JCI Q1 Earnings Call: New Leadership Emphasizes Operational Efficiency and Strategic Refocus
Is now the time to buy JCI? Find out in our full research report (it's free).
Revenue: $5.68 billion vs analyst estimates of $5.64 billion (1.4% year-on-year growth, 0.7% beat)
Adjusted EPS: $0.82 vs analyst estimates of $0.80 (2.6% beat)
Revenue Guidance for Q2 CY2025 is $6.19 billion at the midpoint, above analyst estimates of $5.94 billion
Management reiterated its full-year Adjusted EPS guidance of $3.55 at the midpoint
Operating Margin: 10.2%, up from -6.8% in the same quarter last year
Organic Revenue rose 7% year on year (1.1% in the same quarter last year)
Market Capitalization: $67.71 billion
Johnson Controls' first quarter results were shaped by steady demand across its building solutions and applied HVAC businesses, underpinned by a sharp focus on operational execution. CEO Joakim Weidemanis, in his first earnings call since taking the helm, highlighted broad-based organic sales growth and margin expansion, attributing these gains to improved productivity, streamlined processes, and continued strength in service offerings. Weidemanis noted, 'Our record backlog and momentum in our recurring businesses continue to demonstrate broad-based and sustained demand for our differentiated solutions.' The company also reported enhanced working capital management and strong free cash flow, reflecting its ongoing efforts to deliver more predictable and consistent performance.
Looking forward, Johnson Controls' leadership signaled that the company's outlook is anchored by its record backlog, ongoing operational improvements, and a shift toward a more customer-centric organizational model. Weidemanis stated, 'We are building on a solid foundation, and I believe with more relentless focus on customers across our organization as well as on lean-enabled execution fundamentals, we will be able to drive accelerated value creation.' Management also cautioned that navigating tariffs and global uncertainties remains a challenge, but the company plans to leverage its long-cycle business structure, pricing strategies, and supply chain adjustments to mitigate potential impacts. Strategic priorities now include implementing lean methodologies and reassessing portfolio optimization for higher returns.
Management attributed quarterly growth to robust backlog expansion, operational efficiencies, and a reorganization designed to enhance customer focus and agility.
Backlog Expansion: The company reported a 12% increase in its order backlog, reaching $14 billion, driven by strong demand for its YORK HVAC systems and Metasys building automation platform. This provides multi-quarter revenue visibility and underpins management's confidence in future performance.
Operational Efficiencies: Margin improvements were supported by leaner operations, SKU reduction efforts, and an emphasis on waste elimination. Management described initiatives to simplify product offerings and optimize manufacturing and supply chain processes, aiming to unlock further cost savings.
Segment Reorganization: Johnson Controls transitioned to three geographically focused reporting segments, supported by global centers of functional excellence. This new structure is intended to foster customer intimacy, accelerate innovation, and clarify roles across the organization.
Service and Applied HVAC Growth: The service business continued to post high-single-digit organic growth, with especially strong performance in North America and Asia Pacific. Applied HVAC, which serves large infrastructure projects such as data centers, delivered more than 20% growth, reflecting both volume increases and product differentiation.
Tariff and Supply Chain Adaptation: Management acknowledged the challenge posed by new tariffs and outlined mitigation strategies, such as localizing supply chains, accelerating pricing actions, and enforcing contractual protections to minimize financial impact.
Management expects future growth to be shaped by lean operational initiatives, robust backlog execution, and proactive responses to external headwinds.
Lean Transformation Initiatives: CEO Joakim Weidemanis emphasized the rollout of lean business practices across operations, starting with targeted value streams and SKU rationalization. These efforts are expected to yield further productivity improvements and margin enhancement over time, though management noted the scale and complexity of the organization may delay full impact.
Portfolio Optimization and Customer Focus: The company is reassessing its portfolio, including fire and security offerings, for higher returns and strategic alignment. Management is prioritizing customer-centricity and data-driven decision making, with ongoing evaluation of which business areas and geographies offer the best opportunities for value creation.
Tariff and Inflation Risk Management: Johnson Controls is actively adjusting its pricing models and contractual terms to address inflation and tariff risks. The company's long-cycle business model and recurring service contracts provide some stability, but management cautioned that passing through higher costs may temporarily dampen margin expansion.
In the coming quarters, the StockStory team will be watching (1) the pace and effectiveness of lean transformation efforts across product and field operations, (2) whether backlog conversion and service attachment rates improve under the new organizational structure, and (3) how successfully Johnson Controls mitigates tariff and inflationary pressures through pricing and supply chain strategies. Progress in portfolio optimization and clarity on capital allocation priorities will also be key signposts for future performance.
Johnson Controls currently trades at a forward P/E ratio of 26.7×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free).
