Strong Q3 Performance: Johnson Controls reported a 6% organic sales growth and a segment margin expansion of 20 basis points to 17.6%. Adjusted EPS rose by 11% YOY, reaching $1.05, exceeding guidance. Year-to-date adjusted free cash flow nearly doubled to $1.8 billion, indicating strong cash conversion and disciplined financial management.

Record Backlog and Orders: The total backlog increased by 11% to a record $14.6 billion, driven by strong demand in the Americas, although overall orders grew only 2%, influenced by ongoing softness in the Chinese market. Leadership expressed a positive outlook for core verticals but highlighted the need for vigilance regarding lower growth rates in Fire & Security.

Guidance Revisions: Management raised full-year guidance amid strong YTD performance despite challenges from previous large project comparisons affecting future quarters. Q4 is expected to see low single-digit organic sales growth and an adjusted EPS forecast of $1.14 to $1.17. Full-year adjusted EPS is projected to be in the range of $3.65 to $3.68.