What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-05-06 · 157 added, 151 removed, 745 unchanged (29% of the section changed)

4 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

2026 2025 2026 2025

37 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2026 2025 2026 2025

2 unchanged sentences

Foreign currency translation adjustments 70 ( 127 ) 216 ( 350 )

( 2 ) ( 6 ) 1 10

Other comprehensive income (loss) 68 ( 133 ) 217 ( 340 )

6 unchanged sentences

(in millions, except par value;

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Cash and cash equivalents $ 641 $ 379

41 unchanged sentences

(in millions;

Six Months Ended March 31,

Nine Months Ended June 30,

Operating Activities of Continuing Operations

1 unchanged sentence

Attributable to Johnson Controls $ 1,913 $ 1,454

$ 1,164 $ 836

Attributable to noncontrolling interests 7 —

Total 1,920 1,454

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

1 unchanged sentence

Pension and postretirement benefits ( 39 ) ( 52 )

( 28 ) ( 37 )

Deferred income taxes ( 58 ) ( 146 )

1 unchanged sentence

Equity-based compensation 95 107

(Gain) loss on business divestiture ( 73 ) 6

(Gain) loss on business divestitures ( 86 ) 6

Other - net 2 2

9 unchanged sentences

Capital expenditures ( 243 ) ( 304 )

Acquisitions of businesses, net of cash acquired ( 291 ) ( 9 )

Divestitures of businesses, net of cash divested 331 2

Other - net ( 32 ) 9

Cash provided (used) by investing activities from continuing operations 41 ( 217 )

Cash used by investing activities from continuing operations ( 235 ) ( 302 )

Financing Activities of Continuing Operations

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

Net proceeds (payments) from borrowings with maturities less than three months ( 194 ) 283

Proceeds from debt 545 1,369

6 unchanged sentences

Discontinued Operations

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

Cash (used) provided by operating activities ( 98 ) 255

Cash used by investing activities ( 155 ) ( 52 )

Cash used by financing activities — ( 174 )

Cash used by discontinued operations

( 98 ) ( 45 )

Cash (used) provided by discontinued operations ( 253 ) 29

Effect of exchange rate changes on cash, cash equivalents and restricted cash 122 ( 216 )

Change in cash, cash equivalents and restricted cash held for sale — 3

Increase in cash, cash equivalents and restricted cash

Increase (decrease) in cash, cash equivalents and restricted cash 260 ( 11 )

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

7 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2026 2025 2026 2025

33 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

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 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.

The results of operations for the three and nine month periods ended June 30, 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 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.

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 capabilities, to deliver solutions and services addressing distinct and diverse operating environments and regulatory requirements that address customers’ needs in their core missions.

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

The Company helps customers create, maintain, and optimize indoor operating environments that use energy more productively, reduce carbon emissions, and support the precise, reliable and resilient operating conditions in rapidly expanding industries such as data centers, healthcare, pharmaceuticals, advanced manufacturing, and higher education.

The Company is a fully integrated industrial technology company that engineers, manufactures, commissions and retrofits 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 through a large global field workforce and service network along with its system integration expertise and managing the full lifecycle of critical indoor environments — from design and commissioning through ongoing service and retrofit.

Combining its broad product portfolio, digital capabilities, direct channel and lifecycle service expertise, the Company partners with customers to address distinct and diverse operating environments, regulatory requirements, and the critical operational needs of their facilities.

Principles of Consolidation

3 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 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.

Amounts reported as "Repayments of debt" and "Proceeds from debt" have been revised for certain short-term debt transactions that occurred in the nine months ended June 30, 2025 and were incorrectly presented on a net basis within the financing activities section of the consolidated statements of cash flows.

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

March 31, 2026

June 30, 2026

NEW ACCOUNTING STANDARDS

23 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

ACQUISITIONS AND DIVESTITURES

During the third quarter of fiscal 2026, the Company closed the acquisitions of Alloy Enterprises and Nantum AI.

The total aggregate consideration for the acquisitions, net of cash acquired, was approximately $ 291 million, of which a meaningful component related to Alloy Enterprises.

