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CHARLOTTE, N.C.--(BUSINESS WIRE)--Honeywell Technologies (NASDAQ: HON) today announced financial results for the third quarter of 2026.

The company reported third-quarter sales of $5.0 billion, up 1% reported and 7% organic1, driven by broad-based strength across all three segments, pricing actions, and continued demand across key end markets. Backlog increased 7% year over year to nearly $19 billion, excluding Warehouse and Workflow Solutions (WWS) and Productivity Solutions and Services (PSS) divestitures in 3Q 2026.

Operating income increased 79% and segment profit1 increased 23% driven by productivity, including elimination of stranded costs related to prior spin-offs and divestitures, pricing actions that more than offset inflation, and volume leverage. Operating margin of 14.8% increased 640 basis points and segment margin1 of 21.3% expanded 370 basis points, led by Industrial Automation and Building Automation.

Reported EPS decreased 20% primarily due to a one-time gain from the Resideo termination agreement in prior year. Excluding the impact of this and other items, adjusted earnings per share1 increased 34% year over year to $2.27 driven by organic sales growth, higher segment profit, and lower net interest expense.

Finally, operating cash flow of $607 million decreased 74% primarily due to the one-time settlement from the Resideo termination agreement in prior year, while free cash flow1 of $688 million increased 15%, with free cash flow conversion1 of 95%, driven by higher operating income and lower capital expenditures.

Management Commentary

“Honeywell Technologies delivered strong results across the business in our first quarter as a standalone company. Continued momentum across all three segments, together with our improving position in high-growth verticals, translated to 7% organic sales growth, above the three-year target set at our June Investor Day. This performance, coupled with continued progress reducing fixed cost, enabled adjusted operating income to increase at more than three times the rate of sales, while adjusted EPS rose 34%, well ahead of our expectations for the quarter. As a result of this strong performance, we are raising our full-year 2026 outlook, which gives me great confidence in our long-term strategy and our ability to deliver on our 2029 targets,” said Chairman and Chief Executive Officer Vimal Kapur.

Table 1: Summary of Financial Results

(Dollars in millions, except per share amounts)

  3Q 2026

3Q 2025

Change

Sales

$4,994

$4,929

1%

Organic1 Growth

7%

Operating Income

$740

$413

79%

Operating Income Margin

14.8%

8.4%

640 bps

Segment Profit1

$1,062

$866

23%

Segment Margin1

21.3%

17.6%

370 bps

Earnings Per Share - Continuing Operations

$2.40

$2.99

(20%)

Adjusted Earnings Per Share1

$2.27

$1.70

34%

Cash Flow from Operations - Continuing Operations

$607

$2,306

(74%)

Free Cash Flow1,4

$688

$599

15%

Table 2: Summary of Segment Financial Results

(Dollars in millions)

  BUILDING AUTOMATION

3Q 2026

3Q 2025

Change

Sales

$2,020

$1,878

8%

Organic1 Growth

8%

Segment Profit

$546

$502

9%

Segment Margin

27.0%

26.7%

30 bps

PROCESS AUTOMATION AND TECHNOLOGY

Sales

$1,859

$1,598

16%

Organic1 Growth

8%

Segment Profit

$412

$389

6%

Segment Margin

22.2%

24.3%

(210) bps

INDUSTRIAL AUTOMATION

Sales

$1,115

$1,450

(23%)

Organic1 Growth

4%

Segment Profit

$205

$216

(5%)

Segment Margin

18.4%

14.9%

350 bps

Building Automation sales grew 8% organically1 year over year. Building products grew 11%, fueled by the fire and security businesses, while building solutions grew 4% on continued strength in services. Segment margin expanded 30 basis points to 27.0%, benefiting from volume leverage and pricing actions that offset inflation.

Process Automation and Technology sales increased 8% organically1 year over year. Project sales grew 14% led by continued growth in LNG and petrochemical projects, while aftermarket grew 4% driven primarily by refining demand. Margins contracted 210 basis points as expected driven by project mix and dilution from the acquisition of Johnson Matthey’s Catalyst Technologies business.

Industrial Automation sales grew 4% organically1 year over year led by 16% growth in solutions, driven primarily by industrial measurement and utilities. Products were flat year over year with double-digit growth in sensing largely offset by industry-wide meter deployment deferrals in utilities. Segment margin expanded 350 basis points year over year to 18.4%, driven primarily by price and productivity actions, partially offset by inflation.

Table 3: Full-Year 2026 Guidance1

  Previous Guidance

Current Guidance

Sales

$19.8B - $20.0B

$20.0B - $20.1B

Organic Growth

3% - 4%

4% - 5%

Segment Margin2

20.1% - 20.5%

~20.5%

Expansion

Up 250 - 290 bps

Up ~290 bps

Adjusted Earnings Per Share2,3

$8.05 - $8.35

$8.40 - $8.45

Adjusted Earnings Growth3

25% - 29%

30% - 31%

Operating Cash Flow

~$2.1B

~$2.1B

Free Cash Flow4

~$2.0B

~$2.1B

1

See additional information at the end of this release regarding non-GAAP financial measures.

2

Segment margin and adjusted EPS are non-GAAP financial measures. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment margin and adjusted EPS. We therefore, do not present a guidance range, or a reconciliation to, the nearest GAAP financial measures of operating margin or EPS.

3

Adjusted EPS and adjusted EPS V% guidance excludes items identified in the non-GAAP reconciliation of adjusted EPS at the end of this release, and any potential future one-time items that we cannot reliably predict or estimate.

4

With respect to historical periods, free cash flow adjusts for capital expenditures, separation-related cost payments, Resideo indemnification and reimbursement agreement termination payment, cash payment for settlement of the divestiture of asbestos liabilities, and cash flows attributable to Quantinuum. With respect to the company’s outlook for 2026, free cash flow adjusts for capital expenditures, separation-related cost payments, and cash flows attributable to Quantinuum.

