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JCI, Johnson Controls International PLC

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

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

Johnson Controls International PLC is committed to helping its customers win and creating greater value for all of its stakeholders through its strategic focus on buildings.

Latest annual: FY2025 10-K

JCI · Johnson Controls International PLC

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$23.6B

+2.8% YoY · 1% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $24.4B 5-yr avg $22.6B

Gross margin 37% 5-yr avg 35%

Operating margin 3.9% 5-yr avg 9.6%

ROIC 4% 5-yr avg 8%

Owner-earnings margin 11% 5-yr avg 6%

Free cash flow margin 11% 5-yr avg 6%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Americas (67%), EMEA (21%) and APAC (12%).
What moves the needle: Gross margin has run about 34% and operating margin about 8.9% through the cycle, a solid spread between what it charges and what the product costs to make. The operating margin has swung widely — from 4.4% to 24% — on a steadier 34% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. Read this kind of business on the capital-goods cycle and the aftermarket. On its own account, the filing leans hardest on supplier & input dependence, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has sat near the cost of capital (median 7%). By owner earnings: roughly 6% of revenue reaches owners as cash, consistently. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Americas is 67% of revenue, with EMEA the other meaningful segment at 21%.

Revenue by reportable segment, FY2025

Americas67%$15.8B
EMEA21%$5.0B
APAC12%$2.8B

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2015–2025

realized figures from each filing · older years to the left

2015’15	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$9.9B	$22.8B	$23.4B	$24.0B	$22.3B	$23.7B	$20.6B	$22.3B	$23.0B	$23.6B	$24.4B	RevenueRevenue
—	33%	33%	32%	33%	34%	34%	35%	35%	36%	37%	Gross marginGross mgn
32%	25%	24%	26%	25%	22%	25%	24%	25%	24%	23%	SG&A / revenueSG&A/rev
1%	1%	1%	1%	1%	1%	1%	1%	1%	1%	1%	R&D / revenueR&D/rev
$884M	$2.4B	$2.8B	$5.8B	$979M	$2.7B	$1.6B	$1.4B	$1.8B	$3.5B	$965M	Operating incomeOp. inc.
8.9%	10.4%	11.8%	24.1%	4.4%	11.5%	7.6%	6.2%	7.9%	15.0%	3.9%	Operating marginOp. mgn
$1.6B	$1.6B	$2.2B	$5.7B	$631M	$1.6B	$1.5B	$1.8B	$1.7B	$3.3B	$3.5B	Net incomeNet inc.
4%	17%	8%	-4%	15%	35%	—	—	6%	7%	11%	Effective tax rateTax rate
											Cash flow & returns
$1.6B	$371M	$1.5B	$1.7B	$2.5B	$2.6B	$1.2B	$1.9B	$1.6B	$2.6B	$3.0B	Operating cash flowOp. cash
$860M	$919M	$824M	$825M	$822M	$845M	$717M	$745M	$816M	$865M	$803M	DepreciationDeprec.
($913M)	($2.3B)	($1.6B)	($4.9B)	$952M	($7M)	($1.1B)	($845M)	($1.1B)	($1.7B)	($1.4B)	Working capital & otherWC & other
$1.1B	$760M	$645M	$586M	$443M	$552M	$487M	$446M	$494M	$434M	$372M	CapexCapex
11.5%	3.3%	2.8%	2.4%	2.0%	2.3%	2.4%	2.0%	2.2%	1.8%	1.5%	Capex / revenueCapex/rev
