Honeywell se rozdělil na tři firmy; autor článku by nejraději vlastnil Honeywell Automation, kde ve 2. čtvrtletí objednávky po oddělení vzrostly o 16 % a upravený zisk stoupl meziročně o 10 %.
Wall Street goes through cycles. One that recurs with some regularity is the shift between conglomeration and corporate separations. Right now, conglomerates are separating, creating multiple businesses from one. Honeywell is a good example of this trend, with the conglomerate breaking into Honeywell Technologies (HON +0.95%), Solstice Advanced Materials (SOLS +3.85%), and Honeywell Aerospace (HONA +3.90%).
If you are thinking about buying one of these three companies, you may want to consider following the CEO who orchestrated the corporate split. Here's what you need to know.
Image source: Getty Images.
What is the point of a conglomerate like Honeywell? When it comes to acquisitions, there can be a fine line between a CEO who is simply trying to build an empire and one who is piecing together a coherent business. Honeywell was a large industrial company with the financial resources to support the businesses it operated. Bringing more industrial businesses under one roof could increase revenue diversification, eliminate redundant tasks (such as accounting), share technology and innovation among businesses, and enable enhanced access to capital markets.
Those are all good things, but conglomerates also have their downsides. For example, business units often compete for funding. Bureaucracy can slow down decision-making. And sometimes small or underperforming business units get ignored, making poor performance hard to fix. When the negatives outweigh the positives, conglomerates often spin off businesses or break up, as Honeywell has done. That said, Wall Street's desire for de-conglomeration can also lead to business breakups simply to satisfy shifts in investor sentiment.
Premium Feature
Moneyball Superscore
66/100
Today's Change
(
0.95
%) $
1.98
Current Price
$
209.61
By breaking a business into parts, each new business can focus all its energy on just one thing. That, in turn, is expected to lead to improved results for each of the newly independent businesses. Sometimes it works out, sometimes it doesn't. But it is usually worth watching to see which company the CEO who initiated the corporate split-up sticks around to manage.
What is Honeywell today? The company that retained the HON ticker is Honeywell Technologies, a pure-play industrial automation business. This is the company run by Vimal Kapur, the CEO who led Honeywell when it was an industrial conglomerate. That likely suggests that he believes automation is the most desirable business within Honeywell, noting that artificial intelligence (AI) is likely to be an important trend in industrial automation. When the company reported second-quarter 2026 earnings, the reason for his choice became clear.
Today's Change
(
3.90
%) $
6.05
Current Price
$
161.01
The spin-off of Honeywell Aerospace didn't occur until June 29. So it was still part of Honeywell for the quarter, but it will not be part of it going forward. Thus, Honeywell provided two sets of earnings, one with Honeywell Aerospace included and one without. One key number was very different. With the two businesses, orders rose 4%. If you isolate Honeywell Automation, however, orders rose 16%. Meanwhile, Honeywell Automation accounted for $20 billion of the combined business' $38 billion backlog. Adjusted earnings rose 10% year over year.
Automation looks like the business that is set to grow more rapidly. That's not to suggest that Honeywell Aerospace is a bad business; that's hardly true. Aviation spending is expected to remain strong as more people travel by plane. Still, when Honeywell Aviation reported second-quarter earnings, it lowered its organic sales growth guidance. It is clearly off to a bit of a rocky start.
But don't forget about Solstice Advanced Materials, the first business to be spun off, which reported an 11% year-over-year sales increase and a 23% jump in earnings per share in the second quarter, while increasing its full-year guidance. However, at a roughly $9.5 billion market cap, it is a relatively small business compared to Honeywell, which has a market cap of $65 billion. For reference, Honeywell Aerospace's market cap is $49 billion. If you owned Honeywell because it was a large business, Solstice Advanced Materials would be the smallest piece of the puzzle.
Today's Change
(
3.85
%) $
2.36
Current Price
$
63.73
No easy answers, but I'd follow the CEO You can make a case for owning any of the three businesses that have come out of Honeywell. Honeywell Aerospace lowering guidance out of the box probably makes it the easiest to pass over, despite the long-term opportunity in the aviation industry. Solstice Advanced Materials, despite solid early results, is the smallest of the three companies, which could be viewed as a negative. That leaves Honeywell's automation business, which is both large and appears to be doing relatively well.
But the real key could be that the CEO who initiated the corporate breakup decided to oversee Honeywell's large automation operations. The business is seeing robust demand, as evidenced by a growing backlog. Second quarter earnings rose a solid 10% when the company's automation operations were separated out. And AI is likely to lead to a renewed push for industrial automation as it is used to improve corporate operations. That's a very solid story, and I think it makes Honeywell the best pick of the three. Though, to be honest, I'd probably have preferred if Honeywell had just remained a diversified conglomerate.
Honeywell Technologies ve 2. čtvrtletí snížila provozní marži o 50 bazických bodů na 12,8 % kvůli vyšším nákladům na materiál a práci. Pro rok 2026 očekává segmentovou marži 20,1–20,5 %.
Key Takeaways Honeywell Technologies' Q2 operating margin fell 50 bps to 12.8% as material and labor costs rose.Honeywell Technologies became a pure-play automation company after separating Aerospace in June 2026.HON expects a 20.1-20.5% segment margin in 2026, up 250-290 basis points year over year. Honeywell Technologies (HON - Free Report) has been dealing with the adverse impacts of high operating costs and expenses. On a consolidated basis, the company’s total cost of sales, comprising the cost of products and services sold, was up 7.2% year over year to $6.07 billion in the second quarter of 2026.
Research and development expenses surged 14.2% year over year to $524 million, while interest and other financial charges increased 10.3% to $363 million in the same period. HON incurred high costs and expenses related to rising direct and indirect material costs and increased labor costs. For standalone Honeywell Technologies, operating margin declined 50 basis points to 12.8% in the second quarter. Escalating expenses, if not controlled, are likely to hurt the company’s bottom line in the quarters ahead.
However, with the separation of the Aerospace business, Honeywell Technologies started operating as a premier pure-play automation company in June 2026. Also, the company completed the divestiture of its warehouse and workflow solutions and productivity solutions and services businesses. These strategic initiatives, along with tailwinds from stranded costs elimination, are expected to support its margin performance and operational efficiency.
For 2026, Honeywell Technologies expects a segment margin of 20.1-20.5%, indicating an increase of 250-290 basis points on a year-over-year basis.
Peer’s Margin performanceAmong its major peers, 3M Company (MMM - Free Report) is facing cost pressure. In second-quarter 2026, its total costs increased 4.7% year over year to $3.82 billion, while the metric, as a percentage of total revenues, climbed 120 basis points to reach 58.7%. Research, development and related expenses increased 4.9% year over year to $302 million.
Emerson Electric Co.’s (EMR - Free Report) cost of sales increased 2.7% year over year in the third quarter of fiscal 2026 (ended June 2026). Emerson’s selling, general and administrative expenses increased 6.1% year over year. Despite the increase in costs, Emerson’s adjusted segment EBITA margin improved 140 basis points to 28.5%, as price-cost actions and cost reductions offset inflationary impact.
The Zacks Rundown for HONShares of Honeywell Technologies have lost 12.2% in the past month compared with the industry’s decline of 0.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 22.85X, above the industry average of 15.48X. HON carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Honeywell Technologies’ earnings for 2026 and 2027 has declined in the past 60 days.
Image Source: Zacks Investment Research
HON stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Honeywell International ve 2. čtvrtletí hlásila pokles organických tržeb v segmentu Process Technology o 1 % po 6% propadu v 1. čtvrtletí. Naopak objednávky v Process Technology vzrostly o 24 % díky poptávce po LNG a automatizačních projektech.
Key Takeaways Honeywell Technologies' Process Automation organic revenues fell 1% in Q2 after a 6% drop in Q1.Aftermarket organic sales declined 6% on lower refining catalyst shipments and project delays.Honeywell Technologies' Process Technology orders rose 24% as LNG demand and automation projects strengthened. Honeywell Technologies (HON - Free Report) has been witnessing persistent weakness in the Process Automation and Technology segment. In the second quarter of 2026, the segment’s organic revenues decreased 1% year over year, following a 6% decline in the first quarter.