Revised 2026 Guidance

Honeywell Technologies is raising its full-year outlook for organic revenue, adjusted EPS and free cash flow, and also now expects segment margin to be at the previous high end of guidance, following strong third quarter performance and continued momentum across the portfolio. The company now expects full-year sales of $20.0 billion to $20.1 billion with organic1 sales growth of 4% to 5%, and 5% to 6% organic1 growth in the fourth quarter; segment margin1 of approximately 20.5%, at the upper end of its previous guidance range, representing segment margin1 expansion of approximately 290 basis points; and adjusted earnings per share1 of $8.40 to $8.45, up 30% to 31%, representing a $0.23 increase from the midpoint of its previous guidance range. Finally, operating cash flow and free cash flow are now expected to be ~$2.1 billion each.

Conference Call Details

Honeywell Technologies will discuss its third-quarter results and full-year 2026 guidance during an investor conference call starting at 8:30 a.m. Eastern Daylight Time today. A live webcast of the investor call as well as related presentation materials will be available through the Investor Relations section of the company's website (www.honeywell.com/investor). A replay of the webcast will be available for 30 days following the presentation.

About Honeywell Technologies

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.

Additional Information

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.

Forward Looking Statements

We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are those that address activities, events, or developments that we or our management intend, expect, project, believe, or anticipate will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as changes in or application of trade and tax laws and policies, including the impacts of tariffs and other trade barriers and restrictions, lower GDP growth or recession in the U.S. or globally, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, including ongoing conflicts in the Middle East, that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K, and our other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.

This release contains financial measures presented on a non-GAAP basis. Honeywell Technologies' non-GAAP financial measures used in this release are as follows:

Segment profit, on an overall Honeywell Technologies basis; Segment profit margin, on an overall Honeywell Technologies basis; Organic sales growth; Free cash flow; Free cash flow conversion; and Adjusted earnings per share. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.

Source: Honeywell Technologies

Earnings (HON-ER)

Honeywell International Inc.

Consolidated Statement of Operations (Unaudited)

(Dollars in millions, except per share amounts)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Product sales

$

3,628

$

3,573

$

10,856

$

10,724

Service sales

1,366

1,356

4,148

3,979

Net sales

4,994

4,929

15,004

14,703

Costs, expenses and other

Cost of products sold

2,127

2,041

6,421

6,179

Cost of services sold

849

1,114

2,593

2,749

Total Cost of products and services sold

2,976

3,155

9,014

8,928

Research and development expenses

239

268

825

774

Selling, general and administrative expenses

1,039

1,093

3,078

3,372

Impairment of assets held for sale

—

—

311

15

Loss on debt extinguishment

—

—

241

—

Gain on deconsolidation of subsidiary

—

—

(6,629

)

—

Other (income) expense

(389

)

(957

)

(301

)

(1,124

)

Interest and other financial charges

143

263

579

715

Total costs, expenses and other

4,008

3,822

7,118

12,680

Income from continuing operations before taxes and equity losses

986

1,107

7,886

2,023

Tax expense

60

153

1,378

427

Equity loss

147

—

412

—

Net income from continuing operations

779

954

6,096

1,596

Net (loss) income from discontinued operations

(103

)

905

1,061

3,299

Net income

676

1,859

7,157

4,895

Less: Net (loss) income attributable to noncontrolling interest

12

34

(10

)

51

Net income attributable to Honeywell Technologies

$

664

$

1,825

$

7,167

$

4,844

Earnings per share of common stock—basic:

Earnings per share of common stock from continuing operations—basic

$

2.42

$

3.01

$

19.30

$

5.02

Earnings per share of common stock from discontinued operations—basic

(0.33

)

2.73

3.29

10.11

Total earnings per share of common stock—basic

$

2.09

$

5.74

$

22.59

$

15.13

Earnings per share of common stock—assuming dilution:

Earnings per share of common stock from continuing operations—assuming dilution

$

2.40

$

2.99

$

19.19

$

4.99

Earnings per share of common stock from discontinued operations—assuming dilution

(0.32

)

2.72

3.27

10.05

Total earnings per share of common stock—assuming dilution

$

2.08

$

5.71

$

22.46

$

15.04

Weighted average number of shares outstanding - basic

317.5

317.7

317.3

320.2

Weighted average number of shares outstanding - assuming dilution

319.2

319.4

319.1

322.0

Honeywell International Inc.

Segment Data (Unaudited)

(Dollars in millions)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

Net sales

2026

2025

2026

2025

Building Automation

$

2,020

$

1,878

$

5,904

$

5,396

Process Automation and Technology

1,859

1,598

5,051

4,656

Industrial Automation

1,115

1,450

4,039

4,627

Total Segment sales

4,994

4,926

14,994

14,679

Quantinuum

—

3

10

24

Total Net sales

$

4,994

$

4,929

$

15,004

$

14,703

Reconciliation of Segment Profit to Income Before Taxes

  Three Months Ended
September 30,

Nine Months Ended
September 30,

Segment profit

2026

2025

2026

2025

Building Automation

$

546

$

502

$

1,584

$

1,421

Process Automation and Technology

412

389

1,142

1,088

Industrial Automation

205

216

703

704

Corporate and All Other

(101

)

(241

)

(438

)

(650

)

Total Segment profit

1,062

866

2,991

2,563

Interest and other financial charges

(143

)

(263

)

(579

)

(715

)

Interest income1

50

85

207

247

Amortization of acquisition-related intangibles2

(131

)

(135

)

(352

)

(364

)

Impairment of assets held for sale

—

—

(311

)

(15

)

Stock compensation expense3

(104

)

(22

)

(182

)

(115

)

Pension ongoing income4

90

75

263

151

Other postretirement income4

2

3

6

11

Repositioning and other gains (charges)5

(17

)

581

(133

)

516

Loss on debt extinguishment

—

—

(241

)

—

Divestiture-related costs6

(94

)

(25

)

(489

)

(70

)

Gain on deconsolidation of subsidiary

—

—

6,629

—

Equity loss

(147

)

—

(412

)

—

Gain (loss) on sale of non-strategic businesses and assets1

339

—

345

(30

)

Other expense7

(68

)

(18

)

(128

)

(36

)

Quantinuum Loss8

—

(40

)

(140

)

(120

)

Income before taxes

$

839

$

1,107

$

7,474

$

2,023

1

Amounts included in Other (income) expense.

