Track market-moving stories before they get noisy

Key Takeaways Honeywell outlines its next phase as a focused automation company after portfolio actions.HON reports stronger orders, 4% organic sales growth and a 9% backlog increase.Honeywell raises 2026 outlook with margin expansion and stronger second-half growth expectations. Honeywell International Inc. (HON - Free Report) used its second-quarter earnings call to outline the next phase of its transformation into a pure-play automation company, with management emphasizing portfolio simplification, stronger orders and improving growth trends.

The company raised its 2026 outlook after stronger-than-expected execution across key businesses, while analysts focused on demand trends, acquisitions, margins and end-market opportunities.

HON Advances Pure-Play Automation StrategyCEO Vimal Kapur said HON has entered a new phase following the separation of Honeywell Aerospace and the completion of portfolio actions designed to create a more focused automation business.

Management highlighted 4% organic sales growth and 16% organic orders growth in the quarter, with stronger demand across segments supporting a 9% increase in ending backlog.

The company said its strategy centers on expanding its installed base and increasing monetization through services, software and outcome-based solutions.

Honeywell Raises 2026 OutlookHoneywell increased its full-year expectations, including organic sales growth of 3% to 4%, segment margin expansion of 250 to 290 basis points and adjusted EPS of $8.05 to $8.35.

Management also expects second-half organic growth of 4% to 6%, supported by improving trends in Process

Automation and Technology and Industrial Automation.

The company maintained its free cash flow outlook of approximately $2 billion for 2026, with management expecting stronger cash conversion in the second half.

HON Sees Broad Demand MomentumHON reported adjusted EPS of $1.95, above the Zacks Consensus Estimate of $1.80, while revenue of $5.19 billion exceeded the Zacks Consensus Estimate of $4.98 billion.

Management pointed to broad-based order strength, noting that short-cycle orders grew double digits across all segments during the quarter.

Building Automation remained a key contributor, with organic sales growth of 9% and margin expansion driven by volume leverage and pricing actions.

Honeywell Expands Growth PlatformsHoneywell completed the acquisition of Johnson Matthey’s Catalyst Technologies business, which management expects to strengthen its Process Automation and Technology portfolio.

Kapur said the deal expands Honeywell’s capabilities across refining, petrochemicals and renewable fuels while increasing its installed base.

Management also discussed opportunities tied to data centers, including building automation, process automation applications and sensing technologies supporting liquid cooling systems.

HON Addresses Segment RecoveryHON said Process Automation and Technology is positioned for a stronger second half, supported by LNG demand, backlog conversion and improving catalyst shipments.

Industrial Automation showed improving momentum, with management citing stronger orders, operational improvements and demand across regions, including China and Europe.

During Q&A, a Wolfe Research analyst asked about the drivers behind the improved outlook, and management pointed to stronger orders trends and confidence entering the second half.

Honeywell Fields Investor QuestionsHoneywell faced questions about Middle East exposure, with management saying collection issues had been modest and that business conditions remained stable under current assumptions.

A Bank of America analyst asked about Process Automation demand outside the Middle East, and management highlighted LNG projects and investment diversification across regions.

Management also addressed Industrial Automation improvements, citing progress in delivery performance, new products and operational execution as drivers of continued recovery.

HON Focuses On Long-Term ExecutionHON entered the post-separation period with management focused on delivering margin expansion, higher recurring revenue exposure and growth from targeted markets.

Executives emphasized that portfolio actions, acquisitions and operational improvements are intended to support long-term financial targets while maintaining focus on automation opportunities.

The company’s near-term priorities remain improving execution, converting backlog and expanding growth in higher-value automation markets.

Zacks Rank And Style Scores SignalsHON carries a Zacks Rank #5 (Strong Sell), indicating that earnings estimate revision trends are currently unfavorable under the Zacks Rank methodology.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has a Value Score of F, Growth Score of F, Momentum Score of D and VGM Score of F. Zacks Style Scores are designed to evaluate characteristics such as value, growth and momentum, with higher grades indicating stronger relative attributes.

The Zacks Rank can change as analysts update earnings estimates following new company developments and quarterly results.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Honeywell Technologies (NASDAQ: HON) today announced that its Board of Directors has declared a quarterly dividend payment of $0.70 per share on the Company's common stock. The dividend is payable on September 4, 2026, out of surplus to holders of record at the close of business on August 14, 2026. 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-crit.

23.7.2026 22:08

Index Dow Jones -0,97 % na 51711,65 b. S&P 500 -1,21 % na 7408,3 b. Nasdaq Composite -2,15 % na 25137,69 b.

Obchodní den končí v USA v červeném. Široký index S&P 500 odepisuje 1,2 % pod tlakem poklesů v sektoru komunikačních služeb a zbytné spotřeby. V komunikační službách se negativní sentiment propsal do akcií Alphabet, které po kvartálních výsledcích odepisují 6,89 %. Rudá barva se prolila i do telekomunikačních služeb, kde reportoval T-Mobile US (- 10,75 %). Ten se chce v následujícím kvartálu zaměřit na vyšší výnosy z každého zákazníka a méně řešit přírůstky nových klientů. Vedení očekává slabší přírůstky a společnost se snaží převádět zákazníky na dražší tarify, což by mohlo vést k dočasnému úbytku zákazníků. Za minulý kvartál firma meziročně zvýšila čistý zisk o 5 % a díky silnému cash flow byl zvýšen celoroční výhled na USD 18,4 -18,8 mld. Zveřejněný zisk na akcii USD 2,99 překonal odhady trhu.

Nedařilo se ani aerolinkám. American Airlines Group (- 8,35 %) klesá kvůli slabšímu výhledu. Společnosti v uplynulém kvartálu významně rostla cena leteckého paliva. I když se zvýšené náklady povedlo částečně přesunout na zákazníka, tak trh negativně reaguje na zvýšený tlak na marže do budoucna. Management očekává v dalším kvartálu ztrátu až do výše USD 0,1 na akcii. V reportu za minulý kvartál dosáhl zisk na akcii na USD 0,15.

Kladně končí sektor průmyslu. GE Vernova posílila o 4,69 % a o 10,54 % posílil Lockheed Martin.

Z indexu Dow Jones posílila třetina titulů na čele s Honeywell Technologies (5,7 %).

Komoditní trhy se soustředí na černé zlato. Futures na ropu Brent se nyní obchodují těsně pod hranicí USD 100 a WTI při růstu o 5,3 % překonává cenovku USD 91,5.

Index S&P 500 -1,21 % na 7408,3 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Průmysl +1,8 % Komunikační služby -5,2 % Zdravotní péče +1,3 % Zbytná spotřeba -5,1 % Energie +0,6 % Nezbytná spotřeba -1,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lockheed Martin Corp (LMT) +11 % Tesla (TSLA) -15 % Allegion (ALLE) +10 % T-Mobile US (TMUS) -11 % United Rentals (URI) +10 % Rollins (ROL) -9,3 % Thermo Fisher Scientific (TMO) +8,7 % Dover Corp (DOV) -7,8 % Quest Diagnostics (DGX) +8,6 % Alphabet (GOOGL) -7,1 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení

The major indexes are under broad pressure on Thursday. Investors process what it actually costs to build the AI future everyone keeps talking about, and the Iranian conflict is driving oil prices higher.

