What changed in this filing

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Item 1. Financial Statements

2026-02-04 compared with 2025-08-06 · 255 added, 455 removed, 590 unchanged (55% of the section changed)

4 unchanged sentences

Three Months Ended

Nine Months Ended

2025 2024 2025 2024

Products and systems $ 3,892 $ 3,685

Services 1,905 1,741

6,052 5,898 17,154 16,704

Cost of sales

1 unchanged sentence

Services 1,075 1,044

3,806 3,789 10,913 10,895

Gross profit 2,074 1,926

2 unchanged sentences

Net financing charges 59 86

Equity income (loss) 4 ( 16 ) 5 ( 19 )

Equity income 1 —

Income from continuing operations before income taxes 708 408

1 unchanged sentence

Income from continuing operations 556 361

Income from discontinued operations, net of tax 160 201 301 349

Income (loss) from discontinued operations, net of tax ( 31 ) 90

Net income 525 451

3 unchanged sentences

Net income attributable to Johnson Controls $ 524 $ 419

Income attributable to Johnson Controls

Income (loss) attributable to Johnson Controls

Continuing operations $ 555 $ 363

1 unchanged sentence

Total $ 524 $ 419

Basic earnings per share attributable to Johnson Controls

Basic earnings (loss) per share attributable to Johnson Controls

Continuing operations $ 0.91 $ 0.55

1 unchanged sentence

Total $ 0.86 $ 0.63

Diluted earnings per share attributable to Johnson Controls

Diluted earnings (loss) per share attributable to Johnson Controls

Continuing operations $ 0.90 $ 0.55

6 unchanged sentences

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Net income $ 525 $ 451

1 unchanged sentence

Foreign currency translation adjustments 6 ( 146 )

Realized and unrealized gains (losses) on derivatives ( 6 ) 4 12 ( 11 )

Pension and postretirement plans — ( 1 ) ( 2 ) ( 3 )

Other comprehensive loss ( 133 ) ( 64 ) ( 340 ) ( 114 )

Total comprehensive income 645 988 1,415 1,108

Comprehensive income attributable to noncontrolling interests:

Net income 77 77 157 150

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustments 20 ( 16 ) ( 28 ) ( 18 )

Realized and unrealized gains on derivatives — — 5 —

Other comprehensive income (loss) 12 ( 135 )

Comprehensive income attributable to noncontrolling interests 97 61 134 132

Total comprehensive income 537 316

Comprehensive income (loss) attributable to noncontrolling interests

Comprehensive income attributable to Johnson Controls $ 535 $ 339

3 unchanged sentences

(in millions, except par value;

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Cash and cash equivalents $ 552 $ 379

41 unchanged sentences

(in millions;

Nine Months Ended June 30,

Three Months Ended December 31,

Operating Activities of Continuing Operations

Income from continuing operations attributable to Johnson Controls $ 1,454 $ 871

Income from continuing operations attributable to noncontrolling interests — 2

Income from continuing operations 1,454 873

Adjustments to reconcile net income to cash provided by operating activities:

Income (loss) from continuing operations:

Attributable to Johnson Controls

Attributable to noncontrolling interests

Adjustments to reconcile net income to cash provided by operating activities of continuing operations:

Depreciation and amortization 164 193

Pension and postretirement income and contributions ( 52 ) ( 49 )

Pension and postretirement benefits

( 12 ) ( 16 )

Deferred income taxes 21 ( 54 )

1 unchanged sentence

Equity-based compensation 34 28

Gain on business divestiture ( 70 ) —

Other - net 1 8

9 unchanged sentences

Capital expenditures ( 80 ) ( 116 )

Divestiture of business, net of cash divested 207 —

Other - net ( 37 ) 11

Cash used by investing activities from continuing operations ( 302 ) ( 286 )

Cash provided (used) by investing activities from continuing operations 90 ( 105 )

Financing Activities of Continuing Operations

Net proceeds from borrowings with maturities less than three months 283 703

Net proceeds (payments) from borrowings with maturities less than three months ( 186 ) 12

Proceeds from debt 116 1,369

2 unchanged sentences

Payment of cash dividends ( 245 ) ( 245 )

Proceeds from the exercise of stock options 109 33

Employee equity-based compensation withholding taxes ( 49 ) ( 29 )

Other - net 1 18

Cash used by financing activities from continuing operations ( 1,111 ) ( 190 )

Cash provided (used) by financing activities from continuing operations ( 464 ) 201

Discontinued Operations

Cash provided by operating activities 255 356

Cash used by operating activities ( 67 ) ( 2 )

Cash used by investing activities — ( 10 )

Cash used by financing activities ( 174 ) ( 132 )

Cash provided by discontinued operations 29 200

Cash used by discontinued operations

( 67 ) ( 12 )

Effect of exchange rate changes on cash, cash equivalents and restricted cash 5 154

Change in cash, cash equivalents and restricted cash held for sale — 4

Decrease in cash, cash equivalents and restricted cash ( 11 ) ( 29 )

Increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period 398 767

7 unchanged sentences

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Shareholders' Equity Attributable to Johnson Controls

18 unchanged sentences

Beginning balance ( 642 ) ( 964 )

Other comprehensive loss ( 153 ) ( 48 ) ( 317 ) ( 96 )

Other comprehensive income (loss) 11 ( 80 )

Ending balance ( 631 ) ( 1,044 )

2 unchanged sentences

Beginning Balance 27 1,263

Comprehensive income attributable to noncontrolling interests 97 61 134 132

Dividends attributable to noncontrolling interests ( 109 ) ( 69 ) ( 187 ) ( 108 )

Other, including options exercised — — 5 2

Comprehensive income (loss)

Ending Balance 29 1,230

4 unchanged sentences

Notes to Consolidated Financial Statements

June 30, 2025

December 31, 2025

BASIS OF PRESENTATION

4 unchanged sentences

These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2025 filed with the SEC on November 14, 2025.

The results of operations for the three and nine month periods ended June 30, 2025 are not necessarily indicative of results for the Company’s 2025 fiscal year because of seasonal and other factors.

The results of operations for the three month period ended December 31, 2025 is not necessarily indicative of results for the Company’s 2026 fiscal year because of seasonal and other factors.

On April 1, 2025, the Company realigned into three reportable segments (Americas, EMEA and APAC) from four reportable segments (Global Products, Building Solutions North America, Building Solutions EMEA/LA and Building Solutions APAC).

2 unchanged sentences

Nature of Operations

Johnson Controls International plc, headquartered in Cork, Ireland, is a global leader in smart, safe, healthy and sustainable buildings, serving a wide range of customers around the globe.

The Company’s products and solutions advance the safety, comfort and intelligence of spaces to serve people, places and the planet.

The Company is committed to helping its customers win and creating greater value for all of its stakeholders through its strategic focus on buildings.

Johnson Controls International plc, headquartered in Cork, Ireland, a global technology leader in energy efficiency, decarbonization, thermal management and mission-critical performance, helps customers use energy more productively, reduce carbon emissions, and operate with the precision and resilience required in rapidly expanding industries such as data centers, healthcare, pharmaceuticals, advanced manufacturing, and higher education.

The Company is a global leader in engineering, manufacturing, commissioning and retrofitting building products and systems, including commercial heating, ventilating, air-conditioning ("HVAC") equipment, industrial refrigeration systems, controls, security systems, fire-detection systems and fire-suppression solutions.

The Company further serves customers by providing technical services, including maintenance, management, repair, retrofit and replacement of equipment (in the HVAC, industrial refrigeration, controls, security and fire-protection space) and energy-management consulting.

The Company partners with customers by leveraging its broad product portfolio and digital capabilities, together with its direct channel service and solutions capabilities, to deliver outcome-based solutions across the lifecycle of a building that address customers’ needs to improve energy efficiency, enhance security, create healthy environments and reduce greenhouse gas emissions.

As discussed in more detail in Note 3, "Assets and Liabilities Held for Sale and Discontinued Operations", of the notes to the consolidated financial statements, the Company entered into a definitive agreement to sell 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 owns 60 % and Hitachi owns 40 %.

The R&LC HVAC business, which was previously reported in the Global Products segment prior to the Company's resegmentation, meets 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, and assets and liabilities are classified as held for sale for all periods presented.

Unless otherwise noted, all activities and amounts reported in the following footnotes relate to the continuing operations of the Company and exclude activities and amounts related to the R&LC HVAC business.

The Company partners with customers by leveraging its broad product portfolio and digital capabilities, together with its direct channel capabilities, to deliver solutions and services addressing distinct and diverse operating environments and regulatory requirements that address customers’ needs in their core missions.

Principles of Consolidation

1 unchanged sentence

The results of companies acquired or disposed of during the reporting period are included in the consolidated financial statements from the effective date of acquisition or up to the date of disposal.

