to emerging technologies, ideas and trends in the marketplace, including the incorporation of technologies such as artificial intelligence; fluctuations in the cost and availability of public and private financing for Johnson Controls' customers; the ability to manage disruptions caused by international conflicts, including Russia and Ukraine and the ongoing conflicts in the Middle East; managing the risks and impacts of potential and actual security breaches, cyberattacks, privacy breaches or data breaches, maintaining and improving the capacity, reliability and security of Johnson Controls' enterprise information technology infrastructure; the ability to manage the lifecycle cybersecurity risk in the development, deployment and operation of Johnson Controls' digital platforms and services; fluctuations in currency exchange rates; the ability to hire and retain senior management and other key personnel; changes or uncertainty in laws, regulations, rates, policies, or interpretations that impact Johnson Controls' business operations or tax status; the ability to adapt to global climate change, climate change regulation and successfully meet Johnson Controls' public sustainability commitments; the outcome of litigation and governmental proceedings; the risk of infringement or expiration of intellectual property rights; Johnson Controls' ability to manage disruptions caused by catastrophic or geopolitical events, such as natural disasters, armed conflict, political change, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments; any delay or inability of Johnson Controls to realize the expected benefits and synergies of recent portfolio transactions; the tax treatment of recent portfolio transactions; significant transaction costs and/or unknown liabilities associated with such transactions; labor shortages, work stoppages, union negotiations, labor disputes and other matters associated with the labor force; and the cancellation of or changes to commercial arrangements. A detailed discussion of risks related to Johnson Controls' business is included in the section entitled "Risk Factors" in Johnson Controls Annual Report on Form 10-K for the year ended September 30, 2024 filed with the SEC on November 19, 2024, which is available at and under the "Investors" tab. The description of certain of these risks is supplemented in Item 1A of Part II of Johnson Controls subsequently filed Quarterly Reports on Form 10-Q. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this communication are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this communication. FINANCIAL STATEMENTSJohnson Controls International plc Consolidated Statements of Income (in millions, except per share data; unaudited) Three Months Ended June 30,Nine Months Ended June 30,2025202420252024 Net salesProducts and systems $ 4,122$ 4,089$ 11,672$ 11,576 Services 1,9301,8095,4825,1286,0525,89817,15416,704 Cost of salesProducts and systems 2,6562,6987,6357,805 Services 1,1501,0913,2783,0903,8063,78910,91310,895 Gross profit 2,2462,1096,2415,809 Selling, general and administrative expenses 1,4178954,2434,293 Restructuring and impairment costs 51103146377 Net financing charges 7770243246 Equity income (loss) 4(16)5(19) Income from continuing operations before income taxes 7051,0251,614874 Income tax provision 871741601 Income from continuing operations 6188511,454873 Income from discontinued operations, net of tax 160201301349 Net income 7781,0521,7551,222 Income (loss) attributable to noncontrolling interestsContinuing operations —(1)—2 Discontinued operations 7778157148 Net income attributable to Johnson Controls $ 701$ 975$ 1,598$ 1,072 Income attributable to Johnson ControlsContinuing operations $ 618$ 852$ 1,454$ 871 Discontinued operations 83123144201 Total $ 701$ 975$ 1,598$ 1,072 Basic earnings per share attributable to Johnson ControlsContinuing operations $ 0.94$ 1.27$ 2.21$ 1.28 Discontinued operations 0.130.180.220.30 Total $ 1.07$ 1.45$ 2.43$ 1.58 Diluted earnings per share attributable to Johnson ControlsContinuing operations $ 0.94$ 1.27$ 2.20$ 1.28 Discontinued operations 0.130.180.220.30 Total $ 1.07$ 1.45$ 2.42$ 1.58 Johnson Controls International plc Condensed Consolidated Statements of Financial Position (in millions; unaudited) June 30, 