The Nasdaq Composite (^IXIC -2.33%) is down 2.6% at 11:54 a.m. ET, taking the worst of the damage. But everything is down, just by different amounts. The S&P 500 (^GSPC -1.42%) has dropped 1.4%, while the Dow Jones Industrial Average (^DJI -1.06%) is down 1%.

^DJI data by YCharts

Alphabet and Tesla results inspire price drops Most of the Magnificent 7 companies are reporting earnings this week or next, and the first two reports got a chilling market response.

Tesla (TSLA -14.40%) is down 14.2% on a classic earnings miss. The company beat revenue estimates with a 25% year-over-year jump to $28.2 billion, but missed earnings by a wide margin, posting $0.33 per share versus Wall Street's consensus target of $0.49 per share. Auto gross margins shrank to 16.3% excluding regulatory credits, and management said full-year capital expenditure will top $25 billion for compute infrastructure, Optimus robots, and Robotaxi development. Investors are clearly not thrilled about the margin compression.

Alphabet (GOOG -6.67%) (GOOGL -6.72%) is down 7% despite crushing analysts' estimates. Revenue hit $119.8 billion, up 24%. Google Cloud revenue surged 82%, proving that AI is absolutely generating real money on the software and services side. But management raised Alphabet's full-year capital expenditure guidance by $15 billion and said that next year's infrastructure investments will be even larger. Free cash flow turned negative at negative $5.9 billion for the quarter as AI data center spending doubled year-over-year. Alphabet was the heaviest drag on the S&P 500 and Nasdaq Composite indexes, and also erased 142 points from the Dow.

Image source: Getty Images.

Oil isn't helping the mood. Brent crude briefly touched $100 per barrel this morning after reports of attacks on oil tankers near the Red Sea. Remember the Suez Canal obstruction throwing global trade for a loop in 2021? Closing down that waterway and the Strait of Hormuz at the same time would result in skyrocketing prices for oil and general merchandise.

It's not all bad news, though. Honeywell Technologies (HON +4.68%) is up 6.8% after reporting second-quarter earnings per share of $1.95, beating the analyst estimate of $1.82 by $0.13. It was the Dow's top gainer this morning, driven by strong sales of building automation and industrial automation products.

Index

NASDAQ Composite IndexToday's Change

(

-2.33

%)

-598.68

Index Level

25,092.22

What happens next Alphabet's report set the stage for another four Magnificent 7 updates next week. The AI boom is real, and you're getting a ton of valuable performance data right now. On the other hand, the picture is muddled by oil prices and inflation fears. Major banks disagree on where the economy is going as a whole, though most expect the Federal Reserve to increase interest rates again before the end of 2026.

For investors, the message is clear: AI revenue growth is real, but so are the infrastructure bills. With oil prices threatening $100 per barrel and interest rates stuck near 4.7%, the twin pressures of energy costs and elevated borrowing rates are making those massive capex commitments harder to justify. The market is demanding proof that all this spending will eventually translate into sustained profitability.

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. (HON - Free Report) reported $5.19 billion in revenue for the quarter ended June 2026, representing a year-over-year decline of 49.9%. EPS of $1.95 for the same period compares to $5.50 a year ago.

The reported revenue represents a surprise of +4.19% over the Zacks Consensus Estimate of $4.98 billion. With the consensus EPS estimate being $1.80, the EPS surprise was +8.33%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Honeywell International performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Industrial Automation: $1.5 billion compared to the $1.45 billion average estimate based on two analysts. The reported number represents a change of -36.9% year over year.Segment Profit- Industrial Automation: $258 million versus $249.84 million estimated by two analysts on average.Segment Profit- Corporate and All Other: $-57 million compared to the $-125 million average estimate based on two analysts.Segment Profit- Building Automation: $542 million compared to the $526.58 million average estimate based on two analysts.Segment Profit- Aerospace Technologies: $1.13 billion versus $1.17 billion estimated by two analysts on average.View all Key Company Metrics for Honeywell International here>>>

Shares of Honeywell International have returned -48.8% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Honeywell Technologies (NASDAQ: HON) today announced results for the second quarter of 2026. The consolidated results include the operations of Honeywell Aerospace (NASDAQ: HONA), which successfully separated in a spin-off from Honeywell Technologies on June 29, 2026 (third quarter 2026). Second Quarter 2026 Consolidated Results (including legacy Aerospace Technologies segment): Orders up 4% leading to ~$38 billion backlog Sales of $9.7 billion, reported sales.

Honeywell Technologies reported higher profit and sales in the second quarter after a multiyear restructuring carved the industrial conglomerate into three publicly traded companies.

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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Key Takeaways HON is expected to report lower Q2 earnings and revenues after its aerospace business spin-off.HON faces pressure from automation softness, project delays, higher costs and foreign exchange headwinds.HON sees strength in building automation, supported by data center and health care projects. Honeywell Technologies (HON - Free Report) is scheduled to release second-quarter 2026 results on July 23, before market open. The Zacks Consensus Estimate for quarterly earnings is currently pegged at $1.80 per share on revenues of $4.98 billion.

HON’s second-quarter earnings estimates have declined 60.9% over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year decline of 51.9%.

It is worth noting that on June 29, 2026, Honeywell Technologies became a standalone public company following the spin-off of the Aerospace Technologies business from Honeywell International. The spin-off is likely to have weighed on its year-over-year top and-bottom-line comparison.

Image Source: Zacks Investment Research

Earnings Surprise HistoryHoneywell Technologies’ earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.7%. In the last reported quarter, it delivered an earnings surprise of 6.1%.

Earnings WhispersOur proven model does not conclusively predict an earnings beat for Honeywell Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: HON has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $1.80. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: HON presently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors to Note Ahead of Honeywell Technologies’ Q2 ResultsHoneywell Technologies’ Process Automation and Technology segment is expected to have put up a weak show in the quarter due to softness in the aftermarket business with lower refining catalyst shipments and project delays. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions is likely to have hurt the segment’s performance in the second quarter. Honeywell Technologies anticipates the Middle East conflict to have an adverse impact on sales by 1% in the second quarter. However, growth in orders across petrochemical and refining verticals in the segment bodes well.

Recovery in the Industrial Automation segment, driven by favorable project timing, is likely to augment its results. However, the divestment of its Personal Protective Equipment business is anticipated to weigh on the segment’s results.

Nevertheless, healthy demand for its products and solutions, led by increasing building projects, particularly in North America, is expected to drive the Building Automation segment’s results. Increasing order rates and capex investments in data centers and health care projects are likely to have been a tailwind as well.

