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Johnson Controls Authorizes $9B Worth of Share Buyback Program

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Key Takeaways

  • JCI's board authorized a $9B share repurchase program with no expiration date.
  • The new buyback adds to the $1.1B remaining under the 2021 repurchase program.
  • JCI repurchased $660M in shares and paid $489M in dividends in H1 fiscal 2025.

Johnson Controls International plc (JCI - Free Report) recently announced rewards for shareholders in the form of share buyback authorization. We believe that the repurchase program is in sync with its commitment to rewarding shareholders handsomely.

Under the buyback program, Johnson Controls has been authorized by its board of directors to repurchase $9 billion worth of shares. Subject to market conditions and other factors, the buyback can be carried out in the open market or through several other methods, including the Securities Exchange Act Rule 10b-5-1 trading plans. As noted, this program does not have any expiration date.

It’s worth mentioning that JCI currently has a share repurchase program, authorized in 2021. Exiting second-quarter fiscal 2025 (ended March 2025), total share repurchase authorization available under the 2021 program was $1.1 billion.

Prior to the share repurchase authorization, JCI’s board of directors approved a quarterly cash dividend of 37 cents per share payable to its shareholders of record as of June 23, 2025. The disbursement will be made on July 18, 2025.

Johnson Controls repurchased 8.2 million shares for $660 million in the first six months of fiscal 2025 and paid out dividends worth $489 million to its shareholders.

Zacks Rank & Price Performance

Johnson Controls, with a $69 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company benefits from solid momentum in the Building Solutions North America segment, aided by an increase in demand for the HVAC platform. Investments in digital offerings, like the OpenBlue platform, are benefiting JCI. Solid shareholder-friendly policies raise the stock’s attractiveness.

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The company’s shares have gained 24.6% compared with the industry’s growth of 1.5% in the past six months.

However, escalating SG&A expenses due to higher transformation costs and transaction costs are likely to dent its bottom line. Also, high debt levels can raise the company’s financial obligations.

3 Promising Stocks

Some better-ranked stocks from the same space are discussed below.

Howmet Aerospace (HWM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

HWM delivered a trailing four-quarter average earnings surprise of 8.8%. In the past 60 days, the consensus estimate for Howmet’s 2025 earnings has increased 6.5%.

Federal Signal Corporation (FSS - Free Report) currently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 6.4%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2025 earnings has increased 1.6%.

AptarGroup, Inc. (ATR - Free Report) presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 5.4%.

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