This decline was attributable to a 6% drop in organic sales in the aftermarket business owing to lower refining catalyst shipments and project delays. In the quarter, the segment margin declined 180 basis points to 22.1% owing to low catalyst volumes and unfavorable product mix. Although second-quarter orders in the Middle East grew organically, the segment’s operations remain exposed to the ongoing geopolitical tensions in the region.
Nevertheless, strong process technology liquefied natural gas (LNG) demand and an increase in automation projects bode well for the segment. In the second quarter, the Process Technology segment’s orders grew 24% year over year, while project sales grew 5% on an organic basis.
It is worth noting that on June 29, Honeywell Technologies became a standalone public company following the spin-off of the Aerospace Technologies business from Honeywell International. The separation completed the company's multi-year portfolio restructuring, creating three independent publicly traded companies.
Business Performance of HON's PeersRBC Bearings Incorporated (RBC - Free Report) is witnessing strength in the Industrial segment (revenues increased 8.4% year over year in first-quarter fiscal 2027). Stable demand for RBC Bearings’ highly engineered bearings and precision components in food & beverage, semiconductor and warehousing markets bodes well for the segment.
Another peer, 3M Company (MMM - Free Report) , has been witnessing solid momentum in the Safety and Industrial segment. Strong momentum in abrasives, industrial adhesives and tapes, specialties, roofing granules, personal safety and electrical markets has been driving the segment’s performance. Organic sales from 3M’s Safety and Industrial segment grew 8.2% year over year in the second quarter of 2026.
The Zacks Rundown for HONFrom a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 24.21X, above the industry average of 15.58X. HON carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Honeywell Technologies’ earnings for 2026 has declined in the past 60 days.
Honeywell hlásí silné červencové objednávky a širokou poptávku napříč regiony, což podpořilo zvýšení výhledu. Pro rok 2027 cílí na zhruba 15% růst EPS.
Vertical Aerospace: Pre-Flight Checks Point to a BreakoutHoneywell International NASDAQ: HON CFO Mike Stepniak said the company is off to a strong start following its portfolio transformation, citing favorable July order trends, broad regional demand and improving prospects for the second half of the year and into 2027.
Speaking at a Deutsche Bank conference, Stepniak said Honeywell has set three-year targets of 4% to 6% revenue growth, double-digit earnings-per-share growth toward $12 in 2029, margin expansion and free-cash-flow conversion above 90%.
Get HON alerts:
Brady Corp Wires Up a Massive AI-Powered Breakout“We’re off to a good start,” Stepniak said, adding that order activity has supported the company’s decision to raise guidance. He said the company has included contingency in its growth framework for potential demand disruptions, inflation and pricing variability.
Orders Strengthen Across Regions and Cycles
Stepniak said demand has been broad-based geographically, with North America particularly strong and Europe no longer presenting the headwind it had been in prior years. China remains pressured but is performing adequately, while the Middle East and other Asian markets have been strong, he said.
Boarding Passes Now Being Issued for the Ultimate eVTOL ArbitrageHoneywell is seeing both short-cycle growth and long-cycle demand, according to Stepniak. He pointed to improving backlog conversion in the process business and new demand tied to supply-chain resilience, security concerns and rebuilding activity in the Middle East.
The company expects second-half revenue growth of 4% to 6%, with Stepniak saying he hopes results will trend toward the upper end of that range. He also said Honeywell expects more pronounced margin expansion in the near term as it works through stranded costs associated with its portfolio changes.
For 2027, Stepniak said the company sees a favorable setup from improving order trends, lower stranded costs and a supportive macroeconomic backdrop. He said Honeywell is targeting roughly 15% EPS growth next year as part of its path toward its 2029 earnings objective.
Software, AI and New Product Development
Honeywell is targeting 45% of revenue from software and services over time, with its Forge platform central to that effort. Stepniak said the company connected more assets through Forge last year than in the preceding five years combined.
Honeywell currently has about 5 million connected assets and expects that total to reach about 9 million over the next 2.5 years, he said. The connections create opportunities to provide customer solutions and develop data-driven offerings. Stepniak tied that effort to a target of 15% annual revenue growth in software spending.
The company is also applying artificial intelligence internally and within Forge. Stepniak said Honeywell is using AI tools in engineering for drafting, drawing retrieval and proposal development, and in finance for balance-sheet analysis and internal audit work. He said the company has made a significant investment in equipping associates with AI tools and copilots.
New product introduction, or NPI, remains another key focus. Stepniak said Building Automation has the most mature NPI process, while Industrial Automation has been developing its program for about 18 months and is beginning to see results. New products generally carry better pricing or mix and can be accretive within their first two years, he said.
Building and Process Automation Demand
Stepniak said Building Automation’s growth has been supported by its diverse geographic and end-market exposure. While data centers account for about 5% of the segment today, up from close to zero three to four years ago, Honeywell aims to more than double that business to above $1 billion over the next several years.
The company supplies fire sensing, security, physical security, monitoring and building-management systems to data centers. Stepniak also cited opportunities in load management, liquid cooling and heat measurement as computing requirements increase.
Building Automation is expected to finish the year with margins above 27%, and Honeywell has a line of sight to 29% margins in 2029, according to Stepniak. He identified NPI, Forge commercialization and employee leverage as key margin drivers.
In Process Automation and Technology, Stepniak said demand has increased across projects, LNG and catalyst activity. Honeywell’s LNG business is taking orders for slots at the end of 2028 and continues to receive new customer inquiries, he said.
Second-half catalyst demand is expected to rise by double digits versus the first half, while second-half year-over-year catalyst demand is expected to increase by high single digits. However, Stepniak said projects are the larger driver of expected segment growth.
He said Process Technologies is seeing a more pronounced order pickup than Process Automation, which historically trails the technology business by roughly 18 to 24 months. Process Automation is also expanding into life sciences, pharmaceutical and medical-device production, cybersecurity, U.S. onshoring and semiconductors.
Honeywell expects the Process Automation and Technology segment to report about a 22.5% margin for the year, reflecting mix and the integration of Johnson Matthey. Stepniak said the acquired business will take two to three years to reach Honeywell-level margins, though he sees cost and demand-improvement opportunities. Honeywell continues to target 25% segment margins by 2029.
Industrial Automation and Capital Allocation
Industrial Automation is being positioned as a sensing-and-measurement-focused business. Stepniak said improved delivery performance, new product investment, pricing and organizational simplification are supporting its turnaround. The business has improved on-time delivery to approximately 80% and is targeting more than 85%.
Honeywell expects Industrial Automation to reach about a 22% margin rate in the fourth quarter, Stepniak said, adding that he was “100% confident” in its ability to reach 25% margins within three years.
On capital allocation, Stepniak said Honeywell is currently prioritizing debt reduction and aims to reduce its debt ratio below three by year-end. The company expects its dividend payout ratio to be around 35% and plans to keep its share count roughly flat while it focuses on debt repayment. Capital expenditures are expected to be about 3% of revenue.
Honeywell plans to continue pursuing bolt-on acquisitions, with preferred deal sizes of roughly $2 billion to $4 billion. Stepniak identified Industrial Automation as the company’s largest M&A opportunity because of the fragmented nature of the market, but said Honeywell intends to remain disciplined on valuation, strategic fit, synergies and return targets.
About Honeywell International (NASDAQ:HON)Honeywell International Inc is a diversified, publicly traded multinational conglomerate NASDAQ: HON that designs and manufactures a wide range of commercial and consumer products, engineering services and aerospace systems. The company operates through major business platforms that historically include Aerospace; Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. Its portfolio spans avionics and propulsion systems, building controls and HVAC equipment, process technologies and advanced materials, industrial automation software, and personal protective equipment and scanning solutions.
Honeywell's aerospace business supplies aircraft manufacturers and operators with engines and auxiliary power units, avionics, flight safety systems and aftermarket services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Honeywell International Right Now?Before you consider Honeywell International, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Honeywell International wasn't on the list.
