Smart building solution company Johnson Controls recorded revenues of $2.2 billion in its North America building solutions segment in fiscal Q3 2021, up 10% compared to revenues of $2 billion in the same period the previous year, according to the company’s earnings release.
The firm said it had achieved growth in both service and project installations, driven by double digit growth in Fire & Security and Performance Contracting and to a lesser extent growth in HVAC & Controls.
“Service revenues were higher in all domains driven by a sharp rebound in our transactional service business, which increased nearly 30%. Install demand, which is the area of our business that was most impacted by supply chain disruptions continues to be driven by short-term, shorter cycle retrofit and upgrade projects,” the company’s CFO Olivier Leonetti said during a conference call with investors.
In EMEA and Latin America, the company recorded revenues of $967 million in fiscal Q2 2021 in its building solutions segment, up 27% compared to the same period the previous year.
At a global level, the company recorded revenues of $6.34 billion in fiscal Q3, up 19% compared to the year-ago quarter.
“We continue to advance our efforts to deliver innovative solutions to help customers enhance building performance and reduce costs, while achieving their net-zero carbon and renewable energy goals. This will be accomplished through our ongoing digital transformation enabled by OpenBlue, and accelerating our offerings to deliver the outcomes our customers need,” the company’s CEO George Oliver said.
“Not only does this offering fulfill an immediate need as expressed by our customers, it also represents the next phase in the evolution of our digital smart buildings offerings, which will drive our shift towards increased deployment of high recurring as a service revenue models,” Oliver added.
In the call, Oliver highlighted that the Net Zero Buildings as a Service includes a full portfolio of sustainability offerings tailored to schools, campuses, data centers, healthcare facilities, as well as commercial and industrial verticals. “It leverages a game-changing new solution, Net Zero Advisor, which delivers turnkey AI-driven tracking and reporting of sustainability metrics, and helps building operators ensure improved carbon reduction and renewable energy impacts of their buildings,” he said.