Johnson Controls International Plc (NYSE:JCI) stock rose on Wednesday after the company delivered upbeat first-quarter results.

The company reported fourth-quarter adjusted earnings per share of 89 cents, beating the analyst consensus estimate of 84 cents.

Quarterly revenue came in at $5.797 billion, topping the Street’s $5.639 billion forecast.

The company said its record backlog of $18.2 billion increased 20% organically year over year.

Quarterly Metrics

Orders grew 39% for the quarter, excluding M&A and adjusted for foreign currency.

The quarterly sales increased 7%, with organic sales up 6%.

The gross profit in the quarter under review rose 7.7% to $2.07 billion.

The gross margin expanded to 35.8% from 35.5% in the year-ago period.

Sales Across Geographies

Americas: Quarterly sales of $3.84 billion increased 6% Y/Y. Organic sales also increased 6% led by continued strength in both Applied HVAC & Controls.

Excluding M&A and adjusted for foreign currency, orders increased 56% Y/Y, and backlog of $13.3 billion increased 22% Y/Y primarily due to demand led by customers’ accelerated investments in data center projects.

Segment EBITA margin was 16.1%, flat Y/Y.

EMEA: Sales in the quarter of $1.26 billion increased 9% over the prior year.

Organic sales grew 4% versus the prior year, led by 8% growth in Services.

Excluding M&A and adjusted for foreign currency, orders increased 8% Y/Y, and the backlog of $3.0 billion increased 11% Y/Y. 

Segment EBITA margin of 12.5% expanded 70 bps Y/Y driven by favorable pricing and productivity improvements.

APAC: Sales in the quarter of $693 million grew 8% versus the prior year.

Organic sales also rose 8% versus the prior year, led by 9% growth in Products and Systems.  

Excluding M&A and adjusted for foreign currency, orders increased 10% and the backlog of $1.9 billion increased 20% Y/Y.

Segment EBITA margin of 16.9% increased 290 bps Y/Y driven by increased volumes and productivity improvements.

The company exited the quarter with cash and equivalents worth $552 million.

Johnson Controls generated $611 million in operating cash flow for the quarter, up from $249 million a year ago. It generated $531 million in free cash flow for the quarter, up from $133 million a year ago.

Joakim Weidemanis, CEO of Johnson Controls, highlighted the company’s strong start to the year, with solid revenue growth, significant margin expansion, and nearly 40% growth in adjusted EPS, reflecting improved execution across the enterprise.

He noted that the nearly 40% increase in order growth demonstrated strong customer demand in core end markets.

Outlook

Johnson Controls expects second-quarter adjusted EPS of $1.11, above the $1.05 analyst estimate.

The company raised its fiscal 2026 adjusted EPS outlook from $4.55 to $4.70, above the $4.62 analyst estimate.

JCI Price Action: Johnson Controls shares were up 8.02% at $133.96 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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