Latest news with #Weidemanis
Yahoo
11-06-2025
- Business
- Yahoo
JCI Q1 Earnings Call: New Leadership Emphasizes Operational Efficiency and Strategic Refocus
Building operations company Johnson Controls (NYSE:JCI) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 1.4% year on year to $5.68 billion. On top of that, next quarter's revenue guidance ($6.19 billion at the midpoint) was surprisingly good and 4.3% above what analysts were expecting. Its non-GAAP profit of $0.82 per share was 2.6% above analysts' consensus estimates. 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.
Yahoo
05-02-2025
- Business
- Yahoo
Johnson Controls lifts 2025 profit forecast, names new CEO
(Reuters) - Johnson Controls International named Joakim Weidemanis as chief executive officer and lifted its 2025 profit forecast on Wednesday, sending its shares up nearly 8% before the bell. Weidemanis, who has held several leadership roles at life-sciences firm Danaher Corp over his 13-year career, will succeed George Oliver, effective March. The change is part of a succession plan announced in July 2024 following talks with activist investor Elliott Investment, which has built a more than $1 billion stake in the company. Oliver's retirement was previously announced. He will remain as an adviser until Dec. 31, the company said. Johnson Controls lifted its 2025 adjusted profit forecast to range between $3.50 and $3.60 per share, compared with its prior forecast of $3.40 to $3.50. The Cork, Ireland-based company, which provides cooling systems and security infrastructure for data centers, has benefited as companies rush to develop and adopt artificial intelligence models in their operations. Johnson Controls has also streamlined its business through the divestiture of its portfolio of heating, ventilation, and air conditioning (HVAC) assets. Weidemanis held executive positions at precision instruments maker Mettler Toledo and electrical equipment maker ABB Ltd. "Joakim's approach to leading service-oriented businesses aligns well with both the Johnson Controls approach and our end-to-end operating model," said Jürgen Tinggren, lead independent director of the company's board. Johnson Controls posted fourth-quarter profit of 64 cents per share, compared with analysts' estimate of 59 cents, according to data compiled by LSEG. For the quarter ended Dec. 31, net sales rose 4% to $5.43 billion, compared with analysts' estimates of $5.29 billion. Sign in to access your portfolio
Yahoo
05-02-2025
- Business
- Yahoo
Johnson Controls lifts 2025 profit forecast, names new CEO
(Reuters) - Johnson Controls International named Joakim Weidemanis as chief executive officer and lifted its 2025 profit forecast on Wednesday, sending its shares up nearly 8% before the bell. Weidemanis, who has held several leadership roles at life-sciences firm Danaher Corp over his 13-year career, will succeed George Oliver, effective March. The change is part of a succession plan announced in July 2024 following talks with activist investor Elliott Investment, which has built a more than $1 billion stake in the company. Oliver's retirement was previously announced. He will remain as an adviser until Dec. 31, the company said. Johnson Controls lifted its 2025 adjusted profit forecast to range between $3.50 and $3.60 per share, compared with its prior forecast of $3.40 to $3.50. The Cork, Ireland-based company, which provides cooling systems and security infrastructure for data centers, has benefited as companies rush to develop and adopt artificial intelligence models in their operations. Johnson Controls has also streamlined its business through the divestiture of its portfolio of heating, ventilation, and air conditioning (HVAC) assets. Weidemanis held executive positions at precision instruments maker Mettler Toledo and electrical equipment maker ABB Ltd. "Joakim's approach to leading service-oriented businesses aligns well with both the Johnson Controls approach and our end-to-end operating model," said Jürgen Tinggren, lead independent director of the company's board. Johnson Controls posted fourth-quarter profit of 64 cents per share, compared with analysts' estimate of 59 cents, according to data compiled by LSEG. For the quarter ended Dec. 31, net sales rose 4% to $5.43 billion, compared with analysts' estimates of $5.29 billion.
