Slides
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Fiscal Q4 2026 Earnings Conference Call October 27, 2026
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Forward-looking and Cautionary Statements/Non-GAAP Financial Information Johnson Controls International PLC Cautionary statement regarding forward-looking statements Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this communication other than statements of historical fact are, or could be, “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond its control, that could cause its actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: the ability to develop or acquire new, competitively differentiated products and technologies that achieve market acceptance and meet applicable quality and regulatory requirements; the ability to manage general economic, business and capital market conditions, including the impacts of trade restrictions, recessions, economic downturns and global price inflation; the ability to manage macroeconomic and geopolitical volatility, including changes to laws or policies governing foreign trade, including tariffs, economic sanctions, foreign exchange and capital controls, import/export controls or other trade restrictions as well as any associated supply chain disruptions; fluctuations in demand in key verticals, including data centers and other mission-critical segments, as well as risks associated with customer concentration and the conversion of backlog to revenue; the ability to execute on Johnson Controls’ business system and operating model to drive organizational improvement; the ability to innovate and adapt to emerging technologies, ideas and trends in the marketplace, including the incorporation of technologies such as artificial intelligence; fluctuations in the cost and availability of public and private financing for customers; the ability to manage disruptions caused by catastrophic or geopolitical events, such as international conflicts (including the Russia-Ukraine conflict and conflicts in the Middle East), armed conflict, terrorism, political change, natural disasters, extreme weather, pandemics and outbreaks of contagious diseases and other adverse public health developments; the’ ability to successfully execute and complete portfolio simplification actions, as well as the possibility that the expected benefits of such actions will not be realized or will not be realized within the expected time frame; managing the risks and impacts of potential and actual security breaches, cyberattacks, privacy breaches or data breaches, maintaining and improving the capacity, reliability and security of Johnson Controls’ enterprise information technology infrastructure; the ability to manage the lifecycle cybersecurity risk in the development, deployment and operation of Johnson Controls’ digital platforms and services; fluctuations in currency exchange rates; the ability to hire and retain senior management and other key personnel; changes or uncertainty in laws, regulations, rates, policies, or interpretations that impact business operations or tax status; the ability to adapt to global clim ate change, climate change regulation and successfully meet Johnson Controls’ public sustainability commitments; the outcome of litigation and governmental proceedings; the risk of infringement or expiration of intellectual property rights; any delay or inability of Johnson Controls to realize the expected benefits and synergies of portfolio transactions; the tax treatment of portfolio transactions; significant transaction costs and/or unknown liabilities associated with such transactions; labor shortages, work stoppages, union negotiations, labor disputes and other matters associated with the labor force; and the cancellation of or changes to commerc ial arrangements. A detailed discussion of risks related to Johnson Controls’ business is included in the section entitled "Risk Factors" in Johnson Controls' Annual Report on Form 10-K for the year ended September 30, 2025 filed with the United States Securities and Exchange Commission ("SEC") on November 14, 2025, which is available at www.sec.gov and www.johnsoncontrols.com under the "Investors" tab. The description of certain of these risks is supplemented in Item 1A of Part II of Johnson Controls subsequently filed Quarterly Reports on Form 10-Q. The forward-looking statements included in this document are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this communication Non-GAAP financial information This presentation contains financial information regarding adjusted earnings per share, which is a non-GAAP performance measure. The adjusting items include restructuring and impairment costs, net mark-to-market adjustments, certain transaction / separation costs, water systems AFFF settlement charges and AFFF insurance recoveries, transformation costs, gain on divestiture, and discrete tax items. Financial information regarding organic revenue growth, EBIT, adjusted EBIT, adjusted segment EBITA, adjusted segment EBITA margin, adjusted Corporate expense, net debt/EBITDA, adjusted cash provided by operating activities from continuing operations, adjusted free cash flow, adjusted free cash flow conversion and adjusted net income from continuing operations are also presented, which are non-GAAP performance measures. Management believes that, when considered together with unadjusted amounts, these non-GAAP measures are useful to investors in understanding period-over-period operating results and business trends of Johnson Controls. Management may also use these metrics as guides in forecasting, budgeting and long-term planning processes and for compensation purposes. These metrics should be considered in addition to, and not as replacements for, the most comparable GAAP measure. For further information on the calculation of the non-GAAP measures and a reconciliation of these non-GAAP measures, refer to the footnotes of the Company's earnings release included with this presentation. Presentation of Results Except as where otherwise indicated, results are presented on a continuing operations basis. Totals may not sum due to rounding. Percentages are based on unrounded amounts. Certain financial and other information contained in this presentation has been marked with numbered endnotes indicating additional information concerning the calculation and/or presentation of such information. Please see the slide titled “Endnotes” for additional information as indicated in the presentation. 2
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3 CEO Summary Q4 Execution Building on Growth Momentum Record Backlog Supported by Strong Orders Delivered on Fiscal 2026 Commitments Supporting Customer Value Proposition Positioned to Accelerate Growth in Fiscal 2027 Enabling industry leading innovation in high-growth verticals Optimizing production capacity to meet accelerating demand Delivering lifecycle service through unmatched field presence Turning strategy into results with proprietary business system 11% to 12% Organic revenue growth* $6.15 to $6.30 Adjusted EPS* ~95% Adjusted Free Cash Flow conversion 8% Organic revenue growth* within our HSD growth algorithm $5.16 Adjusted EPS* 37% growth year-over-year 103% Adjusted Free Cash Flow conversion* 12% Organic revenue growth* led by strength in Applied HVAC 18.3% Adjusted EBIT margin* expanded 300 basis points 32% Adjusted EPS growth* increased to $1.66 44% Orders growth4 led by 63% Systems growth 58% Growth in Americas orders4 driven by data center demand $23B Backlog4 grew 43% on sustained customer demand Q4 2026 Earnings * Organic Revenue Growth, Adjusted EBIT Margin, Adjusted EPS, and Adjusted Free Cash Flow Conversion are non-GAAP measures and exclude special items. See footnotes for reconciliation.