Over time, HON’s performance has been adversely impacted by high costs and expenses. Higher direct and indirect material costs and investments in digital infrastructure and business restructuring activities are expected to have pushed up the company’s operating expenses, which are likely to have reflected in its margins.

Also, given HON's extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt its overseas business.

HON’s Price PerformanceFollowing the spin-off of the Aerospace business, HON’s shares have inched down 1.2% compared with the Zacks Diversified Operations industry’s 3.1% decline and the S&P 500’s 0.1% growth. Shares of its key rivals like Rockwell Automation (ROK - Free Report) and Emerson Electric Co. (EMR - Free Report) are down 4.2% and 2.3%, respectively, over the same time frame.

Image Source: Zacks Investment Research

Stock ValuationHoneywell Technologies is currently trading at a forward 12-month P/E of 25.00X, a premium compared with the industry’s 15.08X. In comparison with HON’s valuation, Emerson Electric is trading cheaper, while Rockwell Automation is trading at a premium. Notably, Emerson Electric and Rockwell Automation are currently trading at 19.91X and 32.20X, respectively.

Price-to-Earnings (Forward 12 Months)
Image Source: Zacks Investment Research

Investment ThesisThe persistence of Honeywell Technologies’ near-term challenges, such as weakness in the Process Automation and Technology and Industrial Automation units along with rising costs and expenses, is limiting its near-term prospects.

Although the separation of the Aerospace business will likely provide HON with improved operational focus on the industrial automation business, the spin-off is likely to weigh on its top and-bottom-line results in the quarters ahead.

Final Take on HONHoneywell Technologies’ market leadership position, diversified product portfolio and strong dealer network provide it with a competitive advantage to leverage the long-term demand prospects in industrial markets. However, weakness in aftermarket business, project delays and rising operating expenses pose a threat to the company’s near-term catalysts.

The downward estimate revision activity in earnings and expensive valuation warrant a cautious approach for existing investors. Potential investors should consider waiting for HON’s earnings report and clearer signs of recovery before investing in the stock.

, /PRNewswire/ -- Honeywell Aerospace (Nasdaq: HONA) will issue second quarter financial results after the closing of the Nasdaq Stock Market on Wednesday, August 5. The company will hold a conference call at 5:00 pm EDT.

Honeywell Technologies (Nasdaq: HON) announced that it will report second quarter results including the former Aerospace Technologies segment, which is now operating as Honeywell Aerospace, before the opening of the Nasdaq Stock Market on Thursday, July 23.

Honeywell Aerospace has traded as an independent, public company since June 29, 2026. Consistent with precedent spin-off transactions, its standalone financial results may differ from financial information reported for the former Honeywell Technologies segment due to the perimeter of the transaction, allocation of corporate costs, and treatment of intracompany transactions, among other items.

Additional information
A real-time audio webcast of the presentation can be accessed at investor.honeywellaerospace.com, where related materials will be posted prior to the presentation and a replay of the webcast will be available for 30 days following the presentation.

Honeywell Aerospace uses our Investor Relations website, investor.honeywellaerospace.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.

About Honeywell Aerospace
Honeywell Aerospace (Nasdaq: HONA) is an independent global aerospace and defense company whose critical technologies are broadly deployed on the world's leading commercial air transport, business aviation, defense and space platforms. These integrated solutions enable safer, more efficient, and more reliable missions. Headquartered in Phoenix, Arizona, the company employs more than 36,000 people globally and supports more than 10,000 customers. With a broad portfolio spanning avionics and navigation systems, engines and power systems, and control systems for aircraft, Honeywell Aerospace combines commitment and deep engineering expertise to drive innovation and long-term value for the aerospace industry. For more information, visit www.honeywellaerospace.com or follow Honeywell Aerospace on LinkedIn.  

Contacts:

Media
Brian Grace
(602) 897-0205
[email protected]

Investor Relations
Sean Meakim
(623) 223-5980
[email protected]

SOURCE Honeywell Aerospace Inc.

Honeywell International Inc. (HON - Free Report) closed at $226.33 in the latest trading session, marking a +1.57% move from the prior day. This change outpaced the S&P 500's 0.51% loss on the day. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 1.47%.

Shares of the company have depreciated by 51.26% over the course of the past month, underperforming the Conglomerates sector's loss of 24.04%, and the S&P 500's gain of 0.53%.

Analysts and investors alike will be keeping a close eye on the performance of Honeywell International Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on July 23, 2026. In that report, analysts expect Honeywell International Inc. to post earnings of $1.8 per share. This would mark a year-over-year decline of 67.27%. Meanwhile, the latest consensus estimate predicts the revenue to be $5.01 billion, indicating a 51.58% decrease compared to the same quarter of the previous year.

HON's full-year Zacks Consensus Estimates are calling for earnings of $8.2 per share and revenue of $20.04 billion. These results would represent year-over-year changes of -58.08% and -50.33%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Honeywell International Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 61.08% lower. Honeywell International Inc. is currently a Zacks Rank #5 (Strong Sell).

From a valuation perspective, Honeywell International Inc. is currently exchanging hands at a Forward P/E ratio of 27.17. This represents a premium compared to its industry average Forward P/E of 12.92.

We can additionally observe that HON currently boasts a PEG ratio of 5.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Diversified Operations was holding an average PEG ratio of 1.5 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Key Takeaways HON's Process Automation and Technology organic revenues fell 6% in Q1 on weaker aftermarket sales.Honeywell expects the Middle East conflict to reduce Q2 sales by about 1%, weighing on the segment.HON completed its aerospace spin-off, sharpening its focus on industrial automation and capital allocation. Honeywell Technologies (HON - Free Report) has been witnessing weakness in the Process Automation and Technology segment. In the first quarter of 2026, the segment’s organic revenues decreased 6% on a year-over-year basis.

This decline was attributable to a 10% drop in organic sales in the aftermarket business owing to lower refining catalyst shipments and project delays. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions hurt its results. The conflict is likely to have hurt its Process Automation and Technology segment’s performance in the second quarter. HON anticipates the Middle East conflict to have an adverse impact on the segment's sales by 1% in the second quarter.

Nevertheless, growth in orders across petrochemical and refining verticals in the segment is expected to drive its long-term performance. The Process Technology segment’s orders grew 11% year over year in the first quarter.

It is worth noting that on June 29, Honeywell Technologies became a standalone public company following the spin-off of the Aerospace Technologies business from Honeywell International. The separation completed the company's multi-year portfolio restructuring, creating three independent publicly traded companies. With a sharper focus on industrial automation, Honeywell Technologies expects to benefit from improved operational focus, disciplined capital allocation and greater financial flexibility.

