Johnson Controls International plc

- The transcript does not mention any current or planned fundraising activities through debt or equity. - The company ended the quarter with approximately $700 million of available cash and maintained strong total liquidity. - Net debt declined to 2x, remaining within their long-term target range. - The balance sheet supports disciplined capital allocation, financial flexibility, investments in the business, and shareholder capital returns. - No indications or guidance suggesting new debt or equity fundraising were provided in the call.

- Continued investment in increasing hard capacity, particularly in North American factories, to keep up with demand and ramp up for future growth. - Ongoing efforts to add more physical footprint (hard capacity) as needed, with a 12 to 18 months visibility horizon for capacity planning. - Substantial investments in creating specific applications and technology for verticals like data center fire detection, fire suppression, building controls, and equipment controls. - Investment in the business system aimed at improving operational discipline, driving productivity, and unlocking growth opportunities (currently engaging ~1,400 colleagues). - Investments supporting scaling and ramping within new buildings already constructed before recent periods for capacity expansion (planned to last next 12-18 months). - Focused R&D and technology platform investments in proprietary components like compressors, power electronics, magnetic bearings, thermal transfer, and intelligent chiller controls to strengthen product differentiation.

- Organic sales growth is expected around 6% for the full year, with a similar pace anticipated in the third quarter. - Backlog is strong, growing over 25% to $20 billion, supporting confidence in growth over the next 12 months. - Orders remain healthy though Q3 growth might be closer to flat year-over-year, shifting to mid-single-digit growth in the second half. - For Asia Pacific, growth has bottomed out with mid-single-digit growth expected; opportunities remain strong in data centers, semiconductors, and biologics. - A substantial step-up in organic growth is expected in early 2027 supported by a strong backlog, although service business headwinds may moderate. - Capacity expansions are in place to sustainably support next 12-18 months of growth. - EMEA growth is stable with margin improvement underway despite regional challenges. - Overall the business system and productivity improvements underpin revenue and volume growth momentum.

- Full-year organic sales growth is expected to be approximately 6%, supported by a strong backlog and continued momentum. - Operating leverage for the full year is projected around 50%, reflecting ongoing cost management and productivity improvements. - Adjusted EPS guidance for the full year has been raised to approximately $4.85, representing about 30% growth and $0.30 above the initial guidance at the beginning of the year. - Q3 adjusted EPS is expected around $1.28 with approximately 6% organic sales growth and 45% operating leverage. - Asia Pacific margins are expected to improve, potentially reaching high 18% full-year margins, despite moderating growth rates of mid-single digits in the back half. - Positive momentum in margins and earnings is supported by productivity gains, strong backlog conversion (around 70% over 12 months), and disciplined execution of their business system initiatives.

- Record backlog grew over 25% to $20 billion, providing confidence in growth over the next 12 months. (Page 4) - Approximately 70% of the backlog expected to be converted into revenue over the next 12 months. (Page 11) - Customers are placing orders earlier than before, causing a slight timing shift in backlog delivery. (Page 11) - Orders increased 30% this quarter, fueled notably by large data center activity and stable demand in other verticals. (Page 4) - Orders in Americas grew 40%, EMEA orders up 11%, and APAC orders increased 4%, with Southeast Asia leading growth. (Page 4) - Pipeline remains very strong and growing at a double-digit rate, supporting continued strong orders. (Pages 6 and 12) - Capacity to deliver on backlog is sufficient for 12 to 18+ months, with new factory footprints ramping up. (Pages 11-12)