While Honeywell International currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.
Honeywell Technologies oznámila, že tržby divize Building Automation ve 2. čtvrtletí vzrostly o 10 % na 2 miliardy USD. Růst podpořila vyšší poptávka a investice do datových center a zdravotnictví.
Key Takeaways Honeywell Technologies' Building Automation sales rose 10% to $2 billion in the second quarter.Higher demand lifted organic sales in both products and solutions businesses in the quarter.Rising orders and capex in data centers and health care support Building Automation's growth. Honeywell Technologies (HON - Free Report) has been benefiting from strength in its Building Automation segment. An increase in demand for its products and solutions, led by increasing building projects across the Americas, India and the Middle East, is aiding the segment. In the second quarter of 2026, the segment’s revenues totaled $2 billion, up 10% year over year. Organic sales increased 9% year over year.
The segment’s performance was supported by higher demand across both its products and solutions businesses. Products generated $103 million of higher organic sales in the second quarter, while Solutions contributed $59 million of higher organic sales. The company attributed the gains in both businesses to higher demand. Rising order rates and capex investments in data centers and health care projects also bode well for the segment.
The Building Automation segment also maintained strong momentum in the first half of 2026. Its sales increased 10% year over year to $3.88 billion, while organic sales grew 8% year over year.
Honeywell Technologies’ Building Automation segment is well-positioned for continued growth, supported by healthy demand across its products and solutions businesses. Strong sales momentum and ongoing investments in data center provide a solid foundation for further expansion in the coming quarters.
Segmental Snapshot of HON’s PeersAmong HON’s major peers, 3M Company (MMM - Free Report) is poised to gain from solid momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for electrical infrastructure products like medium voltage cable accessories and insulation tapes augurs well for 3M’s unit. Revenues from 3M’s Safety and Industrial segment grew 8.2% year over year in the second quarter of 2026.
Honeywell Technologies’ another peer, Carlisle Companies Incorporated’s (CSL - Free Report) Carlisle Construction Materials segment, is benefiting from healthy re-roofing demand, strategic initiatives and strong commercial execution. Revenues from Carlisle’s unit increased 7.8% year over year in the second quarter of 2026. Carlisle’s segment’s adjusted EBITDA of $363 million increased 4.8% year over year in the quarter.
HON's Price Performance, Valuation and EstimatesFrom a valuation standpoint, HON is trading at a trailing price-to-earnings ratio of 20.90X. Honeywell carries a Value Score of f.
The Zacks Consensus Estimate for HON’s 2026 earnings has declined over the past 60 days.
Honeywell Aerospace ve své první zprávě po odštěpení snížil celoroční výhled organického růstu tržeb na 4 % až 5 % a pro forma standalone očištěného EBIT na 4,35–4,45 mld. USD, meziročně beze změny až +3 %, kvůli problémům v dodavatelském řetězci. Akcie HONA klesají o 21,5 %.
Letecká a obranná společnost Honeywell Aerospace reportovala výsledky hospodaření za druhé čtvrtletí roku 2026 – první report od svého odštěpení od Honeywell International. Firma zároveň výrazně snížila celoroční výhled organického růstu tržeb i očištěného provozního zisku (EBIT), a to kvůli problémům v dodavatelském řetězci.
Výsledky společnosti Honeywell Aerospace (HONA) za 2Q 2026 2Q 2026 Konsensus 2Q 2026 2Q 2025 Tržby (mld. USD) 4,52 4,57 4,29 Čistý zisk (mld. USD) 0,26 -- 0,85 Očištěný zisk na akcii (EPS, USD/akcie) 1,87 1,98 2,75 Výsledky za 2Q Tržby dosáhly 4,52 mld. USD, meziročně vzrostly o 5 % jak na vykázané, tak na organické bázi, a mírně zaostaly za odhadem analytiků (4,57 mld. USD).
Očištěný provozní zisk dosáhl 995 mil. USD, meziročně pokles o 7 %, oproti odhadu 1,17 mld. USD. Výsledek zahrnoval přibližně 100 mil. USD nákladů souvisejících s odštěpením a odpisy zastaralých zásob.
Čistý zisk klesl na 256 mil. USD z 852 mil. USD ve stejném období loňského roku.
Objem zakázek (backlog) na konci čtvrtletí vzrostl na 18,15 mld. USD, meziročně o 9 %, přičemž zakázky za posledních dvanáct měsíců vzrostly o 8 %, taženy zejména segmentem obrany a vesmíru.
Tržby podle koncových trhů: Tržby ze segmentu komerčního servisu vzrostly o 8 % na 2,03 mld. USD, taženy poptávkou napříč instalovanou základnou včetně vyšších letových hodin v byznys letectví. Tržby z komerčních nových zařízení vzrostly o 6 % na 679 mil. USD. Tržby ze segmentu obrany a vesmíru vzrostly o 3 % na 1,82 mld. USD, když vyšší domácí objemy byly částečně kompenzovány nižšími mezinárodními objemy kvůli omezením v dodavatelském řetězci a útlumu jednoho vyhrazeného vládního programu.
Tržby ve 2Q 2026 podle koncových trhů, zdroj: Honeywell Aerospace
Výsledky dle segmentů: Tržby segmentu Elektronická řešení vzrostly o 8 % na 1,77 mld. USD, taženy silným výkonem obrany, vesmíru i komerčního servisu; segmentový očištěný zisk klesl o 3 % na 459 mil. USD. Tržby segmentu Motory a energetické systémy vzrostly o 1 % na 1,41 mld. USD; segmentový očištěný zisk klesl o 32 % na 174 mil. USD kvůli nepříznivému mixu a vyšším nákladům. Tržby segmentu Řídicí systémy vzrostly o 7 % na 1,34 mld. USD; segmentový očištěný zisk vzrostl o 8 % na 389 mil. USD.
Výsledky za 2Q 2026 dle segmentů, zdroj: Honeywell Aerospace
Výhled na FY 2026 Firma snížila výhled pro celý rok 2026 a nyní predikuje:
Organický růst tržeb 4 % až 5 % (dříve: 7 % až 9 %). Pro forma standalone očištěný zisk EBIT 4,35–4,45 mld. USD (dříve: 4,65–4,75 mld. USD). Meziroční růst pro forma standalone očištěného zisku EBIT beze změny až +3 % (dříve: +7 % až +10 %). Volný peněžní tok za druhé pololetí 1,0–1,5 mld. USD (beze změny). Komentář vedení Jim Currier, generální ředitel Honeywell Aerospace, uvedl: „Naše úspěšné odštěpení představuje důležitý milník a do této nové kapitoly vstupujeme se solidní dynamikou. V posledním čtvrtletí jako segment Honeywellu jsme dosáhli růstu tržeb ve středních jednotkách procent, jelikož výrazná poptávka zákazníků po našem klíčovém portfoliu pokračuje. Sekulární trendy napříč našimi koncovými trhy zůstávají silné, zatímco omezení v dodavatelském řetězci limitovala růst výstupu ve čtvrtletí.“
Currier dodal: „Pro druhou polovinu roku 2026 považujeme za rozumné přizpůsobit náš výhled prokázaným schopnostem našeho dodavatelského řetězce ke konci druhého čtvrtletí. Zároveň podnikáme strategické a taktické kroky nezbytné k tomu, abychom Honeywell Aerospace nasměrovali k zrychlujícímu růstu a přesvědčivým finančním výsledkům.“
Komentář analytiků Analytička Sheila Kahyaoglu z Jefferies (doporučení hold) uvedla, že první reakcí většiny investorů bude otázka, jak může letecká společnost růst pouze o 4 %, přičemž další vysvětlení nechává na vedení, které se soustředí na zvyšování výstupu a zlepšování dodavatelského řetězce. Zároveň poznamenala, že firma zatím nezaznamenala výraznější dopad na poptávku v souvislosti s konfliktem na Blízkém východě.