2025September 30, 2024 AssetsCash and cash equivalents $ 731$ 606 Accounts receivable - net 6,1516,051 Inventories 1,8291,774 Current assets held for sale 1,9931,595 Other current assets 1,1451,153 Current assets 11,84911,179 Property, plant and equipment - net 2,4552,403 Goodwill 16,70916,725 Other intangible assets - net 3,8564,130 Noncurrent assets held for sale 3,1743,210 Other noncurrent assets 5,3505,048 Total assets $ 43,393$ 42,695 Liabilities and EquityShort-term debt $ 1,277$ 953 Current portion of long-term debt 570536 Accounts payable 3,4213,389 Accrued compensation and benefits 1,0701,048 Deferred revenue 2,4282,160 Current liabilities held for sale 1,6621,431 Other current liabilities 1,9222,438 Current liabilities 12,35011,955 Long-term debt 8,4468,004 Pension and postretirement benefit obligations 179217 Noncurrent liabilities held for sale 398405 Other noncurrent liabilities 4,9754,753 Long-term liabilities 13,99813,379 Shareholders' equity attributable to Johnson Controls 15,83016,098 Noncontrolling interests 1,2151,263 Total equity 17,04517,361 Total liabilities and equity $ 43,393$ 42,695 Consolidated Statements of Cash Flows (in millions; unaudited) Three Months Ended June 30,Nine Months Ended June 30,2025202420252024 Operating Activities of Continuing OperationsIncome from continuing operations attributable to Johnson Controls $ 618$ 852$ 1,454$ 871 Income (loss) from continuing operations attributable to noncontrolling interests —(1)—2 Income from continuing operations 6188511,454873 Adjustments to reconcile net income to cash provided by operating activities:Depreciation and amortization 190201585624 Pension and postretirement income and contributions (15)(18)(52)(49) Deferred income taxes (39)16(146)(403) Noncash restructuring and impairment charges 238056333 Equity-based compensation 482710781 Other - net (24)(69)8(106) Changes in assets and liabilities:Accounts receivable (172)18(79)(491) Inventories (52)(50)(79)(185) Other assets (76)(370)(289)(560) Restructuring reserves 5(21)2(81) Accounts payable and accrued liabilities 258(23)31179 Accrued income taxes 2311(12)1 Cash provided by operating activities from continuing operations 7876531,586216 Investing Activities of Continuing OperationsCapital expenditures (94)(89)(304)(299) Other - net 9(1)213 Cash used by investing activities from continuing operations (85)(90)(302)(286) Financing Activities of Continuing OperationsNet proceeds (payments) from borrowings with maturities less than three months (75)(840)283703 Proceeds from debt —8597751,281 Repayments of debt —(275)(502)(438) Stock repurchases and retirements (310)(402)(970)(876) Payment of cash dividends (243)(249)(733)(753) Proceeds from the exercise of stock options 41310933 Employee equity-based compensation withholding taxes (2)(2)(33)(26) Other - net (11)(34)(40)(114) Cash used by financing activities from continuing operations (637)(930)(1,111)(190) Discontinued OperationsCash provided by operating activities 208368255356 Cash used by investing activities (25)(9)(52)(24) Cash used by financing activities (109)(69)(174)(132) Cash provided by discontinued operations 7429029200 Effect of exchange rate changes on cash, cash equivalents and restricted cash (201)10(216)29 Change in cash, cash equivalents and restricted cash held for sale —132 Decrease in cash, cash equivalents and restricted cash (62)(66)(11)(29) Cash, cash equivalents and restricted cash at beginning of period 818954767917 Cash, cash equivalents and restricted cash at end of period 756888756888 Less: Restricted cash 25302530 Cash and cash equivalents at end of period $ 731$ 858$ 731$ 858 FOOTNOTES 1. Sale of Residential and Light Commercial HVAC Business The Company signed a definitive agreement in July 2024 to sell its Residential and Light Commercial ("R&LC") HVAC business, which includes the North America Ducted businesses and the global Residential joint venture with Hitachi Global Life Solutions, Inc. ("Hitachi"), of which Johnson Controls owns 60% and Hitachi owns 40%. The R&LC HVAC business, which was previously reported in the Global Products segment prior to the Company's resegmentation, meets the criteria to be classified as a discontinued operation and, as a result, its historical financial results are reflected in the consolidated financial statements as a discontinued operation, and assets and liabilities were reclassified as held for sale for all periods presented. Unless otherwise noted, all activities and amounts reported in the following footnotes include only continuing operations of the Company and exclude activities and amounts related to the R&LC HVAC business. 