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ADJUSTED EPS* Compounding Value by Delivering on Long-Term Growth Algorithm Value Creation Framework 4 *Organic Revenue Growth, Operating Leverage, Adjusted EPS, and Adjusted Free Cash Flow Conversion are non-GAAP measures and exclude special items. See footnotes for additional details. Deploying Business System Standard Work • Problem Solving • Value Stream Mapping • Kaizen • Visual Daily Management Fueling Economic Engine Differentiated Customer Value • Innovation • Manufacturing at Scale • Frontline Productivity Prioritizing Strategic Pillars AI / Data Centers • Mission Critical Environments • Decarbonization LONG-TERM GROWTH ALGORITHM STRATEGIC DRIVERS ACCELERATING GROWTH High-Single-Digit Organic Revenue Growth* 30%+ Operating Leverage* 95%-100% Adjusted Free Cash Flow Conversion* Double-Digit Adjusted EPS Growth* $3.76 $5.16 $6.23 FY25 Actual FY26 Actual FY27 Guidance (Midpoint) $5.24 (ex-divestitures) ~$0.08 of divestiture dilution
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Global Thermal Technology Leader Built to Win 5 Portfolio positioned for mission-critical growth Integrated thermal management and controls with expanded capabilities for the most demanding, fastest- growing environments Powerful, disciplined Business system Includes standard work, problem solving, kaizen, visual management and AI to strengthen execution Unmatched field presence 50,000 sales architects and highly skilled technicians with proprietary parts and technology, giving us deep insight about our customers Emerging manufacturing advantage Capacity, quality, lead times and on-time delivery that help customers build faster, improving uptime and outcomes Differentiated technology innovation A 150-year innovation heritage that spans the full thermal chain and subsystem technology developed in-house JOHNSON CONTROLS IS BUILT FOR THIS MOMENT; DRIVING GROWTH THROUGH EXPOSURE TO MISSION -CRITICAL MARKETS
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Total Enterprise3 Fiscal Q4 Results 6 * Organic Revenue Growth, Adjusted Segment EBITA/Margin, Adjusted EBIT/Margin, and Adjusted EPS are non-GAAP measures and exclude special items. See footnotes for reconciliation. REVENUE — ORGANIC % GROWTH*, ($ IN MILLIONS) ADJUSTED SEGMENT EBITA/MARGIN* ADJUSTED EBIT/MARGIN* ADJUSTED EPS* 180bps Adj. EBITA Margin* Expansion Net Growth ~$215M Productivity ~$35M Mix ~$30M Divestitures ~($25M) 12% YoY Organic Growth* Systems +13% Service +8% Applied1 +20% F&S2 +MSD 300bps Adj. EBIT Margin* Expansion 32% YoY Growth
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BACKLOG4 ($ IN BILLIONS) Solutions Orders and Backlog Fiscal Q4 Results 7 Systems +63% Service +7% 44% YoY Organic Growth Systems +50% Service +5% 43% YoY Organic Growth ORDERS4 — ORGANIC % GROWTH
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Americas EMEA APAC Segment View Fiscal Q4 Results 8 * Organic Revenue Growth and Adjusted Segment EBITA/Margin are non-GAAP measures and exclude special items. See footnotes for reconciliation. Orders4 Organic % Growth Comments Revenue Organic % YoY* Comments Adj. Segment EBITA Margin* Change YoY Comments Orders • Systems +81% • Service +8% Backlog $17.8B, 54% • Systems +63% • Service Flat Systems +16% Service +10% • Applied1: +25% • F&S2: +MSD Net Growth: ~$180M Mix: ~$30M Productivity: ~$20M Divestitures: ~($5M) Orders • Systems +19% • Service +3% Backlog $3.1B, 18% • Systems +18% • Service +16% Systems Flat Service +6% • Applied1: (LSD) • F&S2: +LSD Net Growth: ~$20M Productivity: ~$5M Divestitures: ~($20M) Orders • Systems +12% • Service +8% Backlog $2.1B, 12% • Systems +13% • Service +10% Systems +15% Service +6% • Applied1: +LDD Net Growth: ~$15M Productivity: ~$10M 58% 12% 14% 3% 13% 210 bps 80 bps 110 bps 11%
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Capital Structure ($ billions) Q4 FY25 Q3 FY26 Q4 FY26 Short-term debt and current portion of long-term debt $1.3 $1.2 $1.7 Long-term debt $8.6 $8.3 $7.5 Total debt $9.9 $9.5 $9.2 Less: cash and cash equivalents $0.4 $0.6 $0.6 Net debt* $9.5 $8.9 $8.6 88% fixed rate debt 3.6% weighted avg interest rate ~$0.6B cash position BBB+/Baa1 credit rating (S&P/Moody’s)5 $2.5B undrawn credit facilities ~2.0-2.5X Target Net Debt/EBITDA* Balance Sheet and Adjusted Free Cash Flow *Non-GAAP measures. See footnotes for reconciliation. Disciplined Capital Allocation ($ billions) Q4 FY25 Q4 FY26 YTD FY25 YTD FY26 Adjusted Free Cash Flow* $0.7 $1.1 $2.5 $3.2 9 CAPITAL RETURNS DEBT AND LIQUIDITY ~$2.5B Returned to shareholders in FY 2026 ~$1.5B FY26 total share repurchases ~$1B Returned to shareholders through quarterly dividend NET DEBT / EBITDA*
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Our proprietary business system enables capital-efficient growth, higher productivity and faster execution while maintaining strong free cash flow conversion Investing For Customer Growth And Accelerating Value Creation 10 INVESTING AHEAD OF THE CURVE • Expanding capacity in high-growth verticals anchored in demand in backlog and pipeline • Improving lead times and delivery • Accelerating backlog conversion and execution ✓ Capture larger portion of demand growth ✓ Enabling customers to scale through greater capacity and faster delivery ✓ Strengthen ability to win new business SIMPLIFYING ORGANIZATION AND FOOTPRINT • Consolidating manufacturing and warehouse facilities • Simplifying the operating footprint and reducing complexity • Streamlining support functions across the enterprise $0.9B CAPEX in FY27 ✓ Reinvestment in the business ✓ Higher productivity and reduced complexity ✓ Improved return on capital $0.4B Anticipated Expenses Over FY27-FY28 $0.6B Gross Savings Run Rate Achieved by FY29
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Introducing Q1 and Full Year Fiscal ‘27 Guidance Outlook Summary 11 *Organic Revenue, Operating Leverage, Adjusted EPS, and Adjusted Free Cash Flow conversion are non-GAAP measures and exclude special items. See footnotes for additional details. Q1’27 FY’27 Organic Revenue* Up 12% to 14% Up 11% to 12% Operating Leverage* 30% to 35% 30%+ Adjusted EPS* $1.15 to $1.20 $6.15 to $6.30 Adjusted Free Cash Flow Conversion* ~95%