Investments in partially-owned affiliates are accounted for by the equity method when the Company exercises significant influence, which typically occurs when its ownership interest exceeds 20%, and the Company does not have a controlling interest.

Prior Period Revision – Statement of Cash Flows

Amounts reported as "Repayments of debt" and "Proceeds from debt" have been revised for certain short-term debt transactions that occurred in the three months ended December 31, 2024 and were incorrectly presented on a net basis within the financing activities section of the consolidated statements of cash flows.

A similar revision for the periods ended March 31, 2025 and June 30, 2025 will be included in future Quarterly Reports on Form 10-Q.

Cash provided by financing activities and the total increase (decrease) in cash, cash equivalents and restricted cash were unchanged for all affected periods.

The Company does not consider the incorrect presentation to be material to any periods impacted.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

The Company consolidates variable interest entities ("VIE") when it has the power to direct the significant activities of the entity and the obligation to absorb losses or receive benefits from the entity that may be significant.

The Company did not have any material consolidated or nonconsolidated VIE's for the presented reporting periods.

December 31, 2025

NEW ACCOUNTING STANDARDS

Recently Adopted Accounting Pronouncements

In September 2022, the FASB issued ASU 2022-04, "Disclosure of Supplier Finance Program Obligations," which is intended to enhance the transparency surrounding the use of supplier finance programs.

Supplier finance programs may also be referred to as reverse factoring, payables finance, or structured payables arrangements.

The amendments require a buyer that uses supplier finance programs to make annual disclosures about the program’s key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period, and associated rollforward information.

Only the amount outstanding at the end of the period must be disclosed in interim periods.

The Company adopted the new disclosures, other than the rollforward disclosure, as required at the beginning of fiscal 2024.

The rollforward disclosure will be adopted as required in fiscal 2025.

Amounts outstanding related to supply chain financing ("SCF") programs are included in accounts payable in the consolidated statements of financial position.

Accounts payable included in the SCF programs were $ 844 million and $ 703 million as of June 30, 2025 and September 30, 2024, respectively.

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures," which is intended to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses.

In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements.

The Company adopted the new annual disclosures as required for fiscal 2025 and the interim disclosures as required in the first quarter of fiscal 2026.

Refer to Note 16, "Segment Information," of the notes to consolidated financial statements for the Company's segment disclosures.

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses," which is intended to enhance transparency into the nature and function of expenses.

The amendments require that on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation, amortization and depletion.

The Company expects to adopt the new annual disclosures as required for fiscal 2028 and the interim disclosures as required beginning with the first quarter of fiscal 2029.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740):

3 unchanged sentences

The Company expects to adopt the new annual disclosures as required for fiscal 2026.

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures," which is intended to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses.

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses," which is intended to enhance transparency into the nature and function of expenses.

The Company expects to adopt the new annual disclosures as required for fiscal 2028 and the interim disclosures as required beginning with the first quarter of fiscal 2029.

In September 2025, the FASB issued ASU 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software," which is intended to increase the operability of the recognition guidance considering different methods of software development.

The amendments remove all references to prescriptive and sequential software development stages (referred to as “project stages”) throughout Subtopic 350-40, and instead specify an entity is required to start capitalizing software costs when both of the following occur:

(1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the “probable-to complete recognition threshold”).

The Company expects to adopt the new guidance as required for fiscal 2029 and is evaluating the impact the new standard will have on its consolidated financial statements.

Other recently issued accounting pronouncements are not expected to have a material impact on the Company's consolidated financial statements.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

The Company does not expect the recently issued accounting pronouncements above to have a material impact on its consolidated financial statements other than the related incremental disclosures.

Other recently issued accounting pronouncements are not expected to have a material impact on the Company's consolidated financial statements.

ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

In July 2024, the Company entered into a definitive agreement to sell its R&LC HVAC business, which includes the North America Ducted businesses and the global Residential joint venture with Hitachi, of which Johnson Controls owns 60 % and Hitachi owns 40 %, to Bosch Group for approximately $ 8.1 billion in cash with the Company’s portion of the aggregate consideration being approximately $ 6.7 billion, inclusive of an upfront royalty payment for the licensing of the York tradename.

The transaction closed on July 31, 2025 with net cash proceeds of approximately $ 5.0 billion after tax and transaction-related expenses.

The R&LC HVAC business, which was previously reported in the Global Products segment prior to the Company's resegmentation, meets the criteria to be classified as discontinued operations as it represents a strategic shift in the Company's operations and results in the exit of substantially all of its residential and light commercial HVAC businesses.

Results of the business are presented in discontinued operations for all periods presented.

The Company determined that the assets and liabilities for the R&LC HVAC business met the held for sale criteria during the fourth quarter of 2024.

Accordingly, the assets and liabilities of the business were reclassified in the consolidated balance sheets at June 30, 2025 and September 30, 2024 to held for sale, and the Company ceased recording depreciation and amortization for the held for sale assets.

The following table summarizes the results of the R&LC HVAC business which are reported as discontinued operations (in millions):

Three Months Ended June 30, Nine Months Ended June 30,

2025 2024 2025 2024

December 31, 2025

ADT Mexico Security Business

On October 31, 2025, the Company completed the sale of its ADT Mexico Security business for net proceeds of $ 207 million.

In connection with the sale, the Company recognized a pre-tax gain of $ 70 million within selling, general and administrative expenses in the consolidated statements of income.

The held for sale assets and liabilities in the consolidated balance sheet at September 30, 2025 included $ 154 million of assets and $ 21 million of liabilities associated with the ADT Mexico Security business as the Company determined that the held for sale criteria was met in the third quarter of 2025.

Assets and Liabilities Held for Sale

During the first quarter of fiscal 2026, the Company signed a definitive agreement to sell a component of its EMEA Security business and determined that it met the criteria to be classified as held for sale.

As the estimated fair value less costs to sell was below its carrying value, the Company recorded non-cash impairment charges of $ 50 million within restructuring and impairment costs in the consolidated statements of income.

As of December 31, 2025, $ 106 million of assets and $ 19 million of liabilities associated with the business were separately presented in the consolidated statements of financial position.

The remaining assets and liabilities classified as held for sale as of December 31, 2025 relate to other immaterial disposal groups.

The business did not meet the criteria to be classified as a discontinued operation as the divestiture does not represent a strategic shift that will have a major effect on the Company's operations and financial results.

The transaction is expected to close in the second quarter of fiscal 2026.

Residential & Light Commercial ("R&LC") HVAC business

In 2024, the Company determined that the R&LC HVAC business, which was previously reported in the Global Products segment, met the criteria to be classified as discontinued operations as it represented a strategic shift in the Company's operations and resulted in the exit of substantially all of its residential and light commercial HVAC businesses.

In July 2025, the Company completed the sale of its R&LC HVAC business.

The results of the R&LC HVAC business recorded in income from discontinued operations, net of tax, was a loss of $ 31 million for the three months ended December 31, 2025 associated with estimated post-closing working capital and net debt adjustments.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

The following table summarizes the results of the R&LC HVAC business which were reported as discontinued operations (in millions) for the three months ended December 31, 2024:

Net sales $ 966

10 unchanged sentences

Income from discontinued operations $ 56

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

The following table summarizes the assets and liabilities of the R&LC HVAC business which were classified as held for sale (in millions):

June 30, 2025 September 30, 2024

Accounts receivable - net 751 592

Inventories 1,089 876

Other current assets 135 122

Current assets held for sale 1,977 1,595

Property, plant and equipment - net 808 793

Goodwill 1,195 1,182

Other intangible assets - net 98 96

Investments in partially-owned affiliates 769 949

Other noncurrent assets 198 190

Noncurrent assets held for sale 3,068 3,210

Total assets classified as held for sale $ 5,045 $ 4,805

Accounts payable $ 1,083 $ 917

Accrued compensation and benefits 101 113

Deferred revenue 125 84

Other current liabilities 339 317

Current liabilities held for sale 1,648 1,431

Pension and postretirement benefit obligations 27 28

Other noncurrent liabilities 362 377

Noncurrent liabilities held for sale 389 405

Total liabilities classified as held for sale $ 2,037 $ 1,836

During the third quarter of fiscal 2025, the Company signed a definitive agreement to sell its ADT Mexico residential security business.

The transaction is expected to close in the first quarter of fiscal 2026.

The ADT Mexico business, which is reported in the EMEA segment, does not meet the criteria to be classified as discontinued operations as it does not represent a strategic shift in the Company's operations nor result in the exit of substantially all of its residential security businesses.

The Company determined that the assets and liabilities of the ADT Mexico business met the held for sale criteria during the third quarter of 2025.

