Johnson Controls vs Trane Technologies
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KIRA’s take AI analyst
I put Johnson Controls and Trane Technologies side by side, using each one’s latest annual report. Here is what stands out:
- Johnson Controls is the larger business, with $23.6B of revenue in fiscal 2025 against $21.3B for Trane Technologies.
- Trane Technologies grew revenue faster (7.5%, against 2.8%).
- Trane Technologies turned more of its sales into free cash flow (13.2% FCF margin, against 9.0%).
- Trane Technologies earned a higher return on the capital invested in it (29.0%, against 8.2%).
- Investors pay more for each dollar of Trane Technologies’s earnings: a P/E of 34.4x against 26.7x for Johnson Controls.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Johnson Controls
JCI
2/9
Net marginShare count change
Trane Technologies
TT
7/9
Revenue growth5-year growthFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | JCI FY25 | TT FY25 |
|---|---|---|
| Size | ||
| Market cap | $90.6B | $101.2B |
| Revenue | $23.6B | $21.3B |
| Free cash flow | $2.1B | $2.8B |
| Net income | $3.3B | $2.9B |
| Growth | ||
| Revenue growth | 2.8% | 7.5% |
| 5-year growth | 1.1% | 11.4% |
| Share count change | −3.2% | −1.5% |
| Profitability | ||
| Gross margin | 36.4% | — |
| Operating margin | — | 18.6% |
| Net margin | 14.0% | 13.7% |
| FCF margin | 9.0% | 13.2% |
| Return on capital | 8.2% | 29.0% |
| Return on equity | 22.7% | 36.4% |
| Balance sheet | ||
| Net debt | $9.5B | $2.9B |
| Net debt / EBITDA | 3.0x | 0.7x |
| Dividends and buybacks | $7.0B | $2.3B |
| Valuation & quality | ||
| P/E | 26.7x | 34.4x |
| Piotroski F-score | 6 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.