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Appendix 12
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Organic revenue represents the change in sales excluding the impact of acquisitions, divestitures and foreign currency. Segment margin is calculated based on earnings before interest, taxes and amortization ("EBITA"). Adjusted segment EBITA excludes items such as mark-to-market adjustments and restructuring and impairment costs, amongst other discrete or one-time items. Refer to the appendix for details of adjusting items. Earnings before interest and taxes (“EBIT”) represents income from continuing operations, excluding restructuring and impairment costs, AFFF related settlement costs and insurance recoveries, gains or losses on divestitures, and net mark-to-market gains and losses related to pension and postretirement plans and restricted asbestos investments. Operating leverage is defined as the ratio of the change in adjusted EBIT for the period, divided by the corresponding change in net revenues. Free cash flow conversion is calculated as cash provided by operating activities, less capital expenditures, and divided by net income. Adjusted free cash flow conversion excludes the impact of JC Capital financing activity, the AFFF related settlements and recoveries, prepaid IP license royalties, and discontinuing our factoring program. For further information on the calculation of non-GAAP measures and a reconciliation of these non-GAAP measures, refer to the footnotes of the Company's earnings release that accompany this presentation. Key Reminders and Non-GAAP Definitions 13
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Endnotes 14 Reference Slides Description 1 6, 8 and 15 Applied revenue includes large commercial applied HVAC equipment, building management systems, and controls 2 6, 8 and 15 Fire & Security revenue growth includes Retail 3 6 and 15 Results are presented for continuing operations only 4 3, 7 and 8 Consists of orders and backlog for the Company's Solutions and Services businesses. Orders prior to Q1 FY26 exclude certain equipment-only sales for longer cycle projects. Excluding these sales, Total Enterprise orders increased 31% in Q1 FY26 , 24% in Q2 FY26, 25% in Q3 FY26, and 31% in Q4. By Segment, orders increased 41% in the Americas, increased 6% in EMEA, and increased 11% in APAC in Q4 FY26. The historical presentation of backlog has been restated to include this new category. 5 9 Credit ratings are issued by unaffiliated third-party rating agencies and are not recommendations to buy, sell or hold securities. Ratings may be revised or withdrawn by the assigning organization at any time. Other Notes Various Totals may not sum due to rounding. Percentages are based on unrounded amounts
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Total Enterprise3 Fiscal 2026 Results 15 * Organic Revenue Growth, Adjusted Segment EBITA/Margin, Adjusted EBIT/Margin, and Adjusted EPS are non-GAAP measures and exclude special items. See footnotes for reconciliation. REVENUE — ORGANIC % GROWTH*, ($ IN MILLIONS) ADJUSTED SEGMENT EBITA/MARGIN* ADJUSTED EBIT/MARGIN* ADJUSTED EPS* 170bps Adj. EBITA Margin* Expansion 8% YoY Organic Growth* Systems +9% Service +8% •Applied1 +low-teens •F&S2 +LSD 270bps Adj. EBIT Margin* Expansion 37% YoY Growth
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Q1’27 FY’27 Adjusted Corporate Expense* ~$105M ~$385M Amortization Expense ~$80M ~$320M NFC ~$70M ~$295M Tax Rate ~18.5% ~18.5% Shares ~602M ~598M Additional FY 2027 Guidance Items 16 *Adjusted Corporate expense is a non-GAAP measure that includes certain stranded costs from divestiture transactions to be addressed by multi-year restructuring program. See footnotes for reconciliation
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($ in Millions, except earnings per share) Q4 FY25 GAAP Q4 FY26 GAAP Q4 FY25* Non-GAAP Q4 FY26* Non-GAAP % Change Non-GAAP Sales $6,442 $7,113 $6,442 $7,113 10% Gross profit $2,351 $2,705 $2,365 $2,668 13% (% of sales) 36.5% 38.0% 36.7% 37.5% SG&A expenses $1,521 $1,481 $1,378 $1,377 NM Restructuring and impairment costs $400 $87 $— $— — Equity income $1 $8 $1 $8 NM EBIT* $431 $1,145 $988 $1,299 31% Net financing charges $76 $82 $76 $82 8% Income from continuing operations before income taxes $355 $1,063 $912 $1,217 33% Income tax provision $85 $93 $111 $206 86% Income from continuing operations $270 $970 $801 $1,011 26% Income from discontinued operations, net of tax $1,488 $— $41 $— NM Net income $1,758 $970 $842 $1,011 20% Income from continuing operations attributable to non-controlling interests $3 $3 $3 $3 NM Income from discontinued operations attributable to non-controlling interests $62 $— $64 $— NM Net income attributable to Johnson Controls $1,693 $967 $775 $1,008 30% Income from continuing operations $267 $967 $798 $1,008 26% Income from discontinued operations $1,426 $— $(23) $— NM Diluted EPS continuing ops $0.42 $1.60 $1.26 $1.66 32% Diluted EPS discontinued ops $2.25 $— $(0.04) $— NM Total EPS $2.67 $1.60 $1.22 $1.66 36% Fiscal Q4 Consolidated Financial Results 17 *Adjusted Corporate expense is a non-GAAP measure that includes certain stranded costs from divestiture transactions to be addressed by multi-year restructuring program. See footnotes for reconciliation
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Special Items ($ in Millions, except EPS) Net (Income) Expense EPS Impact Three Months Ended September 30 2025 2026 2025 2026 Net mark-to-market adjustments $13 $(57) $0.02 $(0.09) Restructuring & impairment costs $400 $87 $0.63 $0.14 Water systemsAFFF insurance recoveries $(26) $(1) $(0.04) $— Transaction/separationcosts $12 $30 $0.02 $0.05 ERP asset - accelerated depreciation $102 $— $0.16 $— Transformation costs $56 $95 $0.09 $0.16 Discrete tax items $50 $(90) $0.08 $(0.15) Related tax impact $(76) $(23) $(0.12) $(0.04) Total* $531 $41 $0.84 0.06 18 *Totals may not sum due to rounding.