Accordingly, $ 122 million of assets and $ 23 million of liabilities associated with the ADT Mexico business were reclassified to held for sale in the consolidated balance sheet at June 30, 2025.

Assets and liabilities classified as held for sale are required to be recorded at the lower of carrying value or fair value less costs to sell.

As of June 30, 2025, the estimated fair value less costs to sell of the held for sale businesses exceeded their carrying value, and therefore, no adjustment was necessary.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

REVENUE RECOGNITION

Disaggregated Revenue

The following tables present the Company's revenues disaggregated by segment and by Products & Systems and Services revenue (in millions):

Three Months Ended June 30,

Products & Systems Services Total Products & Systems Services Total

$ 2,847 $ 1,195 $ 4,042 $ 2,887 $ 1,148 $ 4,035

756 517 1,273 710 467 1,177

519 218 737 492 194 686

Total $ 4,122 $ 1,930 $ 6,052 $ 4,089 $ 1,809 $ 5,898

Nine Months Ended June 30,

The following table presents the Company's revenues disaggregated by segment and by Products & Systems and Services revenue (in millions):

Three Months Ended December 31,

Products & Systems Services Total Products & Systems Services Total

8 unchanged sentences

The following table presents the location and amount of contract balances in the Company's consolidated statements of financial position (in millions):

Location of contract balances June 30, 2025 September 30, 2024

Location of contract balances December 31, 2025 September 30, 2025

Contract assets - current Accounts receivable - net $ 2,343 $ 2,178

2 unchanged sentences

Contract liabilities - noncurrent Other noncurrent liabilities 501 478

For the three months ended June 30, 2025 and 2024, the Company recognized revenue of $ 279 million and $ 267 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year.

For the nine months ended June 30, 2025 and 2024, the Company recognized revenue of $ 1,550 million and $ 1,475 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

December 31, 2025

For the three months ended December 31, 2025 and 2024, the Company recognized revenue of $ 1,004 million and $ 878 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year.

Performance Obligations

1 unchanged sentence

The timing of satisfying the performance obligation is typically stipulated by the terms of the contract.

As of June 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $ 22.4 billion, of which approximately 63 % is expected to be recognized as revenue over the next two years .

As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $ 24.5 billion, of which approximately 65 % is expected to be recognized as revenue over the next two years .

The remaining performance obligations expected to be recognized in revenue beyond two years primarily relate to large, multi-purpose construction contracts, which include services to be performed over the building's lifetime, with initial contract terms of 25 to 35 years.

Future contract modifications could affect both the timing and the amount of the remaining performance obligations.

The Company excludes the value of remaining performance obligations for service contracts with an original expected duration of one year or less and contracts that are cancellable without substantial penalty.

The Company excludes the value of remaining performance obligations of service contracts with a duration of one year or less and open purchase orders from the indirect third-party sales channel that have a short cycle time (generally 60 days or less).

Costs to Obtain or Fulfill a Contract

1 unchanged sentence

These costs consist primarily of sales commissions and design costs that relate to a contract or an anticipated contract that the Company expects to recover.

Costs to obtain or fulfill a contract are capitalized and amortized over the period of contract performance.

Costs to obtain or fulfill a contract are capitalized when incurred and amortized to expense over the period of contract performance.

The following table presents the location and amount of costs to obtain or fulfill a contract recorded in the Company's consolidated statements of financial position (in millions):

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Other current assets $ 320 $ 327

1 unchanged sentence

Total $ 553 $ 576

During the three months ended June 30, 2025 and 2024, the C ompany recognized expense of $ 104 million and $ 84 million, respectively, related to costs to obtain or fulfill a contract.

During the nine months ended June 30, 2025 and 2024, the C om pany recognized expense of $ 279 million and $ 218 million, respectively, related to costs to obtain or fulfill a contract.

Amortization of costs to obtain or fulfill a contract was $ 102 million and $ 84 million during the three months ended December 31, 2025 and 2024, respectively.

Inventories consisted of the following (in millions):

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Raw materials and supplies $ 797 $ 716

4 unchanged sentences

Notes to Consolidated Financial Statements

June 30, 2025

December 31, 2025

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table summarizes changes in the carrying amount of goodwill in each of the Company’s reportable segments (in millions):

Nine Months Ended June 30, 2025

Three Months Ended December 31, 2025

Americas EMEA APAC Total

5 unchanged sentences

Balance at end of period $ 13,194 $ 2,070 $ 1,346 $ 16,610

(1) Includes measurement period adjustments and the allocation of $ 56 million of goodwill from EMEA to the ADT Mexico residential security business disposal group classified as held for sale.

Refer to Note 3, "Assets and Liabilities Held for Sale and Discontinued Operations" of the notes to the consolidated financial statements for further information.

At April 1, 2025, the Company reallocated goodwill of reporting units impacted by the change in reportable segments described in Note 16, "Segment Information," of the notes to the consolidated financial statements and assessed goodwill for impairment.

The Company determined that the estimated fair value of each reporting unit exceeded its corresponding carrying amount including recorded goodwill, and as such, no impairment existed at April 1, 2025.

During the third quarter of fiscal 2025, the Company signed a definitive agreement to sell its ADT Mexico residential security business, resulting in a triggering event for the impacted reporting unit.

The Company performed a quantitative goodwill impairment test of the reporting unit with $ 174 million of remaining goodwill, and its fair value was slightly in excess of its carrying value.

However, for this reporting unit, a 50 basis point increase in the discount rate, or a 100 basis point decrease in the revenue growth rates, would cause the fair value to be less than the carrying value.

While no impairment was recorded, it is possible that future changes in circumstances could result in a non-cash impairment charge.

The Company used a discounted cash flow model to estimate the fair value of the reporting unit.

The primary assumptions used in the model were management's internal projections of future cash flows, the weighted-average cost of capital and the long-term growth rate, which are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement." This reporting unit was previously disclosed as being at risk of impairment in the Company’s Annual Report on Form 10-K for the year-ended September 30, 2024.

(1) Includes the allocation of $ 38 million of goodwill from an EMEA reporting unit to the disposal group classified as held for sale.

Refer to Note 3, "Divestitures" of the notes to the consolidated financial statements for further information.

Other intangible assets, primarily from business acquisitions, consisted of (in millions):

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Amount Accumulated

10 unchanged sentences

Total intangible assets $ 6,138 $ ( 2,588 ) $ 3,550 $ 6,110 $ ( 2,497 ) $ 3,613

Amortization of other intangible assets included within continuing operations for the three months ended June 30, 2025 and 2024 was $ 110 million and $ 116 million, respectively.

Amortization of other intangible assets included within continuing operations for the nine months ended June 30, 2025 and 2024 was $ 342 million and $ 357 million, respectively.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

The following table presents supplemental consolidated statement of financial position information (in millions):

Location of lease balances June 30, 2025 September 30, 2024

Operating lease right-of-use assets Other noncurrent assets

$ 1,319 $ 1,170

Operating lease liabilities - current Other current liabilities

Operating lease liabilities - noncurrent Other noncurrent liabilities

Amortization of other intangible assets included within continuing operations for the three months ended December 31, 2025 and 2024 was $ 87 million and $ 120 million, respectively.

SUPPLEMENTAL CASH FLOW DISCLOSURES

The following table presents supplemental noncash operating lease activity (in millions):

Nine Months Ended June 30,

Three Months Ended December 31,

Right-of-use assets obtained in exchange for operating lease liabilities $ 104 $ 130

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

SUPPLY CHAIN FINANCING

The Company maintains agreements with third-party financial institutions who offer voluntary supply chain financing ("SCF") programs to its suppliers.

The SCF programs enable suppliers to sell their receivables to third-party financial institutions and receive payments earlier than the negotiated commercial terms between the suppliers and the Company, which generally range from 90 to 120 days.

Suppliers sell receivables to third-party financial institutions on terms negotiated between the supplier and the respective third-party financial institution.

The Company remains obligated to make payments under the terms of the original commercial arrangement regardless of whether the supplier receivable is sold, and does not pledge any assets as security or provide other forms of guarantees for the committed payment to the third-party financial institutions.

Amounts outstanding related to SCF programs are included in accounts payable in the consolidated statements of financial position.

Accounts payable included in the SCF programs were approximately $ 910 million and $ 835 million as of December 31, 2025 and September 30, 2025, respectively.

DEBT AND FINANCING ARRANGEMENTS

Short-term debt consisted of the following (in millions):

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Commercial paper $ 200 $ 400

Term loans 236 320

$ 1,277 $ 953

Bank borrowings — 3

Weighted average interest rate on short-term debt outstanding 4.3 % 4.5 %

As of June 30, 2025, the Company had two syndicated committed revolving credit facilities, including $ 2.5 billion which is scheduled to expire in December 2028 and $ 500 million which is scheduled to expire in December 2025.

