JCI - Johnson Controls International plc (JCI) Q2 2024 Earnings Call Transcript

2024-05-01 12:39:06 ET

Johnson Controls International plc (JCI)

Q2 2024 Earnings Conference Call

May 01, 2024 8:30 AM ET

Company Participants

Jim Lucas - VP, IR

George R. Oliver - Chairman and CEO

Marc Vandiepenbeeck - EVP & CFO and President, Building Solutions EMEALA

Conference Call Participants

Stephen Tusa - JPMorgan

Nigel Coe - Wolfe Research

Scott Davis - Melius Research

Joseph O'Dea - Wells Fargo

Julian Mitchell - Barclays

Noah Kaye - Oppenheimer

Andrew Kaplowitz - Citigroup

Joseph Ritchie - Goldman Sachs

Jeffrey Sprague - Vertical Research

Gautam Khanna - TD Cowen

Deane Dray - RBC Capital Markets

Andrew Obin - Bank of America

Steve Volkmann - Jefferies

Presentation

Operator

Good morning and welcome to the Johnson Controls’ Second Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please also note, today's event is being recorded.

I would now like to turn the conference over to Jim Lucas, Vice President of Investor Relations. Please go ahead.

Jim Lucas

Good morning, and thank you for joining our conference call to discuss Johnson Controls’ Second Quarter Fiscal 2024 Results. The press release and related tables that were issued earlier this morning, as well as the conference call slide presentation, can be found on the Investor Relations portion of our website at johnsoncontrols.com.

Joining me on the call today are Johnson Controls’ Chairman and Chief Executive Officer, George Oliver; and Chief Financial Officer, Marc Vandiepenbeeck. Before we begin, let me remind you that during our presentation today, we will make forward-looking statements. Actual results may differ materially from those indicated by forward-looking statements due to a variety of risks and uncertainties. Please note that we assume no obligation to update these forward-looking statements even if actual results or future expectations change materially.

Please refer to our SEC filings for detailed discussions of these risks and uncertainties, in addition to the inherent limitations of such forward-looking statements. We will also reference certain non-GAAP measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are contained in the schedules attached to our press release and in the appendix to this presentation, both of which can be found on the Investor Relations section of Johnson Controls website.

I will now turn the call over to George.

George R. Oliver

Thanks, Jim. And good morning, everyone. Thank you for joining us on the call today. Let's begin with Slide 3. We were very pleased with our second quarter performance as our adjusted EPS came in at the high end of our guidance. Sales growth returned this quarter, following the cyber disruption at the start of the fiscal year. And our team delivered strong margin expansion. This was driven by productivity and conversion of our higher margin backlog.

Orders noticeably rebounded in the quarter up 12% year-over-year. This was driven by continued strength in data centers, which I will talk about in an upcoming slide. Our backlog remained at record levels, growing 10% to $12.6 billion. And the quality of the backlog is strong, as I mentioned....

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