May 01, 2024 11:35 GMT
Johnson Controls (Baa2/BBB+): 2Q24 Results
CAPITAL GOODS
One off uptick in leverage. Neutral for spreads
• Revenue and adj. EBITA both in line with consensus.
• Adj. FCF was less than expected at $375mn (c.$702mn) with higher cash taxes.
• One off cash outflow due to the discontinuation of receivables factoring sees leverage tick up to 2.4x to 2.2x.
• FY24 guidance maintained: MSD revenue growth, 50-75bp EBITA margin improvement. Strong order backlog.
• FY expected FCF is consumed by dividends and buybacks, little scope for deleveraging.
• Call 1.30pm London: https://investors.johnsoncontrols.com/news-and-eve...
Keep reading...Show less
80 words