There were no draws on the facilities as of June 30, 2025.

In February 2025, the Company repaid € 476 million of its 1.375 % Notes due 2025 and extinguished $ 7 million of its 5.125 % Notes due 2045 through a bilateral private purchase.

In December 2024, the Company and its wholly-owned subsidiary, Tyco Fire & Security Finance S.C.A, co-issued the following unsecured, unsubordinated senior notes:

• $ 250 million 4.900 % Senior Notes due 2032.

These notes are a further issuance of the $ 400 million, 4.900 % Senior Notes due 2032, which were originally issued in September 2022.

• € 500 million 3.125 % Senior Notes due 2033.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Cash Flow Hedges

The Company has global operations and participates in foreign exchange markets to minimize its risk of loss from fluctuations in foreign currency exchange rates.

The Company selectively hedges anticipated transactions that are subject to foreign exchange rate risk primarily using foreign currency exchange forward contracts.

The Company hedges 70 % to 90 % of the notional amount of each of its known foreign exchange transactional exposures.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

The Company selectively hedges anticipated transactions that are subject to commodity price risk, primarily using commodity hedge contracts, to minimize overall price risk associated with the Company’s purchases of copper and aluminum in cases where commodity price risk cannot be naturally offset or hedged through supply base fixed price contracts.

Commodity risks are systematically managed pursuant to policy guidelines.

The maturities of the commodity hedge contracts coincide with the expected purchase of the commodities.

Under ASC 815, "Derivatives and Hedging," cash flow hedge gains or losses due to changes in fair value are initially recorded as a component of accumulated other comprehensive income ("AOCI") and are subsequently reclassified into earnings when the hedged transactions occur and affect earnings.

These contracts were highly effective in hedging the variability in future cash flows attributable to changes in currency exchange rates and commodity prices during the three and nine months ended June 30, 2025 and 2024.

The Company had the following outstanding contracts to hedge forecasted commodity purchases (in metric tons):

Volume Outstanding as of

Commodity June 30, 2025 September 30, 2024

Copper 2,313 2,676

Aluminum 974 2,450

The Company may enter into forward-starting interest rate swaps in conjunction with anticipated note issuances to manage exposure to interest rate changes.

The forward-starting interest swaps are terminated when the anticipated notes are issued.

Net Investment Hedges

The Company may enter into cross-currency interest rate swaps and foreign currency denominated debt obligations to selectively hedge portions of its net investment in non-U.S.

subsidiaries.

The currency effects of the cross-currency interest rate swaps and debt obligations are reflected in the AOCI account within shareholders’ equity attributable to Johnson Controls ordinary shareholders where they offset gains and losses recorded on the Company’s net investments globally.

The following table summarizes net investment hedges (in billions):

June 30, September 30,

Euro-denominated bonds designated as net investment hedges in Europe € 2.9 € 2.9

Yen-denominated debt designated as a net investment hedge in Japan ¥ 30 ¥ 30

Derivatives Not Designated as Hedging Instruments

The Company holds certain foreign currency forward contracts not designated as hedging instruments under ASC 815 to hedge foreign currency exposure resulting from monetary assets and liabilities denominated in nonfunctional currencies.

The changes in fair value of these foreign currency forward exchange derivatives are recorded in the consolidated statements of income where they offset foreign currency transactional gains and losses on the nonfunctional currency denominated assets and liabilities being hedged.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

Fair Value of Derivative Instruments

The following table presents the location and fair values of derivative instruments and hedging activities included in the Company’s consolidated statements of financial position (in millions):

Derivatives and Hedging Activities

as Hedging Instruments Derivatives and Hedging Activities

Not Designated

as Hedging Instruments

June 30, September 30, June 30, September 30,

2025 2024 2025 2024

Other current assets

Foreign currency exchange derivatives $ 13 $ 19 $ — $ 1

Commodity derivatives 3 2 — —

Total assets $ 16 $ 21 $ — $ 1

Other current liabilities

Foreign currency exchange derivatives $ 7 $ 24 $ 11 $ 1

Commodity derivatives 1 1 — —

Long-term debt

Foreign currency denominated debt 3,611 3,424 — —

Total liabilities $ 3,619 $ 3,449 $ 11 $ 1

Counterparty Credit Risk

The use of derivative financial instruments exposes the Company to counterparty credit risk.

The Company has established policies and procedures to limit the potential for counterparty credit risk, including establishing limits for credit exposure and continually assessing the creditworthiness of counterparties.

As a matter of practice, the Company deals with major banks worldwide having strong investment grade long-term credit ratings.

To further reduce the risk of loss, the Company generally enters into International Swaps and Derivatives Association ("ISDA") master netting agreements with substantially all of its counterparties.

The Company enters into ISDA master netting agreements with counterparties that permit the net settlement of amounts owed under the derivative contracts.

The master netting agreements generally provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event.

The Company has not elected to offset the fair value positions of the derivative contracts recorded in the consolidated statements of financial position.

The Company's derivative contracts do not contain any credit risk related contingent features and do not require collateral or other security to be furnished by the Company or the counterparties.

The Company's exposure to credit risk associated with its derivative instruments is measured on an individual counterparty basis, as well as by groups of counterparties that share similar attributes.

The Company does not anticipate any non-performance by any of its counterparties, and the concentration of risk with financial institutions does not present significant credit risk to the Company.

The gross and net amounts of derivative assets and liabilities were as follows (in millions):

Fair Value of Assets Fair Value of Liabilities

June 30, September 30, June 30, September 30,

2025 2024 2025 2024

Gross amount recognized $ 16 $ 22 $ 3,630 $ 3,450

Gross amount eligible for offsetting ( 10 ) ( 12 ) ( 10 ) ( 12 )

Net amount $ 6 $ 10 $ 3,620 $ 3,438

As of December 31, 2025, the Company had an outstanding syndicated committed revolving credit facility of $ 2.5 billion which is scheduled to expire in December 2028.

There were no draws on the facility as of December 31, 2025.

The following table presents the Company's net financing charges (in millions):

Three Months Ended December 31,

(in millions) 2025 2024

Interest expense, net of capitalized interest costs $ 42 $ 67

Other financing charges 7 6

Interest income ( 2 ) ( 3 )

Net foreign exchange results for financing activities 12 16

Net financing charges $ 59 $ 86

Net financing charges includes pre-tax losses on derivatives not designated as hedging instruments of $ 155 million and $ 144 million for the three months ended December 31, 2025 and 2024, respectively, which are offset by gains resulting from changes in foreign exchange rates on underlying exposures during those periods.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

Derivatives Impact on the Statements of Income and Statements of Comprehensive Income

The following table presents the pre-tax gains (losses) recorded in other comprehensive income (loss) related to cash flow hedges (in millions):

Derivatives in Cash Flow

Hedging Relationships Three Months Ended June 30, Nine Months Ended June 30,

2025 2024 2025 2024

Foreign currency exchange derivatives $ — $ 2 $ 15 $ 4

Commodity derivatives — 4 3 5

Interest rate swaps — — — ( 21 )

Total $ — $ 6 $ 18 $ ( 12 )

The following table presents the location and amount of the pre-tax gains (losses) on cash flow hedges reclassified from AOCI into the Company’s consolidated statements of income (in millions):

Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from AOCI into Income Three Months Ended June 30, Nine Months Ended June 30,

2025 2024 2025 2024

Foreign currency exchange derivatives Cost of sales $ 4 $ 4 $ 7 $ 1

Commodity derivatives Cost of sales 2 — 1 ( 4 )

Total $ 6 $ 4 $ 8 $ ( 3 )

The following table presents the location and amount of pre-tax gains (losses) on derivatives not designated as hedging instruments recognized in the Company’s consolidated statements of income (in millions):

Derivatives Not Designated as Hedging Instruments Location of Gain (Loss)

Recognized in Income on Derivative Three Months Ended June 30, Nine Months Ended June 30,

2025 2024 2025 2024

Foreign currency exchange derivatives Cost of sales $ — $ ( 4 ) $ ( 8 ) $ ( 7 )

Foreign currency exchange derivatives SG&A 1 2 ( 1 ) 2

Foreign currency exchange derivatives Net financing charges 71 20 ( 13 ) 36

Total $ 72 $ 18 $ ( 22 ) $ 31

The following table presents pre-tax gains (losses) on net investment hedges recorded as foreign currency translation adjustments ("CTA") within other comprehensive income (loss) (in millions):

Three Months Ended June 30, Nine Months Ended June 30,

2025 2024 2025 2024

Net investment hedges $ ( 269 ) $ 44 $ ( 162 ) $ ( 3 )

No gains or losses were reclassified from CTA into income during the three and nine months ended June 30, 2025 and 2024.