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Adjusted Free Cash Flow ($ in Billions) Adj. Free Cash Flow* Q4 FY25 Q4 FY26 YTD FY25 YTD FY26 Free Cash Flow* $0.8 $1.1 $2.1 $3.4 Less: JC Capital Free Cash Flow — — $(0.1) — Less: AFFF Settlement Payments and related insurance recoveries — — $(0.4) $0.2 Less: York license prepayment receipt $0.2 — $0.2 — Less: Discrete tax payments $(0.1) — $(0.1) — Adjusted Free Cash Flow* $0.7 $1.1 $2.5 $3.2 19 *Non-GAAP measures. See footnotes for reconciliation.
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FINANCIAL STATEMENTS Johnson Controls International plc Consolidated Statements of Income (in millions, except per share data; unaudited) Three Months Ended September 30, Twelve Months Ended September 30, 2026 2025 2026 2025 Net sales Products and systems $ 5,014 $ 4,452 $ 17,701 $ 16,124 Services 2,099 1,990 7,965 7,472 7,113 6,442 25,666 23,596 Cost of sales Products and systems 3,249 2,908 11,697 10,543 Services 1,159 1,183 4,454 4,461 4,408 4,091 16,151 15,004 Gross profit 2,705 2,351 9,515 8,592 Selling, general and administrative expenses 1,481 1,521 5,510 5,764 Restructuring and impairment costs 87 400 311 546 Net financing charges 82 76 279 319 Equity income 8 1 11 6 Income from continuing operations before income taxes 1,063 355 3,426 1,969 Income tax provision 93 85 536 245 Income from continuing operations 970 270 2,890 1,724 Income (loss) from discontinued operations, net of tax — 1,488 (27) 1,789 Net income 970 1,758 2,863 3,513 Income attributable to noncontrolling interests Continuing operations 3 3 10 3 Discontinued operations — 62 — 219 Net income attributable to Johnson Controls $ 967 $ 1,693 $ 2,853 $ 3,291 Income (loss) attributable to Johnson Controls Continuing operations $ 967 $ 267 $ 2,880 $ 1,721 Discontinued operations — 1,426 (27) 1,570 Total $ 967 $ 1,693 $ 2,853 $ 3,291 Basic earnings (loss) per share attributable to Johnson Controls Continuing operations $ 1.60 $ 0.42 $ 4.73 $ 2.64 Discontinued operations — 2.26 (0.04) 2.40 Total $ 1.60 $ 2.68 $ 4.69 $ 5.04 Diluted earnings (loss) per share attributable to Johnson Controls Continuing operations $ 1.60 $ 0.42 $ 4.72 $ 2.63 Discontinued operations — 2.25 (0.04) 2.40 Total $ 1.60 $ 2.67 $ 4.68 $ 5.03 20
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Johnson Controls International plc Condensed Consolidated Statements of Financial Position (in millions; unaudited) September 30, 2026 September 30, 2025 Assets Cash and cash equivalents $ 618 $ 379 Accounts receivable - net 7,316 6,269 Inventories 1,999 1,820 Current assets held for sale 4 14 Other current assets 1,741 1,680 Current assets 11,678 10,162 Property, plant and equipment - net 2,106 2,193 Goodwill 16,640 16,633 Other intangible assets - net 3,482 3,613 Noncurrent assets held for sale 231 140 Other noncurrent assets 6,065 5,198 Total assets $ 40,202 $ 37,939 Liabilities and Equity Short-term debt $ 678 $ 723 Current portion of long-term debt 1,066 566 Accounts payable 4,381 3,614 Accrued compensation and benefits 1,198 1,268 Deferred revenue 3,370 2,470 Current liabilities held for sale 6 12 Other current liabilities 2,220 2,288 Current liabilities 12,919 10,941 Long-term debt 7,533 8,591 Pension and postretirement benefits 204 211 Noncurrent liabilities held for sale 34 9 Other noncurrent liabilities 5,866 5,233 Noncurrent liabilities 13,637 14,044 Shareholders’ equity attributable to Johnson Controls 13,611 12,927 Noncontrolling interests 35 27 Total equity 13,646 12,954 Total liabilities and equity $ 40,202 $ 37,939 21
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Johnson Controls International plc Consolidated Statements of Cash Flows (in millions; unaudited) Three Months Ended September 30, Twelve Months Ended September 30, 2026 2025 2026 2025 Operating Activities of Continuing Operations Income from continuing operations: Attributable to Johnson Controls $ 967 $ 267 $ 2,880 $ 1,721 Attributable to noncontrolling interests 3 3 10 3 Total 970 270 2,890 1,724 Adjustments to reconcile net income to cash provided by operating activities of continuing operations: Depreciation and amortization 159 280 654 865 Pension and postretirement benefits (76) 11 (115) (41) Deferred income taxes (740) 341 (798) 195 Non-cash restructuring and impairment charges 35 371 195 427 Equity-based compensation 29 33 124 140 Other - net (3) (36) (87) (28) Changes in assets and liabilities: Accounts receivable (339) (132) (1,096) (211) Inventories (44) 4 (210) (75) Other assets (140) (292) (78) (581) Restructuring reserves 24 (1) (1) 1 Accounts payable and accrued liabilities 951 663 1,715 694 Accrued income taxes 474 (544) 679 (556) Cash provided by operating activities from continuing operations 1,300 968 3,872 2,554 Investing Activities of Continuing Operations Capital expenditures (222) (130) (465) (434) Acquisition of businesses, net of cash acquired — (1) (291) (10) Divestitures of businesses, net of cash divested — 3 331 5 Other - net (11) 18 (43) 27 Cash used by investing activities from continuing operations (233) (110) (468) (412) Financing Activities of Continuing Operations Net proceeds from (repayments of) borrowings with maturities less than