Johnson Controls reported 9% sales growth to $6.6 billion and EPS growth of 15% to $1.23 per share. More impressively, orders grew 27%, and the backlog grew 32% to $21 billion, which bodes well for future growth.
Following Johnson Controls’ divestiture of its residential and light commercial HVAC businesses to Bosch in 2025, nearly all of its revenue comes from commercial HVAC (60%) and fire and security products and services (40%). A 2016 merger joined Johnson Controls’ HVAC and Tyco’s fire and security businesses with the premise that there is synergy in offering a broader variety of automation products and solutions to commercial buildings. We estimate Johnson Controls’ pro forma revenue mix will be one-third products, one-third installation, and one-third services.