Business Performance of HON's PeersRBC Bearings Incorporated (RBC - Free Report) is witnessing strength in the Industrial segment (revenues increased 5.5% year over year in fourth-quarter fiscal 2026). Stable demand for RBC Bearings’ highly engineered bearings and precision components in food & beverage, semiconductor and warehousing markets bodes well for the segment.

Another peer, 3M Company (MMM - Free Report) , has been witnessing solid momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, and electrical markets. Stable demand for 3M’s electrical infrastructure products, like medium voltage cable accessories and insulation tapes, augurs well for the segment in the quarters ahead. Organic sales from 3M’s Safety and Industrial segment grew 3.2% year over year in the first quarter of 2026.

HON's Price Performance and ValuationFollowing the spin-off of the Aerospace business, Honeywell’s shares have lost 2.2% compared with the Zacks Diversified Operations industry’s 3.7% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, HON is trading at a trailing price-to-earnings ratio of 25.09X, above the industry’s average of 15.05X. Honeywell carries a Value Score of F.

Image Source: Zacks Investment Research

In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Tyler Crowe, Matt Frankel, and Lou Whiteman discuss:

Digital Realty buying data centers.Building materials industry consolidation.Keeping track of what assets went where at Honeywell.Recent successes (and failures) with spinoffs.Mailbag: When do covered call index ETFs work?To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.

A full transcript is below.

This podcast was recorded on June 30, 2026.

Tyler Crowe: We're talking match-ups and breakups today on Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crowe. Today, I'm joined by longtime Fool contributors Matt Frankel and Lou Whiteman. We just got to the end of the Honeywell breakup phase that's been going on for a year. We're going to dive deep into that today. Of course, we're also going to hit the mailbag like we always do.

But we wanted to start today with — it’s July 4th weekend coming up, and apparently, Wall Street bankers want to clear their plates before the July 4th weekend because there's been a ton of deals that have happened in the last couple of days. Yesterday, Jon Quast, host and company, they covered the Comcast split and the Rocket Lab acquisition. Matt, I think you were part of that discussion there. Since then, we've seen even more deals come through. I've read four of them within the past 24 hours, and what I want to do today is we're going to go through all four of them, and then I want you guys to tell me which one of these do you actually like the most? We had Digital Realty buying data centers from Blackstone for about 3.5 billion. We have Carlisle Companies, a building supply company, doing an unsolicited bid for Owens Corning. Not done yet, but it looks like something's going to happen. You've got a materials company, Martin Marietta Minerals, buying a limestone supplier for 13.5 billion, and then ON Semiconductor is buying Synaptics for about $7 billion. Matt, I feel like somebody who loves REITs is going to go in a certain direction here, am I right?

Matt Frankel: I like playing the AI boom with stocks that I understand, the picks and shovels plays, the infrastructure plays like Data Center REITs. Digital Realty has been probably one of the top two or three longest-running dividend stocks in my portfolio. The deal is interesting to me. The stock is down 5% after the deal. The company is purchasing Blackstone's roughly 2/3 interest when you combine all of them in three data centers in Northern Virginia for $3.5 billion. One point two billion is coming in cash, the other 2.3 billion Digital Realty is issuing new shares. They're going to need about $1.4 billion of additional capex to complete the development of these. None of them are occupied or operational yet. Digital Realty is assuming some debt as part of the deal as well. They were already the minority owner of these three properties, just to be clear, they're just buying out Blackstone's majority stake. All three of them are already 100% leased to hyperscalers on 15-year deals with 3.6% annual rent escalators. It should help the company more than keep up with inflation when it comes to their rent. Two of them are supposed to be occupied and stabilized in the first half of next year, the third in the first half of 2028.

Tyler Crowe: Matt, you're making a pretty compelling case here, but the market doesn't seem to agree because the stock's down about 5% as we're recording. Why do you think the market may be a little less as on board with this idea as you are?

Matt Frankel: It's a good question. There are a few different reasons why. For one, Digital Realty says this is going to be a creative to FFO, which is Funds From Operations, the real estate version of earnings. But not until these properties are fully occupied and stabilized, which won't happen for a while. In the near term, it's probably going to hurt the earnings numbers. Plus, as I mentioned, they're selling $2.3 billion of new stock, and not only that, but Blackstone is selling $2.3 billion of its own Digital Realty stake. It's a dilutive deal. You're going to see a lot of stock on the hit the market at the same time. The FFO benefit is delayed. It's a fair price. It's a cap rate of 6.5%. In real estate, that's OK. It's a fair price. It's not a bargain for top-quality assets. Like I said, it's going to hurt the numbers in the near term. It's not a perfect deal, but long term, I like the strategy here.

Lou Whiteman: Funny, I'll take the other side of that trade. The goal of private equity is to be ruthlessly unsentimental, to buy low and sell high. For Blackstone, they're cashing out on an asset with massive continuing capex at a premium. I get it for Digital Realty. I'm not saying it's going to be a terrible deal for them, but I'd rather be sitting on Blackstone's side, and I do think that this is what private equity does well. But, I don't want to be boring and just focus on one deal, so let's broaden it a bit.

Tyler, Carlisle's bid for Owens Corning and then the Martin Marietta deal, too, they both intrigue me because they suggest that there are management teams out there who think it is time to be greedy when others are fearful. There's been a ton of headwinds in construction, especially on the residential side. We'll see they might be too early here, but the animal spirits in construction/residential construction, I feel like as an investor, even if I don't want to invest in those companies, it's a data point I should pay attention to that these management teams feel like it's time to stick their necks out.

Tyler Crowe: This certainly isn't the first time we've been hearing this consolidation of the building products space going on in the past couple of years. I feel like this has been a continuing trend in a slow market, whether that’s to grow the top line now while everything’s weak, or to your point of seeing the bottom, one of the companies that we like to discuss here, or at least the man behind a lot of companies, Brad Jacobs. He has his company, QXO, which is basically a building products roll-up company. It recently acquired TopBuild, which was an installation building products company. There is a lot of consolidation going on here, and it's an interesting side note to me because a lot of these companies have been for much of the 2010s into the 2020. There were good-quality companies doing really well that have hit the skids. It's going to be fascinating to see when renovation, new build cycle starts again with these beefed-up companies. Whether or not these acquisitions made them better or they just made them bigger. Because sometimes acquisitions can go both ways.

Lou Whiteman: We're still too early, but how too early are we here is, and the management's wherewithal to get things done. That's the interesting question. We'll just take from this and learn as they do.