three months 24 (245) (170) 38 Proceeds from debt — 396 545 1,765 Repayments of debt (220) (552) (859) (1,648) Stock repurchases and retirements (655) (5,021) (1,505) (5,991) Payment of cash dividends (242) (243) (976) (976) Other - net (9) (8) (83) 28 Cash used by financing activities from continuing operations (1,102) (5,673) (3,048) (6,784) Discontinued Operations Cash used by operating activities — (1,410) (98) (1,155) Cash provided (used) by investing activities — 6,598 (155) 6,546 Cash used by financing activities — (430) — (604) Cash provided (used) by discontinued operations — 4,758 (253) 4,787 Effect of exchange rate changes on cash, cash equivalents and restricted cash 7 (43) 129 (259) Change in cash, cash equivalents and restricted cash held for sale — (258) — (255) Increase (decrease) in cash, cash equivalents and restricted cash (28) (358) 232 (369) Cash, cash equivalents and restricted cash at beginning of period 658 756 398 767 Cash, cash equivalents and restricted cash at end of period 630 398 630 398 Less: Restricted cash 12 19 12 19 Cash and cash equivalents at end of period $ 618 $ 379 $ 618 $ 379 22
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FOOTNOTES 1. Sale of Residential and Light Commercial HVAC Bu siness In July 2025, the Company sold its Residential and Light Commercial ("R&LC") HVAC business, including the North America Ducted business and the global Residential joint venture with Hitachi Global Life Solutions, Inc. ("Hitachi"), of which Johnson Controls owned 60% and Hitachi own ed 40%. The R&LC HVAC business met the criteria to be classified as a discontinued operation and, as a result, its historical financial results are reflected in the consolidated financial statements as a discontinued operation. 2. Non-GAAP Measures The Company reports various non-GAAP measures in this earnings release and the related earnings presen tation. Non-GAAP measures should be considered in addition to, and not as replacements for, the most comparable GAAP measures. Refer to the following footnotes for further information on the calculations of the non-GAAP measures and reconciliations of the non-GAAP measures to the most comparable GAAP measures. Organic sales Organic sales growth excludes the impact of acquisitions, divestitures and foreign currency. Management believes organic sales growth is useful to investors in understanding period-over-period sales results and trends. Cash flow Management believes free cash flow and adjusted free cash flow measures are useful to investors in understanding the strength of the Company and its ability to generate cash. These non-GAAP measures can also be used to evaluate the Company’s ability to generate cash flow from operations and the impact that this cash flo w has on its liquidity. Management also believes adjusted free cash flows are useful to investors in understanding period-over- period cash flows, cash trends and ongoing cash flows of the Company. Adjusted free cash flow and adjusted free cash flow conversion are non-GAAP measures which exclude the impacts of the following: • JC Capital cash flows primarily include activity a ssociated with finance/notes receivables and invent ory and/or capital expenditures related to lease arrangements. JC Capital net income is primarily related to interest income on the finance/notes receivable and profit recognized on arrangements with sales-type lease components. • The impact of the accounts receivables factoring p rogram which was discontinued in March 2024. • Cash payments related to the water systems AFFF se ttlement and cash receipts for AFFF-related insurance recoveries. • Prepayment of royalty fees associated with certain IP licensed to divested businesses. • Discrete tax payments are non-recurring tax settle ments for certain non-US jurisdictions. Adjusted financial measures Adjusted financial measures are non-GAAP measures t hat are derived by excluding certain amounts from the corresponding financial measures determined in acco rdance with GAAP. The determination of the excluded amounts is a matter of management judgment and depe nds upon the nature and variability of the underlying expense or income amounts and other factors. 23
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As detailed in the tables included in footnotes four through seven, the following items were excluded from certain financial measures: • Net mark-to-market adjustments are the result of adjusting restricted asbestos inv estments and pension and postretirement plan assets to their current market value. These adjustments may have a favorable or unfavorable impact on results. • Restructuring and impairment costs represents restructuring costs attributable to Johnson Controls including costs associated with exit plans or other restructuring plans that will have a more significant impact on the underlying cost structure of the organization. Impairment costs primarily relate to write-downs of goodwill, intangible assets and assets held for sale to their fair value. • Water systems AFFF settlement and insurance recove ries include amounts related to a settlement with a nationwide class of public water systems concerning the use of AFFF manufactured