Reuters
05-02-2025
- Business
- Reuters
Johnson Controls lifts 2025 profit forecast, names new CEO
Feb 5 (Reuters) - Johnson Controls International (JCI.N), opens new tab named Joakim Weidemanis as chief executive officer and lifted its 2025 profit forecast on Wednesday, sending its shares up nearly 8% before the bell. Weidemanis, who has held several leadership roles at life-sciences firm Danaher Corp (DHR.N), opens new tab over his 13-year career, will succeed George Oliver, effective March. The change is part of a succession plan announced in July 2024 following talks with activist investor Elliott Investment, which has built a more than $1 billion stake in the company. Oliver's retirement was previously announced. He will remain as an adviser until Dec. 31, the company said. Johnson Controls lifted its 2025 adjusted profit forecast to range between $3.50 and $3.60 per share, compared with its prior forecast of $3.40 to $3.50. The Cork, Ireland-based company, which provides cooling systems and security infrastructure for data centers, has benefited as companies rush to develop and adopt artificial intelligence models in their operations. Johnson Controls has also streamlined its business through the divestiture of its portfolio of heating, ventilation, and air conditioning (HVAC) assets. Weidemanis held executive positions at precision instruments maker Mettler Toledo and electrical equipment maker ABB Ltd. "Joakim's approach to leading service-oriented businesses aligns well with both the Johnson Controls approach and our end-to-end operating model," said Jürgen Tinggren, lead independent director of the company's board. Johnson Controls posted fourth-quarter profit of 64 cents per share, compared with analysts' estimate of 59 cents, according to data compiled by LSEG. For the quarter ended Dec. 31, net sales rose 4% to $5.43 billion, compared with analysts' estimates of $5.29 billion.
Yahoo
05-02-2025
- Business
- Yahoo
Johnson Controls Announces Joakim Weidemanis as Next CEO
Weidemanis, Danaher Veteran, to Succeed George R. Oliver CORK, Ireland, Feb. 5, 2025 /PRNewswire/ -- Johnson Controls (NYSE: JCI), a global leader for smart, healthy and sustainable buildings, today announced that its Board of Directors has appointed Joakim Weidemanis as Chief Executive Officer effective March 12, 2025, following the Company's Annual General Meeting of Shareholders. He succeeds George R. Oliver following a thorough succession planning process. Oliver, who led the Company's successful transformation into a pure-play building solutions provider, will continue to serve as Non-Executive Chairman of the Board until July 31, 2025. At that time, he will be succeeded as Chairman by Mark P. Vergnano, who has served on the Johnson Controls Board since 2016. Oliver will remain as an advisor to the Company until Dec. 31, 2025, to provide ongoing support and ensure a smooth leadership transition. Weidemanis is a seasoned operator with a successful track record in leading global technology-driven businesses and delivering profitable growth. He held several executive leadership roles over his 13-year career at Danaher Corporation providing him with extensive experience scaling global companies from a foundation of customer orientation, innovation and efficiency. He most recently served as Executive Vice President, Diagnostics and China at Danaher, where he was responsible for operational leadership of an approximately $15 billion group across eight global technology businesses. Through acquisitions and organic growth, the revenue of Danaher's Diagnostics business grew significantly over a four-year period during his leadership. Earlier in his career, he held executive positions of increasing operational responsibility at Mettler Toledo and ABB. Weidemanis has lived and worked in the United States, Europe and Asia over the course of his approximately 30-year career. "The Board identified Joakim as uniquely suited to lead Johnson Controls during its next chapter of growth as a pure-play provider of comprehensive solutions for commercial buildings," said Jürgen Tinggren, lead independent director of the Johnson Controls Board. "Joakim's approach to leading service-oriented businesses aligns well with both the Johnson Controls approach and our end-to-end operating model. Throughout his career, he has demonstrated remarkable ability as an operator of large global businesses, scaling both organically and inorganically, and is adept in shaping product portfolios and leveraging technology to deliver best-in-class financial performance." Tinggren continued, "As we have made substantial progress in our transformation, George has set the stage for Johnson Controls to capitalize on the opportunities ahead. On behalf of the Johnson Controls Board, we thank him for his remarkable leadership over the last eight years." "As I come to know Johnson Controls, I am energized by its mission-driven culture and strong 140-year legacy of developing market-leading technology and solutions that enable customers to manage their facilities in a smarter, more sustainable