Johnson Controls signs agreement to acquire Alloy Enterprises, strengthening data center thermal management leadership

Rhea-AI Summary

Johnson Controls (NYSE: JCI) signed an agreement to acquire Alloy Enterprises, a Boston-based thermal management innovator, to strengthen data center cooling capabilities. Alloy's platform can enable up to 35% improved thermal efficiency and reduce pressure drop by up to 75%. The deal is expected to close in fiscal Q3, subject to closing conditions and regulatory approvals; financial terms were not disclosed.

Positive

• Alloy technology claims up to 35% thermal management efficiency improvement
• Alloy platform can reduce pressure drop by up to 75%
• Adds proprietary manufacturing to Johnson Controls' liquid cooling portfolio, complementing YDAM 3.5 MW chiller

Negative

• Financial terms were not disclosed, leaving deal economics unclear
• Transaction subject to regulatory approvals and closing conditions; completion targeted in fiscal Q3
• Integration and synergy realization risk may delay expected benefits

Key Figures

Thermal efficiency gain: up to 35% improvement Pressure drop reduction: up to 75% reduction YORK YDAM cooling: 3.5 MW +5 more

8 metrics

Thermal efficiency gain up to 35% improvement Alloy Enterprises liquid cooling platform efficiency vs conventional thermal management

Pressure drop reduction up to 75% reduction Alloy platform impact on fluid pressure drop in cooling systems

YORK YDAM cooling 3.5 MW Cooling capacity of recently launched YDAM magnetic bearing chiller

Capacity density increase 20% increase YORK YDAM capacity density versus competing solutions

Chiller size reduction almost 30% smaller Size of YK-HT chiller versus alternative solutions

Dry coolers reduction up to 60% fewer Dry coolers required by YK-HT two-stage economized centrifugal chiller

CDU cooling range 500kW to over 10MW Cooling capacity range of Silent-Aire Coolant Distribution Unit platform

Absorption chiller efficiency more than 90% more efficiently YHAU absorption chillers’ efficiency versus electrical cooling when recovering waste heat

Market Reality Check

Price: $142.21 Vol: Volume 4,371,303 is below...

normal vol

$142.21 Last Close

Volume Volume 4,371,303 is below the 20-day average of 5,361,280 (relative volume 0.82). normal

Technical Trading above the 200-day MA at a price of 139.48 versus MA of 110.21, and within 2.58% of the 52-week high 143.17.

Peers on Argus

JCI is up 2.13% while key peers like CARR (-3.15%), TT (-2.05%), LII (-1.4%) and...

JCI is up 2.13% while key peers like CARR (-3.15%), TT (-2.05%), LII (-1.4%) and CSL (-0.54%) are down, indicating a stock-specific reaction to the Alloy acquisition.

Common Catalyst Another peer, Trane Technologies (TT), also reported an acquisition, suggesting a broader focus on portfolio moves in adjacent thermal and energy solutions.

Previous Acquisition Reports

1 past event · Latest: Jun 18 (Neutral)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Jun 18	Business divestiture	Neutral	-0.3%	Sale of Air Distribution Technologies to Truelink Capital with limited share reaction.

Pattern Detected

Historically, portfolio transactions (acquisition/divestiture) have produced only modest share-price moves around the news date.

Recent Company History

Recent news shows Johnson Controls executing on both portfolio and AI-focused growth. A prior June 18, 2024 divestiture of Air Distribution Technologies saw a mild -0.3% move, suggesting limited volatility around portfolio reshaping. More recently, JCI reported strong Q1 results with higher sales and EPS and launched multiple AI data center cooling innovations, including the YORK YDAM chiller and gigawatt-scale reference design guides. Today’s Alloy Enterprises acquisition fits this strategy of expanding differentiated thermal solutions for high-performance data centers.

Historical Comparison

-0.3% avg move · In the past, portfolio transactions around acquisitions/divestitures moved JCI about -0.3% on averag...

acquisition

-0.3%

Average Historical Move acquisition

In the past, portfolio transactions around acquisitions/divestitures moved JCI about -0.3% on average. Today’s +2.13% move on the Alloy deal is notably stronger than that history.

Historically JCI shed an air distribution business; the Alloy Enterprises deal reflects a pivot toward scaling advanced data center thermal technologies within its portfolio.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2026-02-05

An effective S-3ASR automatic shelf filed on 2026-02-05 allows JCI and its subsidiary TFSCA to issue various securities from time to time for general corporate purposes, including potential acquisitions, debt repayment, capital expenditures, share repurchases and investments in subsidiaries.

Market Pulse Summary

This announcement highlights Johnson Controls’ push deeper into high-performance data center cooling...