December 31, 2025

FAIR VALUE MEASUREMENTS

2 unchanged sentences

Observable inputs such as quoted prices in active markets for identical assets or liabilities;

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs, other than quoted prices in active markets, that are observable either directly or indirectly;

5 unchanged sentences

Fair Value Measurements Using:

June 30, 2025 Quoted Prices

December 31, 2025 Quoted Prices

(Level 1) Significant

1 unchanged sentence

Other current assets

Foreign currency exchange derivatives $ 13 $ — $ 13 $ —

Commodity derivatives 3 — 3 —

$ 26 $ — $ 26 $ —

Other noncurrent assets

4 unchanged sentences

Other current liabilities

Foreign currency exchange derivatives $ 18 $ — $ 18 $ —

Commodity derivatives 1 — 1 —

$ 62 $ — $ 62 $ —

Contingent earn-out liabilities 19 — — 19

4 unchanged sentences

Notes to Consolidated Financial Statements

June 30, 2025

December 31, 2025

Fair Value Measurements Using:

3 unchanged sentences

Other current assets

Foreign currency exchange derivatives $ 20 $ — $ 20 $ —

Commodity derivatives

$ 15 $ — $ 15 $ —

Other noncurrent assets

4 unchanged sentences

Other current liabilities

Foreign currency exchange derivatives $ 25 $ — $ 25 $ —

Commodity derivatives 1 — 1 —

Contingent earn-out liabilities 14 — — 14

Other noncurrent liabilities

$ 24 $ — $ 24 $ —

Contingent earn-out liabilities 19 — — 19

2 unchanged sentences

See Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further details.

Net Investment Hedges

The Company enters into foreign-currency-denominated debt obligations in order to manage foreign currency translation risk associated with normal operations.

The carrying value of foreign operations translates on a recurring basis using the exchange rate at the end of the applicable period and approximates its fair value.

As of both December 31, 2025 and September 30, 2025, the Company had designated debt obligations of € 2.9 billion and ¥ 30 billion as partial hedges of its investments in certain euro-denominated and yen-denominated subsidiaries.

The fair value of foreign-currency-denominated debt was $ 3.5 billion as of December 31, 2025 and $ 3.6 billion as of September 30, 2025.

The currency effects of the debt obligations are reflected in the accumulated other comprehensive income ("AOCI") account within shareholders' equity attributable to Johnson Controls ordinary shareholders where they offset gains and losses recorded on the Company’s net investments globally.

Pre-tax gains on net investment hedges recorded as foreign currency translation adjustments ("CTA") within other comprehensive income (loss) were $ 16 million and $ 238 million for the three months ended December 31, 2025 and 2024, respectively.

Valuation Methods

Commodity derivatives :

The commodity derivatives are valued under a market approach using publicized prices, where available, or dealer quotes.

Contingent earn-out liabilities :

4 unchanged sentences

Unrealized gains (losses) on the deferred compensation plan assets are recognized in the consolidated statements of income where they offset unrealized gains and losses on the related deferred compensation plan liability.

Derivatives :

The derivatives are valued under a market approach using publicly available prices, where available, or dealer quotes.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

Exchange traded funds :

1 unchanged sentence

Refer to Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further information.

Foreign currency exchange derivatives :

The foreign currency exchange derivatives are valued under a market approach using publicized spot and forward prices.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

The following table presents the portion of unrealized gains recognized in the consolidated statements of income that relate to equity securities still held at June 30, 2025 and 2024 (in millions):

Three Months Ended June 30, Nine Months Ended June 30,

2025 2024 2025 2024

Deferred compensation plan assets $ 4 $ — $ 2 $ 7

Investments in exchange traded funds 20 4 12 43

Unrealized gains (losses) recognized in the consolidated statements of income that relate to equity securities still held at December 31, 2025 and 2024 were $ 4 million and $( 2 ) million for the three months ended December 31, 2025 and 2024, respectively.

The fair values of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values.

The fair value of long-term debt at June 30, 2025 and September 30, 2024 was as follows (in billions):

June 30, September 30,

The fair value of long-term debt at December 31, 2025 and September 30, 2025 was as follows (in billions):

December 31, September 30,

Public debt $ 8.4 $ 8.4

3 unchanged sentences

The fair value of other long-term debt was determined using quoted market prices for similar instruments and are classified as Level 2 inputs within the ASC 820 fair value hierarchy.

EARNINGS PER SHARE

The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share (in millions):

WEIGHTED AVERAGE SHARES OUTSTANDING

The following table reconciles shares used to calculate basic and diluted earnings per share (in millions):

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Income Available to Ordinary Shareholders

Income from continuing operations $ 618 $ 852 $ 1,454 $ 871

Income from discontinued operations 83 123 144 201

Basic and diluted income available to shareholders $ 701 $ 975 $ 1,598 $ 1,072

Weighted Average Shares Outstanding

8 unchanged sentences

Notes to Consolidated Financial Statements

June 30, 2025

December 31, 2025

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

1 unchanged sentence

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Foreign currency translation adjustments

2 unchanged sentences

Balance at end of period ( 633 ) ( 1,041 )

Realized and unrealized gains (losses) on derivatives

Balance at beginning of period ( 4 ) ( 8 )

1 unchanged sentence

Reclassification to income

( 6 ) ( 3 ) ( 8 ) 4

Net tax impact — ( 1 )

Balance at end of period 2 ( 3 )

Pension and postretirement plans

Balance at beginning of period ( 6 ) ( 2 ) ( 4 ) —

Reclassification to income ( 1 ) ( 1 ) ( 3 ) ( 4 )

Net tax impact 1 — 1 1

Balance at end of period ( 6 ) ( 3 ) ( 6 ) ( 3 )

Accumulated other comprehensive loss, end of period $ ( 631 ) $ ( 1,044 )

(1) Refer to Note 9, "Derivative Instruments and Hedging Activities," of the notes to the consolidated financial statements for disclosure of the line items in the consolidated statements of income affected by reclassifications from AOCI into income related to derivatives.

PENSION AND RETIREMENT PLANS

Unless otherwise noted, all activities and amounts reported in this footnote include both continuing operations of the Company and activities and amounts related to the R&LC HVAC business.

See Note 3, "Assets and Liabilities Held for Sale and Discontinued Operations" for additional details regarding divestiture of the R&LC HVAC business.

The components of the Company’s net periodic benefit cost (credit) associated with its defined benefit pension and postretirement plans, which are primarily recorded in selling, general and administrative expenses in the consolidated statements of income, are shown in the tables below in accordance with ASC 715, "Compensation – Retirement Benefits" (in millions):

Pension Plans

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Interest cost $ 16 $ 20 $ 49 $ 59

Expected return on plan assets ( 24 ) ( 30 ) ( 73 ) ( 90 )

Net periodic benefit credit $ ( 8 ) $ ( 10 ) $ ( 24 ) $ ( 31 )

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

Pension Plans

The components of net periodic benefit cost (credit) associated with defined benefit pension and postretirement plans, which are primarily recorded in selling, general and administrative expenses in the consolidated statements of income, are shown in the table below (in millions):

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Service cost $ 4 $ 4

1 unchanged sentence

Expected return on plan assets ( 44 ) ( 46 )

Net periodic benefit cost $ 1 $ 3 $ 3 $ 9

Postretirement Benefits

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Interest cost $ 1 $ 1 $ 2 $ 3

Expected return on plan assets ( 3 ) ( 3 ) ( 8 ) ( 7 )

Amortization of prior service credit

4 unchanged sentences

The Company expects the restructuring actions to reduce cost of sales and SG&A due to reduced employee-related costs, depreciation and amortization expense.

During the fourth quarter of fiscal 2024, the Company completed its previous restructuring plan and committed to a new multi-year restructuring plan to address stranded costs and further right-size its global operations as a result of previously announced portfolio simplification actions.

It is expected that one-time restructuring costs, including severance and other employee termination benefits, contract termination costs, and certain other related cash and non-cash charges, of approximately $ 400 million will be incurred over the course of fiscal 2025, 2026 and 2027.

Restructuring costs will be incurred across all segments and Corporate functions.

During the fourth quarter of fiscal 2024, the Company committed to a multi-year restructuring plan to address stranded costs and further right-size its global operations as a result of portfolio simplification actions.

It is expected that the plan will be completed in fiscal 2027 and the Company will incur one-time restructuring costs, including severance and other

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

employee termination benefits, contract termination costs, and certain other related cash and non-cash charges, totaling approximately $ 400 million.