Tyler Crowe: Not to leave on semi and Synaptics out of the conversation too much here. This is a company where on semi, I don't want to be too diminutive when I say this, but they're the dumb chips when we think of what we use semiconductors for. These are the chips that you see a lot of automotive companies, and anyone who is translating, like electronic signals to physical motion, them, companies like NXP Semiconductors, companies like that are doing a lot of this. This Synaptic deal, at least in their words, is like combining a lot of machine learning, AI inference, a lot of that. The technology, the platform for which a lot of on semi wants their new chips to be running so that they can start implementing this into making I'm going, they're dancing around it, but it's basically a path towards robotics. At the current price, it seems to make sense. But again we've been talking about chips as this hypergrowth area, but the physical motion actuator, again, a diminutive term, the dumb chips have not been exactly the hot thing, like we've seen with a lot of the other parts of the business. Coming up after the break, we want to break down the Honeywell and all of the associated parts that it is now is. [MUSIC]

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Tyler Crowe: It's been about a year for Honeywell International to complete what has been a rather stellar portfolio transformation because this was a large conglomerate that has basically divided up. I will say four, but I think if we were to back up even further, we could go five, six, seven, companies over the past 10 years as to what Honeywell has done. But this week was the end of the line here where we saw the biggest breakup and I think where management says is going to stop. We've got the Legacy Honeywell, which is going to trade with the old ticker H-O-N. We've got Honeywell Aerospace with ticker H-O-N-A. Then we've also got Solstice Advanced Materials. This actually was spun out, I believe back in November of last year trading on the Ticker S-O-L-S. Then I'm going to say this wrong, Quantinuum or Quantinuum, with two u's. The ticker is QNT and this was like an IPO that Honeywell owned. It was like their quantum computing division. I know I gave a little bit of what they did, but Matt, can you give me more of a breakdown of what all of these companies are going to be doing now that they're on their own and away from the Honeywell corporate blanket?

Matt Frankel: Well, I'm going to refer to that last one as Quantinuum. Lou is going to refer to it as Quantiniuum, and between the two of us, one of us will be right.

Lou Whiteman: Quantiniuum just sounds so much cooler, I'm sorry.

Matt Frankel: It does. I think I'm the right one, but yours is the cooler one. Here's a quick round-up just a little bit beyond what Tyler just said. As you mentioned, Honeywell itself is the industrial automation and process automation company. Out of the two that just spun off, Honeywell Aerospace being the other one, it's actually the smaller by revenue. Honeywell Aerospace provides power units, avionics, mechanical systems, parts, services. It is now one of the largest pure-play aerospace suppliers that is publicly traded in the world. That's significant. You'll see why later in the discussion.

Solstice Advanced Materials, Tyler's correct, it spun off in October of last year, and it's the specialty materials parts of the business. They make a specialized refrigerant, for example. Quantinuum is an interesting one. That was technically an IPO, not a spinoff, and it's still majority owned by Honeywell. I think Honeywell and one of its other investors own a combined, I think, 82% stake in the business. This is the full-stack quantum computing business. It is a pre-revenue company, like any quantum computing pure play is. Their goal is to develop both hardware and software that powers the next wave of computing, which is quantum computing, which, at the most optimistic timetable, will be a thing in 2030ish.

Tyler Crowe: This was obviously a lot of different parts here, and there is always the debate of be separate, be together. I feel like we've been having that discussion for, who knows how long when it comes to business. Lou, make the case, like, why were they doing this now or what was the case for any of these even being together in the first place?

Lou Whiteman: It's funny. You can go back to the 1950s in terms of just these cycles of coming together and breaking apart. But, where we were to get to hear, Honeywell stock, first of all, has done nothing this decade. It wasn't a great performer before then, just flat. Which I would argue does not reflect the quality of the assets in the portfolio. Now, some of this was management either being bold or being silly. They loaded up with some debt to cobble together these assets, but a lot of it arguably is the so-called conglomerate discount. Conglomerates are companies that are basically in a bunch of different industries. Think of it as a lot of businesses under one roof. There's some advantages to this structure, but ultimately each business has its own capital needs, its own M&A strategy. They operate in different cycles and the management team for each has to basically go to the parent, go to mom and dad to ask permission every time they want to do something. There's a constant battle for who gets the allowance.

The theory in this breakup is freed from that extra layer of management, each operating team can make decisions that are in the best interest of their unit. The Aerospace business can use all of the cash they're making to invest in the business or maybe pay a dividend, something like that, instead of sending their cash upstairs for it to be distributed to shareholders or funneled to other parts of the business. In this case, Honeywell Aerospace is a well-run provider of cabin electronics and other systems. But it doesn't really have a lot of room for margin expansion or maybe not even growth. It's already the market leader where it is. For this management team, maybe it's a capital allocation story, buybacks, bolt-on deals. That's what's going to drive appreciation. The automation business much earlier in its life cycle, much more just investing in what they do. They're likely to use their cash internally. These are just two management teams free to do what is best for their business instead of listening to what the parent needs.

Tyler Crowe: It's not just Honeywell that has been going through this, come together, break apart cycle. Over the past I want to say 6-10 years, you could argue iconic names of industrial conglomerates basically do these breakups. We had GE, General Electric, was a gold standard of what a company should be, and all of the disciples that Jack Welch created, and now all of a sudden, it's created into three different companies. Now we've got GE Aerospace, GE Vernova, and GE HealthCare Technologies. Interestingly enough, a lot of these companies that go through these spin-offs have gone through pretty disparate returns as a result. HealthCare Technologies was supposed to be the crown jewels inserted cash generation. While since this breakup, Aerospace and Vernova have been crushing it while HealthCare hasn't.

You had United Technologies and Raytheon coming together, and then they split back up into RTX, Carrier, or Otis. Same thing. Everyone thought like, this RTX Avionics defense business is going to be mega grower, Otis is going to be this high return business. We don't know what to do with Carrier. Carrier ends up being the best performer of the group. Last one, too, Dow, DuPont, when they merged together and did a split, consolidating and deconsolidate everyone thought like this agricultural business, which is called Corteva was going to be the worst performer. Then all of a sudden, we're several years after the split. Well, you know it, Dow stock is actually down since Dow Chemical, it's just called Dow Inc now, is actually down since the split and Corteva is the best performer.

What I'm getting at here is that sometimes the things that we think are going to be the great performers of these split-ups isn't necessarily the case. What I'm going to do is with all of that in mind, I want you guys to put a little bit of a predictions hat on. I’m not going to say that Honeywell’s all of their businesses are going to follow this pattern that we saw with GE, UTX, DowDupont, but recent examples. Of these spawn of Honeywell that are remaining, which one do you see most likely to be the carrier or the Vernova of the split that's going to do incredibly well, the one that's maybe going to be the GE Healthcare or the Dow of this group?

Lou Whiteman: Full disclosure, I bought Honeywell ahead of a split because I wanted to own Honeywell and Honeywell Aerospace. For the long term, I like both of those businesses. But as I said before, arguably, you're not going to see the same surge, say, after the GE breakup just because of where we are in the cycle for these businesses. One of them it's already played out some and one of them is still to come. I like them over five years. I think better than I like them over. As for the run and the litter tier, I am going to cheat and I'm going to lean on technicality because as you mentioned at the top, this is not Honeywell's first three-way split. In 2018, they spun out their auto business and their thermostat business, the old Honeywell, what we all think of when we think of Honeywell. That residential control business, Resideo Technologies, was the one that I would have avoided back then. It's the one I'm avoiding today. Honestly, the auto business Garrett Motion was to be avoided until it went through bankruptcy, but it's funny. I think the first time Honeywell took out the I don't want to say take out the trash, but took the underperformers, and this time, what was left was just a desirable group. I think what's left is pretty strong, but the ones back from 2018 came out with a lot of wards.