and more productive way," said Weidemanis. "I am deeply passionate about leading global technology-driven businesses that help customers advance their goals and make a meaningful, positive impact on society. I look forward to leveraging my experience and the foundation George and the team have built to deliver on the company's full potential for customers, employees and shareholders." "Joakim is the ideal person to lead Johnson Controls as CEO," said Oliver. "The efforts we have made over the past eight years have transformed Johnson Controls into a simpler, more profitable and faster growing Company better able to deliver on our financial and operational objectives. As we build on the momentum from fiscal 2024, I look forward to working with Joakim and the team to ensure a smooth leadership transition and a promising future for Johnson Controls." Fiscal First Quarter Results and Full Year 2025 Financial Guidance In a separate press release issued today, Johnson Controls reported fiscal first quarter 2025 earnings results and provided financial guidance for fiscal second quarter 2025 and updated full year 2025 guidance. About Joakim Weidemanis Joakim most recently served as Executive Vice President and Corporate Officer of Danaher Corporation. While at Danaher, he served as President - Videojet from 2011 to 2016, Group Executive & Vice President – Product Identification Platform from 2014 to 2017, and various Executive Vice President roles from 2017 to 2024. Earlier in his career, he served as Head of Product Inspection and Corporate Officer of Mettler Toledo from 2005 to 2011. Joakim joined ABB in 1995, serving in various operating and corporate development roles from 1995 to 2005, most recently as President and Managing Director. Joakim also currently serves as a non-executive Board Member of ASSA ABLOY Group since April 2020. About Mark P. Vergnano Mark served as the Chairman of the Board of The Chemours Company, a titanium technologies, fluoroproducts, and chemical solutions producer, from July 2021 until his retirement in April 2022. Previously, Mark served as the President and Chief Executive Officer of Chemours from July 2015 to July 2021. He served as Executive Vice President, E. I. du Pont de Nemours and Company from 2009 to June 2015. Mark joined DuPont in 1980 as a process engineer and held a variety of manufacturing, technical and management assignments throughout multiple global locations in DuPont's organization. Mark is currently a director of Waters Corporation, a specialty measurement company. Mark is a former Chairman of the Board of Directors for the National Safety Council, and the American Chemistry Council and the Future of Stem Scholars Initiative. He is the founding chair of the Vergnano Institute for Inclusion at the University of Connecticut. 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 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 @Johnson Controls on social platforms. INVESTOR CONTACT: MEDIA CONTACT: Jim LucasDanielle Canzanella Direct: +1 414.340.1752Direct: +1 414.524.8687 Email: 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 some cases, these forward-looking statements can be identified by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. 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 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, including the completion of the divestiture of the Residential and Light Commercial business, 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 hire and retain senior management and other key personnel, including successfully executing Johnson Controls' Chief Executive Officer transition; the ability to innovate and adapt to emerging technologies, ideas and trends in the marketplace, including the incorporation of technologies such as artificial intelligence; the ability to manage general economic, business and capital market conditions, including the impact of recessions, economic downturns and global price inflation; fluctuations in the cost and availability of public and private financing for Johnson Controls' customers; the ability to manage macroeconomic and geopolitical volatility, including restrictive trade measures, supply chain shortages and the conflict between 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; changes to laws or policies governing foreign trade, including economic sanctions, tariffs, foreign exchange and capital controls, import/export controls or other trade restrictions; fluctuations in currency exchange rates; 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; risks and uncertainties related to the settlement with a nationwide class of public water systems concerning the use of AFFF; 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 fiscal year filed with the SEC, which is available at and under the "Investors" tab, and such factors may be updated from time to time in Johnson Controls filings with the SEC, which are or will be accessible on the SEC's website at 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. 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