What changed in this filing

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Item 1. Financial Statements

2026-05-06 compared with 2026-02-04 · 201 added, 150 removed, 695 unchanged (34% of the section changed)

4 unchanged sentences

Three Months Ended

Six Months Ended

2026 2025 2026 2025

Products and systems $ 4,199 $ 3,865 $ 8,091 $ 7,550

Services 1,943 1,811 3,848 3,552

6,142 5,676 11,939 11,102

Cost of sales

1 unchanged sentence

Services 1,092 1,084 2,167 2,128

3,880 3,607 7,603 7,107

Gross profit 2,262 2,069 4,336 3,995

8 unchanged sentences

Net income 616 526 1,141 977

Income (loss) attributable to noncontrolling interests

Income attributable to noncontrolling interests

Continuing operations 3 2 4 —

18 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2026 2025 2026 2025

Net income $ 616 $ 526 $ 1,141 $ 977

3 unchanged sentences

Total comprehensive income 753 454 1,290 770

Comprehensive income (loss) attributable to noncontrolling interests

Comprehensive income attributable to noncontrolling interests 3 60 5 37

Comprehensive income attributable to Johnson Controls $ 750 $ 394 $ 1,285 $ 733

3 unchanged sentences

(in millions, except par value;

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Cash and cash equivalents $ 698 $ 379

41 unchanged sentences

(in millions;

Three Months Ended December 31,

Six Months Ended March 31,

Operating Activities of Continuing Operations

Income (loss) from continuing operations:

Income from continuing operations:

Attributable to Johnson Controls

$ 1,164 $ 836

Attributable to noncontrolling interests

6 unchanged sentences

Equity-based compensation 66 59

Gain on business divestiture ( 70 ) —

(Gain) loss on business divestiture ( 73 ) 6

Other - net 25 26

9 unchanged sentences

Capital expenditures ( 148 ) ( 210 )

Divestiture of business, net of cash divested 207 —

Divestitures of businesses, net of cash divested 209 1

Other - net ( 20 ) ( 8 )

1 unchanged sentence

Financing Activities of Continuing Operations

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

Net proceeds from borrowings with maturities less than three months 65 358

Proceeds from debt 316 1,369

4 unchanged sentences

Other - net ( 8 ) 76

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

Cash used by financing activities from continuing operations ( 1,030 ) ( 474 )

Discontinued Operations

Cash used by operating activities ( 67 ) ( 2 )

Cash provided (used) by operating activities ( 98 ) 47

Cash used by investing activities — ( 27 )

Cash used by financing activities — ( 65 )

Cash used by discontinued operations

12 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2026 2025 2026 2025

Shareholders' Equity Attributable to Johnson Controls

8 unchanged sentences

Share-based compensation expense 19 22 48 46

Repurchases and retirements of ordinary shares 437 — 437 —

Other, including options exercised 10 61 18 105

13 unchanged sentences

Beginning Balance 29 1,230 27 1,263

Comprehensive income (loss)

Comprehensive income 3 60 5 37

( 7 ) ( 65 ) ( 7 ) ( 78 )

Ending Balance 25 1,227 25 1,227

4 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2025

March 31, 2026

BASIS OF PRESENTATION

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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 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.

The results of operations for the three and six month periods ended March 31, 2026 are 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, 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.

Johnson Controls International plc, headquartered in Cork, Ireland, a global leader in thermal management, mission-critical building systems, energy efficiency, and decarbonization, 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.

6 unchanged sentences

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.

Amounts reported as "Repayments of debt" and "Proceeds from debt" have been revised for certain short-term debt transactions that occurred in the six months ended March 31, 2025 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 nine months ended June 30, 2025 will be included in the Company's third quarter fiscal 2026 Quarterly Report 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.

2 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2025

March 31, 2026

NEW ACCOUNTING STANDARDS

23 unchanged sentences

Notes to Consolidated Financial Statements

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.

March 31, 2026

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.

As the estimated fair value less costs to sell was below its carrying value, the Company recorded non-cash impairment charges in the first quarter of fiscal 2026 of $ 50 million within restructuring and impairment costs in the consolidated statements of income.

As of March 31, 2026, $ 117 million of assets and $ 35 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 March 31, 2026 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.

The Company closed the transaction after the close of the second quarter of fiscal 2026, with no expected gain or loss.

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 for the six months ended March 31, 2026.

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

1 unchanged sentence

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.