Analytik Ken Herbert z RBC Capital Markets (doporučení outperform) uvedl, že ziskovost byla ve čtvrtletí větším zklamáním. Poukázal na to, že společnost zahájila několik kroků v dodavatelském řetězci, včetně kvalifikace více než 50 nových dodavatelů a navýšení investic do dodavatelského nářadí o 20 %. Ocenění akcie podle něj zůstává atraktivní, přiznal však nedostatek katalyzátorů pro druhou polovinu roku.
Adam Crisafulli z Vital Knowledge označil snížení výhledu za obzvláště negativní vzhledem k obecně býčím výsledkům a výhledům většiny ostatních velkých leteckých společností, a to navíc v době prvního reportu Honeywell Aerospace jako samostatné společnosti.
Akcie Honeywell Aerospace Akcie Honeywell Aerospace Inc (HONA) klesají o 21,5 % na 159,84 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 50,7 P/E -- Vývoj za letošní rok (%) -- Očekávané P/E 18,9 52týdenní minimum (USD) 150,0 Prům. cílová cena (USD) 247,3 52týdenní maximum (USD) 297,5 Dividendový výnos (%) -- Zdroj: Honeywell Aerospace, Bloomberg
Bank of America zvýšila doporučení pro Honeywell na Neutral z Underperform a cílovou cenu na 265 USD po silných objednávkách a lepším výhledu. Objednávky dosáhly 5,7 miliardy USD a organicky vzrostly o 16 %.
Honeywell International Inc (NYSE:HON, XETRA:ALD) was upgraded to ‘Neutral’ from ‘Underperform’ by Bank of America, which raised its price objective to $265 from $220, above current levels of $247, following a second quarter performance that exceeded expectations and improved visibility into the company's growth outlook.
The analysts highlighted stronger execution, broad-based order growth and increased 2026 guidance as key factors behind the rating change.
"Honeywell Technologies delivered a broad-based Q2 beat and raised its 2026 organic growth, segment margin and adjusted EPS guidance," the analysts wrote. "The more important takeaway, in our view, was broad-based order strength across all three segments."
Bank of America said the results helped ease previous concerns around aerospace execution, inconsistent operational performance and limited growth visibility.
"We are more positive following the quarter, as improving execution supports the earnings ramp while management's cautious initial approach to guiding the new company appears to leave some contingency in the outlook and room for positive revisions into the year end," the analysts wrote.
Honeywell reported total orders of $5.7 billion, up 16% organically, with a book-to-bill ratio above 1.1x and backlog increasing 9%. Orders rose 24% organically in Performance Aerospace & Technologies, 13% in Building Automation and 10% in Industrial Automation.
Bank of America said the order growth supports Honeywell's outlook for 4% to 6% organic growth in both the third and fourth quarters, with backlog conversion expected to accelerate in Performance Aerospace & Technologies and Industrial Automation growth improving in the second half.
The firm raised its 2026 adjusted EPS estimate to $8.25 from $8.05 and increased its segment margin forecast to 20.3% from 20.1%, while maintaining its revenue estimate at $20.1 billion. Bank of America expects continued strength in Building Automation, improving growth in Performance Aerospace & Technologies and higher Industrial Automation margins into 2027.
Honeywell International Inc. (HON) Q2 2026 Earnings Call July 23, 2026 8:30 AM EDT
Company Participants
Mark Macaluso - Senior Vice President of Investor Relations
Vimal Kapur - Chairman & CEO
Mike Stepniak - Senior VP & CFO
Conference Call Participants
Deane Dray - RBC Capital Markets, Research Division
Nigel Coe - Wolfe Research, LLC
Scott Davis - Melius Research LLC
Andrew Obin - BofA Securities, Research Division
Nicole DeBlase - Deutsche Bank AG, Research Division
Jeffrey Sprague - Vertical Research Partners, LLC
Joseph Ritchie - Goldman Sachs Group, Inc., Research Division
Andrew Kaplowitz - Citigroup Inc., Research Division
Alexander Virgo - Evercore ISI Institutional Equities, Research Division
Christopher Snyder - Morgan Stanley, Research Division
Andrew Buscaglia - BNP Paribas, Research Division
Presentation
Operator
Good morning. Thank you for standing by, and welcome to the Honeywell Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's call is being recorded. I would now like to hand the call over to Mark Macaluso, Senior Vice President of Investor Relations. Please go ahead.
Mark Macaluso
Senior Vice President of Investor Relations
Thank you. Good morning, and welcome to Honeywell Technologies Second Quarter 2026 Earnings Conference Call. Joining me today are Honeywell Technologies Chairman and Chief Executive Officer, Vimal Kapur; and Senior Vice President and Chief Financial Officer, Mike Stepniak.
This webcast and the presentation materials, including non-GAAP reconciliations, are available on our Investor Relations website. From time to time, we post new information on the Investor Relations website that may be of interest or material to our investors. Our discussion today includes forward-looking statements that are based on our best view of the world and of our businesses as we see them today and are subject to certain risks and uncertainties, including those described in our recent SEC filings.
This morning, we will review financial results for Honeywell Technologies for
Honeywell International (HON) ve 2. čtvrtletí vykázala zisk na akcii 1,95 USD a tržby 5,19 miliardy USD, obojí nad odhady. Zisk na akcii překonal konsensus o 8,33 %.
Honeywell International Inc. (HON - Free Report) came out with quarterly earnings of $1.95 per share, beating the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $5.5 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.33%. A quarter ago, it was expected that this company would post earnings of $4.62 per share when it actually produced earnings of $4.9, delivering a surprise of +6.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Honeywell International, which belongs to the Zacks Diversified Operations industry, posted revenues of $5.19 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.19%. This compares to year-ago revenues of $10.35 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Honeywell International shares have lost about 40.3% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Honeywell International?While Honeywell International has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Honeywell International was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.25 on $5.33 billion in revenues for the coming quarter and $10.34 on $20.04 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Diversified Operations is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, ITT (ITT - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This supplier of parts and services to a wide variety of industries is expected to post quarterly earnings of $1.93 per share in its upcoming report, which represents a year-over-year change of +17.7%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level.
ITT's revenues are expected to be $1.39 billion, up 43.3% from the year-ago quarter.
Honeywell zveřejní výsledky za 2. čtvrtletí před otevřením trhu ve čtvrtek; analytici čekají zisk 1,81 USD na akcii a tržby 5,02 miliardy USD, obojí pod úrovní loňského roku.
Honeywell International Inc. (NASDAQ:HON) will release its second quarter earnings report before the opening bell on Thursday, July 23.
Analysts expect the Charlotte, North Carolina-based company to report quarterly earnings of $1.81 per share, down from $5.50 per share in the year-ago period. The consensus estimate for Honeywell’s quarterly revenue is $5.02 billion. It reported $10.35 billion last year, according to Benzinga Pro.
On July 20, Honeywell Aerospace announced that IndiGo has selected Honeywell Aerospace’s flagship avionics and power systems for its order of 810 new Airbus A320neo family aircraft.
Shares of Honeywell rose 1.4% to close at $232.99 on Wednesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying HON stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Honeywell Technologies čeká za 2. čtvrtletí zisk 1,80 USD na akcii a výnosy 4,98 miliardy USD. Firma varuje před slabostí automatizace, zpožděnými projekty a vyššími náklady.
Key Takeaways HON is expected to report lower Q2 earnings and revenues after its aerospace business spin-off.HON faces pressure from automation softness, project delays, higher costs and foreign exchange headwinds.HON sees strength in building automation, supported by data center and health care projects. Honeywell Technologies (HON - Free Report) is scheduled to release second-quarter 2026 results on July 23, before market open. The Zacks Consensus Estimate for quarterly earnings is currently pegged at $1.80 per share on revenues of $4.98 billion.
HON’s second-quarter earnings estimates have declined 60.9% over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year decline of 51.9%.
It is worth noting that on June 29, 2026, Honeywell Technologies became a standalone public company following the spin-off of the Aerospace Technologies business from Honeywell International. The spin-off is likely to have weighed on its year-over-year top and-bottom-line comparison.