2

Amounts included in Cost of products and services sold.

3

Amounts included in Selling, general and administrative expenses.

4

Amounts included in Cost of products and services sold (service cost component), Selling, general and administrative expenses (service cost component), Research and development expenses (service cost component), and Other (income) expense (non-service cost component).

5

Amounts included in Cost of products and services sold, Selling, general and administrative expenses, and Other (income) expense.

6

Amounts included in Selling, general and administrative expenses, Research and development expenses, and Other (income) expense.

7

Amounts include the other components of Selling, general and administrative expenses and Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies from strategically aligned investments and trademark licensing income are included in segment profit.

8

Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company’s investment in Quantinuum, which does not meet the definition of an operating segment. Included in Net sales, Cost of products and services sold, Research and development expenses, Selling, general and administrative expenses, and Other (income) expense.

Honeywell International Inc.

Consolidated Balance Sheet (Unaudited)

(Dollars in millions)

  September 30, 2026

December 31, 2025

Assets

Current assets

Cash and cash equivalents

$

5,694

$

12,273

Short-term investments

492

443

Accounts receivable, less allowances of $155 and $167, respectively

5,086

4,429

Inventories

2,056

1,677

Assets held for sale

—

2,492

Other current assets

988

841

Current assets of discontinued operations

—

8,232

Total current assets

14,316

30,387

Equity method investments

7,273

195

Long-term receivables and other investments

1,114

1,113

Property, plant and equipment—net

2,706

2,466

Goodwill

17,561

18,054

Other intangible assets—net

5,442

5,161

Deferred income taxes

199

156

Other assets

4,487

4,537

Assets of discontinued operations

—

11,612

Total assets

$

53,098

$

73,681

Liabilities

Current liabilities

Accounts payable

$

3,592

$

3,434

Commercial paper and other short-term borrowings

2,424

5,893

Current maturities of long-term debt

3,783

1,541

Accrued liabilities

5,112

5,063

Liabilities held for sale

—

1,198

Current liabilities of discontinued operations

—

6,285

Total current liabilities

14,911

23,414

Long-term debt

10,386

27,137

Deferred income taxes

1,561

815

Postretirement benefit obligations other than pensions

80

111

Other liabilities

3,506

3,986

Liabilities of discontinued operations

—

3,188

Shareowners' equity

22,654

15,030

Total liabilities and shareowners’ equity

$

53,098

$

73,681

Honeywell International Inc.

Consolidated Statement of Cash Flows (Unaudited)

(Dollars in millions)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Cash flows from operating activities

Net income

$

676

$

1,859

$

7,157

$

4,895

Less: Net income from discontinued operations

(103

)

905

1,061

3,299

Net income from continuing operations

779

954

6,096

1,596

Adjustments to reconcile net income from continuing operations to net cash provided by operating activities

Depreciation

70

72

215

206

Amortization

186

176

483

510

Gain on deconsolidation of subsidiary

—

—

(6,629

)

—

Equity loss (income) of affiliated companies

157

(2

)

397

(14

)

(Gain) loss on sale of non-strategic businesses and assets

(346

)

—

(351

)

29

Impairment of assets held for sale

—

—

311

15

Loss on debt extinguishment

—

—

241

—

Repositioning and other charges

13

(583

)

133

(516

)

Net payments for repositioning and other charges

(21

)

(93

)

(119

)

(307

)

Resideo indemnification and reimbursement agreement termination payment

—

1,590

—

1,590

Pension and other postretirement income

(91

)

(80

)

(268

)

(164

)

Pension and other postretirement benefit payments

3

(3

)

(6

)

(13

)

Stock compensation expense

104

23

182

115

Deferred income taxes

(533

)

(142

)

687

(248

)

Other

(322

)

(56

)

(2

)

(362

)

Changes in assets and liabilities, net of the effects of acquisitions and divestitures:

Accounts receivable

(217

)

93

(546

)

(344

)

Inventories

(18

)

(23

)

(50

)

(297

)

Other current assets

126

4

(206

)

(168

)

Accounts payable

(178

)

196

44

376

Accrued liabilities

1,019

(112

)

567

510

Income taxes

(124

)

292

(247

)

96

Net cash provided by operating activities from continuing operations

607

2,306

932

2,610

Net cash (used for) provided by operating activities - discontinued operations

(488

)

982

(189

)

2,594

Net cash provided by operating activities

119

3,288

743

5,204

Cash flows from investing activities

Capital expenditures

(77

)

(150

)

(369

)

(375

)

Increase in investments

(266

)

(384

)

(771

)

(1,064

)

Decrease in investments

215

295

728

1,047

Receipts (payments) from settlements of derivative contracts

(2

)

12

123

(403

)

Cash paid for acquisitions, net of cash acquired

(1,743

)

(38

)

(1,763

)

(2,201

)

Deconsolidation of subsidiary cash

—

—

(623

)

—

Proceeds from sale of business, net of cash transferred

1,448

—

1,454

1,157

Net cash used for investing activities from continuing operations

(425

)

(265

)

(1,221

)

(1,839

)

Net cash used for investing activities from discontinued operations

—

(223

)

(252

)

(529

)

Net cash used for investing activities

(425

)

(488

)

(1,473

)

(2,368

)

Cash flows from financing activities

Proceeds from issuance of commercial paper and other short-term borrowings

4,502

7,308

12,413

19,171

Payments of commercial paper and other short-term borrowings

(4,558

)

