Johnson Controls International Plc has reported strong first quarter results for fiscal year 2026, with a 7% increase in sales to $5.8 billion and a 6% increase in organic sales. The company's GAAP EPS for the quarter was $0.90, while the adjusted EPS was $0.89. This represents a nearly 40% increase in adjusted EPS compared to the same period last year.
The company's orders also saw a significant increase, rising by 39% organically year-over-year, with a backlog of $18.2 billion, which increased by 20% organically year-over-year.
In the Americas, sales for the first quarter of 2026 reached $3.8 billion, marking a 6% increase over the previous year. Organic sales in this segment also grew by 6%, driven by strength across applied HVAC and controls. Orders increased by 56% year-over-year, and the backlog increased by 22% year-over-year, primarily due to customer demand in data center projects.
In the EMEA (Europe, Middle East, Africa) segment, sales for the first quarter of 2026 were $1.3 billion, representing a 9% increase over the prior year. Organic sales grew by 4%, led by an 8% growth in services. Orders increased by 8% year-over-year, and the backlog increased by 11% year-over-year. The segment's EBITA margin expanded by 70 basis points versus the prior year, driven by favorable pricing and productivity improvements.
In the APAC (Asia Pacific) segment, sales for the first quarter of 2026 totaled $693 million, marking an 8% increase over the previous year. Organic sales also increased by 8%, led by a 9% growth in products and systems. Orders increased by 10% year-over-year, and the backlog increased by 20% year-over-year. The segment's EBITA margin increased by 290 basis points versus the prior year, driven by increased volumes and productivity improvements.
Corporate expenses for the first quarter of 2026 decreased by 9% on a GAAP basis and by 16% on an adjusted basis compared to the same period last year.
Additionally, the company reported cash provided by operating activities of $611 million, free cash flow of $531 million, and adjusted free cash flow of $428 million. Johnson Controls also paid dividends of $245 million and completed the sale of its ADT Mexico security business, recognizing a pre-tax gain of $70 million.
As a result of its strong performance in the first quarter, Johnson Controls has raised its guidance for fiscal year 2026. Following these announcements, the company's shares moved 1.47%, and are now trading at a price of $114.61. For more information, read the company's full 8-K submission here.