Alloy Enterprises is a thermal, mechanical and materials sciences technology company that designs and manufactures advanced direct liquid cooling components.

Nantum AI expands capabilities within the Johnson Controls OpenBlue digital ecosystem.

These businesses will be reported within the Americas segment.

In connection with the acquisitions, the Company recorded goodwill of $ 193 million, primarily related to the expected synergies from combining the operations into our business, and $ 127 million of definite-lived intangible assets related to developed technology being amortized on a straight-line basis over 15 years.

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 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.

During the third quarter of fiscal 2026, the Company signed a definitive agreement to sell its ADT United Kingdom Residential Security business and determined that it met the criteria to be classified as held for sale.

The transaction is expected to close in fiscal 2027.

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

As of June 30, 2026, $ 229 million of assets and $ 39 million of liabilities associated with the business were separately presented as held for sale in the consolidated statements of financial position.

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, 2026, the estimated fair value less costs to sell of the held for sale business exceeded its carrying value, and therefore, no adjustment was necessary.

ADT Spain Security Business

On April 1, 2026, the Company completed the sale of its ADT Spain Security business for net proceeds of $ 98 million, with no gain or loss recorded on the transaction.

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.

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.

2 unchanged sentences

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 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

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

June 30, 2026

The results of the R&LC HVAC business recorded in income from discontinued operations, net of tax, was a loss of $ 27 million for the nine months ended June 30, 2026, reflecting the impacts of post-closing working capital, net debt and other discontinued operations adjustments.

The following table summarizes the results of the R&LC HVAC business which were reported as discontinued operations (in millions) for the three and nine months ended June 30, 2025:

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

Net sales $ 1,369 $ 3,404

10 unchanged sentences

Income from discontinued operations $ 83 $ 144

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.

In the three months ended June 30, 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

1 unchanged sentence

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,

Three Months Ended June 30,

Products & Systems Services Total Products & Systems Services Total

5 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

Six Months Ended March 31,

June 30, 2026

Nine Months Ended June 30,

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 March 31, 2026 September 30, 2025

Location of contract balances June 30, 2026 September 30, 2025

Contract assets - current Accounts receivable - net $ 2,582 $ 2,178

2 unchanged sentences

Contract liabilities - noncurrent Other noncurrent liabilities 468 478

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.

For the three months ended June 30, 2026 and 2025, the Company recognized revenue of $ 363 million and $ 279 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, 2026 and 2025, the Company recognized revenue of $ 1,814 million and $ 1,550 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 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 .

As of June 30, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $ 27.1 billion, of which approximately 68 % 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.

7 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 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):

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Other current assets $ 331 $ 327

1 unchanged sentence

Total $ 534 $ 576

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.

Amortization of costs to obtain or fulfill a contract was $ 124 million and $ 104 million during the three months ended June 30, 2026 and 2025, respectively.

Amortization of costs to obtain or fulfill a contract was $ 349 million and $ 279 million during the nine months ended June 30, 2026 and 2025, respectively.

Inventories consisted of the following (in millions):

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Raw materials and supplies $ 862 $ 716

4 unchanged sentences

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

Six Months Ended March 31,

Nine Months Ended June 30, 2026

Americas EMEA APAC Total

2 unchanged sentences

Balance at beginning of period 13,174 2,111 1,348 16,633

Acquisitions 193 3 — 196

Foreign currency translation and other (1)

1 unchanged sentence

Balance at end of period $ 13,337 $ 1,926 $ 1,349 $ 16,612

(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.

(1) Includes the allocation of goodwill to the ADT Spain Security business and the ADT United Kingdom Residential Security business disposal groups of $ 38 million and $ 102 million, respectively.

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

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

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

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Amount Accumulated

10 unchanged sentences

Total intangible assets $ 6,290 $ ( 2,740 ) $ 3,550 $ 6,110 $ ( 2,497 ) $ 3,613

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.

