Johnson Controls Announces $9 Billion Increase to Share Repurchase Program

Rhea-AI Summary

Johnson Controls (NYSE: JCI) has announced a significant expansion of its share repurchase program, with its board of directors approving a $9 billion authorization. This adds to the existing $1.1 billion remaining from the 2021 authorization as of the end of Q2. The company plans to implement these repurchases through various methods including open market purchases, Rule 10b5-1 plans, tender offers, or accelerated share repurchase programs. The authorization has no expiration date or obligation to repurchase any specific amount, with timing and volume to be determined based on share price, market conditions, and other factors. JCI retains the right to amend, suspend, or terminate the program at any time.

Positive

• Substantial $9 billion increase to share repurchase authorization shows strong commitment to returning value to shareholders
• Additional authorization comes on top of $1.1 billion still remaining from previous program
• Flexible implementation approach through multiple repurchase methods provides strategic advantages
• No set expiration date gives company maximum flexibility in execution

Negative

• Large cash allocation to buybacks could limit funds available for business investments or acquisitions
• No commitment to specific timeline or amount of shares to be repurchased creates uncertainty

CORK, Ireland, June 13, 2025 /PRNewswire/ -- The board of directors of Johnson Controls International plc (NYSE: JCI), the global leader in smart, healthy and sustainable buildings, has approved a $9 billion share repurchase authorization, adding to the $1.1 billion remaining as of the end of the second fiscal quarter under the share repurchase authorization previously approved in 2021.

In implementing share repurchases, Johnson Controls may purchase shares in the open market or through a variety of methods as permitted by applicable securities laws and other legal requirements, including through the use of a Rule 10b5-1 plan, a tender offer or an accelerated share repurchase program or any combination of the foregoing. There exists no obligation under the share repurchase authorization to repurchase any particular amount of shares within any timeframe, and the manner, timing and amount of any purchase will be determined subject to an evaluation of the price of Johnson Controls' shares, general market conditions and other factors. Johnson Controls' authorization to repurchase shares does not have a set expiration date and may be amended, suspended or terminated at any time at Johnson Controls' discretion without prior notice. Johnson Controls currently expects to effect repurchases as redemptions pursuant to Article 3(d) of its Articles of Association.

About Johnson Controls
At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet.

Building on a proud history of nearly 140 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering.

Today, with a global team of experts, Johnson Controls offers the world's largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry.

Visit johnsoncontrols.com for more information and follow @Johnsoncontrols on social platforms.

INVESTOR CONTACT:	MEDIA CONTACT:
Jim Lucas	Danielle Canzanella
Direct: +1 414.340.1752	Direct: +1 203.499.8297
Email: jim.lucas@jci.com	Email: danielle.canzanella@jci.com

JOHNSON CONTROLS INTERNATIONAL PLC CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Johnson Controls International plc ("Johnson Controls") has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this communication other than statements of historical fact are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this communication, statements regarding Johnson Controls' future share repurchase activity are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning are also generally intended to identify forward-looking statements.  However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond its control, that could cause its actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: Johnson Controls' ability to manage macroeconomic and geopolitical volatility, including changes to laws or policies governing foreign trade, including tariffs, economic sanctions, foreign exchange and capital controls, import/export controls or other trade restrictions as well as supply chain disruptions; the ability of Johnson Controls to manage general economic, business and capital market conditions, including the impacts of trade restrictions, recessions, economic downturns and global price inflation; Johnson Controls' ability to develop or acquire new products and technologies that achieve market acceptance and meet applicable quality and regulatory requirements; the ability of Johnson Controls to execute on its operating model and drive organizational improvement; Johnson Controls' ability to successfully execute and complete portfolio simplification, including the completion of the divestiture of the Residential and Light Commercial business, as well as the possibility that the expected benefits of such actions will not be realized or will not be realized within the expected time frame; the ability to hire and retain senior management and other key personnel, including successfully completing Johnson Controls' Chief Executive Officer transition; the ability to innovate and adapt to emerging technologies, ideas and trends in the marketplace, including the incorporation of technologies such as artificial intelligence; fluctuations in the cost and availability of public and private financing for Johnson Controls' customers; the ability to manage disruptions caused by international conflicts, including Russia and Ukraine and the ongoing conflicts in the Middle East; managing the risks and impacts of potential and actual security breaches, cyberattacks, privacy breaches or data breaches, maintaining and improving the capacity, reliability and security of Johnson Controls' enterprise information technology infrastructure; the ability to manage the lifecycle cybersecurity risk in the development, deployment and operation of Johnson Controls' digital platforms and services; fluctuations in currency exchange rates; changes or uncertainty in laws, regulations, rates, policies, or interpretations that impact Johnson Controls' business operations or tax status; the ability to adapt to global climate change, climate change regulation and successfully meet Johnson Controls' public sustainability commitments; the outcome of litigation and governmental proceedings; the risk of infringement or expiration of intellectual property rights; Johnson Controls' ability to manage disruptions caused by catastrophic or geopolitical events, such as natural disasters, armed conflict, political change, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments; any delay or inability of Johnson Controls to realize the expected benefits and synergies of recent portfolio transactions; the tax treatment of recent portfolio transactions; significant transaction costs and/or unknown liabilities associated with such transactions; labor shortages, work stoppages, union negotiations, labor disputes and other matters associated with the labor force; and the cancellation of or changes to commercial arrangements. A detailed discussion of risks related to Johnson Controls' business is included in the section entitled "Risk Factors" in Johnson Controls Annual Report on Form 10-K for the fiscal year ended September 30, 2024 filed with the SEC on November 19, 2024, which is available at www.sec.gov and www.johnsoncontrols.com under the "Investors" tab. The description of certain of these risks is supplemented in Item 1A of Part II of Johnson Controls subsequently filed Quarterly Reports on Form 10-Q. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this communication are made only as of the date of this communication, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this communication.

 

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SOURCE Johnson Controls International plc

FAQ

How much is Johnson Controls' new share buyback program worth?

Johnson Controls announced a $9 billion share repurchase authorization, in addition to $1.1 billion remaining from its 2021 program, totaling $10.1 billion in available authorization.

When does JCI's new share buyback authorization expire?

The share repurchase authorization has no set expiration date and can be amended, suspended, or terminated at any time at Johnson Controls' discretion.

How will Johnson Controls implement its share repurchase program?

JCI may purchase shares through various methods including open market purchases, Rule 10b5-1 plans, tender offers, or accelerated share repurchase programs.

Is Johnson Controls required to spend the full $9 billion on share repurchases?

No, there is no obligation to repurchase any particular amount of shares, and the timing and amount will be determined based on share price, market conditions, and other factors.

How much remained from JCI's previous buyback authorization?

As of the end of the second fiscal quarter, $1.1 billion remained from the share repurchase authorization previously approved in 2021.