Johnson Controls initiates $5 billion share repurchase program

Published 08/08/2025, 12:56
© Reuters.

Investing.com -- Johnson Controls (NYSE:JCI) International plc has entered into accelerated share repurchase transactions totaling $5 billion with four major financial institutions.

The company signed agreements on Thursday with Bank of America, Barclays (LON:BARC) Bank, JPMorgan Chase (NYSE:JPM) Bank, and Morgan Stanley (NYSE:MS) to buy back its ordinary shares under its previously announced repurchase authorization, which had $9.8 billion remaining before this transaction.

Johnson Controls will pay the full $5 billion amount on Monday in exchange for an initial delivery of approximately 43,140,640 shares. The final number of shares to be repurchased will be determined based on volume-weighted average prices during the term of the agreements, less a discount and subject to adjustments.

The accelerated share repurchase program is scheduled to conclude in the second quarter of the company’s 2026 fiscal year. Upon final settlement, Johnson Controls may receive additional shares from the counterparties or, under certain circumstances, might need to deliver shares or make a cash payment.

The company funded the repurchase with proceeds from its recent sale of its residential and light commercial HVAC business to Robert Bosch (NSE:BOSH) GmbH. The share buybacks will be executed as redemptions, as authorized under Article 3(d) of the company’s Articles of Association.

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