Image Source: Zacks Investment Research
Earnings Surprise HistoryHoneywell Technologies’ earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.7%. In the last reported quarter, it delivered an earnings surprise of 6.1%.
Earnings WhispersOur proven model does not conclusively predict an earnings beat for Honeywell Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: HON has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $1.80. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: HON presently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note Ahead of Honeywell Technologies’ Q2 ResultsHoneywell Technologies’ Process Automation and Technology segment is expected to have put up a weak show in the quarter due to softness in the aftermarket business with lower refining catalyst shipments and project delays. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions is likely to have hurt the segment’s performance in the second quarter. Honeywell Technologies anticipates the Middle East conflict to have an adverse impact on sales by 1% in the second quarter. However, growth in orders across petrochemical and refining verticals in the segment bodes well.
Recovery in the Industrial Automation segment, driven by favorable project timing, is likely to augment its results. However, the divestment of its Personal Protective Equipment business is anticipated to weigh on the segment’s results.
Nevertheless, healthy demand for its products and solutions, led by increasing building projects, particularly in North America, is expected to drive the Building Automation segment’s results. Increasing order rates and capex investments in data centers and health care projects are likely to have been a tailwind as well.
Over time, HON’s performance has been adversely impacted by high costs and expenses. Higher direct and indirect material costs and investments in digital infrastructure and business restructuring activities are expected to have pushed up the company’s operating expenses, which are likely to have reflected in its margins.
Also, given HON's extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt its overseas business.
HON’s Price PerformanceFollowing the spin-off of the Aerospace business, HON’s shares have inched down 1.2% compared with the Zacks Diversified Operations industry’s 3.1% decline and the S&P 500’s 0.1% growth. Shares of its key rivals like Rockwell Automation (ROK - Free Report) and Emerson Electric Co. (EMR - Free Report) are down 4.2% and 2.3%, respectively, over the same time frame.
Image Source: Zacks Investment Research
Stock ValuationHoneywell Technologies is currently trading at a forward 12-month P/E of 25.00X, a premium compared with the industry’s 15.08X. In comparison with HON’s valuation, Emerson Electric is trading cheaper, while Rockwell Automation is trading at a premium. Notably, Emerson Electric and Rockwell Automation are currently trading at 19.91X and 32.20X, respectively.
Price-to-Earnings (Forward 12 Months)
Image Source: Zacks Investment Research
Investment ThesisThe persistence of Honeywell Technologies’ near-term challenges, such as weakness in the Process Automation and Technology and Industrial Automation units along with rising costs and expenses, is limiting its near-term prospects.
Although the separation of the Aerospace business will likely provide HON with improved operational focus on the industrial automation business, the spin-off is likely to weigh on its top and-bottom-line results in the quarters ahead.
Final Take on HONHoneywell Technologies’ market leadership position, diversified product portfolio and strong dealer network provide it with a competitive advantage to leverage the long-term demand prospects in industrial markets. However, weakness in aftermarket business, project delays and rising operating expenses pose a threat to the company’s near-term catalysts.
The downward estimate revision activity in earnings and expensive valuation warrant a cautious approach for existing investors. Potential investors should consider waiting for HON’s earnings report and clearer signs of recovery before investing in the stock.
Wall Street expects a year-over-year decline in earnings on lower revenues when Honeywell International Inc. (HON - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $1.80 per share in its upcoming report, which represents a year-over-year change of -67.3%.
Revenues are expected to be $5.01 billion, down 51.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 58.78% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Honeywell International?For Honeywell International, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Honeywell International will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Honeywell International would post earnings of $4.62 per share when it actually produced earnings of $4.90, delivering a surprise of +6.06%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Honeywell International doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results3M (MMM - Free Report) , another stock in the Zacks Diversified Operations industry, is expected to report earnings per share of $2.27 for the quarter ended June 2026. This estimate points to a year-over-year change of +5.1%. Revenues for the quarter are expected to be $6.38 billion, up 3.6% from the year-ago quarter.
The consensus EPS estimate for 3M has been revised 0.5% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.76%.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that 3M will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Honeywell Technologies v 1. čtvrtletí snížila organické tržby v Process Automation and Technology o 6 % meziročně kvůli slabším aftermarketovým prodejům. Firma čeká, že konflikt na Blízkém východě sníží ve 2. čtvrtletí tržby segmentu o 1 %.
Key Takeaways HON's Process Automation and Technology organic revenues fell 6% in Q1 on weaker aftermarket sales.Honeywell expects the Middle East conflict to reduce Q2 sales by about 1%, weighing on the segment.HON completed its aerospace spin-off, sharpening its focus on industrial automation and capital allocation. Honeywell Technologies (HON - Free Report) has been witnessing weakness in the Process Automation and Technology segment. In the first quarter of 2026, the segment’s organic revenues decreased 6% on a year-over-year basis.
This decline was attributable to a 10% drop in organic sales in the aftermarket business owing to lower refining catalyst shipments and project delays. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions hurt its results. The conflict is likely to have hurt its Process Automation and Technology segment’s performance in the second quarter. HON anticipates the Middle East conflict to have an adverse impact on the segment's sales by 1% in the second quarter.
Nevertheless, growth in orders across petrochemical and refining verticals in the segment is expected to drive its long-term performance. The Process Technology segment’s orders grew 11% year over year in the first quarter.
It is worth noting that on June 29, Honeywell Technologies became a standalone public company following the spin-off of the Aerospace Technologies business from Honeywell International. The separation completed the company's multi-year portfolio restructuring, creating three independent publicly traded companies. With a sharper focus on industrial automation, Honeywell Technologies expects to benefit from improved operational focus, disciplined capital allocation and greater financial flexibility.
Business Performance of HON's PeersRBC Bearings Incorporated (RBC - Free Report) is witnessing strength in the Industrial segment (revenues increased 5.5% year over year in fourth-quarter fiscal 2026). Stable demand for RBC Bearings’ highly engineered bearings and precision components in food & beverage, semiconductor and warehousing markets bodes well for the segment.
Another peer, 3M Company (MMM - Free Report) , has been witnessing solid momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, and electrical markets. Stable demand for 3M’s electrical infrastructure products, like medium voltage cable accessories and insulation tapes, augurs well for the segment in the quarters ahead. Organic sales from 3M’s Safety and Industrial segment grew 3.2% year over year in the first quarter of 2026.
HON's Price Performance and ValuationFollowing the spin-off of the Aerospace business, Honeywell’s shares have lost 2.2% compared with the Zacks Diversified Operations industry’s 3.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, HON is trading at a trailing price-to-earnings ratio of 25.09X, above the industry’s average of 15.05X. Honeywell carries a Value Score of F.
Honeywell Aerospace chystá nové produkty bez ITAR pro evropskou obranu, protože roste poptávka po dílech bez amerických exportních omezení. Firma zároveň vyvíjí technologie bez ITAR i pro partnery v Asii a Tichomoří.
Item 1 of 2 Honeywell Aerospace President and CEO Jim Currier speaks to employees, investors and members of the media at Honeywell Aerospace?s Inaugural Investor Day at Caesars Republic in Scottsdale, Arizona, U.S. June 3, 2026. REUTERS/Caitlin O'Hara/File Photo
[1/2]Honeywell Aerospace President and CEO Jim Currier speaks to employees, investors and members of the media at Honeywell Aerospace?s Inaugural Investor Day at Caesars Republic in Scottsdale, Arizona,... Purchase Licensing Rights, opens new tab Read more
SummaryCompaniesRising European defense spending is driving demand for parts without export roadblocksEuropean countries concerned Washington could block re-export of sensitive US componentsNew Honeywell Aero product announcement expected at Farnborough Airshow, source saysHoneywell Aero also developing non-ITAR technologies for Asia-Pacific partners like Japan and South KoreaJuly 9 (Reuters) - U.S. supplier Honeywell Aerospace (HONA.O), opens new tab is looking to add more products designed without restricted U.S. technologies as mounting European defense spending drives demand for parts free from possible export roadblocks.
