Johnson Controls said it entered into a definitive agreement to sell its Residential and Light Commercial HVAC business to Bosch for approximately $8.1 billion in cash, with the Company's portion of the aggregate consideration being approximately $6.7 billion, and expects to receive net cash proceeds of approximately $5.0 billion after tax and transaction-related expenses when the transaction closes, likely in the second half of fiscal 2025.

1. 01

   Johnson Controls said it entered into a definitive agreement to sell its Residential and Light Commercial HVAC business to Bosch for approximately $8.1 billion in cash, with the Company's portion of the aggregate consideration being approximately $6.7 billion, and expects to receive net cash proceeds of approximately $5.0 billion after tax and transaction-related expenses when the transaction closes, likely in the second half of fiscal 2025.

2. 02

   Johnson Controls cited organic sales of $381 million as a driver of the increase in net sales for the 3 months ended March 31, 2025, with the net impact of acquisitions and divestitures of $233 million and foreign currency translation of $69 million partially offsetting the increase. The company said the decrease in SG&A was primarily due to the impact of prior-year AFFF settlement agreement costs of $750 million.

3. 03

   Johnson Controls said backlog totaled $16.0 billion as of March 31, 2025 and remaining performance obligations were $22.0 billion. The company explained that the timing and conversion of backlog and orders are subject to numerous uncertainties and risks and are not necessarily indicative of the amount of revenue to be earned in the upcoming fiscal year.

4. 04

   The company said it had $0.8 billion in cash as of March 31, 2025, approximately $1.1 billion remains available under its share repurchase authorization, and it declared a dividend of $0.37 per common share in the quarter. Johnson Controls also said it expects one-time restructuring costs of approximately $400 million to be incurred over fiscal 2025 through 2027, resulting in expected annual cost savings of approximately $500 million upon full completion of the plan.

Key figures

Quarter ended March 31, 2025

Revenue

$5.7B

Net income

$478M

EPS

$0.72

Gross profit

$2.1B

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.