Matt Frankel: I would even add the Comcast and NBC Universal deal. We saw the other day to the deconglomerate trend. There have been quite a few. You're right. Maybe Berkshire Hathaway's next. I know Lou would be a fan of that. Not as much as a dividend. Let's say it that way.

Lou Whiteman: The problem with doing that is that so many of the operating businesses inside Berkshire seem to have just rotted on the vine or aren't as competitive as they were when they were bought. I'd almost be afraid to it's almost like a puppy you can't let out into the wild, some of these businesses, unfortunately.

Tyler Crowe: There would be a lot of portfolio fixing if we were to actually start doing some Berkshire spinouts.

Matt Frankel: There could be a dozen of them in one company. In most cases, the motivation with most of that list you mentioned has been to separate a high-growth business or one with a lot of long-term tailwinds, like a defense spending trend or something like that from either capital-intensive or commoditized boring businesses. I see Honeywell Aerospace as being the GE Vernova of this. It's a pure play. It benefits from one a reliable revenue stream from its aftermarket business. It's the surge of global defense spending, companies like Boeing and Airbus are finally starting to normalize and work through their backlogs. That's a nice trend here. I mean, there have been several recent examples where companies in the aerospace and defense businesses get a premium multiple when they become pure plays. But on the other side, I'll go with Solstice as my GE Healthcare. It's a capital-intensive business. It started with about $1 billion of debt, and it's the most boring of the four. But it's impossible to classify quantum into either basket. With all the deconglomerate deals you mentioned, there weren't any speculative pre-revenue companies that were created. It's a binary outcome stock. It should be approached with caution and it could be either one of the two baskets that you mentioned.

Tyler Crowe: Something about Solstice. It sounds incredibly boring. It's like chemical solvents that we use for refrigerants and fluorinating uranium for nuclear power and a lot of that stuff. The more and more you squint at it, you're like, refrigerants, data centers. That makes a weird sense. Nuclear power growth being the only one that can fluorinate uranium as part of its conversion from yellowcake to actually enriched in ranium. That sounds interesting. There's part of me that wants to look at that and in part and be like, man, maybe this was just a problem child at Honeywell, but if you bring in a management team [MUSIC] that can really tie this together, there are a lot of long-term catalysts that could be behind this business over the long term. Each of us taking slightly different bets on what can do best at GE at Honeywell. Sorry, I'm so used to talking about breakups with GE. But it is Honeywell this time. Coming up after the break, we'll hit a listener question.

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Tyler Crowe: Everyone, quick reminder, as always, if you want to get your question answered on air, email us at [email protected]. That's podcasts with ans at fool.com. Through request as always, keep it Foolish, keep it short enough. We can read on air and please avoid trying to ask for any personalized advice. We have to keep it as impersonal as possible. Question today comes from Timothy Dombie, and it's related to a lot of new ETFs that we've been seeing. My question relates to the emergence of investment products that are income-generating. A few tickers, for example, S-P-Y-I, Q-Q-Q-I, C-H-P-Y, and B-T-C-I. These are all covered call strategy ETFs that try to track a index while also writing premiums or writing options on those to generate income. His question is, can you explain the purpose of these products? They appear to cap upside, provide little downside risk and provide a sold call mechanism. Is there a market scenario where these products actually make sense, Lou?

Lou Whiteman: Absolutely, especially for the issuer. For the buyer? I'm not so sure. I'm not a big fan, but look, there's a product for everyone. As listener notes, you are capping your upside in return for monthly income and not to be a Snetmt but to me, that's what rats are for. But look, my real issue here is these products is the fees. With SPYI and QQQI two of them they mentioned, you're paying a 0.68% expense ratio, which is really high. The Bitcoin ones, the specialized ones, are almost 1%. You're capping your upside, you're paying through the nose for basically an artificially generated income stream, not the net asset value on these things tend to be horrible. You better get that income stream. I come back to this all the time, but a lot of products on Wall Street were built to be sold, were built for the fees, not necessarily built because they really, really work for the buyer, and for me, at least, these fall into that category.

Matt Frankel: Technically, Lou, you could buy just the S&P 500 ETF and sell your own covered calls and avoid the fee entirely and generate some income that way.

Lou Whiteman: You could. That's a lot of work.

Matt Frankel: It is. That's what these people are being paid for. That's the point. Generally, these funds use covered calls that are just out of the money enough to produce those high single-digit return percentages, which is what most of them target, which also helps them retain some upside potential. The options, they provide income, they hedge a little bit against downside risk, but only somewhat. A sharp decline in the S&P 500 on one of these would more than offset any options premium they're collecting. They can be a decent option for retirees and other income-oriented investors. Maybe if I were 70, I would feel a little bit different, who want current income without having to sell the stocks that they own. There are some drawbacks. Lou correctly mentioned the fees, which are on the very high end for essentially index funds. There are also tax implications that you could run into as distributions that come from options premiums are generally not considered qualified dividends, so they can be considered ordinary income and hit your taxes more than you think. They can be a good way to generate income and benefit from volatility. During volatile times, the yields on these tend to rise significantly. But there are those big trade-offs to keep in mind. If anything, retirees can use them as part of an income bucket, like Lou said, that's what rates are for. You can create a whole income bucket, but not as a core income strategy.

Tyler Crowe: I want to ask one follow-up here, and it's to Tim's whole part of this is thinking about the market conditions. In what market conditions do these types of products work, and when are you going to take a bath on them? When people are thinking about these things, like what should they be looking out for, and when is it OK to perhaps own one of these things?

Matt Frankel: These work the best when you have an outlook for low volatility and are mildly bullish on the stock market. They perform best when the market or whatever the underlying asset is is slowly rising, not fast enough, so they're getting called out of positions or having the roll covered calls or anything like that. But that they're not going down and offsetting that options premium they're generating in the first place. If the S&P rises by 5% a year, these are golden. But it's really hard to predict when that's going to happen.

Lou Whiteman: Well, he said, you've capped your upside, so you don't want the market to have too much upside.

Tyler Crowe: Considering how well the market has done this year, it's almost like that might be taking on a little bit more risk than we may want.

As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool editorial standards and is not approved by advertisers. Advertisements or sponsored content provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. Thanks to producer Dan Boyd and the rest of The Motley Fool team. For Lou, Matt, and myself, thanks for listening, and we'll chat again soon.

Honeywell International Inc. (HON - Free Report) closed the most recent trading day at $223.42, moving +1.39% from the previous trading session. This change outpaced the S&P 500's 0.81% gain on the day. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 1.3%.