The following table summarizes restructuring and related costs (in millions):

Three Months Ended June 30, 2025 Nine Months Ended June 30, 2025

Three Months Ended December 31, 2025 Inception to December 31, 2025

Americas $ 9 $ 60

1 unchanged sentence

Total $ 37 $ 201

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

The following table summarizes changes in the reserve under the Company's restructuring plan announced in the fourth quarter of fiscal 2024, which is included within other current liabilities in the consolidated statements of financial position (in millions):

Employee Severance and Termination Benefits Long-Lived Asset Impairments Other Total

Balance at September 30, 2025

$ 39 $ — $ 5 $ 44

Restructuring and related costs 25 10 2 37

Utilized—cash ( 28 ) — ( 2 ) ( 30 )

Utilized—noncash — ( 10 ) — ( 10 )

Other 3 — 2 5

Balance at June 30, 2025

Balance at December 31, 2025

$ 39 $ — $ 7 $ 46

2 unchanged sentences

The statutory tax rate in Ireland is being used as a comparison since the Company is domiciled in Ireland.

For the three months ended June 30, 2025, the Company's effective tax rate for continuing operations was 12.3 % and was lower than the statutory tax rate of 12.5 % primarily due to the benefits of continuing global tax planning, partially offset by tax rate differentials.

For the nine months ended June 30, 2025, the Company's effective tax rate for continuing operations was 9.9 % and was lower than the statutory tax rate of 12.5 % primarily due to tax reserve adjustments as the result of expired statute of limitations for certain tax years and the benefits of continuing global tax planning, partially offset by tax rate differentials.

For the three months ended June 30, 2024, the Company's effective tax rate for continuing operations was 17.0 % and was higher than the statutory tax rate of 12.5 % primarily due to the tax impact of the water systems Aqueous Film Forming Foam ("AFFF") insurance proceeds and tax rate differentials, partially offset by the benefits of continuing global tax planning.

For the nine months ended June 30, 2024, the Company's effective tax rate for continuing operations was 0.1 % and was lower than the statutory tax rate of 12.5 % primarily due to the net tax impact of the water systems AFFF settlement costs and insurance proceeds, Swiss tax reform, and the benefits of continuing global tax planning, partially offset by the tax impact of an impairment charge, the establishment of a deferred tax liability on the outside basis difference of the Company's investment in certain consolidated subsidiaries, and tax rate differentials.

For the three months ended December 31, 2025, the Company's effective tax rate for continuing operations was 21.4 % and was higher than the statutory tax rate of 12.5 % primarily due to the tax impact of the water systems Aqueous Film Forming Foam ("AFFF") insurance proceeds, the tax impact of current and planned divestitures, and tax rate differentials, partially offset by the benefits of continuing global tax planning.

For the three months ended December 31, 2024, the Company's effective tax rate for continuing operations was 11.5 % and was lower than the statutory tax rate of 12.5 % primarily due to the benefits of continuing global tax planning, partially offset by tax rate differentials.

Refer to Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further disclosure related to the water systems AFFF settlement.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

Uncertain Tax Positions

1 unchanged sentence

Accrued interest, net at September 30, 2025 was approximately $ 459 million (net of tax benefit).

Interest accrued during the nine months ended June 30, 2025 and 2024 was approximately $ 64 million and $ 90 million (both net of tax benefit), respectively.

Interest accrued during the three months ended December 31, 2025 and 2024 was approximately $ 30 million and $ 28 million (both net of tax benefit), respectively.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

During the nine months ended June 30, 2025, as the result of the expiration of the statute of limitations in certain jurisdictions, the Company adjusted its reserve for uncertain tax positions which resulted in a $ 36 million net benefit to income tax expense.

In the U.S., fiscal years 2019 through 2020 are currently under audit and fiscal years 2017 through 2018 are currently under appeal with the Internal Revenue Service (“IRS”) for certain legal entities.

In addition, fiscal years 2016 through 2019 are also under exam by the IRS in relation to a separate consolidated filing group.

Additionally, the Company is currently under exam in the following major non-U.S.

jurisdictions for continuing operations:

jurisdictions:

Tax Jurisdiction Tax Years Covered

1 unchanged sentence

Germany 2007 - 2021

Mexico 2016 - 2019

United Kingdom 2014 - 2015;

It is reasonably possible that tax examinations and/or tax litigation will conclude within the next twelve months, which could have a material impact on tax expense.

It is reasonably possible that certain tax examinations and/or tax litigation will conclude within the next twelve months, which could have a material impact on tax expense.

Based upon the circumstances surrounding these examinations, the impact is not currently quantifiable.

Impacts of Tax Legislation

On July 4, 2025, the One Big Beautiful Bill Act (“OBBB”) was signed into law by the president of the United States.

It includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both U.S.

and non-U.S.), and expanding certain Inflation Reduction Act incentives while accelerating the phase-out of others.

The Company does not expect the OBBB to have a material impact on tax expense.

On December 18, 2023, the president of Ireland signed into law the Finance (No.

2) Bill 2023, which included legislation regarding the implementation of the Pillar Two global minimum tax.

The Pillar Two legislation is effective for the Company’s fiscal year beginning October 1, 2024.

The impact in the current fiscal year will not be material;

however, the Company is continuing to assess the future impact of the new legislation.

On September 11, 2023, the Schaffhausen parliament approved a partial revision of the cantonal act on direct taxation:

Immediate Minimum Taxation Measure (“IMTM”).

On November 19, 2023, IMTM was approved in a public referendum in the canton of Schaffhausen, was published in the cantonal official gazette on December 8, 2023, and was effective starting January 1, 2024.

The IMTM increased Switzerland's combined statutory income tax rate to approximately 15 %.

As a result, in the nine months ended June 30, 2024, the Company recorded a noncash discrete net tax benefit of $ 80 million due to the remeasurement of deferred tax assets and liabilities related to Switzerland and the canton of Schaffhausen.

SEGMENT INFORMATION

3 unchanged sentences

Americas also provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven "smart building" solutions, to the Americas marketplace.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

• EMEA, which designs, manufactures sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security systems, integrated fire detection and suppression systems, and digital (software) solutions for commercial, residential security (Global Subscriber business), industrial, data center, institutional, governmental, and marine customers and provides technical services, including data-driven “smart building” solutions, to markets in Europe, the Middle East and Africa.

• APAC, which designs, manufactures, sells, installs, and services HVAC, controls, building management, refrigeration, integrated electronic security systems, integrated fire detection and suppression systems, and digital (software) solutions for commercial, industrial, data center, institutional, and governmental customers and provides technical services, including data-driven “smart building” solutions, to the Asian and Pacific marketplace.

Management evaluates the performance of its segments primarily on segment earnings before interest, taxes and amortization ("EBITA"), which represents income from continuing operations before income taxes and noncontrolling interests, excluding corporate expenses, amortization of intangible assets, restructuring and impairment costs, the water systems AFFF settlement costs and insurance recoveries, net mark-to-market gains and losses related to pension and postretirement plans and restricted asbestos investments, and net financing charges.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

The Chief Executive Officer, the Company’s chief operating decision maker ("CODM"), evaluates the performance of its segments and allocates resources based on two profitability measures, Segment EBITA and Segment EBIT:

• Segment earnings before interest, taxes, and amortization (“EBITA”) represents income from continuing operations, before income taxes and noncontrolling interests, excluding corporate expenses, restructuring and impairment costs, AFFF related settlement costs and insurance recoveries, gains or losses on divestitures, net mark-to-market gains and losses related to pension and postretirement plans and restricted asbestos investments, net finance charges, and amortization.

Segment EBITA is used as a tool to allow the CODM to evaluate the recurring profitability of the segments, including revenues and expenses that are within the operational control of the segments, and excluding the impact of certain non-cash and non-recurring items.

Segment EBITA also provides the CODM with performance comparability across periods and for more accurate benchmarking against peer companies that may not have similar historical acquisition activity, by holding constant the impact of significant acquisitions.

• Segment earnings before interest and taxes ("EBIT") represents Segment EBITA, adding back the impact of amortization of intangible assets.

Segment EBIT allows the CODM to review profitability, inclusive of the impact of significant acquisition activity, informing the CODM of how the business is integrating key strategic initiatives and generating synergies.

Both EBITA and EBIT are reviewed by the CODM and compared against the profit plan and forecast for the current and prior year.

Segment EBITA and Segment EBIT are not defined under GAAP and may not be comparable to similarly titled measures used by other companies.

Measures of total assets by reportable segment are not provided to the CODM.

Therefore, asset information by segment is not disclosed.

