JC

Johnson Controls International plc stock research

Sep 30, 2024

FY2024 Q4

Johnson Controls International (JCI) Gross Margin — Quarter Ended Sep 30, 2024

Revenue and gross profit both increased compared to the prior quarter, with gross profit rising more than revenue, resulting in an improved gross margin. Compared to the same quarter last year, gross margin was lower despite higher revenue and gross profit.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q4

Revenue and gross profit both increased compared to the prior quarter, with gross profit rising more than revenue, resulting in an improved gross margin. Compared to the same quarter last year, gross margin was lower despite higher revenue and gross profit.

  • The sequential improvement in gross margin was driven by gross profit growing at a faster pace than revenue, while cost of revenue increased at a similar rate to revenue.
  • Gross margin improved sequentially from the prior quarter but weakened compared to the same quarter one year earlier. Revenue and gross profit were higher in both comparisons, while cost of revenue also increased.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

36.3%

Gross profit

$2.3B

Revenue

$6.2B

Cost of revenue

$4.0B

Quarter-over-quarter change

+0.5 pts

Year-over-year change

-6.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$5.2B$1.8B$3.4B34.1%
Mar 31, 2024$5.6B$1.9B$3.7B34.3%
Jun 30, 2024$5.9B$2.1B$3.8B35.8%
Sep 30, 2024$6.2B$2.3B$4.0B36.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

+0.5 pts

Year-over-year change

Sep 30, 2023

-6.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The sequential improvement in gross margin was driven by gross profit growing at a faster pace than revenue, while cost of revenue increased at a similar rate to revenue.

Gross margin improved sequentially from the prior quarter but weakened compared to the same quarter one year earlier. Revenue and gross profit were higher in both comparisons, while cost of revenue also increased.

Monitor accounts receivable and inventory trends as disclosed in the liquidity section of the filing.