Amortization of other intangible assets included within continuing operations for the three months ended June 30, 2026 and 2025 was $ 90 million and $ 110 million, respectively.

Amortization of other intangible assets included within continuing operations for the nine months ended June 30, 2026 and 2025 was $ 264 million and $ 342 million, respectively.

SUPPLEMENTAL CASH FLOW DISCLOSURES

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

Six Months Ended

Nine Months Ended

Right-of-use assets obtained in exchange for operating lease liabilities $ 284 $ 421

5 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 $ 808 million and $ 835 million as of March 31, 2026 and September 30, 2025, respectively.

Accounts payable included in the SCF programs were approximately $ 901 million and $ 835 million as of June 30, 2026 and September 30, 2025, respectively.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

DEBT AND FINANCING ARRANGEMENTS

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

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Commercial paper $ 200 $ 400

2 unchanged sentences

Weighted average interest rate on short-term debt outstanding 3.5 % 4.5 %

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.

As of June 30, 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 June 30, 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 March 31, Six Months Ended March 31,

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

(in millions) 2026 2025 2026 2025

4 unchanged sentences

Net financing charges $ 71 $ 77 $ 197 $ 243

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.

Net financing charges includes pre-tax gains (losses) on derivatives not designated as hedging instruments of $( 33 ) million and $ 71 million for the three months ended June 30, 2026 and 2025, respectively, and $( 222 ) million and $( 13 ) million for the nine months ended June 30, 2026 and 2025, respectively, which are offset by changes in foreign exchange rates on underlying exposures during those periods.

FAIR VALUE MEASUREMENTS

8 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

Recurring Fair Value Measurements

1 unchanged sentence

Fair Value Measurements Using:

March 31, 2026 Quoted Prices

June 30, 2026 Quoted Prices

(Level 1) Significant

9 unchanged sentences

$ 74 $ — $ 74 $ —

Contingent earn-out liabilities 14 — — 14

Total liabilities $ 74 $ — $ 74 $ —

20 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

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 June 30, 2026, the Company had designated debt obligations of € 2.9 billion as partial hedges of its investments in certain euro-denominated subsidiaries.

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.

June 30, 2026

of 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 June 30, 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 (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.

Pre-tax gains (losses) on net investment hedges recorded as foreign currency translation adjustments ("CTA") within other comprehensive income (loss) were $ 22 million and $( 269 ) million for the three months ended June 30, 2026 and 2025, respectively, and $ 115 million and $( 162 ) million for the nine months ended June 30, 2026 and 2025, respectively.

Valuation Methods

10 unchanged sentences

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

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.

Unrealized gains recognized in the consolidated statements of income that relate to equity securities still held at June 30, 2026 and 2025 were $ 38 million and $ 24 million for the three months ended June 30, 2026 and 2025, respectively, and $ 31 million and $ 14 million for the nine months ended June 30, 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 March 31, 2026 and September 30, 2025 was as follows (in billions):

March 31, September 30,

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

June 30, September 30,

Public debt $ 7.8 $ 8.4

5 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

WEIGHTED AVERAGE SHARES OUTSTANDING

1 unchanged sentence

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2026 2025 2026 2025

5 unchanged sentences

Diluted weighted average shares outstanding 610 657 612 661

Antidilutive Securities

Stock options and unvested restricted stock — 0.1 — 0.1

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

1 unchanged sentence

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2026 2025 2026 2025

12 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

PENSION AND RETIREMENT 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):

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 ("SG&A") in the consolidated statements of income, are shown in the table below (in millions):

Three Months Ended

Six Months Ended

Nine Months Ended

2026 2025 2026 2025

12 unchanged sentences

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

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

Three Months Ended June 30, 2026 Nine Months Ended June 30, 2026 Inception to June 30, 2026

Americas $ 7 $ 39 $ 90

EMEA 10 28 77

Corporate 27 45 92

2 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 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 18 — 1 19

Balance at March 31, 2026

Balance at June 30, 2026

$ 34 $ — $ 9 $ 43

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 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.