2. Non-GAAP Measures The Company reports various non-GAAP measures in this earnings release and the related earnings presentation. Non-GAAP measures should be considered in addition to, and not as replacements for, the most comparable GAAP measures. Refer to footnotes three through eight for further information on the calculations of the non-GAAP measures and reconciliations of the non-GAAP measures to the most comparable GAAP measures. Organic sales Organic sales growth excludes the impact of acquisitions, divestitures and foreign currency. Management believes organic sales growth is useful to investors in understanding period-over-period sales results and trends. Cash flow Management believes free cash flow and adjusted free cash flow measures are useful to investors in understanding the strength of the Company and its ability to generate cash. These non-GAAP measures can also be used to evaluate the Company's ability to generate cash flow from operations and the impact that this cash flow has on its liquidity. Management also believes adjusted free cash flows are useful to investors in understanding period-over-period cash flows, cash trends and ongoing cash flows of the Company. Adjusted free cash flow and adjusted free cash flow conversion are non-GAAP measures which exclude the impacts of the following: JC Capital cash flows primarily include activity associated with finance/notes receivables and inventory and/or capital expenditures related to lease arrangements. JC Capital net income is primarily related to interest income on the finance/notes receivable and profit recognized on arrangements with sales-type lease components. Effective January 1, 2024, the Company has excluded the impact of discontinuing its accounts receivables factoring programs from adjusted free cash flow and adjusted free cash flow conversion. The Company has also re-baselined the prior year adjusted free cash flow measures to present a more comparative measure without the impact of factoring. Cash payments related to the water systems AFFF settlement and cash receipts for AFFF-related insurance recoveries. Adjusted financial measures Adjusted financial measures include adjusted segment EBITA, adjusted segment EBITA margin, adjusted net income, adjusted earnings per share, adjusted EBIT, adjusted EBITDA and adjusted corporate expenses. These non-GAAP measures are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the excluded amounts is a matter of management judgment and depends upon the nature and variability of the underlying expense or income amounts and other factors. As detailed in the tables included in footnotes five through eight, the following items were excluded from certain financial measures: Net mark-to-market adjustments are the result of adjusting restricted asbestos investments and pension and postretirement plan assets to their current market value. These adjustments may have a favorable or unfavorable impact on results. Restructuring and impairment costs, net of NCI represents restructuring costs attributable to Johnson Controls including costs associated with exit plans or other restructuring plans that will have a more significant impact on the underlying cost structure of the organization. Impairment costs primarily relate to write-downs of goodwill, intangible assets and assets held for sale to their fair value. Water systems AFFF settlement and insurance recoveries include amounts related to a settlement with a nationwide class of public water systems concerning the use of AFFF manufactured and sold by a subsidiary of the Company, and AFFF-related insurance recoveries. Transaction/separation costs include costs associated with significant mergers and acquisitions. Transformation costs represent incremental expenses incurred in association with strategic growth initiatives and cost saving opportunities in order to realize the benefits of portfolio simplification