Johnson Controls International plc (NYSE:JCI) shares rose on Wednesday after the company delivered a solid fourth quarter with strong demand in the Americas, helping offset softness in China.

The company reported fourth-quarter adjusted earnings per share of $1.26, beating the analyst consensus estimate of $1.20.

Quarterly revenue came in at $6.44 billion, topping the Street’s $6.32 billion forecast.

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Quarterly Metrics

Orders grew 7% for the year as strong momentum in the Americas helped offset softness in China.

Fourth-quarter sales increased 3%, with organic sales up 4%, while for the whole year, sales rose 3% and organic sales climbed 6%.

“Johnson Controls delivered a strong year, with double-digit EPS growth and a record backlog of $15 billion, up 13%, reflecting sustained demand in our core verticals,” said Joakim Weidemanis, CEO.

"Our technology leadership in advanced data center cooling and decarbonization solutions continues to set us apart.”

Adjusted gross profit in the quarter under review soared 4% to $2.365 billion.

Adjusted gross margin expanded to 36.7% from 36.3% in the year-ago period.

Sales Across Geographies

Americas: Quarterly sales of $4.325 billion increased 1% year over year. Organic sales also increased 3% led by continued strength in both Applied HVAC & Controls.

Segment EBITA margin rose to 19.5%, up 10 bps year over year, as productivity and efficiency gains partly offset transformation costs.

EMEA: Sales in the quarter of $1.3 billion increased 13% over the prior year.

Organic sales grew 9% versus the prior year, with strong double-digit growth in Systems and high single-digit growth in Service.

APAC: Sales in the quarter of $780 million declined 3% versus the prior year.

Organic sales also declined 3% versus the prior year, primarily due to lower volumes in China.  

The company exited the quarter with cash and equivalents worth $379 million.

Outlook

The company expects first-quarter adjusted EPS of 83 cents, slightly above the 82 cents analyst estimate.

Johnson Controls is projecting fiscal 2026 adjusted EPS of $4.55, well above the $3.74 analyst estimate.

Increasing data center cooling and decarbonization needs are driving Johnson Controls' positive outlook.

JCI Price Action: Johnson Controls shares were trading higher by 8.95% to $120.95 at last check Wednesday.

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