$740M	($389M)	$875M	$1.2B	$2.0B	$2.0B	$750M	$1.4B	$1.1B	$2.1B	$2.7B	Owner earningsOwner earn.
7.5%	−1.7%	3.7%	4.8%	9.1%	8.4%	3.6%	6.3%	4.7%	9.0%	10.9%	Owner earnings marginOE mgn
$465M	($389M)	$875M	$1.2B	$2.0B	$2.0B	$750M	$1.4B	$1.1B	$2.1B	$2.7B	Free cash flowFCF
4.7%	−1.7%	3.7%	4.8%	9.1%	8.4%	3.6%	6.3%	4.7%	9.0%	10.9%	Free cash flow marginFCF mgn
$22M	$6M	$21M	$25M	$77M	$725M	$269M	$726M	$3M	$10M	$10M	AcquisitionsAcquis.
$657M	$702M	$954M	$920M	$790M	$762M	$916M	$980M	$1.0B	$976M	$975M	Dividends paidDiv. paid
$1.4B	$651M	$300M	$6.0B	$2.2B	$1.3B	$1.4B	$625M	$1.2B	$6.0B	—	BuybacksBuybacks
5%	6%	8%	24%	4%	7%	7%	6%	7%	15%	4%	ROICROIC
15%	8%	10%	29%	4%	9%	9%	11%	11%	25%	26%	Return on equityROE
9%	4%	6%	24%	−1%	5%	4%	5%	4%	18%	19%	Retained to equityRetained/eq
											Balance sheet
$553M	$301M	$185M	$2.8B	$2.0B	$1.3B	$2.0B	$828M	$606M	$379M	$698M	Cash & investmentsCash+inv
$5.8B	$6.7B	$5.6B	$5.8B	$5.3B	$5.6B	$5.7B	$5.5B	$6.1B	$6.3B	$6.6B	ReceivablesReceiv.
$2.4B	$3.2B	$1.8B	$1.8B	$1.8B	$2.1B	$2.7B	$1.9B	$1.8B	$1.8B	$1.9B	InventoryInvent.
$5.2B	$4.3B	$3.4B	$3.6B	$3.1B	$3.7B	$4.4B	$3.5B	$3.4B	$3.6B	$3.6B	Accounts payablePayables
$3.0B	$5.6B	$4.0B	$4.0B	$3.9B	$3.9B	$4.0B	$3.9B	$4.4B	$4.5B	$4.9B	Operating working capitalOper. WC
$10.5B	$12.3B	$11.8B	$12.4B	$10.1B	$10.0B	$11.7B	$10.7B	$11.2B	$10.2B	$11.0B	Current assetsCur. assets
$10.4B	$11.9B	$11.3B	$9.1B	$8.2B	$9.1B	$11.2B	$11.1B	$12.0B	$10.9B	$10.6B	Current liabilitiesCur. liab.
1.0×	1.0×	1.1×	1.4×	1.2×	1.1×	1.0×	1.0×	0.9×	0.9×	1.0×	Current ratioCurr. ratio
$4.5B	$18.6B	$18.4B	$18.2B	$17.9B	$18.3B	$16.2B	$16.8B	$16.7B	$16.6B	$16.5B	GoodwillGoodwill
$29.6B	$51.9B	$48.8B	$42.3B	$40.8B	$41.9B	$42.2B	$42.2B	$42.7B	$37.9B	$38.4B	Total assetsAssets
$6.6B	$12.4B	$9.7B	$7.2B	$7.8B	$7.8B	$8.3B	$8.5B	$8.6B	$9.2B	$9.5B	Total debtDebt
$6.0B	$12.1B	$9.5B	$4.4B	$5.9B	$6.4B	$6.3B	$7.6B	$8.0B	$8.8B	$8.8B	Net debt / (cash)Net debt
3.2×	5.3×	6.8×	17.2×	4.1×	12.4×	7.0×	—	—	—	4.3×	Interest coverageInt. cov.
$10.3B	$20.4B	$21.2B	$19.8B	$17.4B	$17.6B	$16.3B	$16.5B	$16.1B	$12.9B	$13.5B	Shareholders’ equityEquity
0.9%	0.6%	0.5%	0.4%	0.3%	0.3%	0.5%	0.5%	0.5%	0.6%	0.6%	Stock comp / revenueSBC/rev
—	—	—	—	—	—	$310M	$184M	$230M	—	$230M	Goodwill written downGW imp.
											Per share
662M	945M	932M	874M	754M	721M	700M	687M	676M	654M	614M	Shares out (diluted)Shares
$14.97	$24.17	$25.12	$27.41	$29.61	$32.82	$29.50	$32.49	$33.95	$36.07	$39.79	Revenue / shareRev/sh
$2.36	$1.71	$2.32	$6.49	$0.84	$2.27	$2.19	$2.69	$2.52	$5.03	$5.75	EPS (diluted)EPS
$1.12	$-0.41	$0.94	$1.32	$2.70	$2.77	$1.07	$2.05	$1.59	$3.24	$4.34	Owner earnings / shareOE/sh
$0.70	$-0.41	$0.94	$1.32	$2.70	$2.77	$1.07	$2.05	$1.59	$3.24	$4.34	Free cash flow / shareFCF/sh
$0.99	$0.74	$1.02	$1.05	$1.05	$1.06	$1.31	$1.43	$1.48	$1.49	$1.59	Dividends / shareDiv/sh
$1.72	$0.80	$0.69	$0.67	$0.59	$0.77	$0.70	$0.65	$0.73	$0.66	$0.61	Cap. spending / shareCapex/sh
$15.62	$21.65	$22.72	$22.61	$23.15	$24.35	$23.25	$24.07	$23.81	$19.76	$22.02	Book value / shareBVPS

