JC

Johnson Controls International plc stock research

Dec 31, 2024

FY2025 Q1

Johnson Controls International (JCI) Gross Margin — Quarter Ended Dec 31, 2024

Revenue, cost of revenue, and gross profit all changed from the prior periods. The resulting gross margin was higher than the same quarter last year but lower than the immediately preceding quarter.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2025 Q1

Revenue, cost of revenue, and gross profit all changed from the prior periods. The resulting gross margin was higher than the same quarter last year but lower than the immediately preceding quarter.

  • The strongest observable margin driver was the year-over-year improvement, where revenue increased while cost of revenue grew at a slower pace, leading to a higher gross margin.
  • Compared to the previous quarter, gross margin weakened as revenue declined more than cost of revenue. Compared to the same quarter a year ago, gross margin improved as revenue growth exceeded cost growth.

Gross margin snapshot

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

Gross margin

35.5%

Gross profit

$1.9B

Revenue

$5.4B

Cost of revenue

$3.5B

Quarter-over-quarter change

-0.8 pts

Year-over-year change

+1.4 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Dec 31, 2024$5.4B$1.9B$3.5B35.5%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

-0.8 pts

Year-over-year change

Dec 31, 2023

+1.4 pts

What the margin says

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

The strongest observable margin driver was the year-over-year improvement, where revenue increased while cost of revenue grew at a slower pace, leading to a higher gross margin.

Compared to the previous quarter, gross margin weakened as revenue declined more than cost of revenue. Compared to the same quarter a year ago, gross margin improved as revenue growth exceeded cost growth.

Monitor the revenue and cost of sales breakdown by products/systems and services segments as disclosed in the filing.