Johnson Controls Plans Fiscal 2027 Capex of About $900 Million, Nearly Double Prior Year, on Data Center Cooling Demand

Johnson Controls (JCI) said it plans capital expenditures of about $900 million for fiscal 2027, nearly double the $465 million spent in fiscal 2026, to expand capacity for data center cooling and other high-growth markets. The building equipment maker reported the plan alongside fourth-quarter results. Backlog reached a record $23 billion at the end of September. CFO Marc Vandiepenbeeck estimated 70% to 80% could convert to revenue within 12 months, though some customers face power and electrical infrastructure constraints that affect equipment delivery and project timelines. The company guided fiscal 2027 revenue growth of 11% to 12%, excluding currency, M&A and divestitures, up from 8% in fiscal 2026, and adjusted EPS of $6.15 to $6.30, implying roughly 21% growth at the midpoint. Fourth-quarter revenue rose 10% to $7.113 billion, with systems up 13% and services up 8% on an adjusted basis; adjusted EBIT margin climbed to 18.3% from 15.3%.