(6,721

)

(15,882

)

(16,711

)

Proceeds from issuance of common stock

47

42

246

140

Proceeds from issuance of long-term debt

—

—

—

4,035

Payments of long-term debt

(1,501

)

(246

)

(14,688

)

(1,555

)

Repurchases of common stock

—

(100

)

(1,000

)

(3,704

)

Cash dividends paid

(240

)

(735

)

(1,816

)

(2,214

)

Pre-separation funding

—

—

15,835

—

Spin-off cash

(1,000

)

—

(1,000

)

—

Other

(21

)

233

(125

)

198

Net cash used for financing activities

(2,771

)

(219

)

(6,017

)

(640

)

Effect of foreign exchange rate changes on cash and cash equivalents

22

—

(46

)

167

Net (decrease) increase in cash and cash equivalents

(3,057

)

2,581

(6,793

)

2,363

Cash and cash equivalents at beginning of period

8,751

10,349

12,487

10,567

Cash and cash equivalents at end of period

$

5,694

$

12,930

$

5,694

$

12,930

Appendix

Non-GAAP Financial Measures

The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release to which reconciliations are attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP).

Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Honeywell Technologies’ businesses.

As indicated herein, certain forward-looking non-GAAP financial measures are not reconciled because management cannot reliably predict or estimate certain items for the reasons specified herein with respect to each non-GAAP financial measure.

Honeywell International Inc.

Reconciliation of Organic Sales Percent Change

(Unaudited)

  Three Months Ended
September 30, 2026

Honeywell Technologies

Reported sales percent change

1%

Less: Impact of divestitures to the prior period

(8)%

Reported sales percent change, adjusted for impact of divestitures

9%

Less: Foreign currency translation

—%

Less: Acquisitions

2%

Less: Other

—%

Organic sales percent change

7%

Building Automation

Reported sales percent change

8%

Less: Impact of divestitures to the prior period

—%

Reported sales percent change, adjusted for impact of divestitures

8%

Less: Foreign currency translation

—%

Less: Acquisitions

—%

Less: Other

—%

Organic sales percent change

8%

Process Automation and Technology

Reported sales percent change

16%

Less: Impact of divestitures to the prior period

—%

Reported sales percent change, adjusted for impact of divestitures

16%

Less: Foreign currency translation

—%

Less: Acquisitions

8%

Less: Other

—%

Organic sales percent change

8%

Industrial Automation

Reported sales percent change

(23)%

Less: Impact of divestitures to the prior period

(27)%

Reported sales percent change, adjusted for impact of divestitures

4%

Less: Foreign currency translation

—%

Less: Acquisitions

—%

Less: Other

—%

Organic sales percent change

4%

We define organic sales percentage as the year-over-year change in reported sales relative to the comparable period, adjusted for the impact of divestitures to the prior period, and excluding the impact on sales from foreign currency translation, acquisitions for the first 12 months following the transaction date, and certain other items that are unusual or non-recurring in nature. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

A quantitative reconciliation of reported sales percent change to organic sales percent change has not been provided for the forward-looking measure of organic sales percent change because management cannot reliably predict or estimate, without unreasonable effort, the fluctuations in global currency markets that impact foreign currency translation, nor is it reasonable for management to predict the timing, occurrence and impact of acquisition and divestiture transactions, all of which could significantly impact our reported sales percent change.

Honeywell International Inc.

Reconciliation of Operating Income to Segment Profit, Calculation of Operating Income and Segment Profit Margins

(Unaudited)

(Dollars in millions)

  Three Months Ended
September 30,

Twelve Months
Ended
December 31,

2026

2025

2025

Operating income

$

740

$

413

$

1,171

Stock compensation expense1

104

22

153

Repositioning, other2,3

20

223

390

Pension and other postretirement service costs4

13

14

57

Amortization of acquisition-related intangibles5

131

135

509

Acquisition-related costs6

7

9

2

Divestiture-related costs7

2

—

—

ERP implementation costs1

9

—

—

Indefinite-lived intangible asset impairment1

—

—

44

Impairment of goodwill

—

—

724

Impairment of assets held for sale

—

—

270

Loss on Quantinuum8

—

50

187

Trademark licensing income9

36

—

—

Segment profit

$

1,062

$

866

$

3,507

Operating income

$

740

$

413

$

1,171

÷ Segment sales

4,994

4,929

19,915

Operating income margin %

14.8

%

8.4

%

5.9

%

Segment profit

$

1,062

$

866

$

3,507

÷ Segment sales

4,994

4,929

19,915

Segment profit margin %

21.3

%

17.6

%

17.6

%

1

Included in Selling, general and administrative expenses.

2

Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges.

3

Included in Cost of products and services sold and Selling, general and administrative expenses.

4

Included in Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses.

5

Included in Cost of products and services sold.

6

Included in Cost of products and services sold. Includes acquisition-related fair value adjustments to inventory.

7

Included in Selling, general and administrative expenses.

8

Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company’s investment in Quantinuum, which does not meet the definition of an operating segment. Included in Net sales, Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses.

9

Included in segment profit and recorded within Other (income) expense.

We define operating income as segment sales less total cost of products and services sold, research and development expenses, selling, general and administrative expenses, impairment of goodwill, and impairment of assets held for sale. We define segment profit, on an overall Honeywell Technologies basis, as operating income, excluding stock compensation expense, pension and other postretirement service costs, amortization of acquisition-related intangibles, certain acquisition- and divestiture-related costs and impairments, repositioning and other charges, trademark licensing income, and the results of Quantinuum. We define segment profit margin, on an overall Honeywell Technologies basis, as segment profit divided by net sales. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

A quantitative reconciliation of operating income to segment profit, on an overall company basis, has not been provided for all forward-looking measures of segment profit and segment profit margin included herein. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment profit. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results. To the extent quantitative information becomes available without unreasonable effort in the future, and closer to the period to which the forward-looking measures pertain, a reconciliation of operating income to segment profit will be included within future filings.

Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies.

Honeywell International Inc.

Reconciliation of Earnings per Share to Adjusted Earnings per Share

(Unaudited)

  Three Months Ended
September 30,

Twelve Months Ended
December 31,

2026

2025

2025

2026(E)

Earnings per share of common stock from continuing operations - diluted1

$

2.40

$

2.99

$

3.24

$21.88 - $21.93

Pension income2

(0.21

)

(0.18

)

(0.13

)

No Forecast

Amortization of acquisition-related intangibles3

0.32

0.32

1.20

1.20

Acquisition-related costs4

0.10

0.05

0.11

0.12

Divestiture-related costs5

(0.04

)

0.57

0.81

No Forecast

Debt restructuring costs6

—

—

—

0.71

ERP implementation costs7

0.02

—

—

0.08

Impairment of assets held for sale8

—

—

0.65

0.74

Indefinite-lived intangible asset impairment9

—

—

0.14

—

Impairment of goodwill10

—

—

2.25

—

(Gain) loss on sale of business11

(0.67

)

—

0.09

(0.69)

Gain related to Resideo indemnification and reimbursement agreement termination12

—

(2.51

)

(2.50

)

—

Adjustment to estimated future environmental liabilities13

—

0.07

0.07

—

Loss on settlement of divestiture of asbestos liabilities14

—

0.35

0.35

—

Impact of Russia-Ukraine conflict15

—

—

—

0.02

Gain on deconsolidation of Quantinuum16

—

—

—

(15.83)

Equity loss of Quantinuum17

0.35

—

—

No Forecast

Loss on Quantinuum18

—

0.04

0.18

0.17

Adjusted earnings per share of common stock from continuing operations - diluted

$

2.27

$

1.70

$

6.46

$8.40 - 8.45

1

For the three months ended September 30, 2026 and 2025, adjusted earnings per share utilizes weighted average shares of 319.2 million and 319.4 million, respectively. For the twelve months ended December 31, 2025, adjusted earnings per share utilizes weighted average shares of 321.4 million. For the twelve months ended December 31, 2026, expected earnings per share utilizes weighted average shares of approximately 319.4 million.

2

For the three months ended September 30, 2026 and 2025, pension income was $67 million and $58 million, net of tax expense of $22 million and $18 million, respectively. For the twelve months ended December 31, 2025, pension income was $40 million, net of tax expense of $25 million.

3

For the three months ended September 30, 2026 and 2025, acquisition-related intangibles amortization includes $102 million and $102 million, net of tax benefit of $29 million and $33 million, respectively. For the twelve months ended December 31, 2025, acquisition-related intangibles amortization includes $386 million, net of tax benefit of $123 million. For the twelve months ended December 31, 2026, the expected adjustment for acquisition-related intangibles amortization includes approximately $382 million, net of tax benefit of approximately $90 million.

4

For the three months ended September 30, 2026 and 2025, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs was $31 million and $17 million, net of tax benefit of $9 million and $5 million, respectively. For the twelve months ended December 31, 2025, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, was $35 million, net of tax benefit of $10 million. For the twelve months ended December 31, 2026, the expected adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs, is approximately $39 million, net of tax benefit of approximately $12 million.

5

For the three months ended September 30, 2026 and 2025, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction, separation and simplification costs, was $12 million and $180 million, net of tax benefit of $182 million and tax expense of $122 million, respectively. For the twelve months ended December 31, 2025, the adjustment for divestiture-related costs was $262 million, net of tax expense of $31 million.

6

For the twelve months ended December 31, 2026, the expected adjustment for debt restructuring costs excluding spin-off impact is $228 million, net of tax benefit of $70 million.

7

For the three months ended September 30, 2026, the adjustment for ERP implementation costs was $7 million, net of tax benefit of $2 million. For the twelve months ended December 31, 2026, the expected adjustment for ERP implementation costs is approximately $26 million, net of tax benefit of approximately $6 million.

8

For the twelve months ended December 31, 2025, the impairment charge of assets held for sale was $209 million, net of tax benefit of $61 million. For the twelve months ended December 31, 2026, the expected impairment charge of assets held for sale is $236 million, net of tax benefit of $75 million.

9

For the twelve months ended December 31, 2025, the impairment charge of indefinite-lived intangible assets associated with the Industrial Automation reportable segment was $44 million, without tax benefit.

10

For the twelve months ended December 31, 2025, the impairment charge of goodwill associated with the Industrial Automation reportable segment was $724 million, without tax benefit.

11

For the three months ended September 30, 2026, the (gain) loss on sale of personal protection equipment business was $216 million, net of tax expense of $123 million. For the twelve months ended December 31, 2025, the adjustment for loss on sale of the personal protective equipment business was $28 million, net of tax benefit of $2 million. For the twelve months ended December 31, 2026, the expected gain on sale of personal protection equipment business is $221 million, net of tax expense of $124 million.

12

For the three months ended September 30, 2025, the gain related to the Resideo indemnification and reimbursement agreement termination was $802 million, without tax impact. For the twelve months ended December 31, 2025, the gain related to the Resideo indemnification and reimbursement agreement termination was $802 million, without tax impact.

13

For the three months ended September 30, 2025, the adjustment to increase environmental liabilities was $22 million, net of tax benefit of $7 million. For the twelve months ended December 31, 2025, the adjustment to increase environmental liabilities was $22 million, net of tax benefit of $7 million.

14

For the three months ended September 30, 2025, the adjustment for loss on settlement of divestiture of asbestos liabilities was $112 million, net of

tax benefit of $36 million. For the twelve months ended December 31, 2025, the adjustment for loss on settlement of divestiture of asbestos liabilities was $112 million, net of tax benefit of $36 million.