and sold by a subsidiary of the Company, and AFFF-related insurance recoveries. • Transaction/separation costs include costs associated with significant mergers a nd acquisitions. • Transformation costs represent incremental expenses incurred in associa tion with strategic growth initiatives and cost saving opportunities in order to realize the benefits of portfolio simplification and the Company's lifecycle solutions strategy. • ERP asset - accelerated depreciation represents a change in ERP strategy within the EMEA segment, which led to certain assets being abandoned and the useful lives reduced. • Gain on divestiture relates to the sale of the ADT Mexico Security business. • Discrete tax items, net includes the net impact of discrete tax items within the period, including the following types of items: changes in estimates associated with valuation allowances, changes in estima tes associated with reserves for uncertain tax positions, withholding taxes recorded upon changes in indef inite re-investment assertions for businesses to be disposed of and impacts from statutory rate changes. • Related tax impact includes the tax impact of the various excluded items. Management believes the exclusion of these items is useful to investors due to the unusual nature and/ or magnitude of the amounts. When considered together with unadjusted amounts, adjusted financial measures are useful to investors in understanding period-over-period operating results, business trends and ongoing operations of the Company. Management may also use these metrics as guides in forecasting, budgeting and long-term planning processes and for compensation purposes. Operating leverage Operating leverage is defined as the change in adju sted EBIT for the period, divided by the correspond ing change in net revenues. Management believes operating leve rage is a useful metric to reflect enterprise value creation, capturing the impact of scale and cost discipline across the organization. Debt ratios Management believes that net debt to adjusted EBITD A, a non-GAAP measure, is useful to understanding the Company's financial condition as the ratio provides an overview of the extent to which the Company relies on external debt financing for its funding and also is a measure of risk to its shareholders. 24
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3. Sales The following tables detail the changes in sales from continuing operations attributable to organic growth, foreign currency, acquisitions, divestitures and other (unaudited): Net sales Three Months Ended September 30, (in millions) Americas EMEA APAC Total Net sales - 2025 $ 4,325 $ 1,337 $ 780 $ 6,442 Base year adjustments Divestitures and other — (42) (13) (55) Foreign currency (2) (16) 7 (11) Adjusted base net sales 4,323 1,279 774 6,376 Acquisitions 2 — — 2 Organic growth 605 33 97 735 Net sales - 2026 $ 4,930 $ 1,312 $ 871 $ 7,113 Growth %: Net sales 14 % (2) % 12 % 10 % Organic growth 14 % 3 % 13 % 12 % Net sales Twelve Months Ended September 30, (in millions) Americas EMEA APAC Total Net sales - 2025 $ 15,831 $ 4,968 $ 2,797 $ 23,596 Base year adjustments Divestitures and other — (120) (18) (138) Foreign currency 36 153 26 215 Adjusted base net sales 15,867 5,001 2,805 23,673 Acquisitions 2 3 — 5 Organic growth 1,529 115 344 1,988 Net sales - 2026 $ 17,398 $ 5,119 $ 3,149 $ 25,666 Growth %: Net sales 10 % 3 % 13 % 9 % Organic growth 10 % 2 % 12 % 8 % 25
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Products and systems revenue Three Months Ended September 30, (in millions) Americas EMEA APAC Total Products and systems revenue - 2025 $ 3,093 $ 800 $ 559 $ 4,452 Base year adjustments Divestitures and other — — (2) (2) Foreign currency (8) (8) 7 (9) Adjusted products and systems revenue 3,085 792 564 4,441 Acquisitions 2 — — 2 Organic growth 483 3 85 571 Products and systems revenue - 2026 $ 3,570 $ 795 $ 649 $ 5,014 Growth %: Products and systems revenue 15 % (1) % 16 % 13 % Organic growth 16 % — % 15 % 13 % Products and systems revenue Twelve Months Ended September 30, (in millions) Americas EMEA APAC Total Products and systems revenue - 2025 $ 11,187 $ 2,977 $ 1,960 $ 16,124 Base year adjustments Divestitures and other — — (3) (3) Foreign currency 26 105 22 153 Adjusted products and systems revenue 11,213 3,082 1,979 16,274 Acquisitions 2 3 — 5 Organic growth 1,064 48 310 1,422 Products and systems revenue - 2026 $ 12,279 $ 3,133 $ 2,289 $ 17,701 Growth %: Products and systems revenue 10 % 5 % 17 % 10 % Organic growth 9 % 2 % 16 % 9 % 26
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Service revenue Three Months Ended September 30, (in millions) Americas EMEA APAC Total Service revenue - 2025 $ 1,232 $ 537 $ 221 $ 1,990 Base year adjustments Divestitures and other — (42) (11) (53) Foreign currency 6 (8) — (2) Adjusted base service revenue 1,238 487 210 1,935 Organic growth 122 30 12 164 Service revenue - 2026 $ 1,360 $ 517 $ 222 $ 2,099 Growth %: Service revenue 10 % (4) % — % 5 % Organic growth 10 % 6 % 6 % 8 % Service revenue Twelve Months Ended September 30, (in millions) Americas EMEA APAC Total Service revenue - 2025 $ 4,644 $ 1,991 $ 837 $ 7,472 Base year adjustments Divestitures and other — (120) (15) (135) Foreign currency 10 48 4 62 Adjusted base service revenue 4,654 1,919 826 7,399 Organic growth 465 67 34 566 Service revenue - 2026 $ 5,119 $ 1,986 $ 860 $ 7,965 Growth %: Service revenue 10 % — % 3 % 7 % Organic growth 10 % 3 % 4 % 8 % 27