The results of the R&LC HVAC business recorded in income from discontinued operations, net of tax, was a gain of $ 4 million for the three months ended March 31, 2026 and loss of $ 27 million for the six months ended March 31, 2026, reflecting the impacts of post-closing working capital, net debt and other discontinued operations 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:

March 31, 2026

The following table summarizes the results of the R&LC HVAC business which were reported as discontinued operations (in millions) for the three and six months ended March 31, 2025:

Three Months Ended March 31, 2025 Six Months Ended March 31, 2025

Net sales $ 1,069 $ 2,035

10 unchanged sentences

Income from discontinued operations $ 5 $ 61

In April 2026, the Company paid approximately $ 155 million related to final purchase price adjustments associated with the sale of the R&LC HVAC business to the Bosch Group.

REVENUE RECOGNITION

Disaggregated Revenue

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,

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

Three Months Ended March 31,

Products & Systems Services Total Products & Systems Services Total

3 unchanged sentences

Total $ 4,199 $ 1,943 $ 6,142 $ 3,865 $ 1,811 $ 5,676

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

Six Months Ended March 31,

Products & Systems Services Total Products & Systems Services Total

$ 5,515 $ 2,449 $ 7,964 $ 5,247 $ 2,217 $ 7,464

1,561 982 2,543 1,421 937 2,358

1,015 417 1,432 882 398 1,280

Total $ 8,091 $ 3,848 $ 11,939 $ 7,550 $ 3,552 $ 11,102

Contract Balances

3 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 December 31, 2025 September 30, 2025

Location of contract balances March 31, 2026 September 30, 2025

Contract assets - current Accounts receivable - net $ 2,365 $ 2,178

2 unchanged sentences

Contract liabilities - noncurrent Other noncurrent liabilities 488 478

Johnson Controls International plc

Notes to Consolidated Financial Statements

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.

For the three months ended March 31, 2026 and 2025, the Company recognized revenue of $ 447 million and $ 393 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year.

For the six months ended March 31, 2026 and 2025, the Company recognized revenue of $ 1,451 million and $ 1,271 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 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 .

As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $ 26.3 billion, of which approximately 67 % 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.

5 unchanged sentences

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

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

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):

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Other current assets $ 321 $ 327

1 unchanged sentence

Total $ 520 $ 576

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.

Amortization of costs to obtain or fulfill a contract was $ 123 million and $ 91 million during the three months ended March 31, 2026 and 2025, respectively.

Amortization of costs to obtain or fulfill a contract was $ 225 million and $ 175 million during the six months ended March 31, 2026 and 2025, respectively.

Inventories consisted of the following (in millions):

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Raw materials and supplies $ 816 $ 716

2 unchanged sentences

Inventories $ 1,933 $ 1,820

Johnson Controls International plc

Notes to Consolidated Financial Statements

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):

Three Months Ended December 31, 2025

Six Months Ended March 31,

Americas EMEA APAC Total

7 unchanged sentences

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

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

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

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Amount Accumulated

10 unchanged sentences

Total intangible assets $ 6,145 $ ( 2,661 ) $ 3,484 $ 6,110 $ ( 2,497 ) $ 3,613

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.

Amortization of other intangible assets included within continuing operations for the three months ended March 31, 2026 and 2025 was $ 87 million and $ 112 million, respectively.

Amortization of other intangible assets included within continuing operations for the six months ended March 31, 2026 and 2025 was $ 174 million and $ 232 million, respectively.

SUPPLEMENTAL CASH FLOW DISCLOSURES

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

Three Months Ended December 31,

Six Months Ended

Right-of-use assets obtained in exchange for operating lease liabilities $ 213 $ 226

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

SUPPLY CHAIN FINANCING

4 unchanged sentences

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.

Accounts payable included in the SCF programs were approximately $ 808 million and $ 835 million as of March 31, 2026 and September 30, 2025, respectively.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

DEBT AND FINANCING ARRANGEMENTS

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

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Commercial paper $ 441 $ 400

2 unchanged sentences

Weighted average interest rate on short-term debt outstanding 3.4 % 4.5 %

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.

As of March 31, 2026, 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 March 31, 2026.

In February 2026, the Company repaid $ 538 million of outstanding 3.90 % Notes due 2026.

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

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

(in millions) 2026 2025 2026 2025

4 unchanged sentences

Net financing charges $ 67 $ 80 $ 126 $ 166

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

December 31, 2025

Net financing charges includes pre-tax gains (losses) on derivatives not designated as hedging instruments of $( 33 ) million and $ 60 million for the three months ended March 31, 2026 and 2025, respectively, and $( 188 ) million and $( 84 ) million for the six months ended March 31, 2026 and 2025, respectively, which are offset by gains resulting from changes in foreign exchange rates on underlying exposures during those periods.