and the Company's lifecycle solutions strategy. Earn-out adjustments relate to earn-out liabilities associated with certain significant acquisitions and may have a favorable or unfavorable impact on results. Cyber incident costs primarily represent expenses, net of insurance recoveries, associated with the response to, and remediation of, a cybersecurity incident which occurred in September 2023. Product quality costs are costs related to a product quality issue that is unusual due to the magnitude of the expected cost to remediate in comparison to typical product quality issues experienced by the Company. Loss on divestiture relates to the sale of the ADTi business. EMEA joint venture loss relates to certain non-recurring losses associated with the equity method accounting of a joint venture company. Discrete tax items, net includes the net impact of discrete tax items within the period, including the following types of items: changes in estimates associated with valuation allowances, changes in estimates associated with reserves for uncertain tax positions, withholding taxes recorded upon changes in indefinite re-investment assertions for businesses to be disposed of, impacts from statutory rate changes, and the recording of significant tax credits. Related tax impact includes the tax impact of the various excluded items. Management believes the exclusion of these items is useful to investors due to the unusual nature and/or magnitude of the amounts. When considered together with unadjusted amounts, adjusted financial measures are useful to investors in understanding period-over-period operating results, business trends and ongoing operations of the Company. Management may also use these metrics as guides in forecasting, budgeting and long-term planning processes and for compensation purposes. Debt ratios Management believes that net debt to adjusted EBITDA, a non-GAAP measure, is useful to understanding the Company's financial condition as the ratio provides an overview of the extent to which the Company relies on external debt financing for its funding and also is a measure of risk to its shareholders. 3. Sales The following tables detail the changes in sales from continuing operations attributable to organic growth, foreign currency, acquisitions, divestitures and other (unaudited): Net sales Three Months Ended June 30Nine Months Ended June 30 (in millions) AmericasEMEAAPACTotalAmericasEMEAAPACTotal Net sales - 2024 $ 4,035$ 1,177$ 686$ 5,898$ 11,341$ 3,440$ 1,923$ 16,704 Base year adjustments Divestitures and other (243)(7)—(250)(714)(12)—(726) Foreign currency (9)521255(40)(2)(5)(47) Adjusted base net sales 3,7831,2226985,70310,5873,4261,91815,931 Acquisitions —6—6—18—18 Organic growth 2594539343919187991,205 Net sales - 2025 $ 4,042$ 1,273$ 737$ 6,052$ 11,506$ 3,631$ 2,017$ 17,154 Growth %:Net sales — %8 %7 %3 %1 %6 %5 %3 % Organic growth 7 %4 %6 %6 %9 %5 %5 %8 % Products and systems revenue Three Months Ended June 30Nine Months Ended June 30 (in millions) AmericasEMEAAPACTotalAmericasEMEAAPACTotal Products and systems revenue - 2024 $ 2,887$ 710$ 492$ 4,089$ 8,114$ 2,086$ 1,376$ 11,576 Base year adjustments Divestitures and other (243)(7)—(250)(714)(12)—(726) Foreign currency (8)421044(30)18(3)(15) Adjusted products and systems revenue 2,6367455023,8837,3702,0921,37310,835 Acquisitions —4—4—13—13 Organic growth 2117172357247228824 Products and systems revenue - 2025 $ 2,847$ 756$ 519$ 4,122$ 8,094$ 2,177$ 1,401$ 11,672 Growth %:Products and systems revenue (1) %6 %5 %1 %— %4 %2 %1 % Organic growth 8 %1 %3 %6 %10 %3 %2 %8 % Service revenue Three Months Ended June 30Nine Months Ended June 30 (in millions) AmericasEMEAAPACTotalAmericasEMEAAPACTotal Service revenue - 2024 $ 1,148$ 467$ 194$ 1,809$ 3,227$ 1,354$ 547$ 5,128 Base year adjustments Foreign currency (1)10211(10)(20)(2)(32) Adjusted base service revenue 1,1474771961,8203,2171,3345455,096 Acquisitions —2—2—5—5 Organic growth 48382210819511571381 Service revenue - 2025 $ 1,195$ 517$ 218$ 1,930$ 3,412$ 1,454$ 616$ 5,482 Growth %:Service revenue 4 %11 %12 %7 %6 %7 %13 %7 % Organic growth 4 %8 %11 %6 %6 %9 %13 %7 % 4. Cash Flow, Free Cash Flow and Free Cash Flow Conversion The following table includes operating cash flow conversion, free cash flow and