15

For the twelve months ended December 31, 2026, the expected adjustment for the impact of the Russia-Ukraine conflict is approximately $6 million, net of tax benefit of approximately $2 million.

16

Includes the gain from the deconsolidation of Quantinuum of $5,057 million, net of tax expense of $1,572 million.

17

For the three months ended September 30, 2026, the adjustment for equity losses on Quantinuum is $112 million, net of tax benefit of $35 million. The equity losses of Quantinuum are based on our proportionate share of Quantinuum's earnings or losses, which are outside of the Company's control. We therefore do not include an estimate for these amounts.

18

Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company’s investment in Quantinuum, which does not meet the definition of an operating segment. For the three months ended September 30, 2025, the net income adjustment for Quantinuum was $35 million, net of tax benefit of $11 million. The net adjustment also reflects an adjustment to NCI of $16 million for the three months ended September 30, 2025. For the twelve months ended December 31, 2025, the net income adjustment for Quantinuum was $135 million, net of tax benefit of $43 million. The net adjustment also reflects an adjustment to NCI of $78 million for the twelve months ended December 31, 2025. For the twelve months ended December 31, 2026, the expected net income adjustment for Quantinuum is approximately $107 million, net of tax benefit of approximately $33 million. The net adjustment also reflects an adjustment to NCI of approximately $55 million for the twelve months ended December 31, 2026.

We define adjusted earnings per share as diluted earnings per share from continuing operations adjusted to exclude various charges as listed above. We believe adjusted earnings per share is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. For forward-looking information, management cannot reliably predict or estimate, without unreasonable effort, pension income or the divestiture-related costs. The pension income is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. The divestiture-related costs are subject to detailed development and execution of separation restructuring and simplification plans for the recently completed separation of Honeywell Technologies and Honeywell Aerospace. The equity losses of Quantinuum are based on our proportionate share of Quantinuum's earnings or losses, which are outside of the Company's control. We therefore do not include an estimate for these amounts. Based on economic and industry conditions, future developments, and other relevant factors, these assumptions are subject to change.

Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies.

Honeywell International Inc.

Reconciliation of Cash Provided by Operating Activities to Free Cash Flow

(Unaudited)

(Dollars in millions)

  Three Months
Ended
September 30,
2026

Three Months
Ended
September 30,
2025

Twelve Months
Ended
December 31,
2026(E)

Cash provided by operating activities from continuing operations

$

607

$

2,306

$

2.1

Capital expenditures

(77

)

(150

)

~(0.6)

Separation-related cost payments

158

2

~0.5

Quantinuum

—

31

~0.1

Resideo indemnification and reimbursement agreement termination payment

—

(1,590

)

—

Free cash flow

$

688

$

599

~$2.1

We define free cash flow as cash provided by operating activities from continuing operations less cash for capital expenditures and excluding spin-off and separation-related cost payments, the Resideo indemnification and reimbursement agreement termination payment, the cash payment for settlement of divestiture of asbestos liabilities, and cash flows attributable to Quantinuum.

We believe that free cash flow is a non-GAAP measure that is useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity.

Honeywell International Inc.

Reconciliation of Cash Provided by Operating Activities to Free Cash Flow, Reconciliation of Net Income Attributable to Honeywell Technologies to Adjusted Net Income Attributable to Honeywell Technologies, and Calculation of Adjusted Free Cash Flow Conversion (Unaudited)

(Dollars in millions)

  Three Months
Ended
September 30,
2026

Cash provided by operating activities from continuing operations

$

607

Capital expenditures

(77

)

Separation-related cost payments

158

Free cash flow

$

688

Net income attributable to Honeywell Technologies from continuing operations

$

767

Pension income1

(67

)

Amortization of acquisition-related intangibles2

102

Acquisition-related costs3

31

Divestiture-related costs4

(12

)

ERP implementation costs5

7

Gain on sale of business6

(216

)

Equity loss of Quantinuum7

112

Adjusted net income attributable to Honeywell Technologies

$

724

Cash provided by operating activities from continuing operations

$

607

÷ Net income attributable to Honeywell Technologies from continuing operations

$

767

Operating cash flow conversion %

79

%

Free cash flow

$

688

÷ Adjusted net income attributable to Honeywell Technologies

$

724

Adjusted free cash flow conversion %

95

%

1

For the three months ended September 30, 2026, pension income was $67 million, net of tax expense of $22 million.

2

For the three months ended September 30, 2026, acquisition-related intangibles amortization includes $102 million net of tax benefit of $29 million.

3

For the three months ended September 30, 2026, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs was $31 million, net of tax benefit of $9 million.

4

For the three months ended September 30, 2026, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction, separation and simplification costs, was $12 million, net of tax benefit of $182 million.

5

For the three months ended September 30, 2026, the adjustment for ERP implementation costs was $7 million, net of tax benefit of $2 million.

6

For the three months ended September 30, 2026, the gain on sale of personal protection equipment business was $216 million, net of tax expense of $123 million.

7

For the three months ended September 30, 2026, the adjustment for equity losses on Quantinuum is $112 million, net of tax benefit of $35 million.

We define free cash flow as cash provided by operating activities from continuing operations less cash for capital expenditures and excluding separation-related cost payments, the Resideo indemnification and reimbursement agreement termination payment, the cash payment for settlement of divestiture of asbestos liabilities, and cash flows attributable to Quantinuum. We define adjusted net income attributable to Honeywell Technologies as net income attributable to Honeywell Technologies from continuing operations adjusted to exclude various items as listed above. We define adjusted free cash flow conversion as free cash flow divided by adjusted net income attributable to Honeywell Technologies.

We believe that free cash flow and adjusted free cash flow conversion are non-GAAP measures that are useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. These measures can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity.

More News From Honeywell Technologies

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 September 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 earnings report, which is expected to be released on October 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $2.17 per share in its upcoming report, which represents a year-over-year change of -61.5%.