Financial information relating to the Company’s reportable segments is as follows (in millions):

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

$ 4,042 $ 4,035 $ 11,506 $ 11,341

1,273 1,177 3,631 3,440

737 686 2,017 1,923

Total net sales $ 6,052 $ 5,898 $ 17,154 $ 16,704

Three Months Ended December 31, 2025

Net sales $ 3,843 $ 1,261 $ 693

Cost of sales 2,429 808 441

Selling, general and administrative expenses ("SG&A") 794 295 136

Equity loss — — ( 1 )

Segment EBITA 620 158 117

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

$ 742 $ 804 $ 2,038 $ 1,853

EMEA 177 154 448 397

APAC 143 128 337 320

Total segment EBITA 1,062 1,086 2,823 2,570

Corporate expenses 141 128 498 359

Amortization of intangible assets

Segment EBIT $ 544 $ 151 $ 113

Depreciation included in Cost of sales and SG&A $ 33 $ 6 $ 5

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

Three Months Ended December 31, 2024

Net sales $ 3,627 $ 1,157 $ 642

Cost of sales 2,278 754 404

SG&A 760 267 148

Segment EBITA 589 136 90

Amortization of intangible assets

Segment EBIT $ 494 $ 116 $ 85

Depreciation included in Cost of sales and SG&A $ 33 $ 5 $ 5

A reconciliation of segment EBIT and segment EBITA to consolidated income before income taxes is as follows (in millions):

Three Months Ended December 31,

Segment EBITA $ 895 $ 815

Amortization of intangible assets 87 120

Segment EBIT 808 695

Corporate expenses 156 171

Restructuring and impairment costs 87 33

Water systems AFFF settlement (1)

Water systems AFFF insurance recoveries (1)

( 130 ) ( 4 )

Net mark-to-market gains ( 21 ) ( 5 ) ( 7 ) ( 42 )

Net financing charges 59 86

Income before income taxes $ 705 $ 1,025 $ 1,614 $ 874

Gain on divestiture ( 70 ) —

Net mark-to-market adjustments ( 2 ) 1

Income from continuing operations before income taxes $ 708 $ 408

(1) Refer to Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further disclosure related to the water systems AFFF settlement.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

Certain of the Company's subsidiaries at the business segment level guarantee the performance of third parties and provide financial guarantees for uncompleted work and financial commitments.

6 unchanged sentences

The Company’s product warranty liability is recorded in the consolidated statements of financial position in other current liabilities for estimated costs to be incurred within 12 months and in other non-current liabilities for estimated costs to be incurred in more than one year.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

The following table summarizes changes in the total product warranty liability (in millions):

Balance at September 30, 2025

Accruals for warranties issued during the period 77

Settlements made during the period ( 81 )

Accruals for warranties issued 33

Settlements made ( 28 )

Changes in estimates to pre-existing warranties 9

Balance at June 30, 2025

Balance at December 31, 2025

COMMITMENTS AND CONTINGENCIES

2 unchanged sentences

The following table presents the location and amount of reserves for environmental liabilities in the Company's consolidated statements of financial position (in millions):

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Other current liabilities $ 24 $ 27

5 unchanged sentences

A substantial portion of the Company's environmental reserves relates to ongoing long-term remediation efforts to address contamination relating to Aqueous Film Forming Foam ("AFFF") containing perfluorooctane sulfonate ("PFOS"), perfluorooctanoic acid ("PFOA"), and/or other per- and poly-fluoroalkyl substances ("PFAS") at or near the Tyco Fire Products L.P.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

other contaminants at the Tyco Fire Products Stanton Street manufacturing facility also located in Marinette, Wisconsin (the “Stanton Street Facility”).

During the three months ended June 30, 2024, Tyco Fire Products completed its previously announced plan to discontinue the production and sale of fluorinated firefighting foams, including AFFF products, and has transitioned to non-fluorinated foam alternatives.

(“Tyco Fire Products”) Fire Technology Center ("FTC") located in Marinette, Wisconsin and surrounding areas in the City of Marinette and Town of Peshtigo, Wisconsin, as well as the continued remediation of PFAS, arsenic and other contaminants at the Tyco Fire Products Stanton Street manufacturing facility also located in Marinette, Wisconsin (the “Stanton Street Facility”).

Tyco Fire Products has discontinued the production and sale of fluorinated firefighting foams, including AFFF products, and has transitioned to non-fluorinated foam alternatives.

PFOA, PFOS, and other PFAS compounds are being studied by the U.S.

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EPA also announced its intent to rescind and reconsider the limits on four other types of PFAS (PFHxS, PFNA, HFPO-DA, and PFBS).

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

It is not possible to estimate the Company’s ultimate level of liability at many remediation sites due to the large number of other parties that may be involved, the complexity of determining the relative liability among those parties, the financial viability of other potentially responsible parties and third-party indemnitors, the uncertainty as to the nature and scope of the investigations and remediation to be conducted, changes in environmental regulations, changes in permissible levels of specific compounds in soil, groundwater and drinking water sources, or changes in enforcement theories and policies, including efforts to recover natural resource damages, the uncertainty in the application of law and risk assessment, the various choices and costs associated with diverse technologies that may be used in corrective actions at the sites, and the often quite lengthy periods over which eventual remediation may occur.

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In addition, the Company has identified asset retirement obligations for environmental matters that are expected to be addressed at the retirement, disposal, removal or abandonment of existing owned facilities.

Conditional asset retirement obligations were $ 7 million at both June 30, 2025 and September 30, 2024.

Conditional asset retirement obligations were $ 7 million at both December 31, 2025 and September 30, 2025.

FTC-Related Matters

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Under this agreement, Tyco Fire Products’ principal obligations are to contain the arsenic contamination on the site, pump and treat on-site groundwater, dredge, treat and properly dispose of contaminated sediments in the adjoining river areas, and monitor contamination levels on an ongoing basis.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

completed under the Consent Order since 2009 include the installation of a subsurface barrier wall around the facility to contain contaminated groundwater, the installation and ongoing operation and monitoring of a groundwater extraction and treatment system and the dredging and offsite disposal of treated river sediment.

Activities completed under the Consent Order since 2009 include the installation of a subsurface barrier wall around the facility to contain contaminated groundwater, the installation and ongoing operation and monitoring of a groundwater extraction and treatment system and the dredging and offsite disposal of treated river sediment.

In addition to ongoing remediation activities, the Company is also working with the Wisconsin Department of Natural Resources ("WDNR") to investigate and remediate the presence of PFAS at or near the Stanton Street Facility as part of the evaluation and remediation of PFAS in the Marinette region.

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The Company's reserves for continued remediation of the FTC, the Stanton Street Facility and surrounding areas in Marinette and Peshtigo are based on estimates of costs associated with the long-term remediation actions, including the continued operation of the GETS, the implementation of long-term drinking water solutions for the area impacted by groundwater migrating from the FTC, continued monitoring and testing of groundwater monitoring wells, the operation and wind-down of other legacy remediation and treatment systems and the completion of ongoing investigation obligations.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

FTC-Related Litigation

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In February 2025, the Wisconsin Department of Health Services ("WDHS") recommended individual groundwater enforcement standards of 4 ng/L for PFOA and PFOS, 10 ng/L for PFHxS, PFNA, and HFPO-DA, and 2,000 ng/L for PFBS.

Following the February 2025 WDHS recommendation, the WDNR Secretary and the Governor signed the WDNR scope statement and WDNR is in the early stages of rule development for enforcement standards for these six PFAS constituents.

Following the February 2025 WDHS recommendation, the WDNR Secretary and the Governor signed the WDNR scope statement.

In January 2026, the Wisconsin Natural Resources Board approved drinking water standards of 4 ng/L for PFOA and PFOS and 10 ng/L for PFHxS, PFNA, and HFPO-DA.

The standards are subject to further reviews and approvals before they become final.

In July 2019, the Company received a letter from the WDNR directing the expansion of the evaluation of PFAS in the Marinette region to include (1) biosolids sludge produced by the City of Marinette Waste Water Treatment Plant and spread on certain fields in the area and (2) the Menominee and Peshtigo Rivers.

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The Court has continued the trial previously scheduled for March 3, 2025 and has not yet set a new trial date.

The parties are actively working toward the finalization of a settlement to resolve the matter.

In October 2022, the Town of Peshtigo filed a tort action in Wisconsin state court against Tyco Fire Products, Johnson Controls Inc., Chemguard, Inc., and ChemDesign, Inc.

relating to environmental matters at the FTC ( Town of Peshtigo v.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

Tyco Fire Products L.P.

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The Company is vigorously defending each of these cases and believes that it has meritorious defenses, but it is presently unable to predict the duration, scope, or outcome of these actions.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

Aqueous Film-Forming Foam ("AFFF") Matters

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Chemguard and Tyco Fire Products have been named as defendants in more than 300 cases in federal and state courts involving municipal or water provider plaintiffs that were filed in state or federal courts originating from 36 states and territories.

The decrease in water provider actions during the three months ended June 30, 2025 reflects dismissals resulting from the water systems AFFF settlement agreement discussed further below.

More water provider cases may be dismissed pursuant to the water systems AFFF settlement agreement.