Prior to today's trading, shares of the company had lost 46.48% lagged the Conglomerates sector's loss of 20.75% and the S&P 500's gain of 1.13%.

The investment community will be closely monitoring the performance of Honeywell International Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on July 23, 2026. It is anticipated that the company will report an EPS of $1.82, marking a 66.91% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.06 billion, indicating a 22.18% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.29 per share and revenue of $34.52 billion, indicating changes of -57.62% and -14.42%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Honeywell International Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.87% lower. Honeywell International Inc. presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Honeywell International Inc. is at present trading with a Forward P/E ratio of 26.57. Its industry sports an average Forward P/E of 12.73, so one might conclude that Honeywell International Inc. is trading at a premium comparatively.

It's also important to note that HON currently trades at a PEG ratio of 3.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Diversified Operations industry currently had an average PEG ratio of 1.47 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 165, positioning it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In this article

HON

HONA

SPX

GE

Honeywell split into two companies, one dedicated to aerospace and another to automation, at the end of June. (Spencer Platt/Getty Images)

Honeywell Technologies made a big adjustment to its financial guidance. Investors shouldn’t overreact, but they should pay attention. There is one risk to consider.

Honeywell logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

July 8 (Reuters) - Automation firm Honeywell Technologies (HON.O), opens new tab on Wednesday raised ​its second-half and full-year profit ‌targets for 2026 after completing a one-for-two reverse stock split.

The company, ​formerly Honeywell, proceeded with ​the split after spinning off and ⁠listing its aerospace arm, ​Honeywell Aerospace (HONA.O), opens new tab, late last month.

The Reuters Iran Briefing newsletter keeps you informed with the latest developments and analysis of the Iran war. Sign up here.

Honeywell Technologies ​expects second-half adjusted earnings per share in the range of $4.40 to $4.70, ​compared with $2.20 to $2.35 earlier.

For the full ​year, it raised its adjusted EPS ‌target ⁠to $7.90 to $8.30, compared with an earlier forecast of $3.95 to $4.15.

Its second-half and full-year sales and ​segment margin ​targets ⁠remained unchanged.

Honeywell's three-way split into Honeywell Technologies, ​Solstice Advanced Materials (SOLS.O), opens new tab ​and ⁠Honeywell Aerospace was announced last year, amid pressure ⁠from ​activist investor Elliott ​Investment Management.

Reporting by Nandan Mandayam in ​Bengaluru; Editing by Jonathan Ananda

Our Standards: The Thomson Reuters Trust Principles., opens new tab

HON's automation focus, growth initiatives and lower valuation stand out after its aerospace spin-off, but near-term challenges remain.

On June 29, Honeywell completed its multistage portfolio transformation into three independent companies: Honeywell Technologies (HON +3.66%), Honeywell Aerospace (HONA +8.74%), and Solstice Advanced Materials (SOLS 3.33%).

Solstice Advanced Materials, which makes refrigerants and other products, spun off last October. The latest spinoff gives Honeywell investors one Honeywell Aerospace share for every two Honeywell Technologies shares held as of June 15, with cash paid for fractional shares. The move, done in a 1-for-2 reverse split, leaves Honeywell Technologies as a pure-play industrial automation company.

Not all spinoffs work. The moves sometimes lead to additional system separation costs and management distraction that can depress earnings, at least over a few quarters. Honeywell has also given away its aerospace division, a resilient, high-growth segment with a defense and commercial backlog of more than $19 billion. The new Honeywell company may be more sensitive to economic cycles and tariff risks, but here are three reasons why the industrial stock may be a buy:

Image source: Getty Images.

A stronger focus on industrial automation Honeywell is no longer a slow-moving conglomerate. It is now focused on three core segments: building, process, and industrial automation. This tighter strategy allows the company to capitalize directly on secular megatrends, such as warehouse automation, artificial intelligence (AI)-driven building energy efficiency, and the industrial world's transition toward autonomy.

In the first quarter, its building automation and industrial automation segments shone with 11% year-over-year sales growth. Process automation reported 5% sales growth over the same quarter a year ago. All three segments outperformed the spinoff segment, aerospace technologies, which had 4% growth, year over year.

In the old conglomerate setup, Honeywell's business units constantly competed internally for research and development dollars and capital expenditure. Now, 100% of the cash generated by the automation business can be aggressively reinvested in advanced software, industrial cybersecurity, and climate-tech solutions, without funding expensive aerospace manufacturing or cyclical chemical lines.

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Stake in Quantiniuum may be overlooked Honeywell Technologies retains a retains a 49.1% stake in Quantinuum (QNT 4.79%), the quantum-computing company formed from Honeywell Quantum Solutions and Cambridge Quantum. Quantiniuum is considered the world leader in full-stack quantum computing, holding the industry benchmark for quantum volume via its trapped-ion hardware. Quantiniuum just began trading on June 4. Any rise in that stock directly lifts the equity value of Honeywell Technology's corporate holdings.

By maintaining near-majority voting control over the premier quantum computing vehicle, Honeywell may be able to prevent its legacy industrial businesses from being disrupted by next-generation computing architectures.

The remaining company is expected to generate approximately between $19.9 billion and $20.2 billion in revenue in 2026, up from $17 billion in sales from its automation segments in 2025. Management is targeting 4% to 6% organic growth, annual margin expansion of more than 60 basis points, and double-digit earnings growth over the next three years. The business also has assets that the headline valuation may not fully recognize.

Favorable macro tailwinds for infrastructure The stand-alone automation business has a solid defensive cushion. Federal initiatives to rebuild domestic manufacturing infrastructure, alongside robust enterprise demand to optimize smart buildings and data centers, provide a highly visible pipeline of demand for Honeywell's control systems and software.

The separation also significantly reduces Honeywell's direct defense exposure, potentially making the remaining company more attractive to ESG-sensitive funds and mandates.

In the short term, the ride may be bumpy. On June 25, the stock closed at $247.02, but as of Wednesday afternoon, it is now trading at around $221.72 after the split. In the long run, though, analysts have set an average price target of $474.75 for Honeywell Technologies stock, up 114% from its current price.

2.7.2026 22:18

Index Dow Jones +1,14 % na 52899,42 b. S&P 500 -0,01 % na 7482,7 b. Nasdaq Composite -0,8 % na 25832,67 b.