The diluted share count moved ×1.43 into 2017 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	10-yr	5-yr
Revenue / share	+9.2%/yr	+4.0%/yr
Owner earnings / share	+11.2%/yr	+3.7%/yr
EPS	+7.9%/yr	+43.1%/yr
Dividends / share	+4.2%/yr	+7.3%/yr
Capital spending / share	−9.1%/yr	+2.5%/yr
Book value / share	+2.4%/yr	−3.1%/yr

The record, charted

FY2015–2025

Each measure over its full record; the current point and the worst year marked.

Share count

654Mpeak FY2017

ROIC

15%low FY2020

Gross margin

36%low FY2019

Net debt ÷ owner earnings

4.2×peak FY2018

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$2.1Bowner earningsvs.$3.3Bnet incomelow FY2017

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2015FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $3.3B of profit but $2.1B of owner earnings: $1.2B less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$3.3B

Owner earnings$2.1B · 9% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$3.3B	$1.7B	$1.8B	$1.5B	$1.6B
Depreciation & amortizationnon-cash charge added back	+$865M	+$816M	+$745M	+$717M	+$845M
Stock-based compensationreal costnon-cash, but a real cost	+$140M	+$107M	+$107M	+$98M	+$76M
Working capital & othertiming of cash in and out, other non-cash items	−$1.7B	−$1.1B	−$845M	−$1.1B	−$7M
Cash from operations	$2.6B	$1.6B	$1.9B	$1.2B	$2.6B
Capital expenditurecash put back in to keep running and to grow	−$434M	−$494M	−$446M	−$487M	−$552M
Owner earnings	$2.1B	$1.1B	$1.4B	$750M	$2.0B
Owner-earnings marginowner earnings ÷ revenue	9%	5%	6%	4%	8%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $140M), owner earnings is nearer $2.0B.

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 3.9×

Adequate

Operating income $884M ÷ interest expense $225M

What this means
Comfortable in a normal year, but below the margin of safety Graham looked for. Worth checking how stable the coverage has been across a full cycle.
How heavy is the debt, net of cash? $9.8B · 11.1× operating profit

Heavy net debt

Cash $379M − debt $10.2B

What this means
Netting $379M of cash and short-term investments against $10.2B of debt leaves $9.8B owed, about 11.1× a year's operating profit (11.5× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 53d

Tight

DSO 97 + DIO 44 − DPO 88 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 7%

Below average through the cycle

10-yr median, range 4%–24%; 4% latest = NOPAT $823M ÷ invested capital $22.7B

Industry peers: median 20%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 4% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 9%

Solid, recently turned positive

latest $2.1B = operating cash $2.6B − maintenance capex $434M; positive each of the last 3 years, after an earlier loss stretch (10-yr median 5%)

Industry peers: median 11%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 9% of revenue this year, a 5% median across 10 years. Treating stock comp as the real expense it is (less $140M of SBC) leaves $2.0B.
Are earnings backed by cash? 0.78×

Mostly cash-backed

Cash from ops $2.6B ÷ net income $3.3B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 329%

Returned more than it generated

Dividends + buybacks $7.0B ÷ Owner Earnings $2.1B

What this means
The company returned more than it generated: against $2.1B of Owner Earnings, $7.0B (329%) went back to shareholders, $976M dividends, $6.0B buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Net of $140M stock comp, the real buyback was about $5.9B. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.50×

Harvesting

Capex $434M ÷ depreciation $865M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $23.6B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.93×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $10.2B vs ($779M) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Pass

Uninterrupted dividends · paid every year (10)

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Near

Earnings +33% over the record · +28%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $3.74/share (latest year $5.39), the averaged base the calculator's gate runs on, and book value is $21.19/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2015–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 2 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 10% → 10% (3-yr avg ends)

In the filing’s words The filing attributes gains to higher prices, but the margin in the record has not followed — the claim outruns the result here.