For the three months ended June 30, 2026, the Company's effective tax rate for continuing operations was 18.0 % 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 nine months ended June 30, 2026, the Company's effective tax rate for continuing operations was 18.7 % 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 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.

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.

2 unchanged sentences

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

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.

Interest accrued during the nine months ended June 30, 2026 and 2025 was approximately $ 74 million and $ 64 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.

1 unchanged sentence

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.

June 30, 2026

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.

4 unchanged sentences

Germany 2007 - 2021

Mexico 2018 - 2021

United Kingdom 2020

13 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

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

8 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30,

2026 2025 2026 2025 2026 2025

9 unchanged sentences

Capital expenditures $ 40 $ 28 $ 17 $ 26 $ 6 $ 5

Six Months Ended March 31,

Nine Months Ended June 30,

2026 2025 2026 2025 2026 2025

11 unchanged sentences

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 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,

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

2026 2025 2026 2025

25 unchanged sentences

Currency translation ( 1 )

Balance at March 31, 2026

Balance at June 30, 2026

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

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):

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Other current liabilities $ 21 $ 27

9 unchanged sentences

Environmental Protection Agency ("EPA") and other environmental and health agencies and researchers.

In April 2024, EPA published National Primary Drinking Water Regulation (“NPDWR”) for six PFAS compounds including PFOA and PFOS.

In April 2024, EPA finalized National Primary Drinking Water Regulation (“NPDWR”) for six PFAS compounds including PFOA and PFOS.

The NPDWR established legally enforceable levels, called Maximum Contaminant Levels, of 4.0 parts per trillion ("ppt") for each of PFOA and PFOS, 10 ppt for each of PFHxS, PFNA, and HFPO-DA (commonly known as GenX Chemicals), and a Hazard Index of one for mixtures containing two or more of PFHxS, PFNA, HFPO-DA, and PFBS.

In February 2024, EPA released two proposed rules relating to PFAS under the Resource Conservation and Recovery Act (“RCRA”):

one rule proposes to list nine PFAS (including PFOA and PFOS) as “hazardous constituents,” and a second rule proposes to clarify that hazardous waste regulated under the rule includes not only substances listed or identified as hazardous waste in the regulations, but also any substances that meet the statutory definition of hazardous waste.

one rule proposes to list nine PFAS (including PFOA and PFOS) as “hazardous constituents,” that has not been finalized.

A second rule was proposed in 2024 to clarify that hazardous waste regulated under the rule includes not only substances listed or identified as hazardous waste in the regulations, but also any substances that meet the statutory definition of hazardous waste;

however, the EPA withdrew that proposal on May 8, 2026.

In April 2024, EPA finalized a rule designating PFOA and PFOS, along with their salts and structural isomers, as "hazardous substances" under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA").

In May 2025, EPA announced that it will retain the 4.0 ppt limit on PFOS and PFOA but will institute a two-year delay in the compliance deadline from 2029 until 2031.

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

In May 2025, EPA announced that it will retain the 4.0 ppt Maximum Contaminant Levels on PFOS and PFOA but will institute a two-year delay in the compliance deadline from 2029 until 2031.

On May 1, 2026, the White House Office of Management and Budget completed its interagency review of a proposed rule to rescind the Maximum Contaminant Levels for four other types of PFAS (PFHxS, PFNA, HFPO-DA, and PFBS);

the rules were published in the Federal Register on May 20, 2026.

This proposed recission has not been finalized.

In June 2026, the Wisconsin Department of Natural Resources issued a draft rulemaking to adopt as a matter of Wisconsin law the Maximum Contaminant Levels and Hazard Index standards established in the April 2024 NPDWR.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

often quite lengthy periods over which eventual remediation may occur.

June 30, 2026

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.

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.

Nevertheless, the Company does not currently believe that any claims, penalties or costs in addition to the amounts accrued will have a material adverse effect on the Company’s financial position, results of operations or cash flows.

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 March 31, 2026 and September 30, 2025.

FTC-Related Matters

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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.