NATO leaders have unveiled arms deals worth tens of billions of dollars at a gathering in Turkey this week, as they face U.S. demands to spend more to defend Europe and due to pressure from Russia's war in Ukraine.
The Reuters Iran Briefing newsletter keeps you informed with the latest developments and analysis of the Iran war. Sign up here.
Some European defense companies and North American suppliers are also expected to discuss demand for parts not governed by U.S. International Traffic in Arms Regulations (ITAR) at the world's largest air show later this month.
There is increasing demand among European countries for ITAR-free systems due to concerns over Washington potentially blocking the re-export of sensitive U.S. components embedded in foreign weapons, according to defense officials and industry executives.
Honeywell Aerospace is set to announce a new ITAR-free product for the international defense sector at the Farnborough Airshow in Britain later this month, a source told Reuters.
The Arizona-based company declined to comment on an announcement. But it has tasked a combined 1,000 engineers in Poland and the Czech Republic to design ITAR-free technologies, its CEO Jim Currier told Reuters in an interview in late June.
"Part of it is looking, acting, feeling and speaking like a European company," he said of doing business in Europe.
"Their main mantra, and drive and edict is to design non-ITAR technology for ... local strategy," Currier said of the engineers at the company's European subsidiary.
It comes as U.S. companies such as dronemakers have been expanding in Europe, while the U.S. this week floated a new missile maintenance facility on the continent and two defense contractors discussed building ATACMS ballistic missiles for the first time in Germany.
INTERNATIONAL EXPANSIONHoneywell Aerospace sees international exposure growing for its defense business, which accounts for about 40% of company revenue and includes navigation systems and actuators for missiles. Last year, international sales accounted for about 30% of the company's defense business, up from around 18% in 2020, Honeywell Aerospace said.
Currier said Honeywell Aerospace was using the company's global presence to scale ITAR-free navigational technology from its 2024 acquisition of Italy's Civitanavi.
"That has been the playbook. We are developing non-ITAR technologies for use in the EU and overseas for our partners in the Asia-Pacific region, like Japan and Korea," he said.
While European demand for ITAR-free components and parts has existed for years, geopolitical tensions between the U.S. and its NATO allies are underpinning greater calls for the technology.
The Canadian government has said it was made aware during last year's Paris Air Show of greater demand from European defense firms for North American suppliers free from U.S. ITAR restrictions, and such demand has led Canada to attempt further integration into European supply chains.
Michael Iacovelli, CEO of Toronto-area aerospace and defense components supplier Ben Machine Products, said more than half of its work is now required by clients to be ITAR-free. In contrast, none of its work needed to be ITAR-free in 2018, he said.
Reporting by Allison Lampert in Montreal; Editing by Jamie Freed
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Honeywell Technologies po dokončení reverzního splitu 1:2 zvýšila výhled upraveného EPS na 4,40 až 4,70 USD na druhé pololetí i na 7,90 až 8,30 USD za celý rok 2026. Tržby a segmentová marže zůstaly beze změny.
Honeywell logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 8 (Reuters) - Automation firm Honeywell Technologies (HON.O), opens new tab on Wednesday raised its second-half and full-year profit targets for 2026 after completing a one-for-two reverse stock split.
The company, formerly Honeywell, proceeded with the split after spinning off and listing its aerospace arm, Honeywell Aerospace (HONA.O), opens new tab, late last month.
The Reuters Iran Briefing newsletter keeps you informed with the latest developments and analysis of the Iran war. Sign up here.
Honeywell Technologies expects second-half adjusted earnings per share in the range of $4.40 to $4.70, compared with $2.20 to $2.35 earlier.
For the full year, it raised its adjusted EPS target to $7.90 to $8.30, compared with an earlier forecast of $3.95 to $4.15.
Its second-half and full-year sales and segment margin targets remained unchanged.
Honeywell's three-way split into Honeywell Technologies, Solstice Advanced Materials (SOLS.O), opens new tab and Honeywell Aerospace was announced last year, amid pressure from activist investor Elliott Investment Management.
Reporting by Nandan Mandayam in Bengaluru; Editing by Jonathan Ananda
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Honeywell v 1. čtvrtletí zvýšila tržby divize Building Automation o 11 % na 1,88 miliardy USD a organické tržby o 8 %. Zakázky v divizi vzrostly o 9 % díky projektům, službám a poptávce po požárních produktech.
Key Takeaways Honeywell Technologies grew Building Automation revenues 11% year over year to $1.88 billion in Q1 2026. HON posted 8% organic sales growth, led by building solutions and building products demand. Building Automation orders rose 9%, driven by projects, services and strong fire products demand. Honeywell Technologies (HON - Free Report) is gaining from continued momentum in its Building Automation segment. Rising demand for its products and solutions, driven by increased building activity, particularly in North America, is fueling the segment’s growth. In the first quarter of 2026, the segment’s revenues rose 11% year over year to $1.88 billion, while organic sales increased 8%.
The segment’s strong performance was driven by sustained momentum across both its building solutions and building products businesses. In the first quarter of 2026, sales from the building solutions business increased 8% year over year, supported by healthy demand for energy-efficient and smart building technologies. Sales from the building products business also rose 8%, reflecting solid demand across residential and commercial construction markets.
Rising order rates and capex investments in data centers and health care projects also bode well for the segment. The Building Automation segment reported strong order growth of 9% in the first quarter, driven by double-digit increases in projects, services and strong demand for fire products.
The Building Automation segment is poised for sustained growth, supported by healthy order trends, solid demand across its key end markets and ongoing investments in data center and healthcare infrastructure.
Segmental Snapshot of HON’s PeersAmong HON’s major peers, 3M Company (MMM - Free Report) is poised to gain from solid momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for 3M’s electrical infrastructure products, like medium voltage cable accessories and insulation tapes, augurs well for the segment in the quarters ahead. Revenues from 3M’s Safety and Industrial segment grew 6.8% year over year in the first quarter of 2026.
Honeywell’s another peer, Carlisle Companies Incorporated’s (CSL - Free Report) Carlisle Construction Materials segment, is plagued by lower commercial new construction activity. Volume declines owing to adverse winter weather conditions are also adversely affecting Carlisle’s segment. Revenues from Carlisle’s unit decreased 5.1% year over year in the first quarter of 2026.
HON's Price Performance, Valuation and EstimatesFrom a valuation standpoint, HON is trading at a trailing price-to-earnings ratio of 20.90X. Honeywell carries a Value Score of B.
The Zacks Consensus Estimate for HON’s 2026 earnings has increased a penny over the past 60 days.
Image Source: Zacks Investment Research
Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PowerBank uzavřel se společností Honeywell smlouvu na provoz a údržbu portfolia tří komunitních solárních projektů SB 13-1, SB 13-2 a SB-14 o výkonu 21 MW ve státě New York. Dohoda navazuje na úspěšné zprovoznění projektu SB 13-2.
Agreement confirmed following the successful commercial operation of the SB 13-2 project developed by PowerBank Corporation under an Engineering, Procurement and Construction agreement
, /PRNewswire/ - PowerBank Corporation (NASDAQ: PBK) (Cboe CA: PBK) (FSE: 103) ("PowerBank" or the "Company"), a leader in independent energy development and asset ownership in North America, is pleased to announce its wholly owned subsidiary Abundant Solar Power Inc. has executed an Operations and Maintenance Services Agreement (the "Agreement") with Honeywell International Inc. (NASDAQ: HON) ("Honeywell" or "HON") to provide operations and maintenance services for a 21 MW portfolio of three projects named SB 13-1, SB 13-2, and SB-14 (the "Projects"). The Projects are built on an industrial brownfield owned by Honeywell, which is regulated by the New York State Department of Environmental Conservation. The Projects have been moved from Honeywell International Inc. to Honeywell Aerospace Inc., following the planned spinoff of Honeywell Aerospace on June 29, 2026.