What this means
Through the cycle the operating margin held roughly steady — about 10% early, 10% lately, median 9%.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +25%/yr

What this means
Owner earnings grew about 25% a year over the record.
Worst year 2020 · 4.4% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −0.1%/yr

What this means
Roughly flat share count, little dilution, little buyback.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“We also face risks of competitive disadvantage if our competitors more effectively use AI to drive internal efficiencies or create new or enhanced products or services that we are unable to compete against on cost, quality or other attributes.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$11.0B

Cash & short-term investments$698M
Receivables$6.6B
Inventory$1.9B
Other current assets$1.7B

Current liabilities$10.6B

Debt due within a year$341M
Accounts payable$3.6B
Other current liabilities$6.7B

Current ratio1.04×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.85×stricter: inventory excluded

Cash ratio0.07×strictest: cash alone against what's due

Working capital$386Mthe cushion left after near-term bills

Debt due this year vs. cash$341M due · $698M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+8.2%the freshest read on whether the business is still growing

Current ratio, recent quarters1.0× → 1.0×

Deeper floors

Tangible book value($6.5B)equity stripped of goodwill & intangibles

Net current asset value$3.8BGraham's net-net: current assets less all liabilities

Debt incl. operating leases$10.8B$1.3B of it operating leases; with finance leases, “total fixed claims” below reaches $11.5B (annual-report basis)

Deferred revenue$3.3Bcustomer cash collected before delivery; operating float

From the company's latest filing.

Debt maturity

the debt note, SEC EDGAR →

Not how much it owes, but when it falls due, and against what. The ladder the company files, beside cash on hand and a year's owner earnings.

'26$566M

'27$972M

'28$710M

'29$706M

'30$631M

later$5.6B

Bars scaled to the largest single year; “later” is everything due after 2030, shown apart since it dwarfs the years.

Due in the next 12 months$566Mthe first rung: what must be repaid or rolled over within the year

Within two years$1.5Bthe near wall, the part most exposed to today’s credit conditions

Biggest single year$972Min 2027the lumpiest maturity, where a refinancing, if needed, is largest

Total scheduled principal$9.2Bevery year plus what lies beyond, as the footnote totals it

Against what the business has and earns

Cash & short-term investments, Mar 31, 2026$698M

One year of owner earnings (FY2025)$2.1B

Together, against $566M due next year5.0×

Cash on hand as of Mar 31, 2026 plus a year’s owner earnings comes to $2.8B against the $566M due in the twelve months after the Sep 30, 2025 schedule: 5.0 times it.

Maturity schedule extracted from the company’s Sep 30, 2025 annual report and reconciled to the total the table states.

Lease obligations

the lease note, SEC EDGAR →

Debt by another name. What the business owes on the property, aircraft, stores and equipment it rents rather than owns is a fixed claim due on a schedule; added back to the debt, it is the true leverage. That ladder, and what it adds to the debt on the page above.

'26$274M

'27$306M

'28$245M

'29$189M

'30$132M

later$370M

Lease payments by year, scaled to the largest; “later” is everything beyond year five, shown apart. These are the contractual cash payments, before the interest the filing imputes back out to the balance-sheet liability.

Due in the next 12 months$274Ma fixed cash payment, owed whether or not the business has a good year

Total lease payments$1.5Bevery year plus the tail, undiscounted: the full cash the leases will take

On the balance sheet$1.3Bthe present value of those payments, the recognised lease liability

True leverage: debt plus leases

On-balance-sheet debt$10.2B

Lease obligations (present value)$1.3B

Total fixed claims on the business$11.5B

Counting the leases the way Buffett does, the fixed claims on this business come to $11.5B, of which the leases are 11%. The lease wall above and the debt schedule together are the calendar of what must be paid, and when.

