Johnson Controls
Johnson Controls is a global provider of building solutions, from HVAC (Heating, Ventilation, Air Conditioning) to fire suppression and security systems.
The company is headquartered in Dublin, Ireland following the merger with Tyco International in 2016 to create Johnson Controls International plc.
Employees: 100,000
Revenue: $25bn for FY2022
HQ Location: Cork, Ireland
What they do:
They are manufacturer and distributor of HVAC, fire and security solutions provided through a range of brands, many of which have joined the company through acquisition.
Their vision and priorities:
The company wants to capitalise on three megatrends of healthy, safe and sustainable buildings
The company is focused on rebuilding itself as a digital company - primarily through its OpenBlue line of products and services.
The company wants to build a customer-centric culture
What does each business segment do?
Building Solutions North America
This division designs, sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security and integrated fire-detection and suppression systems for commercial, industrial, retail, small business, institutional and governmental customers in the United States and Canada.
Building Solutions EMEA/LA
Building Solutions EMEA/LA designs, sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security, integrated fire-detection and suppression systems, and provides technical services, including data-driven “smart building” solutions, to markets in Europe, the Middle East, Africa and Latin America
Building Solutions Asia Pacific
Building Solutions Asia Pacific designs, sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security, integrated fire-detection and suppression systems, and provides technical services, including data-driven “smart building” solutions, in the Asia Pacific marketplace.
Global Products
Global Products designs, manufactures and sells HVAC equipment, controls software and software services for residential and commercial applications to commercial, industrial, retail, residential, small business, institutional and governmental customers worldwide.
In addition, Global Products designs, manufactures and sells refrigeration equipment and controls globally.
The Global Products business also designs, manufactures and sells fire protection, fire suppression and security products, including intrusion security, anti-theft devices, access control, and video surveillance and management systems, for commercial, industrial, retail, residential, small business, institutional and governmental customers worldwide.
Global Products includes the Johnson Controls-Hitachi joint venture.
Routes to market
The company sells primarily through its extensive direct channel via the NA, EMEA/LA and Asia Pacific entities, as well as through a global network of third-party distributors through Global Products.
Revenue by Segment FY22
Things to know right now
OpenBlue a key strategic goal
The company is investing significantly in rebranding as a digital company in order to increase the percentage of recurring revenue from the business.
Restructuring to reduce costs
In FY21 the company announced plans to reduce costs through broad-based actions focused on simplification, standardization and centralization with the goal of selivering annualized savings of $300m by FY23.
Additionally the company announced cost of sales actions to drive $250m in annual savings by FY23.
Revenue split equally across product types
In FY22 revenue was spread evenly across Products (37%), Installations (39%) and Services (24%)
FY22 Sales by Product Type
Their Competitors
Siemens
Schneider Electric
Honeywell
Carrier Global
Trane Technologies
Daiken Industries
Their financial calendar
Q1: October-December- 1st February 2023
Q2: January-March - Around 4th May 2023
Q3: April-June - Earnings 4th August 2023
Q4: July-September - Earnings 15th November 2023
Next Earnings Report:
Around 4th May 2023
Positives from the last earnings report (Q1 FY23):
Q1 reported sales +4% versus prior year, +9% organic
Q1 GAAP EPS of $0.17, Adjusted EPS of $0.67, up 24% versus prior year
Q1 orders +5% organically year over year
Record backlog of $11.3bn increased 11% organically year over year