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
This Growth Stock Is a Pure No-Brainer Buy Right Now
Archer Aviation is still in the early stages of its development. Everything is starting to line up for the aviation upstart. Although the stock has risen sharply of late, there's a material opportunity ahead. 10 stocks we like better than Archer Aviation › Archer Aviation (NYSE: ACHR) is trying to break into the aerospace industry, which is dominated by a few large companies. That's an audacious goal, but the company is using new technology to gain a foothold that could, realistically, leave it as a leading provider of air taxis. If you are an aggressive investor, buying now could be a no-brainer move that gets you in before the good news really starts to roll for this growth stock. Archer Aviation builds an aircraft it calls Midnight. Midnight isn't a competitor to the types of planes that carry passengers from city to city around the world. It is a vertical lift plane that can only carry a few passengers at a time and that can only travel relatively short distances. While most airplanes today are more comparable to long-distance buses, Archer Aviation's Midnight aircraft is like a city taxi. The big benefit of an air taxi is that it can carry passengers over congested city streets. Most people probably won't find the expense of an air taxi worth the time they could save. However, it is likely that there will be many wealthier individuals that will find the time savings on offer well worth the cost. Archer Aviation already has plans for air taxi services in New York and California, with it pegged to be the official air taxi service of the 2028 Olympics. Before getting too excited about 2028, the truth is that, at this point, that's a bit of an aspirational goal. Right now Archer Aviation doesn't have any of its Midnight aircraft acting as air taxis in commercial operation anywhere in the world. It is still a money-losing start-up that is attempting to get regulatory approval for its Midnight aircraft. Don't write Archer Aviation off, however. The stock is up over 100% over the past year. That's not a random price move, there has been some notable good news. That includes slow and steady progress on the FAA approval front. But it also includes the signing of multiple agreements to start air taxi services outside of the United States. The first one is planned in Abu Dhabi, with Midnight aircraft already being tested in that market. Archer Aviation is planning to use this setup as a blueprint for future air taxi services. Right now it has potential deals lined up in Ethiopia and Indonesia. So once the business model is proven out in Abu Dhabi, it seems highly likely that the next air taxi services will be far easier to get off the ground. That all leads back to the U.S. market. This is likely to be where Archer Aviation has the most opportunity for growth. It can't even begin to tap that opportunity until it receives FAA approval. But progress is being made, with management noting that it expects the approval process to start picking up steam from here on out. In other words, Archer Aviation is quickly starting to look like it has a real business. Archer Aviation is not for the faint of heart. It is still a money-losing upstart that will likely continue to lose money for a few more years. But it looks like the air taxi concept is on the cusp of going from a good idea to a real thing. And that means that Archer Aviation is about to move from a good idea to a company with attractive long-term growth prospects. As long as you can handle the risk, buying now, before the company's business "takes off," could be a no-brainer move. Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This Growth Stock Is a Pure No-Brainer Buy Right Now was originally published by The Motley Fool
Yahoo
2 hours ago
- Yahoo
How To Put $100 In Your Retirement Fund Each Month With Kimco Realty Stock
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust and a leading owner and operator of open-air, grocery-anchored shopping centers and mixed-use properties in the U.S. It will report its Q2 2025 earnings on July 31. Wall Street analysts expect the company to post EPS of $0.42, up from $0.41 in the prior-year period. According to data from Benzinga Pro, quarterly revenue is expected to be $524.75 million, up from $500.23 million a year earlier. The 52-week range of Kimco Realty stock price was $17.93 to $25.83. Kimco Realty's dividend yield is 4.71%. It paid $1 per share in dividends during the last 12 months. Don't Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's , starting today. $100k+ in investable assets? – no cost, no obligation. The company on May 1 announced its Q1 2025 earnings, posting FFO of $0.44, compared to the consensus estimate of $0.42, and revenues of $536.62 million, compared to the consensus of $522.21 million, as reported by Benzinga. "We are very encouraged by our strong start to 2025, driven by robust leasing demand, accelerated rent commencements, and better-than-expected tenant credit performance, all of which contributed meaningfully to the solid growth in our net operating income and FFO," said CEO Conor Flynn. The company raised its full-year 2025 guidance, now expecting FFO to be in the range of $1.71 to $1.74, compared to the prior range of $1.70 to $1.72. Check out this article by Benzinga for four analysts' insights on Kimco Realty. Trending: It's no wonder Jeff Bezos holds over $250 million in art — If you want to make $100 per month — $1,200 annually — from Kimco Realty dividends, your investment value needs to be approximately $25,478, which is around 1,205 shares at $21.14 each. Understanding the dividend yield calculations: When making an estimate, you need two key variables — the desired annual income ($1,200) and the dividend yield (4.71% in this case). So, $1,200 / 0.0471 = $25,478 to generate an income of $100 per month. You can calculate the dividend yield by dividing the annual dividend payments by the current price of the stock. The dividend yield can change over time. This is the outcome of fluctuating stock prices and dividend payments on a rolling instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2/$40). In summary, income-focused investors may find Kimco Realty stock an attractive option for making a steady income of $100 per month by owning 1,205 shares of stock. Read Next: Over the last five years, the price of gold has increased by approximately 83% — Investors like Bill O'Reilly and Rudy Giuliani are . Image: Shutterstock This article How To Put $100 In Your Retirement Fund Each Month With Kimco Realty Stock originally appeared on 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
Business Insider
2 hours ago
- Business Insider
Ageagle Aerial Systems receives notice from NYSE
AgEagle Aerial Systems (UAVS) announced that it received a written notice from the NYSE notifying the company that it had determined to accept the plan that the company submitted on May 21, outlining the actions the company had taken or will take to regain compliance with Sections 1003(a)(i), 1003(a)(ii) and 1003(a)(iii) of the NYSE American Company Guide by October 23, 2026. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