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4. Cash Flow, Free Cash Flow and Free Cash Flow Conversion The following table includes operating cash flow co nversion, free cash flow and free cash flow convers ion (unaudited): Three Months Ended September 30, Twelve Months Ended September 30, (in millions) 2026 2025 2026 2025 Cash provided by operating activities from continuing operations $ 1,300 $ 968 $ 3,872 $ 2,554 Income from continuing operations attributable to Johnson Controls 967 267 2,880 1,721 Operating cash flow conversion 134 % 363 % 134 % 148 % Cash provided by operating activities from continuing operations $ 1,300 $ 968 $ 3,872 $ 2,554 Capital expenditures (222) (130) (465) (434) Free cash flow (non-GAAP) $ 1,078 $ 838 $ 3,407 $ 2,120 Income from continuing operations attributable to Johnson Controls $ 967 $ 267 $ 2,880 $ 1,721 Free cash flow conversion from net income (non- GAAP) 111 % 314 % 118 % 123 % The following table includes adjusted free cash flow and adjusted free cash flow conversion (unaudited ): Three Months Ended September 30, Twelve Months Ended September 30, (in millions) 2026 2025 2026 2025 Free cash flow (non-GAAP) $ 1,078 $ 838 $ 3,407 $ 2,120 Adjustments: JC Capital cash (provided) used by operating activities 9 38 (24) 149 Water systems AFFF settlement cash payments and insurance recoveries 9 3 (156) 386 IP license prepayments — (240) (29) (240) Discrete tax payments — 71 31 71 Impact of discontinued factoring program — — — 15 Adjusted free cash flow (non-GAAP) $ 1,096 $ 710 $ 3,229 $ 2,501 Adjusted net income attributable to JCI (non- GAAP) $ 1,008 $ 798 $ 3,153 $ 2,462 JC Capital net (income) loss (28) 1 (6) (3) Adjusted net income attributable to JCI, excluding JC Capital (non-GAAP) $ 980 $ 799 $ 3,147 $ 2,459 Adjusted free cash flow conversion (non -GAAP) 112 % 89 % 103 % 102 % 28
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5. EBIT, Segment Profitability and Corporate Expense The following table reconciles income from continuing operations before income taxes to EBIT and adjus ted EBIT (unaudited): Three Months Ended September 30, Twelve Months Ended September 30, (in millions) 2026 2025 2026 2025 Income from continuing operations: Attributable to Johnson Controls $ 967 $ 267 $ 2,880 $ 1,721 Attributable to noncontrolling interests 3 3 10 3 Income from continuing operations 970 270 2,890 1,724 Less: Income tax provision (1) 93 85 536 245 Income before income taxes 1,063 355 3,426 1,969 Net financing charges 82 76 279 319 EBIT $ 1,145 $ 431 $ 3,705 $ 2,288 EBIT margin 16.1 % 6.7 % 14.4 % 9.7 % Adjusting items: Net mark-to-market adjustments 57 (13) 73 (6) Restructuring and impairment costs (87) (400) (311) (546) Water systems AFFF insurance recoveries 1 26 149 39 Transaction/separation costs (30) (12) (73) (39) Transformation costs (95) (56) (292) (180) ERP asset - accelerated depreciation — (102) — (102) Gain on divestiture — — 70 — Adjusted EBIT (non-GAAP) $ 1,299 $ 988 $ 4,089 $ 3,122 Adjusted EBIT margin (non -GAAP) 18.3 % 15.3 % 15.9 % 13.2 % (1) Adjusted income tax provision excludes the net tax impacts of pre-tax adjusting items and discrete tax items. 29
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The following tables reconcile Segment EBIT to Segm ent EBITA (non-GAAP) as reported and reconcile Segm ent EBIT and Segment EBITA (non-GAAP) as reported to ad justed Segment EBIT and Segment EBITA (non-GAAP) and adjusted Segment EBIT and Segment EBITA (non-GAAP) margin (unaudited): Three Months Ended September 30, (in millions) Americas EMEA APAC 2026 2025 2026 2025 2026 2025 Sales $ 4,930 $ 4,325 $ 1,312 $ 1,337 $ 871 $ 780 Segment EBIT 992 763 198 188 162 136 Amortization 77 81 7 13 3 3 Segment EBITA (non-GAAP) 1,069 844 205 201 165 139 Adjusting items: Transformation costs 17 18 10 7 — — Adjusted Segment EBIT (non-GAAP) 1,009 781 208 195 162 136 Adjusted Segment EBITA (non-GAAP) 1,086 862 215 208 165 139 Segment EBIT margin % 20.1 % 17.6 % 15.1 % 14.1 % 18.6 % 17.4 % Adjusted Segment EBIT margin % (non-GAAP) 20.5 % 18.1 % 15.9 % 14.6 % 18.6 % 17.4 % Segment EBITA margin % (non-GAAP) 21.7 % 19.5 % 15.6 % 15.0 % 18.9 % 17.8 % Adjusted Segment EBITA margin % (non-GAAP) 22.0 % 19.9 % 16.4 % 15.6 % 18.9 % 17.8 % Twelve Months Ended September 30, (in millions) Americas EMEA APAC 2026 2025 2026 2025 2026 2025 Sales $ 17,398 $ 15,831 $ 5,119 $ 4,968 $ 3,149 $ 2,797 Segment EBIT 3,088 2,526 700 581 589 461 Amortization 309 356 28 68 14 15 Segment EBITA (non-GAAP) 3,397 2,882 728 649 603 476 Adjusting items: Transformation costs 74 24 23 9 4 — Adjusted Segment EBIT (non-GAAP) 3,162 2,550 723 590 593 461 Adjusted Segment EBITA (non-GAAP) 3,471 2,906 751 658 607 476 Segment EBIT margin % 17.7 % 16.0 % 13.7 % 11.7 % 18.7 % 16.5 % Adjusted Segment EBIT margin % (non-GAAP) 18.2 % 16.1 % 14.1 % 11.9 % 18.8 % 16.5 % Segment EBITA margin % (non-GAAP) 19.5 % 18.2 % 14.2 % 13.1 % 19.1 % 17.0 % Adjusted Segment EBITA margin % (non-GAAP) 20.0 % 18.4 % 14.7 % 13.2 % 19.3 % 17.0 % 30