The Agreement outlines the roles, responsibilities, and performance standards governing the long-term management of the Projects. It establishes requirements for routine inspection, maintenance, repair, and operational monitoring to ensure the Projects function effectively and in compliance with applicable regulations. The Agreement also defines reporting obligations, cost responsibilities, and coordination protocols between the parties, while setting clear expectations for environmental protection, safety, and system reliability over the term of the Agreement.
PowerBank's President and Chief Operating Officer Andrew van Doorn commented, "Securing the O&M agreement on the Honeywell portfolio is a natural extension of the work our team has been executing from day one. When you develop, permit, build, and commission a project, you know it better than anyone, and that knowledge is exactly what makes for reliable long-term operations. This agreement reflects the strength of our full-cycle platform, and the trust Honeywell has placed in PowerBank to deliver not just megawatts, but lasting performance."
In September 2023, the Company completed the sale of the Projects to Honeywell and entered into an engineering, procurement, and construction ("EPC") agreement to build the Projects through to commercial operation. The Agreement follows the announcement of the successful commissioning of the SB 13-2 project.
The Agreement for the portfolio of Projects with Honeywell demonstrates PowerBank's vertically integrated business model, offering services across development, EPC, and Operations and Maintenance to provide megawatts of power. Having now developed and constructed over 100 megawatts of clean energy projects across North America, with a pipeline exceeding one gigawatt, PowerBank is increasingly well-positioned to serve not only traditional utility and community solar offtakers, but also the rapidly growing demand for reliable, on-site power generation driven by AI compute infrastructure and modular data centers.
About PowerBank Corporation
PowerBank Corporation is a vertically integrated and independent North American energy company helping to power the digital economy. The Company develops, builds, owns, and operates solar and battery energy storage systems that deliver reliable, resilient, and behind-the-meter power to the electricity grid, commercial and industrial clients, and municipal and residential off-takers. As AI and digital infrastructure drive unprecedented electricity demand, PowerBank is uniquely positioned to deliver the speed, scale, and energy independence that the next generation of power consumers requires, without waiting years for grid interconnection. The Company has a potential development pipeline of over one gigawatt and has developed energy projects with a combined capacity of over 100 megawatts built. To learn more about PowerBank, please visit www.powerbankcorp.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to the Company's current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. In particular and without limitation, this news release contains forward-looking statements pertaining to the Company's expectations regarding its industry trends and overall market growth; the energy capacity of the Projects; the details of the Agreement and its benefits to PowerBank; potential revenues; and the size of the Company's development pipeline. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.
Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward looking statements included in this news release, the Company has made various material assumptions, including but not limited to: obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; execution of definitive agreements for suitable solar or BESS sites; that power is available to be sufficient to support a modular data center; general business and economic conditions; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and services offered by the Company's competitors; that the Company's current good relationships with its service providers and other third parties will be maintained; and government subsidies and funding for renewable energy will continue as currently contemplated. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and the Company cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements.
Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed under "Forward-Looking Statements" and "Risk Factors" in the Company's most recently completed Annual Information Form, and other public filings of the Company, which include: the Company may be adversely affected by volatile solar power market and industry conditions; failure to execute definitive agreements for suitable solar or BESS sites; power availability may not be sufficient to support a modular data center; the execution of the Company's growth strategy depends upon the continued availability of third-party financing arrangements; the Company's future success depends partly on its ability to expand the pipeline of its energy business in several key markets; governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power; general global economic conditions may have an adverse impact on our operating performance and results of operations; the Company's project development and construction activities may not be successful; developing and operating solar Project exposes the Company to various risks; the Company faces a number of risks involving Power Purchase Agreements ("PPAs") and project-level financing arrangements; any changes to the laws, regulations and policies that the Company is subject to may present technical, regulatory and economic barriers to the purchase and use of solar power; the markets in which the Company competes are highly competitive and evolving quickly; an anti-circumvention investigation could adversely affect the Company by potentially raising the prices of key supplies for the construction of solar power projects; foreign exchange rate fluctuations; a change in the Company's effective tax rate can have a significant adverse impact on its business; seasonal variations in demand linked to construction cycles and weather conditions may influence the Company's results of operations; the Company may be unable to generate sufficient cash flows or have access to external financing; the Company may incur substantial additional indebtedness in the future; the Company is subject to risks from supply chain issues; risks related to inflation and tariffs; unexpected warranty expenses that may not be adequately covered by the Company's insurance policies; if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the renewable energy market; there are a limited number of purchasers of utility-scale quantities of electricity; compliance with environmental laws and regulations can be expensive; corporate responsibility may adversely impose additional costs; the future impact of any global pandemic on the Company is unknown at this time; the Company has limited insurance coverage; the Company will be reliant on information technology systems and may be subject to damaging cyberattacks; the Company may become subject to litigation; there is no guarantee on how the Company will use its available funds; the Company will continue to sell securities for cash to fund operations, capital expansion, mergers and acquisitions that will dilute the current shareholders; and future dilution as a result of financings.
The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Company to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
Honeywell dokončil oddělení letecké divize do samostatné společnosti Honeywell Aerospace, zatímco nově přejmenovaný Honeywell Technologies v pondělí klesl o více než 6 %.
Investors didn’t extend a friendly greeting to two prominent new arrivals on the stock exchange Monday.
Honeywell Technologies (NYSE:HON) isn’t, strictly speaking, a new company or equity on the market. Rather, it’s the new name for the former Honeywell International business, without its aerospace arm. That unit has been spun off into a separate entity called, sensibly, Honeywell Aerospace (NYSE:HONA). Monday was the day the spinoff took effect, and the legacy stock closed that trading session down more than 6%. Let’s explore this a bit.
Image source: Getty Images.
Leaner and cleanerFirst, let’s get a fix on the division of this historically significant American industrial behemoth.
The spinoff of Honeywell Aerospace was announced in February 2025. It followed an exhaustive, year-long portfolio review by current Honeywell Technologies CEO Virnal Kapur. It came several months after the company announced it would spin off its advanced materials business, which these days operates as the standalone Solstice Advanced Materials (SOLS 0.13%).
The cleaving of Honeywell into three smaller companies would result in, CEO Vimal Kapur was quoted as saying at the time, “positioning each to pursue tailored growth strategies.
It would also, he added, “unlock significant value for shareholders and customers.”
Just before Monday’s market debuts of the Honeywells Technologies and Aerospace, the latter’s CEO said that as a standalone, it would be more reactive to the needs of major customers, singling out Boeing (BA 1.18%) and Airbus (EADSY +0.77%).
As for the mechanics of the separation, stockholders in the legacy Honeywell received one common share of Honeywell Aerospace for every two shares of Honeywell International they owned. On Monday morning, the renamed Honeywell Technologies effected a 1-for-2 reverse stock split to recalibrate its share count and price.
Three-headed beastNow that Honeywell Technologies has hived off its aerospace and advanced materials divisions, it’s a leaner but still sprawling industrial conglomerate. These days, it operates within three core business segments — building automation, process automation and technology, and industrial automation.
Helpfully, the “new” company provided data on how it would have done had it operated under its present structure in the recent past. Full-year pro forma 2025 net sales would have been $19.9 billion, which was 3% higher than the 2024 result. The net income line was also up by 3%, to $1.34 billion.
We’ll get an updated look at how Honeywell Technologies has been performing of late with the company’s second-quarter results, slated for release on Thursday, July 23.
Good potential for the pairHoneywell Technologies’ slide in share price is understandable to an extent, as over the course of one trading day, the legacy Honeywell business was reduced by an important business unit. What’s a bit more surprising is that Honeywell Aerospace, after an initial, early-session surge, ended up closing the day nearly 5% down.
This, despite the long-building excitement on the spinoff, not to mention Aerospace’s immediate inclusion on two major equity indexes, the benchmark S&P 500 index and the S&P 100 index (displacing the old Honeywell International in the latter, while Honeywell Technologies “remains” in the former). As a new component of these lineups, Aerospace is an immediate target for many index funds that are ever popular with investors.
The future of spinoff and legacy companies can be tough to predict, but I’d lean towards the view that both “successor” Honeywells will do better separately than in combination.
