Johnson Controls reports steady fire and security growth

CORK, Ireland — Johnson Controls reported low single-digit growth in its fire and security businesses during the first quarter, with leadership targeting tighter executive and improved operational performance as the company navigates largely unchanged market conditions. 

Speaking during the Q&A portion of the earnings call, CEO & Director Joakim Weidemanis said the fire and security segments delivered modest growth but continue to operate in a stable environment. 

“No material change in the markets,” he said. 

Johnson Controls is concentrating on improving execution and targeting the more attractive portions of the market to maximize overall performance, Weidemanis said. 

Overall, Johnson Controls posted strong quarterly results, reporting $5.8 billion in revenue up approximately 6% to 7% year over year and ahead of expectations. 

The company cited demand tied to AI-driven data centers and thermal management systems as major growth catalysts. 

“As compute becomes more powerful, rack densities rise, hybrid architectures evolve and control systems become more advanced, data centers now require increasingly energy-efficient and precise operating conditions,” Weidemanis said. “Managing energy consumption while sustaining performance is essential, and that is exactly where our technologies remain critical.” 

To address that demand, Johnson Controls recently launched two new chiller platforms: 

• The YORK YDAM air-cooled magnetic bearing centrifugal chiller, which is designed to meet the intensive cooling needs of AI data centers, uses efficient warm-water cooling and delivers up to 5MW of cooling capacity, with as much as 20% greater capacity density in a more compact footprint. 
• The YORK YK-HT, which supports waterless heat reduction and can eliminate up to 9 million gallons of cooling tower water annually. 

“Our customers have real unmet needs for technology innovation and service-based solutions that help them manage energy more efficiently and deliver outcomes in their mission-critical operating conditions,” Weidemanis added. 

By the numbers 

• Q1 sales increased 7% and organic sales increased 6%* 
• Q1 GAAP EPS of $0.90; Q1 Adjusted EPS* of $0.89 
• Q1 Orders +39% organically year-over-year 
• Backlog of $18.2 billion increased 20% organically year-over-year