Growing Services Business Should Support Margin Expansion for Johnson Controls

Before 2016, the market had viewed Johnson Controls as an automotive-parts company because about two thirds of its sales came from automakers. However, after merging with Tyco and spinning off its automotive seating business, now known as Adient, in late 2016, Johnson Controls has become a more profitable and less cyclical pure-play building technology firm that manufactures HVAC systems, fire and security products, and building automation and control products.