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The following table reconciles adjusted Segment EBITA (non-GAAP) to adjusted Segment EBITA margin (non- GAAP) (unaudited): Three Months Ended September 30, Twelve Months Ended September 30, (in millions) 2026 2025 2026 2025 Adjusted Segment EBITA (non-GAAP) Americas $ 1,086 $ 862 $ 3,471 $ 2,906 EMEA 215 208 751 658 APAC 165 139 607 476 Sales 7,113 6,442 25,666 23,596 Adjusted Segment EBITA margin (non-GAAP) 20.6 % 18.8 % 18.8 % 17.1 % The following table reconciles Corporate expense from continuing operations as reported to the compara ble adjusted amounts (unaudited): Three Months Ended September 30, Twelve Months Ended September 30, (in millions) 2026 2025 2026 2025 Corporate expense (GAAP) $ 178 $ 269 $ 653 $ 767 31Adjusting items: Transaction/separation costs (30) (12) (73) (39) Transformation costs (68) (31) (191) (147) ERP asset - accelerated depreciation — (102) — (102) Adjusted corporate expense (non-GAAP) $ 80 $ 124 $ 389 $ 479 31
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6. Net Income and Diluted Earnings Per Share The following tables reconcile net income from continuing operations attributable to JCI and diluted earnings per share from continuing operations as reported to the comparable adjusted amounts (unaudited): Three Months Ended September 30, Income from continuing operations attributable to JCI Diluted earnings per share (in millions, except per share) 2026 2025 2026 2025 As reported (GAAP) $ 967 $ 267 $ 1.60 $ 0.42 Adjusting items: Net mark-to-market adjustments (57) 13 (0.09) 0.02 Restructuring and impairment costs 87 400 0.14 0.63 Water systems AFFF insurance recoveries (1) (26) — (0.04) Transaction/separation costs 30 12 0.05 0.02 ERP asset - accelerated depreciation — 102 — 0.16 Transformation costs 95 56 0.16 0.09 Discrete tax items (90) 50 (0.15) 0.08 Related tax impact (23) (76) (0.04) (0.12) Adjusted (non-GAAP)* $ 1,008 $ 798 $ 1.66 $ 1.26 * May not sum due to rounding Twelve Months Ended September 30 Income from continuing operations attributable to JCI Diluted earnings per share (in millions, except per share) 2026 2025 2026 2025 As reported (GAAP) $ 2,880 $ 1,721 $ 4.72 $ 2.63 Adjusting items: Net mark-to-market adjustments (73) 6 (0.12) 0.01 Gain on divestiture (70) — (0.11) — Restructuring and impairment costs 311 546 0.51 0.83 Water systems AFFF insurance recoveries (149) (39) (0.24) (0.06) Transaction/separation costs 73 39 0.12 0.06 ERP asset - accelerated depreciation — 102 — 0.16 Transformation costs 292 180 0.48 0.28 Discrete tax items (79) (36) (0.13) (0.06) Related tax impact (32) (57) (0.05) (0.07) Adjusted (non-GAAP)* $ 3,153 $ 2,462 $ 5.16 $ 3.76 * May not sum due to rounding 32
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The following table reconciles the denominators used to calculate basic and diluted earnings per share (in millions; unaudited): Three Months Ended September 30, Twelve Months Ended September 30, 2026 2025 2026 2025 Weighted average shares outstanding Basic weighted average shares outstanding 604 631 609 652 Effect of dilutive securities: Stock options, unvested restricted stock and unvested performance share awards 2 2 2 2 Diluted weighted average shares outstanding 606 633 611 654 7. Debt Ratios The following table includes continuing operations and details net debt to income before income taxes and net debt to adjusted EBITDA (unaudited): (in millions) September 30, 2026 June 30, 2026 September 30, 2025 Short-term debt $ 678 $ 865 $ 723 Current portion of long-term debt 1,066 311 566 Long-term debt 7,533 8,299 8,591 Total debt 9,277 9,475 9,880 Less: cash and cash equivalents 618 641 379 Net debt $ 8,659 $ 8,834 $ 9,501 Last twelve months income before income taxes $ 3,426 $ 2,718 $ 1,969 Net debt to income before income taxes 2.5x 3.3x 4.8x Last twelve months adjusted EBITDA (non- GAAP) $ 4,743 $ 4,553 $ 3,987 Net debt to adjusted EBITDA (non-GAAP) 1.8x 1.9x 2.4x 33
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The following table reconciles income from continui ng operations to adjusted EBIT and adjusted EBITDA (unaudited): Twelve Months Ended (in millions) September 30, 2026 June 30, 2026 September 30, 2025 Income from continuing operations $ 2,890 $ 2,190 $ 1,724 Income tax provision 536 528 245 Income before income taxes 3,426 2,718 1,969 Net financing charges 279 273 319 EBIT 3,705 2,991 2,288 Adjusting items: Net mark-to-market adjustments (73) (3) 6 Restructuring and impairment costs 311 624 546 Water systems AFFF insurance recoveries (149) (174) (39) Transaction/separation costs 73 55 39 Transformation costs 292 253 180 ERP asset - accelerated depreciation — 102 102 Gain on divestiture (70) (70) — Adjusted EBIT (non-GAAP) 4,089 3,778 3,122 Depreciation and amortization 654 775 865 Adjusted EBITDA (non-GAAP) $ 4,743 $ 4,553 $ 3,987 8. Income Taxes After adjusting for certain non-recurring items, the Company's effective tax rate for continuing operations was approximately 17% for the three and twelve months ended September 30, 2026 and approximately 12% for t he three and twelve months ended September 30, 2025. 34