The standards were subsequently approved through the state rulemaking process in 2026.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 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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believe that they have complied with all applicable environmental laws and regulations.

The Company cannot predict what regulatory or enforcement actions, if any, might result from the WDNR’s actions, or the consequences of any such actions, including the potential assessment of penalties.

In March 2022, the Wisconsin Department of Justice (“WDOJ”) filed a civil enforcement action against Johnson Controls Inc.

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The WDOJ alleges that the Company failed to timely report the presence of PFAS chemicals at the FTC, and that the Company has not sufficiently investigated or remediated PFAS at or near the FTC.

The WDOJ seeks monetary penalties and an injunction ordering these two subsidiaries to complete a site investigation and cleanup of PFAS contamination in accordance with the WDNR's requests.

The parties have completed briefing of summary judgment and pretrial motions.

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.

On June 4, 2026, the State filed a Stipulation for Judgment, resolving the litigation.

Under the Stipulation, Tyco Fire Products paid $ 10 million to a statewide PFAS fund and will continue its ongoing remediation work in Marinette and Peshtigo, including continuing to operate the GETS to treat PFAS in groundwater and surface water and to restore the environment, monitoring water quality, and completing the installation of PFAS-free deep drinking water wells for homeowners who may have been affected by Tyco Fire Product’s historic operations.

The State also agreed to dismiss Johnson Controls, Inc.

with prejudice, which occurred on June 5, 2026 in connection with the court entering judgment on the Stipulation.

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.

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Subsequently, several additional plaintiffs have direct-filed in the MDL complaints with similar allegations.

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.

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

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

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.

June 30, 2026

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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The class of public water systems included in this settlement broadly includes any public water system (as defined in the settlement agreement) that has detected PFAS in its drinking water sources as of May 15, 2024.

The following systems are excluded from the settlement class:

water systems owned and operated by a State or the United States government;

systems that have not detected the presence of PFAS as of May 15, 2024;

small transient water systems;

privately-owned drinking water wells;

and the water system in the city of Marinette, Wisconsin (which is included only if it so requests).

The settlement does not resolve claims of public water systems that request exclusion from the class (“opt out”) pursuant to the process to be established by the MDL court.

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 historical use of AFFF manufactured and sold by Tyco Fire Products and Chemguard.

Certain systems are excluded from the settlement class and the settlement does not resolve claims of public water systems that requested exclusion from the class (“opt out”).

Finally, this settlement does not affect the other categories of cases that remain at issue in the MDL.

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

1 unchanged sentence

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, 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 and indigenous communities) 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).

Tyco Fire Products and Johnson Controls International plc have also been named, among other manufacturers, in an individual proceeding in Quebec commenced by the City of Val D’Or

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2026

Quebec claiming contamination of well water with PFAS from firefighting training and other activities conducted at Val D’Or airport.

AFFF Individual or Mass Actions

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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.

These four cases have been removed to federal court and transferred to the MDL.

In October 2022, the Attorney General filed two similar lawsuits in the superior courts of the State of North Carolina regarding alleged PFAS damages at two additional locations.

In October 2022, the Attorney General filed two similar lawsuits in the superior

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2026

courts of the State of North Carolina regarding alleged PFAS damages at two additional locations.

These two cases have also been removed to federal court and transferred to the MDL.

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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.

Five 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.

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

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.

In the first nine months of fiscal year 2026, the Company recorded approximately $ 148 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.

There are numerous factual and legal issues to be resolved in connection with these claims.

The Company is presently unable to predict the outcome or ultimate financial exposure beyond the water systems AFFF settlement discussed above, if any, represented by these matters, and there can be no assurance that any such exposure will not be material.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2026

Asbestos Matters

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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):

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Other current liabilities $ 58 $ 58

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

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Investments 303 290

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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

March 31, 2026

Self-Insured Liabilities

3 unchanged sentences

The Company maintains captive insurance companies to manage a portion of its insurable liabilities.

Johnson Controls International plc

Notes to Consolidated Financial Statements

June 30, 2026

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

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Other current liabilities $ 89 $ 87

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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