Johnson Controls Reports Solid Fourth Quarter and Full Year Results; Initiates FY23 Guidance

CORK, Ireland, Nov. 3, 2022

Sales in the quarter of $6.7 billion increased 5% compared to the prior year on an as reported basis and grew 10% organically. GAAP net income from continuing operations was $761 million. Adjusted net income from continuing operations of $682 million was up 9% versus the prior year. Earnings before interest and taxes ("EBIT") was $666 million and EBIT margin was 9.9%. Adjusted EBIT was $917 million and adjusted EBIT margin was 13.6%, improving 70 basis points versus the prior year.

"During the year, we capitalized on robust demand and progressed our transformation, enhancing our differentiated business model and launching unique solutions that further establish Johnson Controls as an industry leader in smart, healthy, and sustainable buildings. While macro challenges continue to cause uncertainty for the broader market, we are optimistic about extending our strong momentum as we convert our backlog and execute our new capabilities powered by OpenBlue in the upcoming fiscal year," said George Oliver, Chairman and Chief Executive Officer.

"We recorded another strong quarter in both orders and revenue, and delivered margin expansion which offset material foreign exchange headwinds," said Olivier Leonetti, Chief Financial Officer. "We have built our backlog considerably over the year, driven by our mission-critical solutions, which increasingly resonate with our customers. As we look ahead, we remain confident in the resiliency of our products and services as we continue to navigate through an uncertain operating environment."

Income and EPS amounts attributable to Johnson Controls ordinary shareholders
($ millions, except per-share amounts)

The financial highlights presented in the tables below are in accordance with GAAP, unless otherwise indicated. All comparisons are to the fiscal fourth quarter of 2021. Effective October 1, 2021, the Company's Marine business, previously reported across the Building Solutions Asia Pacific, Global Products and Building Solutions EMEA/LA segments, is now managed and reported under the Building Solutions EMEA/LA segment. Historical information has been re-cast to present the comparative periods on a consistent basis.

Organic sales growth, adjusted sales, organic segment EBITA growth, total segment EBITA, adjusted segment EBITA, adjusted corporate expense, EBIT, adjusted EBIT, adjusted net income from continuing operations, adjusted EPS from continuing operations, and free cash flow are non-GAAP financial measures. For a reconciliation of these non-GAAP measures and detail of the special items, refer to the attached footnotes. A slide presentation to accompany the results can be found in the Investor Relations section of Johnson Controls' website at http://investors.johnsoncontrols.com.