The vast majority of these cases have been transferred to or were directly filed in the MDL, and it is anticipated that the remaining cases will be transferred to the MDL.

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Tyco Fire Products and Chemguard are also periodically notified by other municipal entities that those entities may assert claims regarding PFOS and/or PFOA contamination allegedly resulting from the use of AFFF.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

Water Systems AFFF Settlement Agreement

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The settlement releases these claims against Tyco Fire Products, Chemguard, and other related corporate entities.

On November 22, 2024, the Court entered final approval of the settlement agreement.

In accordance with the terms of the settlement agreement, Tyco Fire Products made its final required payment of $ 415 million in December 2024 and has now paid the full settlement amount.

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It also does not resolve potential future claims of public water systems that detect PFAS in their water systems for the first time after May 15, 2024, or certain claims not related to drinking water, such as separate alleged claims relating to real property damage or stormwater or wastewater treatment.

Finally, this settlement does not affect the other categories of cases that remain at issue in the MDL, such as personal injury cases, property damage cases, other types of class actions, claims brought by state or territory attorneys general, or other types of damages alleged to be related to the historic use of AFFF manufactured and sold by Tyco Fire Products and Chemguard.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

damages alleged to be related to the historical use of AFFF manufactured and sold by Tyco Fire Products and Chemguard.

While it is reasonably possible that the excluded systems or claims could result in additional future lawsuits, claims, assessments or proceedings, it is not possible to predict the outcome of any such matters, and as such, the Company is unable to develop an estimate of a possible loss or range of losses, if any, at this time.

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Chemguard and Tyco Fire Products are named in 49 pending putative class actions in federal courts originating from 21 states and territories.

The decrease in putative class actions during the three months ended June 30, 2025 reflects dismissals resulting from the water systems AFFF settlement agreement.

All of these cases have been direct-filed in or transferred to the MDL.

In addition, six proposed class actions were filed in Canada (British Columbia, Manitoba, Quebec and Ontario), which name Tyco Fire Products and other manufacturers as defendants, on behalf of various classes of members (including individuals and government entities) who seek to recover for remediation (past and future) costs, claim property or other environmental damages, or claim personal injuries or other harms arising from alleged exposure to or contamination with PFAS or PFAS-containing products (including AFFF).

In addition, seven proposed class actions were filed in Canada (British Columbia, Manitoba, Quebec and Ontario), which name Tyco Fire Products and other manufacturers as defendants, on behalf of various classes of members (including individuals and government entities) who seek to recover for remediation (past and future) costs, claim property or other environmental damages, or claim personal injuries or other harms arising from alleged exposure to or contamination with PFAS or PFAS-containing products (including AFFF).

AFFF Individual or Mass Actions

There are more than 15,000 individual or “mass” actions pending that were filed in state or federal courts originating from 53 states and territories against Chemguard and Tyco Fire Products and other defendants in which the plaintiffs generally seek compensatory damages, including damages for alleged personal injuries, medical monitoring, and alleged diminution in property values.

The cases involve plaintiffs from various states including approximately 7,000 plaintiffs in Colorado and more than 9,900 other plaintiffs.

The vast majority of these matters have been tagged for transfer to, transferred to, or directly-filed in the MDL, and it is anticipated that several newly-filed state court actions will be similarly tagged and transferred.

There are several matters that are proceeding in state courts, including actions in Arizona and Illinois.

The Company is currently unable to determine a precise count of personal injury claimants currently pending.

The vast majority of these matters transferred to or directly-filed in the MDL, and it is anticipated that several newly-filed state court actions will be similarly tagged and transferred.

There are several matters that are or will be proceeding in state courts, including actions in Arizona, Illinois and Washington.

Tyco and Chemguard are also periodically notified by other individuals that they may assert claims regarding PFOS and/or PFOA contamination allegedly resulting from the use of AFFF.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

AFFF State or U.S.

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This suit has been removed to federal court and transferred to the MDL.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

In April 2021, the State of Alaska filed a lawsuit in the superior court of the State of Alaska against a number of manufacturers and other defendants, including affiliates of the Company, with respect to PFOS and PFOA damage of the State’s land and natural resources allegedly resulting from the use of firefighting foams at various locations throughout the State.

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All of these complaints, if not filed directly in the MDL, have been removed to federal court and transferred to the MDL.

In addition, an affiliate of the Company has been named with other manufacturers as a third party by the Canadian Federal Government who is seeking contribution and indemnity in respect of a single-plaintiff action filed in Ontario relating to alleged PFAS and benzene contamination of a private well from the use of AFFF in firefighting training.

Other AFFF Related Matters

In March 2020, the Kalispel Tribe of Indians (a federally recognized Tribe) and two tribal corporations filed a lawsuit in the United States District Court for the Eastern District of Washington against a number of manufacturers, including affiliates of the Company, and the United States with respect to PFAS contamination allegedly resulting from the use and

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

disposal of AFFF by the United States Air Force at and around Fairchild Air Force Base in eastern Washington.

This case has been transferred to the MDL.

In October 2022, the Red Cliff Band of Lake Superior Chippewa Indians (a federally recognized tribe) filed a lawsuit in the United States District Court for the Western District of Wisconsin against a number of manufacturers, including affiliates of the Company, with respect to PFAS contamination allegedly resulting from the use and disposal of AFFF at Duluth Air National Guard Base in Duluth, Minnesota.

This complaint has been transferred to the MDL.

This case has been transferred to the MDL.

In July 2023, the Fond du Lac Band of Lake Superior Chippewa (a federally recognized tribe) direct-filed a lawsuit in the MDL against a number of manufacturers, including affiliates of the Company, with respect to PFAS contamination allegedly resulting from the use and disposal of AFFF at Duluth Air National Guard Base in Duluth, Minnesota.

I n September 2025, the Leech Lake Band of Ojibwe (one of six federally recognized sovereign bands that make up the federally recognized Minnesota Chippewa Tribe) filed a lawsuit in Minnesota state court against a number of manufacturers, including affiliates of the Company, with respect to PFAS contamination allegedly resulting from, among other things, the alleged use and disposal of AFFF on and near the Band’s property.

This case has been transferred to the MDL.

Four AFFF property damage proceedings have been filed in Belgium against numerous defendants, including an affiliate of the Company.

The cases are currently on hold pending efforts to dismiss the proceedings.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

The Company is vigorously defending all of the above AFFF matters and believes that it has meritorious defenses to class certification and the claims asserted, including statutes of limitations, the government contractor defense, various medical and scientific defenses, and other factual and legal defenses.

The Company has a historical general liability insurance program and is pursuing coverage under the program from various insurers through insurance claims discussions and litigation pending in a state court in Wisconsin.

The Company has reached settlements with certain insurers and remains in discussions and litigation with the remaining carriers.

In the first quarter of fiscal year 2026, the Company recorded $ 130 million of insurance recoveries related to settlements with its insurance carriers in selling, general and administrative expenses in the consolidated statements of income.

The Company is unable to predict the amount and timing of any future recoveries under its insurance policies with the remaining carriers.

The insurance litigation involves numerous factual and legal issues.

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The following table presents the location and amount of asbestos-related assets and liabilities in the Company's consolidated statements of financial position (in millions):

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Other current liabilities $ 58 $ 58

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The following table presents the components of asbestos-related assets (in millions):

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Investments 291 290

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Total asbestos-related assets $ 340 $ 339

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2025

The amounts recorded for asbestos-related liabilities and insurance-related assets are based on the Company's strategies for resolving its asbestos claims, currently available information, and a number of estimates and assumptions.

Key variables and assumptions include the number and type of new claims that are filed each year, the average cost of resolution of claims, the identity of defendants, the resolution of coverage issues with insurance carriers, amount of insurance, and the solvency risk with respect to the Company's insurance carriers.

Other factors that may affect the Company's liability and cash payments for asbestos-related matters include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, reforms of state or federal tort legislation and the applicability of insurance policies among subsidiaries.

Other factors that may affect the Company's liability and cash payments for asbestos-related matters include uncertainties surrounding the litigation process from jurisdiction to

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

jurisdiction and from case to case, reforms of state or federal tort legislation and the applicability of insurance policies among subsidiaries.

As a result, actual liabilities or insurance recoveries could be significantly higher or lower than those recorded if assumptions used in the Company's calculations vary significantly from actual results.

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The following table presents the location and amount of self-insured liabilities in the Company's consolidated statements of financial position (in millions):

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Other current liabilities $ 89 $ 87

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Total self-insured liabilities $ 438 $ 414

The following table presents the location and amount of insurance receivables in the Company's consolidated statements of financial position (in millions):

June 30, 2025 September 30, 2024

Other current assets $ 5 $ 5

Other noncurrent assets 13 13

Total insurance receivables $ 18 $ 18

Other Matters

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements