Johnson Controls lifts 2025 profit forecast, names new CEO (updated)

Johnson Controls International

05/02/2025 15:04

(Updates share move in first paragraph)
       Feb 5 (Reuters) - Johnson Controls International  JCI.N 
named Joakim Weidemanis as chief executive officer and lifted
its 2025 profit forecast on Wednesday, sending its shares up 13%
in early trading.
    Weidemanis, who had previously held several leadership roles
over his 13-year span at life-sciences firm Danaher Corp
 DHR.N , will succeed George Oliver, effective March. 
    The change is part of a succession plan announced in July
2024 following talks with activist investor Elliott Investment,
which has built a stake worth more than $1 billion in the
company.
    Oliver's retirement was previously announced. He will remain
as an adviser until Dec. 31, the company said.
    Johnson Controls lifted its 2025 adjusted profit forecast to
range between $3.50 and $3.60 per share, compared with its prior
forecast of $3.40 to $3.50.
    The Cork, Ireland-based company, which provides cooling
systems and security infrastructure for data centers, has
benefited as companies rush to develop and adopt artificial
intelligence models in their operations.
    Johnson Controls has also streamlined its business through
the divestiture of its portfolio of heating, ventilation, and
air conditioning (HVAC) assets.
    Weidemanis held executive positions at precision instruments
maker Mettler Toledo and electrical equipment maker ABB Ltd.
    "Joakim's approach to leading service-oriented businesses
aligns well with both the Johnson Controls approach and our
end-to-end operating model," said Jürgen Tinggren, lead
independent director of the company's board. 
    Johnson Controls posted fourth-quarter profit of 64 cents
per share, compared with analysts' estimates of 59 cents,
according to data compiled by LSEG.
    For the quarter ended Dec. 31, net sales rose 4% to $5.43
billion, compared with estimates of $5.29 billion.
    

 (Reporting by Aishwarya Jain and Aatreyee Dasgupta; Editing by
Sriraj Kalluvila, Pooja Desai and Devika Syamnath)
 ((Aishwarya.Jain@thomsonreuters.com;))