Lease ladder read from the ASC 842 tags in the company’s Sep 30, 2025 annual report and reconciled: the yearly buckets sum to the undiscounted total, which less the imputed interest equals the balance-sheet liability; a ladder that doesn’t tie out is withheld.

How the cash was used, 2015–2025

Over the record, the business generated $17.5B of operating cash; how management split it reads as a cash returner, paying most of what it earns straight back to owners.

Reinvested$6.0B · 34%
Dividends$8.7B · 50%
Buybacks$21.1B · 121%

Returned to owners$29.8B
253% of the owner earnings the business produced over the span, $8.7B as dividends and $21.1B as buybacks.
Source of funding−$18.3B
Reinvestment and shareholder returns ran $18.3B beyond the operating cash the business generated, so the gap was financed off the balance sheet: debt rose from $6.6B to $9.5B.
Average price paid for buybacks—
Buybacks ran $21.1B over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−7.2%
The diluted count fell from 662M to 614M, so the buybacks outran the stock issued to staff.
Dividend record$1.49/sh
Paid in 10 of the years on record, the per-share dividend growing about 5% a year. It was never cut over the span.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$20.2B53% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equityexceeds itgoodwill alone is larger than the company’s entire book equity; stripped of the acquisition premium, there is no net book worth

Cash spent acquiring$1.9Bover 10 years buying other businesses, against $6.0B of capital spent building

$724M written down across 3 years (2022, 2023, 2024): goodwill the company has already conceded it overpaid for, charged against earnings. That is roughly 38% of the cash it put into acquisitions over the span. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Pay, as filed	“Actually paid”	Owner earnings
2021	$16.2M	$54.2M	$2.0B
2022	$15.7M	−$1.0M	$750M
2023	$15.9M	$16.0M	$1.4B
2024	$15.4M	$35.1M	$1.1B
2025	$16.2M	$27.6M	$2.1B
2025	$20.0M	$33.4M	$2.1B

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio338:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$140M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 16% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Johnson Controls International PLC is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2015–2025.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereDid reported profit become cash?0.81×
Across the record the business reported $21.7B of net income but generated $17.5B of operating cash, a 0.81-to-one conversion. Profit that does not turn into cash over many years is the classic mark of earnings that are softer than they look. Ask where the gap sits, receivables, inventory, or costs being capitalized rather than expensed.
Look hereAre "one-time" charges a yearly habit?9 of 10 years
Management took an impairment or write-down in 9 of the last 10 years, $2.5B in all. A charge taken almost every year is not one-time; it is the business — past deals coming due, and an admission the assets were worth less than what was paid. Munger's rule: when the "one-time" keeps happening, it is the business. Read it beside the goodwill the company still carries.

And these came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did receivables and inventory outpace sales?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Pension & retirement, Income taxes, Contingencies as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Building Products

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
CMICummins Inc.	$33.7B	25%	11.3%	20%	8%
BKRBaker Hughes Company	$27.7B	66%	5.1%	3%	4%
ETNEaton Corporation PLC	$27.4B	33%	16.3%	12%	11%
JCIJohnson Controls International PLC	$23.6B	34%	9.7%	7%	6%
CARRCarrier Global Corporation Common Stock	$21.7B	27%	13.1%	14%	9%
LRCXLam Research Corporation	$18.4B	46%	28.8%	52%	24%
ITWIllinois Tool Works Inc.	$16.0B	42%	24.2%	29%	17%
LIILennox Intl	$5.2B	29%	14.0%	44%	11%
Group median	—	33%	13.6%	17%	10%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Johnson Controls International PLC has delivered.

Johnson Controls International PLC’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Johnson Controls International PLC earns about $1.3B on its 5.6% median owner-earnings margin. This year’s 9.0% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($1.3B) Net of stock comp (−$147M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+4%/yr

Owner-earnings growth · ’15→’25+45%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $2.7B on 610M shares outstanding, per the 10-Q cover, as of 2026-03-31; net debt $8.8B. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh JCI against another business →

The owners of JCI: the meeting and the votes →

Cite: Owner Scorecard, "Johnson Controls International PLC (JCI), the owner's record," https://ownerscorecard.com/c/JCI, data as of 2026-07-09.

Manual order: ← JCAP its page in the Manual JEF →

Industry order: ← JBI the Building Products chapter JHX →