free cash flow conversion (unaudited):Three Months Ended June 30,Nine Months Ended June 30, (in millions) 2025202420252024 Cash provided by operating activities from continuing operations $ 787$ 653$ 1,586$ 216 Income from continuing operations attributable to Johnson Controls 6188521,454871 Operating cash flow conversion 127 %77 %109 %25 % Cash provided by operating activities from continuing operations 7876531,586216 Capital expenditures (94)(89)(304)(299) Free cash flow (non-GAAP) $ 693$ 564$ 1,282$ (83) Income from continuing operations attributable to Johnson Controls 6188521,454871 Free cash flow conversion from net income (non-GAAP) 112 %66 %88 %* * Measure not meaningfulThe following table includes adjusted free cash flow and adjusted free cash flow conversion (unaudited):Three Months Ended June 30,Nine Months Ended June 30, (in millions) 2025202420252024 Free cash flow (non-GAAP) $ 693$ 564$ 1,282$ (83) Adjustments:JC Capital cash used by operating activities 3450111170 Water systems AFFF settlement cash payments and insurance recoveries (3)243383243 Impact from discontinuation of factoring programs 1—15— Adjusted free cash flow (non-GAAP) 7258571,791330 Prior year impact from factoring programs —48—582 Re-baselined adjusted free cash flow (non-GAAP) $ 725$ 905$ 1,791$ 912 Adjusted net income attributable to JCI (non-GAAP) $ 693$ 639$ 1,664$ 1,425 JC Capital net income (8)(3)(4)(8) Adjusted net income attributable to JCI, excluding JC Capital (non-GAAP) $ 685$ 636$ 1,660$ 1,417 Adjusted free cash flow conversion (non-GAAP) 106 %142 %108 %64 % 5. EBITA, EBIT and Corporate Expense The Company evaluates the performance of its business units primarily on segment EBITA. The following table includes continuing operations (unaudited):Three Months Ended June 30,Nine Months Ended June 30,ActualAdjusted (Non-GAAP)ActualAdjusted (Non-GAAP) (in millions) 20252024202520242025202420252024 Segment EBITA Americas $ 742$ 804$ 746$ 743$ 2,038$ 1,853$ 2,044$ 1,811 EMEA 177154179154448397450401 APAC 143128143128337320337323 EBIT (non-GAAP)Income from continuing operations:Attributable to Johnson Controls $ 618$ 852$ 693$ 639$ 1,454$ 871$ 1,664$ 1,425 Attributable to noncontrolling interests —(1)—(1)—2—2 Income from continuing operations 6188516936381,4548731,6641,427 Less: Income tax provision (1) 8717495821601227187 Income before income taxes 7051,0257887201,6148741,8911,614 Net financing charges 77707770243246243246 EBIT (non-GAAP) $ 782$ 1,095$ 865$ 790$ 1,857$ 1,120$ 2,134$ 1,860(1) Adjusted income tax provision excludes the related tax impacts of pre-tax adjusting items. The following tables include the reconciliations of segment EBITA as reported to adjusted segment EBITA and adjusted segment EBITA margin (unaudited):Three Months Ended June 30, (in millions) AmericasEMEAAPAC202520242025202420252024 Sales $ 4,042$ 4,035$ 1,273$ 1,177$ 737$ 686 Segment EBITA $ 742$ 804$ 177$ 154$ 143$ 128 Adjusting items:Transformation costs 4—2——— Earn-out adjustments —(61)———— Adjusted segment EBITA (non-GAAP) $ 746$ 743$ 179$ 154$ 143$ 128 Segment EBITA Margin % 18.4 %19.9 %13.9 %13.1 %19.4 %18.7 % Adjusted segment EBITA Margin % (non-GAAP) 18.5 %18.4 %14.1 %13.1 %19.4 %18.7 % Nine Months Ended June 30, (in millions) AmericasEMEAAPAC202520242025202420252024 Sales $ 11,506$ 11,341$ 3,631$ 3,440$ 2,017$ 1,923 Segment EBITA $ 2,038$ 1,853$ 448$ 397$ 337$ 320 Adjusting items:Transformation costs 6—2——— Earn-out adjustments —(68)———— Product quality costs —26—4—3 Adjusted segment EBITA (non-GAAP) $ 2,044$ 1,811$ 450$ 401$ 337$ 323 Segment EBITA Margin % 17.7 %16.3 %12.3 %11.5 %16.7 %16.6 % Adjusted segment EBITA Margin % (non-GAAP) 17.8 %16.0 %12.4 %11.7 %16.7 %16.8 % Year Ended September 30, 2024 (in millions) AmericasEMEAAPAC Sales $ 15,606$ 4,620$ 2,726 Segment EBITA $ 2,679$ 561$ 478 Adjusting items:Earn-out adjustments (68)—— Product quality costs 2643 EMEA joint venture loss —17— Adjusted segment EBITA (non-GAAP) $ 2,637$ 582$ 481 Segment EBITA Margin % 17.2 %12.1 %17.5 % Adjusted segment EBITA Margin % (non-GAAP) 16.9 %12.6 %17.6 % The following table reconciles Corporate expense from continuing operations as reported to the comparable adjusted amounts (unaudited):Three Months Ended June 30,Nine Months Ended June 30, (in millions) 2025202420252024 