Revenues are expected to be $5.01 billion, down 51.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.3% 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 lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.44%.

On the other hand, the stock currently carries a Zacks Rank of #4.

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?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. 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 $1.8 per share when it actually produced earnings of $1.95, delivering a surprise of +8.33%.

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.

Expected Results of an Industry PlayerAnother stock from the Zacks Diversified Operations industry, 3M (MMM - Free Report) , is soon expected to post earnings of $2.41 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +10.1%. Revenues for the quarter are expected to be $6.6 billion, up 4.5% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for 3M has been revised 0.8% up to the current level. Nevertheless, the company now has an Earnings ESP of -0.58%, reflecting a lower Most Accurate Estimate.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that 3M will 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.

The need to modernize commercial and defense aerospace fleets is expected to drive increased spending in the sector. One report estimates that global aerospace spending will rise from $434.17 billion this year to $846.30 billion by 2035, a compound annual growth rate of 7.7% -- and so the industry is transforming as a result.

In 2024, one key player -- then known as just plain-old Honeywell International-- announced it would split its three segments of advanced materials, automation, and aerospace into three companies. In October of 2025, it spun off its advanced materials business into Solstice Advanced Materials (SOLS +0.21%). Three months ago, on June 29, the company completed the spinoff of Honeywell Technologies (HON +1.79%) for its automation business and Honeywell Aerospace (HONA -0.34%) for its aerospace business.

Deciding which Honeywell company is the right one to buy for the aerospace boom may seem like a trick question. The answer is so obvious, it can't be right, can it?

Image source: Getty Images.

The choice isn't as simple as it seems The name makes Honeywell Aerospace seem like the obvious stock to play the aerospace boom. The company builds aircraft engines, avionics, auxiliary power units, and other aviation systems for commercial and defense aircraft. However, the other two Honeywell companies each benefit from aerospace spending.

Solstice makes low-global-warming-potential hydrofluoroolefin solvents, which are critical for precision cleaning of sensitive flight instruments, oxygen lines, hydraulic systems, and jet turbine components. The company also makes high-purity chemicals, specialized blowing agents, and fluoropolymers used in semiconductors, radomes, thermal insulation, and circuit boards integrated into modern aircraft avionics.

Honeywell Technologies, which is what remains of Honeywell International, is a pure-play industrial automation company, but its products are critical to how aerospace equipment is manufactured, tested, and housed, including its distributed control systems, robotics, assembly line controls, and test facilities and environmental chambers.

So, the answer isn't so easy. To figure out which of these companies should thrive the most from an aerospace boom, you have to look back at the third quarter of 2025, when all three segments were under the same roof. In that quarter, Honeywell Aerospace reported 15% year-over-year sales growth, well ahead of the other two segments.

Today's Change

(

-0.34

%) $

-0.52

Current Price

$

154.45

In the second quarter of this year, Honeywell Aerospace's first as an independent company, it reported sales of $4.5 billion, up 5% year over year. It also reported adjusted earnings per share of $1.87, down 32% from the same period last year, though that figure is somewhat skewed by short-term spinoff costs. It may take a while for the company to overcome those expenses, as its long-term debt increased to $15.85 billion from $4 million, reflecting financing moves related to its separation from Honeywell Technologies.

Investors have been lukewarm on the stock Since its spinoff, the stock is down more than 18%, worse than the roughly 11% drop for Honeywell Technologiesso far this year and less than the 32% decline for Solstice stock. One reason for Honeywell Aerospace's decline is that it trimmed its full-year sales growth guidance from 7%-9% to 4%-5%.

Of the three, Solstice is predicting the most growth, 6%, at the midpoint, with Honeywell Technologiesexpecting 3% to 4% revenue growth.

Premium Feature

Moneyball Superscore

68/100

Today's Change

(

1.79

%) $

3.78

Current Price

$

214.72

The backlog is a big deal As of the second quarter, Honeywell Aerospace had a backlog of $18.1 billion, and it continues to add to its orders. Year to date, Honeywell Aerospace has built significant commercial and defense momentum, securing an estimated $15 billion in lifetime value across a series of major new contract wins. Headlining these accomplishments is a historic deal with Indian carrier IndiGo, which selected Honeywell's flagship avionics and power systems for its massive order of 810 new Airbus A320neo family aircraft, marking the largest new-aircraft-selectable equipment win in the company's history.

In addition to major original equipment manufacturer (OEM) selections, Honeywell Aerospace continues to advance its retrofit, modification, and upgrade (RMU) growth strategy, highlighted by Aeromexico's intention to adopt its latest Surface Alerts (SURF-A) runway safety technology across its fleet of more than 100 Boeing 737NG and 737MAX aircraft. On the defense front, European OEMs have named Civitanavi Systems' ARGO 4000 inertial measurement unit as a preferred solution to integrate critical guidance capabilities into missile programs, unmanned platforms, maritime vessels, and land vehicles.

Today's Change

(

0.21

%) $

0.12

Current Price

$

56.44

These orders provide great transparency of the company's earnings over the next couple of years. That backlog is largely tied to defense modernization programs, military avionics upgrades, and next-generation propulsion systems. The increase in defense budgets worldwide should give the company steady cash flow visibility even during broader economic pullbacks.

One of its biggest concerns is supply chain issues, but as a stand-alone company, it can focus on that issue more directly than when it was a segment of Honeywell International.

Taking the long-term view Honeywell Aerospace, among the three Honeywell-related stocks, is best positioned to benefit from the aerospace boom. It has the most industry exposure of the three stocks, with Honeywell Technologies and Solstice having only tertiary exposure to aviation. Honeywell should also have more long-term growth, and its huge backlog of orders means it should have little difficulty paying down its debt.