The aerospace and defense sectors are moving fast these days, so Honeywell Aerospace can really benefit from a more streamlined and nimble operation.
Honeywell Technologies feels a bit less of a potential growth story, but could be something of a sleeper given its strength in building automation in particular — after all, the federal government aims to significantly build out domestic infrastructure, and there’s robust demand for more housing construction. Both developments could play very well into the company’s hands.
Honeywell Technologies oznámila, že ve čtvrtek 23. července zveřejní hospodářské výsledky za 2. čtvrtletí před otevřením burzy Nasdaq a probere výhled na rok 2026. Součástí budou i výsledky bývalé Aerospace Technologies, nyní Honeywell Aerospace (HONA).
, /PRNewswire/ -- Honeywell Technologies (NASDAQ: HON) today announced it will issue its second quarter financial results before the opening of the Nasdaq Stock Market on Thursday, July 23. The results for the second quarter will include the former Aerospace Technologies segment, which is now operating as Honeywell Aerospace and trading on Nasdaq under the ticker symbol "HONA" following the spin-off from Honeywell today. Honeywell Technologies will hold a conference call at 8:30 a.m. EDT to discuss its second quarter performance and 2026 outlook.
Presentation Materials / Webcast Details
A real-time audio webcast of the presentation can be accessed at investor.honeywell.com, where related materials will be posted prior to the presentation and a replay of the webcast will be available for 30 days following the presentation.
Honeywell Technologies is a global, pure-play automation company with a legacy of innovating to help solve the world's most mission-critical challenges, enhancing the quality of life for people and communities around the world. We serve the building, industrial, and process sectors with a broad portfolio of services, solutions, and products, underpinned by our Honeywell Technologies Accelerator operating system and Honeywell Technologies Forge intelligence layer. By combining the deep domain expertise of our more than 50,000 employees with decades of data from our global installed base, we are uniquely positioned to lead the industrial sector's transition from automation to autonomy. For more news and information on Honeywell Technologies, please visit Honeywell Technologies Newsroom.
Honeywell Technologies uses our Investor Relations website, investor.honeywell.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media.
Honeywell poskytne svou modulární technologii Ecofining™ pro výrobu udržitelných leteckých paliv a obnovitelné nafty v nové rafinerii Acelen v Bahii, Brazílie, s využitím místního oleje macaúba. Technologie zahrnuje specializovaná čerpadla, kompresory a integrované kontrolní a bezpečnostní systémy, které pomohou řídit produkci udržitelných paliv.
Modular design and integrated automation controls to help fast-track and optimize new Brazil refinery, expected to be one of the largest in the world
Acelen will use a sustainable feedstock native to Brazil, macaúba oil, to produce renewable fuels
, /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced that its modular Ecofining™ process technology, specialized pumps, compressors, and integrated control and safety systems will help drive sustainable aviation fuel (SAF) and renewable diesel production for Acelen Renewables' greenfield site in Bahia, Brazil.
With SAF demand projected to increase to nearly 500,000 barrels per day over the next decade1, refiners are looking for ways to scale production quickly and efficiently. Honeywell's modular delivery model shortens construction time and lowers costs, allowing SAF production faster than traditional methods.
"Brazil is set to produce the fuel of the future through a project that is sustainable—economically, socially, and environmentally," said Marcelo Cordaro, COO of Acelen Renewables. "The Bahia facility project supports biodiversity and fosters an economy based on sustainability. Honeywell's process technology and automation expertise will help maximize the production of lower-emission fuels at our facility, supporting the growing global demand for renewable fuels."
The Honeywell UOP Ecofining process, developed with Eni SpA, efficiently converts waste fats, oils, and greases into renewable diesel and SAF that can reduce greenhouse gas emissions by up to 80% when blended with conventional jet fuel2.
"Honeywell's low-carbon process technologies are enabling companies like Acelen to address the growing demand for renewable fuels by using a variety of feedstocks," said Ken West, president and CEO of Honeywell Process Technology. "Technology and integrated automation play a pivotal role in reducing the cost of renewable fuels, which is essential for broad adoption. Advances in Honeywell's technology have reduced the cost to produce SAF and the use of novel, low-cost feedstocks will help further reduce production costs."
Honeywell has delivered more than 1,500 modular process units, across multiple technologies, worldwide. Honeywell's integrated control and safety system is enriched by Honeywell UOP's vast operational expertise and cutting-edge technologies and is embedded within the Experion® PKS platform. As a result, it can significantly reduce project timelines and risks while helping to optimize biofuel production to achieve operational excellence. The combination of process technology and automation provides a platform for digitization and data driven operating insights.
About Honeywell
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology, that help make the world smarter and safer as well as more secure and sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.
Contact:
Media
Whitney Ellis
704-621-4354
[email protected]
Honeywell International plánuje koncem měsíce rozdělení na dvě společnosti: Honeywell Aerospace a Honeywell Technologies, s očekáváním vyššího ocenění díky specializaci.
Honeywell International (HON 2.52%), one of the world's largest industrial conglomerates, continues to dismantle itself. Less than a year after spinning off Solstice Advanced Materials, the company is gearing up for an even larger spinoff.
Later this month, Honeywell will split into two separate companies: Honeywell Aerospace and Honeywell Technologies. The expectation is that each company, as a pure play in its respective industry, will receive a higher valuation than the diversified Honeywell has as a public company.
However, while spinoffs are a useful tool for maximizing shareholder value, they aren't necessarily a silver bullet. Let's take a closer look at the math behind this transaction, as well as recent price action with Honeywell shares, and determine whether it's worthwhile to buy Honeywell Aerospace, as well as when exactly to buy it.
Image source: Getty Images.
Honeywell, the spinoff, and the potential payoff With the Honeywell Aerospace spinoff scheduled for June 29, management is ramping up its efforts to tout the event as highly beneficial to shareholders. As management has noted in its communications with investors, this deal entails splitting off Honeywell's faster-growing aerospace unit from its relatively slower-growing automation segment, which will take on the Honeywell Technologies name.
Today's Change
(
-2.52
%) $
-5.74
Current Price
$
222.37
At the same time, the two companies intend to pursue margin-expansion efforts following the spinoff. By raising their margins, both Honeywell Aerospace and Honeywell Technologies intend to deliver double-digit earnings growth over the next few years. Honeywell Aerospace expects annual sales growth of 6% to 8%, while Honeywell Technologies expects sales growth of 4% to 6%.
In terms of share appreciation potential, it lies in the valuations of each unit's respective "pure-play" competitors relative to Honeywell's current valuation as a whole. GE Aerospace, one of the most widely followed aerospace stocks, trades at 46 times forward earnings.
Automation-focused industrial stocks, like Rockwell Automation, trade for over 30 times forward earnings. Meanwhile, Honeywell, even as its shares rally ahead of the merger, trades for only 21.6 times forward earnings. Even if the two companies experience partial expansion toward similar multiples, the resulting gains could be substantial, especially if the aforementioned margin-expansion efforts take hold.
There's an opportunity on both sides The mechanics of the spinoff are as follows. Shareholders of record as of June 15 will receive shares in Honeywell Aerospace on a pro rata basis on June 29, receiving one share for every two shares held in Honeywell. The remaining Honeywell entity will then execute a 1-for-2 reverse stock split effective June 29.
It's unclear how exactly shares will trade after the spinoff. Given how "hot" the aerospace sector is at present, Honeywell Aerospace could go on a tear. However, the "less glamorous" Honeywell Technologies could pull back, as can happen when a company spins off or splits off a faster-growing business from a slower-growing one.
Then again, a post-spinoff sell-off could create a new opportunity. If investors bail on Honeywell Technologies, it could become oversold, offering a very opportune entry point from a value perspective.
With this in mind, existing Honeywell investors may want to hold onto their positions in both companies. If you've yet to buy, however, you may want to consider Honeywell Aerospace for its growth potential, while keeping an eye on Honeywell Technologies for its rerating potential following an initial period of weakness.