Corporate expense (GAAP) $ 141$ 128$ 498$ 359 Adjusting items:Transaction/separation costs (9)(9)(27)(14) Transformation costs (39)—(116)— Cyber incident costs ———(27) Adjusted corporate expense (non-GAAP) $ 93$ 119$ 355$ 318 6. Net Income and Diluted Earnings Per Share The following tables reconcile income from continuing operations attributable to JCI and diluted earnings per share from continuing operations as reported to the comparable adjusted amounts (unaudited):Three Months Ended June 30,Income from continuing operations attributable to JCIDiluted earnings per share (in millions, except per share) 2025202420252024 As reported (GAAP) $ 618$ 852$ 0.94$ 1.27 Adjusting items:Net mark-to-market adjustments (21)(5)(0.03)(0.01) Earn-out adjustments —(61)—(0.09) Restructuring and impairment costs, net of NCI 511030.080.15 Water systems AFFF insurance recoveries (1)(351)—(0.52) Transaction/separation costs 990.010.01 Transformation costs 45—0.07— Related tax impact (8)92(0.01)0.14 Adjusted (non-GAAP)* $ 693$ 639$ 1.05$ 0.95* May not sum due to rounding Nine Months Ended June 30,Income from continuing operations attributable to JCIDiluted earnings per share (in millions, except per share) 2025202420252024 As reported (GAAP) $ 1,454$ 871$ 2.20$ 1.28 Adjusting items:Net mark-to-market adjustments (7)(42)(0.01)(0.06) Earn-out adjustments —(68)—(0.10) Restructuring and impairment costs, net of NCI 1463770.220.56 Water systems AFFF settlement —750—1.11 Water systems AFFF insurance recoveries (13)(351)(0.02)(0.52) Product quality costs —33—0.05 Transaction/separation costs 27140.040.02 Transformation costs 124—0.19— Cyber incident costs —27—0.04 Discrete tax items (36)(57)(0.05)(0.08) Related tax impact (31)(129)(0.05)(0.19) Adjusted (non-GAAP)* $ 1,664$ 1,425$ 2.52$ 2.10* May not sum due to rounding The following table reconciles the denominators used to calculate basic and diluted earnings per share (in millions; unaudited):Three Months Ended June 30,Nine Months Ended June 30,2025202420252024 Weighted average shares outstandingBasic weighted average shares outstanding 655.4670.3$ 658.9$ 676.7 Effect of dilutive securities:Stock options, unvested restricted stock and unvested performance share awards 2.02.52.21.9 Diluted weighted average shares outstanding 657.4672.8661.1678.6 7. Debt Ratios The following table includes continuing operations and details net debt to income before income taxes and net debt to adjusted EBITDA (unaudited): (in millions) June 30, 2025March 31, 2025June 30, 2024 Short-term debt $ 1,277$ 1,261$ 1,523 Current portion of long-term debt 570558998 Long-term debt 8,4468,1677,867 Total debt 10,2939,98610,388 Less: cash and cash equivalents $ 731795858 Net debt $ 9,562$ 9,191$ 9,530 Last twelve months income before income taxes $ 2,262$ 2,582$ 1,270 Net debt to income before income taxes 4.2x 3.6x 7.5x Last twelve months adjusted EBITDA (non-GAAP) $ 3,843$ 3,779$ 3,496 Net debt to adjusted EBITDA (non-GAAP) 2.5x2.4x2.7x The following table reconciles income from continuing operations to adjusted EBIT and adjusted EBITDA (unaudited):Twelve Months Ended (in millions) June 30, 2025March 31, 2025June 30, 2024 Income from continuing operations $ 1,992$ 2,225$ 1,361 Income tax provision (benefit) 270357(91) Income before income taxes 2,2622,5821,270 Net financing charges 339332302 EBIT 2,6012,9141,572 Adjusting items:Net mark-to-market adjustments (12)469 Restructuring and impairment costs 279330588 Water systems AFFF settlement ——750 Water systems AFFF insurance recoveries (29)(379)(351) Earn-out adjustments —(61)(68) Transaction/separation costs 444535 Transformation costs 12479— Cyber incident costs ——27 Product quality costs ——33 Loss on divestiture 4242— EMEA joint venture loss 1717— Adjusted EBIT (non-GAAP) 3,0662,9912,655 Depreciation and amortization 777788841 Adjusted EBITDA (non-GAAP) $ 3,843$ 3,779$ 3,496 8. Income Taxes The Company's effective tax rate before consideration of certain excluded items was approximately 12.0% for the three and nine months ending June 30, 2025 and 11.4% and 11.6% for the three and nine months ending June 30, 2024, respectively. View original content to download multimedia: SOURCE Johnson Controls International plc Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
