JCI · 10-K · 2026A · Full report

Supply Chain Diversification

Johnson Controls International plc · 2026-11-12 · Importance 26 · Surprise 24

The company is strengthening its in-region, for-region manufacturing strategy and shifting toward local sourcing to address trade restrictions and geopolitical disruptions. It has also expanded and redistributed its supplier network and used accelerated purchasing and productivity improvements to mitigate supply-chain disruptions and inflation. The filing says these actions have largely mitigated current impacts, while the company continues to monitor developments affecting supply and operations.

Key facts

• In February 2026, certain U.S. tariffs imposed under the International Emergency Economic Powers Act were invalidated by the U.S. Supreme Court, and the United States subsequently imposed new tariffs and duties in their place; Johnson Controls is participating in the IEEPA refund process. source
• If additional tariffs and reciprocal tariffs are implemented, they could negatively affect Johnson Controls' future revenue growth and margins through decreased sales and increased cost of goods sold. source
• Johnson Controls is mitigating trade restrictions and geopolitical conflict through in-region, for-region manufacturing, local sourcing, accelerated pricing actions, and asserting contractual rights through change orders. source
• Tariffs enacted by the United States and other countries and refunds claimed by Johnson Controls under the IEEPA refund process had not materially affected its financial performance for the periods presented. source
• Johnson Controls has historically mitigated trade restrictions, supply-chain disruptions, and inflation through supplier-network expansion and redistribution, supplier financing, accelerated purchasing, and productivity improvements. source