Analysis

This announcement highlights Johnson Controls’ push deeper into high-performance data center cooling through the Alloy Enterprises acquisition, adding direct liquid cooling and proprietary manufacturing capabilities. It builds on earlier launches like the YDAM chiller and CDU platform aimed at AI and multistory data centers. Historically, portfolio moves produced modest share reactions around -0.3%, so investors may focus on execution, integration progress and how quickly Alloy’s technology scales across the broader portfolio, alongside ongoing capital allocation under the effective S-3ASR shelf.

Key Terms

direct liquid cooling, gpu, cpu, coolant distribution unit, +3 more

7 terms

direct liquid cooling technical

"advanced direct liquid cooling components that can enable up to a 35% improvement"

Direct liquid cooling is a method that removes heat from electronic components by bringing a coolant into close contact with the parts that generate heat, rather than relying on fans and air flow. For investors, it matters because it enables denser, more energy-efficient and potentially more reliable data centers or computing equipment—think of it as swapping a box fan for a targeted water jacket—lowering operating costs and supporting faster, higher-performance hardware.

gpu technical

"advances the liquid cooling efficiency of GPUs/CPUs, memory, network interfaces and more"

A GPU (graphics processing unit) is a specialized computer chip designed to handle many calculations at once, originally for rendering images and video but now widely used for tasks like artificial intelligence, data analysis and high-performance computing. Investors watch GPU demand and prices because strong sales often signal growth for chip makers and their customers, affect profit margins and capital spending, and can forecast wider trends in gaming, AI adoption and cloud services.

cpu technical

"advances the liquid cooling efficiency of GPUs/CPUs, memory, network interfaces and more"

The CPU (central processing unit) is the main chip in a computer or smart device that carries out instructions and runs software—think of it as the device’s brain that does the actual thinking and decision-making. Investors care because a faster, more efficient CPU can make products more competitive and boost sales and margins, while production problems, supply shortages, or falling prices can cut profits for makers and suppliers.

coolant distribution unit technical

"Silent-Aire Coolant Distribution Unit (CDU) platform — a scalable liquid cooling solution"

A coolant distribution unit is equipment that moves and regulates chilled liquid or gas to cooling systems that protect sensitive machinery, electronics, or industrial processes. Think of it as the plumbing and control panel that delivers and balances coolant like a central radiator system in a building. Investors care because its performance affects operating uptime, energy use, maintenance costs and capital spending—factors that influence a business’s reliability and profit margins.

absorption chillers technical

"its YHAU absorption chillers — designed to recover waste heat and deliver additional cooling"

Absorption chillers are cooling machines that use a heat source (such as hot water, steam or waste heat) and a chemical pair instead of electricity-driven compressors to produce chilled water for air conditioning or industrial processes. Think of them as refrigerators powered by heat rather than an electric motor; for investors they matter because they change operating costs, energy use and emissions profiles, influence capital and maintenance spending, and tie a facility’s cooling costs to fuel and heat-recovery strategies.

forward-looking statements regulatory

"has made statements in this communication regarding the acquisition of Alloy Enterprises that are forward-looking"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

form 10-k regulatory

"included in the section entitled "Risk Factors" in Johnson Controls' Annual Report on Form 10-K"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

AI-generated analysis. Not financial advice.

• Transaction aligned with Johnson Controls' strategy to unlock cooling innovation and accelerate the AI-based economy
• Enhances Johnson Controls' leading capabilities in the rapidly growing data center thermal segment

MILWAUKEE, Feb. 18, 2026 /PRNewswire/ -- Johnson Controls (NYSE: JCI), a global technology leader in energy efficiency, decarbonization, thermal management and mission-critical performance, has signed an agreement to acquire Alloy Enterprises, a Boston-based company specializing in a next-generation thermal management platform for high-performance data centers and other mission critical industrial applications. The move will expand Johnson Controls' leadership and capabilities in the high growth data center cooling segment. 

Founded in 2020, Alloy Enterprises is a thermal, mechanical and materials sciences technology innovator focused on a proprietary platform with advanced direct liquid cooling components that can enable up to a 35% improvement in thermal management efficiency — allowing heat to be removed faster and more effectively, and reduce pressure drop by up to 75% so fluid can flow more easily. This results in materially lower overall cooling system energy use. 

"This acquisition is about enabling our customers to stay ahead of fast-changing compute demands by adding another core technology that enables us to optimize the overall thermal management architecture of a data center. It will also strengthen our core technology capabilities that can scale across the Johnson Controls portfolio and reinforces our long-term commitment to lead more broadly in advanced thermal management solutions for mission critical applications," said Lei Schlitz, vice president and president, Global Products & Solutions. "With the addition of Alloy Enterprises, we are poised to set new standards in cooling efficiency and capacity and help customers accelerate time to market with the right integrated technologies. We look forward to welcoming the talented Alloy colleagues to the Johnson Controls team."