FAIR VALUE MEASUREMENTS

6 unchanged sentences

When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

Recurring Fair Value Measurements

1 unchanged sentence

Fair Value Measurements Using:

December 31, 2025 Quoted Prices

March 31, 2026 Quoted Prices

(Level 1) Significant

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

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

Fair Value Measurements Using:

Total as of September 30, 2025 Quoted Prices

September 30, 2025 Quoted Prices

(Level 1) Significant

15 unchanged sentences

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 carrying value of foreign operations translates on a recurring basis using the

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

exchange rate at the end of the applicable period and approximates its fair value.

As of both March 31, 2026 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 $ 3.4 billion as of March 31, 2026 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.

Pre-tax gains (losses) on net investment hedges recorded as foreign currency translation adjustments ("CTA") within other comprehensive income (loss) were $ 77 million and $( 131 ) million for the three months ended March 31, 2026 and 2025, respectively, and $ 93 million and $ 107 million for the six months ended March 31, 2026 and 2025, respectively.

Valuation Methods

6 unchanged sentences

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

Derivatives consist primarily of foreign currency exchange derivatives and are valued under a market approach using publicly available prices, where available, or dealer quotes.

Exchange traded funds :

1 unchanged sentence

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

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.

Unrealized losses recognized in the consolidated statements of income that relate to equity securities still held at March 31, 2026 and 2025 were $ 11 million and $ 8 million for the three months ended March 31, 2026 and 2025, respectively, and $ 7 million and $ 10 million for the six months ended March 31, 2026 and 2025, 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 December 31, 2025 and September 30, 2025 was as follows (in billions):

December 31, September 30,

The fair value of long-term debt at March 31, 2026 and September 30, 2025 was as follows (in billions):

March 31, September 30,

Public debt $ 7.7 $ 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.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

WEIGHTED AVERAGE SHARES OUTSTANDING

1 unchanged sentence

Three Months Ended

March 31, Six Months Ended

2026 2025 2026 2025

Weighted Average Shares Outstanding

6 unchanged sentences

Stock options and unvested restricted stock — 0.1 — 0.1

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

1 unchanged sentence

Three Months Ended

March 31, Six Months Ended

2026 2025 2026 2025

Foreign currency translation adjustments

5 unchanged sentences

Reclassification to income

( 8 ) ( 2 ) ( 12 ) ( 4 )

Net tax impact ( 1 ) — ( 1 ) ( 1 )

1 unchanged sentence

Accumulated other comprehensive loss, end of period $ ( 494 ) $ ( 1,128 ) $ ( 494 ) $ ( 1,128 )

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

PENSION AND RETIREMENT PLANS

1 unchanged sentence

Three Months Ended

Six Months Ended

2026 2025 2026 2025

Service cost $ 4 $ 4 $ 8 $ 8

2 unchanged sentences

Amortization of prior service credit

— ( 1 ) ( 1 ) ( 2 )

Net periodic benefit credit $ ( 8 ) $ ( 10 ) $ ( 17 ) $ ( 20 )

4 unchanged sentences

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.

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 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 December 31, 2025 Inception to December 31, 2025

Three Months Ended March 31, 2026 Six Months Ended March 31, 2026 Inception to March 31, 2026

Americas $ 23 $ 32 $ 83

1 unchanged sentence

Total $ 36 $ 73 $ 237

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

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):

6 unchanged sentences

Other 14 — 4 18

Balance at December 31, 2025

Balance at March 31, 2026

$ 29 $ — $ 13 $ 42

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 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.

For the three months ended March 31, 2026, the Company's effective tax rate for continuing operations was 17.1 % and was higher than the statutory tax rate of 12.5 % primarily due to tax rate differentials, partially offset by the benefits of continuing global tax planning.

For the six months ended March 31, 2026, the Company's effective tax rate for continuing operations was 19.2 % 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 March 31, 2025, the Company's effective tax rate for continuing operations was 5.2 % 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 six months ended March 31, 2025, the Company's effective tax rate was 8.0 % 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.

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

Interest accrued during the six months ended March 31, 2026 and 2025 was approximately $ 56 million and $ 54 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

March 31, 2026

During the three months ended March 31, 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.

14 unchanged sentences

• 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.

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 EBIT and Segment EBITA (non-GAAP):

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

Segment EBIT 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

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

• 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.

March 31, 2026

impact of certain non-cash and non-recurring items.

Segment EBIT also provides the CODM with visibility into the integration of key strategic initiatives, such as acquisitions and mergers.

• Segment earnings before interest, taxes and amortization ("Segment EBITA") (non-GAAP) represents Segment EBIT, excluding the impact of amortization of intangible assets.

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

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

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

Reconciliations of Segment EBIT to Segment EBITA and to consolidated income before income taxes are presented in the tables below.