Down the line, the stock could even offer a dividend or stock repurchases, making it more appetizing to investors. With more than $18.1 billion in revenue anticipated this year and a high-margin commercial aftermarket business, Honeywell Aerospace generates substantial free cash flow. This financial profile gives the board the flexibility to consider initiating a regular quarterly dividend once baseline operational and capital allocation priorities stabilize.

SummaryHoneywell International Inc. is refocused on automation after spinning off its Aerospace and Advanced Materials divisions, emphasizing Buildings, Process, and Industrial segments.HON delivered strong Q2 2026 results and a robust 1.1x book-to-bill ratio, prompting raised full-year guidance.Growth catalysts include accelerating the backlog, the Johnson Matthey acquisition for hydrogen technology, and data center automation opportunities.I maintain a Buy rating on HON stock, citing the company's strong balance sheet, well-covered dividend, ongoing buybacks, and potential for robust total returns.Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More » Vertigo3d/E+ via Getty Images

Concerns around higher interest rates and inflation have come front and center once again, driving market volatility higher in recent weeks. While higher rates are a risk for growth stocks that have very high multiples, that shouldn’t be

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MarketBeat Week in Review – 08/24 - 08/28Honeywell International NASDAQ: HON Chairman and CEO Vimal Kapur said the company is seeing stronger-than-expected early-quarter momentum as it begins operating as a more focused automation business following the completed spins of its aerospace and advanced materials operations.

Speaking at a Morgan Stanley event, Kapur said the company is approximately 75 days into its new structure and is focused on executing the commitments outlined at its investor day. Honeywell now describes itself as a pure-play automation company serving building, process and industrial end markets.

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HONA: The Spin-Off Story the Market Is Reading WrongKapur said the first two months of the third quarter were “good or very good,” and that Honeywell expects to begin the quarter at the upper end of its 4% to 6% organic-growth framework. He said continued momentum in the fourth quarter would provide a favorable setup for 2027.

Portfolio mix and installed-base strategy Management said the company’s portfolio transformation included separating three businesses in addition to the spins and acquiring six businesses. Kapur said the principal challenge for Honeywell is demonstrating that it can deliver stronger organic growth than it has historically produced.

Vertical Aerospace: Pre-Flight Checks Point to a BreakoutThe company is targeting higher-growth verticals that currently represent roughly 20% of its revenue mix. These markets—including data centers, hospitals and hospitality in building automation; LNG and life sciences in process automation; and semiconductors in industrial automation—are expected to grow at approximately 15% in 2026, according to Kapur.

Honeywell’s more mature markets, representing about 80% of its mix, are expected to grow at roughly 3% to 4%. Kapur said the company intends to increase the contribution of its high-growth verticals to 25% of revenue over time and expects to finish the current year at approximately 20% to 21%.

The company also aims to increase revenue from services and software to 45% of total revenue from 40% currently. Kapur said Honeywell built an enterprise asset-management system last year to consolidate installed-base data that had previously been maintained across numerous business-level systems. The system is intended to help the company identify opportunities to expand service penetration, upsell customers and develop additional offerings.

Software, AI and data-center opportunity Kapur said Honeywell Forge is expected to generate about $1 billion in annual recurring revenue in 2026 and grow about 15%. He characterized Forge as a “Physical AI” platform, arguing that Honeywell’s industrial and building domain expertise, along with access to data within its controlled systems, differentiates its offerings from general-purpose artificial-intelligence providers.

While software represents a comparatively small portion of the company’s revenue, management said it can support broader product sales. Kapur pointed to remotely configurable and testable fire-detection systems as an example, saying these capabilities can improve productivity for channel partners while requiring Honeywell equipment.

Data centers are also becoming a larger growth vertical. Kapur said data centers account for slightly more than 5% of Honeywell’s building automation revenue and are growing at more than 20%, albeit from a small base. He said the opportunity could expand as data-center operators pursue on-site power generation, creating a role for Honeywell’s process automation operations alongside its existing building-automation offerings.

LNG demand and operating trends Kapur said LNG is benefiting from two recent acquisitions: an Air Products asset that provides core heat-exchanger technology used to convert gas into liquid, and Sundyne, which supplies specialized compressors for LNG facilities. He said the acquired capacity had been effectively booked through 2028 and 2029, prompting Honeywell to expand capacity to address demand.

Management expects the LNG cycle to remain strong for at least the next three to four years, supported by a global shift from coal toward natural gas and efforts to diversify energy supplies.

Honeywell also said order activity remains healthy. Kapur cited continued strength in short-cycle businesses and said the company’s process automation and technology backlog was up 25%, which he said positions the segment for high-single-digit growth in the second half of 2026. CFO Mike Stepniak said short-cycle orders were up high single digits during the first 2.5 months of the quarter, while long-cycle business has maintained a book-to-bill ratio of 1.1 to 1.2.

On margins, Stepniak said Honeywell expects to remain neutral to slightly positive on price-cost, with pricing around 4% in the second half to offset inflation. Kapur said electronics, commodities and labor costs remain elevated and that the company sees no clear signal of a material change in inflation conditions in 2027.

Kapur said a successful first year as a standalone automation company would mean meeting or exceeding its financial commitments, including its stated goal of $12 in earnings by 2029, which management views as a floor, while increasing the mix of high-growth verticals and services and software revenue.

About Honeywell International (NASDAQ:HON)Honeywell International Inc NASDAQ: HON is a diversified technology and manufacturing company that develops products and software for the aerospace, building, industrial and energy markets. Its offerings include aircraft engines and auxiliary power systems, avionics, safety and control systems, building automation technologies, industrial process controls, warehouse and supply-chain automation solutions, and environmental and energy-management systems.

The company serves commercial and defense aerospace customers, building owners and operators, manufacturers, logistics providers, and energy companies worldwide.

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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.

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%.

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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.

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6.8.2026 15:54, HONA

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

Michal Šnobl, Fio banka, a.s.

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 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:

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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.

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

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.

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.

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. 

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SOURCE Honeywell