The acquisition further advances Johnson Controls' extensive thermal management portfolio and aligns with its ambition to deliver highly differentiated cooling solutions for data centers. The addition of Alloy's capabilities, including a proprietary manufacturing process that advances the liquid cooling efficiency of GPUs/CPUs, memory, network interfaces and more, complements Johnson Controls' existing range of end-to-end cooling technologies. These include its recently launched YDAM magnetic bearing chiller — delivering 3.5 MW of cooling, a 20% capacity density increase versus competing solutions, its YK-HT two-stage economized centrifugal chiller — almost 30% smaller than alternatives, requiring up to 60% fewer dry coolers and delivering the industry's widest operating range from a single driveline, its Silent-Aire Coolant Distribution Unit (CDU) platform — a scalable liquid cooling solution offering cooling capacities from 500kW to over 10MW, and its YHAU absorption chillers — designed to recover waste heat and deliver additional cooling more than 90% more efficiently than electrical cooling.

"We're excited to join Johnson Controls and accelerate the impact of our unique technology," said Alison Forsyth, co-founder and CEO of Alloy Enterprises. "We'll continue to work closely to solve the industry's most urgent challenges in data centers and other mission-critical environments. We look forward to this new chapter and continuing to scale with one of the world's most respected and experienced leaders in thermal management innovation."

The transaction is expected to be completed in fiscal Q3, subject to closing conditions and receipt of regulatory approvals. Financial terms were not disclosed.

Johnson Controls International plc Cautionary Statement Regarding Forward-Looking Statements

Johnson Controls International plc has made statements in this communication regarding the acquisition of Alloy Enterprises that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document 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. 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 Johnson Controls' control, that could cause the expected impact of the acquisition of Alloy Enterprises to differ materially from those expressed or implied by such forward-looking statements, include, among others, risks related to the ability to realize the anticipated benefits of the acquisition, including the possibility that expected synergies will not be realized or will not be realized within the expected time frame; delays in the successful integration of Alloy Enterprises and its Enterprises; unfavorable reaction to the acquisition by customers, competitors, suppliers and employees, disruption from the transaction making it more difficult to maintain business and operational relationships; significant transaction costs; and unknown liabilities.

Other factors that could cause Johnson Controls' actual results to differ materially from those expressed include, among others risks included in the section entitled "Risk Factors" in Johnson Controls' Annual Report on Form 10-K for the 2025 fiscal year filed with the SEC on November 14, 2025, 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 document, 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.

INVESTOR CONTACT:	MEDIA CONTACT:
Michael Gates	Louise Colledge
Sr. Director, Investor Relations	Director, Public Relations & Media
Direct: +1 414.524.5785	Direct: +41 79 414 49 96
Email: michael.j.gates@jci.com	Email: louise.colledge@jci.com

About Johnson Controls: 

Johnson Controls, a global technology leader in energy efficiency, decarbonization, thermal management and mission-critical performance, 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.

For more than 140 years, Johnson Controls has delivered performance where it really matters. Backed by advanced technology, lifecycle services and an industry-leading field organization, we elevate customer performance, turn goals into real-world results and help move society forward.

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

About Alloy Enterprises

Alloy Enterprises delivers high-performance thermal management components designed and manufactured in the U.S. Its patented Stack Forging process creates leak-tight, single-piece components with embedded microgeometries. These enable maximum heat transfer, reduced pressure drop by up to 4×, and improved thermal resistance by over 35%, dramatically lowering pumping power and energy use. Its solutions support a wide range of applications, including GPUs, CPUs, memory modules, NICs, power electronics, and semiconductor tools. Now shipping to leading data center, industrial, and military customers.

For more information, visit http://alloyenterprises.co.

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SOURCE Johnson Controls International plc

FAQ

What did Johnson Controls announce about acquiring Alloy Enterprises on February 18, 2026 (JCI)?

Johnson Controls announced an agreement to acquire Alloy Enterprises to enhance data center cooling capabilities. According to Johnson Controls, the transaction targets completion in fiscal Q3, is subject to regulatory approvals, and financial terms were not disclosed.

How much cooling efficiency improvement does Alloy Enterprises claim for JCI data center solutions?

Alloy reports its platform can enable up to 35% improvement in thermal management efficiency. According to Johnson Controls, this improvement plus reduced pressure drop aims to lower overall cooling system energy use materially.

What is the expected timeline for the JCI acquisition of Alloy Enterprises (JCI)?

The transaction is expected to close in fiscal Q3, subject to customary closing conditions and regulatory approvals. According to Johnson Controls, timing depends on satisfying those conditions and completing required approvals.

Will the Alloy acquisition change Johnson Controls' data center product lineup (JCI)?

Yes. The acquisition adds Alloy's direct liquid cooling platform and proprietary manufacturing to JCI's portfolio. According to Johnson Controls, this complements existing solutions like the YDAM 3.5 MW chiller and Silent-Aire CDU platforms.

Were financial terms disclosed for Johnson Controls' purchase of Alloy Enterprises (JCI)?

No. Financial terms were not disclosed in the announcement. According to Johnson Controls, the companies did not release deal value, so investors cannot yet assess immediate financial impact or dilution.