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

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

Three Months Ended December 31, 2025

Three Months Ended March 31,

2026 2025 2026 2025 2026 2025

Net sales $ 4,121 $ 3,837 $ 1,282 $ 1,201 $ 739 $ 638

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Selling, general and administrative expenses ("SG&A") 827 824 274 277 135 135

Equity loss — — ( 1 )

Segment EBITA 620 158 117

Amortization of intangible assets

Equity income — — — — ( 1 ) ( 1 )

Segment EBIT 705 616 179 117 143 101

Amortization of intangible assets

77 91 7 18 3 3

Segment EBITA (non-GAAP) $ 782 $ 707 $ 186 $ 135 $ 146 $ 104

Depreciation included in Cost of sales and SG&A $ 38 $ 37 $ 6 $ 15 $ 6 $ 6

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

Three Months Ended December 31, 2024

Capital expenditures $ 18 $ 26 $ 19 $ 30 $ 2 $ 1

Six Months Ended March 31,

2026 2025 2026 2025 2026 2025

Net sales $ 7,964 $ 7,464 $ 2,543 $ 2,358 $ 1,432 $ 1,280

Cost of sales 5,057 4,731 1,642 1,567 904 809

SG&A 760 267 148

Segment EBITA 589 136 90

Amortization of intangible assets

Selling, general and administrative expenses ("SG&A") 1,658 1,623 571 558 274 286

Equity income — — — — ( 2 ) ( 1 )

Segment EBIT 1,249 1,110 330 233 256 186

Amortization of intangible assets

153 186 14 38 7 8

Segment EBITA (non-GAAP) $ 1,402 $ 1,296 $ 344 $ 271 $ 263 $ 194

Depreciation included in Cost of sales and SG&A $ 71 $ 70 $ 12 $ 20 $ 11 $ 11

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

Capital expenditures $ 46 $ 81 $ 39 $ 44 $ 7 $ 1

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

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

Three Months Ended March 31, Six Months Ended March 31,

2026 2025 2026 2025

Segment EBITA (non-GAAP) $ 1,114 $ 946 $ 2,009 $ 1,761

Amortization of intangible assets 87 112 174 232

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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):

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Changes in estimates to pre-existing warranties 48

Balance at December 31, 2025

Currency translation ( 1 )

Balance at March 31, 2026

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

COMMITMENTS AND CONTINGENCIES

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

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Other current liabilities $ 23 $ 27

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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).

In February 2026, EPA sent to the White House Office of Management & Budget a proposed rule to rescind the Maximum Contaminant Levels for these four other types of PFAS.

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

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2025

March 31, 2026

often quite lengthy periods over which eventual remediation may occur.

It is possible that technological, regulatory or enforcement developments, the results of additional environmental studies or other factors could change the Company's expectations with respect to future charges and cash outlays, and such changes could be material to the Company's future results of operations, financial condition or cash flows.

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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 December 31, 2025 and September 30, 2025.

Conditional asset retirement obligations were $ 7 million at both March 31, 2026 and September 30, 2025.

FTC-Related Matters

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

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

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 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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Department of Defense (the "DOD") and others for fire suppression purposes and related training exercises.

Plaintiffs generally allege that the firefighting foam products contain or break down into the chemicals PFOS and PFOA and/or other PFAS compounds and that the use of these products by others at various airbases, airports and other sites resulted in the release of these chemicals into the environment and ultimately into communities’ drinking water supplies neighboring those airports, airbases and other sites.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

sites resulted in the release of these chemicals into the environment and ultimately into communities’ drinking water supplies neighboring those airports, airbases and other sites.

Plaintiffs generally seek compensatory damages, including damages for alleged personal injuries, medical monitoring, diminution in property values, investigation and remediation costs, and natural resources damages, and also seek punitive damages and injunctive relief to address remediation of the alleged contamination.

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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.

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.

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 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.

The settlement does not constitute an admission of liability or wrongdoing by Tyco Fire Products or Chemguard.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

AFFF Putative Class Actions

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

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).

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).

AFFF Individual or Mass Actions

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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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These two cases have also been transferred to the MDL.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

In early November 2021, the Attorney General of the State of North Carolina filed four individual lawsuits in the superior courts of the State of North Carolina 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, natural resources, and property allegedly resulting from the use of firefighting foams at four separate locations throughout the State.

6 unchanged sentences

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.

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 seven single-plaintiff actions 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

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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.

1 unchanged sentence

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.

In the first six months of fiscal year 2026, the Company recorded

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

approximately $ 131 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.

6 unchanged sentences

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):

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Other current liabilities $ 58 $ 58

6 unchanged sentences

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

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Investments 276 290

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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

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.

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.

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.

March 31, 2026

Self-Insured Liabilities

4 unchanged sentences

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

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Other current liabilities $ 84 $ 87

7 unchanged sentences

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