Ve čtvrteční seanci se index Dow Jones udržel v kladných úrovních a připsal si zisk 1,14%, ale širší index S&P 500  neudržel zisk ze začátku obchodování, ale nakonec ztráty korigoval ke konci obchodního dne  a uzavřel -0,01%. Citelněji oslabil technologický sektor, kde index Nasdaq Composite si odepsal -0,8%.  Dolar na páru s eurempo reportu Změny pracovních míst silněji oslabil o -0,44% tj. 1,1427 USD/EUR. Lehká ropa WTI i přes oslabující dolar pokračovala v poklesu a dnes si odepsala -0,2% a dostala se k úrovni 68,5 USD/barel. Oslabující dolar dnes vyhovoval žlutému kovu, který zpevnil o 1,2% a zlato se tak dostalo k úrovni 4 132 USD/Troy. unci. Na celkovém poklesu indexu  S&P 500 měl dnes největší zásluhu sektor Informační technologie se ztrátou -1,5%, dále Komunikační služby  -0,8% a se stejným výsledkem Zbytná spotřeba -0,8%. Naopak většímu poklesu indexu byl dnes největší brzdou sektor Zdravotní péče se ziskem 2,6%, dále Nezbytná spotřeba 2,4% a také Utility 2,3%. 

Index S&P 500 -0,01 % na 7482,7 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Zdravotní péče +2,6 % Informační technologie -1,5 % Nezbytná spotřeba +2,4 % Komunikační služby -0,8 % Utility +2,3 % Zbytná spotřeba -0,8 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Genuine Parts (GPC) +13 % Sandisk Corp (SNDK) -14 % Moderna (MRNA) +10 % Teradyne (TER) -14 % Honeywell Aerospace (HONA) +8,7 % KLA Corp (KLAC) -12 % Equifax (EFX) +6,1 % Flex (FLEX) -11 % Vertex Pharmaceuticals (VRTX) +6,0 % Corning (GLW) -11 %
Luboš Bedrník
Fio banka, a.s.
Prohlášení

Project delivered under a US$41 million EPC agreement as part of the 21 MW DC Honeywell portfolio in upstate New York 7.01 MW DC ground-mount solar facility now operational, capable of powering approximately 875 homes with clean energy annually Project expected to operate as a community solar site, selling credits to subscribers under the NYSERDA NY-Sun Program , /PRNewswire/ - PowerBank Corporation (NASDAQ: PBK) (Cboe CA: PBK) (FSE: 103) ("PowerBank" or the "Company"), a leader in independent energy development and asset ownership in North America, today announces that the 7.01 MW DC / 5 MW AC ground-mount community solar project known as SB-14 (the "Project"), located in upstate New York, has achieved commercial operation. The 7.01 MW Project was developed and constructed by PowerBank for Honeywell International Inc. (NASDAQ: HON) ("Honeywell") as part of the Company's US$41 million engineering, procurement, and construction ("EPC") agreement covering a portfolio of three community solar projects totaling 21 MW DC. The Project is built on an industrial brownfield owned by Honeywell, which is regulated by the New York State Department of Environmental Conservation. The Project has been moved from Honeywell International Inc. to Honeywell Aerospace Inc., following the planned spinoff of Honeywell Aerospace on June 29, 2026.

PowerBank originated the site and developed SB-14 as part of a three-project portfolio alongside SB 13-1 and SB 13-2. This is the second project from the portfolio to reach commercial operation, and brings the total to 14.02 MW of clean energy now being generated for the community.

In September 2023, the Company completed the sale of the Projects to Honeywell and entered into an EPC agreement to build the Projects through to commercial operation. The total transaction value, including the sale of the Projects and the EPC agreement, is approximately US$41 million. PowerBank has retained an operations and maintenance contract for the Projects.

Community solar allows dozens or even hundreds of renters and homeowners to save money from the electricity generated by the project. By subscribing to a community solar project, a homeowner earns credits on their electric bill every month from their share of the solar energy generated, accessing the financial and environmental benefits of solar without installing panels on their home.

Andrew van Doorn, President and COO of PowerBank, commented: "Reaching commercial operation on SB-14 reflects the strength of our long-standing partnership with Honeywell and the consistent execution our team brings to every project. Developing a community solar facility on a regulated industrial brownfield requires precision at every stage, and delivering that cleanly speaks to the maturity of PowerBank's development and construction platform. We are proud of what this team has built here, and we look forward to bringing the final project across the finish line."

PowerBank's proven expertise, with over 100 MW of completed projects and a development pipeline exceeding 1 GW, underpins the project's execution. PowerBank is increasingly well-positioned to serve not only traditional utility and community solar offtakers, but also the rapidly growing demand for reliable, on-site power generation driven by AI compute infrastructure and modular data centers.

About PowerBank Corporation

PowerBank Corporation is a vertically integrated and independent North American energy company helping to power the digital economy. The Company develops, builds, owns, and operates solar and battery energy storage systems that deliver reliable, resilient, and behind-the-meter power to the electricity grid, commercial and industrial clients, and municipal and residential off-takers. As AI and digital infrastructure drive unprecedented electricity demand, PowerBank is uniquely positioned to deliver the speed, scale, and energy independence that the next generation of power consumers requires, without waiting years for grid interconnection. The Company has a potential development pipeline of over one gigawatt and has developed energy projects with a combined capacity of over 100 megawatts built. To learn more about PowerBank, please visit www.powerbankcorp.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information ‎within the meaning of Canadian securities legislation (collectively, "forward-looking ‎statements") that relate to the Company's current expectations and views of future events. ‎Any statements that express, or involve discussions as to, expectations, beliefs, plans, ‎objectives, assumptions or future events or performance (often, but not always, through the ‎use of words or phrases such as "will likely result", "are expected to", "expects", "will ‎continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", ‎‎"projection", "strategy", "objective" and "outlook") are not historical facts and may be ‎forward-looking statements and may involve estimates, assumptions and uncertainties ‎which could cause actual results or outcomes to differ materially from those expressed in ‎such forward-looking statements. In particular and without limitation, this news release ‎contains forward-looking statements pertaining to the Company's expectations regarding its industry trends and overall market growth; the Company's plans to add AI compute infrastructure and modular data centers; the Company's plan to provide energy and battery storage solutions; potential revenues; and the size of the Company's development pipeline. No assurance ‎can be given that these expectations will prove to be correct and such forward-looking ‎statements included in this news release should not be unduly relied upon. These ‎statements speak only as of the date of this news release.‎

Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward looking statements included in this news release, the Company has made various material assumptions, including but not limited to: obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; execution of definitive agreements for suitable solar or BESS sites; that power is available to be sufficient to support a modular data center; general business and economic conditions; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and services offered by the Company's competitors; that the Company's current good relationships with its service providers and other third parties will be maintained; and government subsidies and funding for renewable energy will continue as currently contemplated. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and the Company cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements.

Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed under "Forward-‎Looking Statements" and "Risk ‎Factors" in the Company's most recently completed Annual Information Form, and other public filings of the Company, which include: the Company may be adversely affected by volatile solar power market and industry conditions; failure to execute definitive agreements for suitable solar or BESS sites; power availability may not be sufficient to support a modular data center; the execution of the Company's growth strategy depends upon the continued availability of third-party financing arrangements; the Company's future success depends partly on its ability to expand the pipeline of its energy business in several key markets; governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power; general global economic conditions may have an adverse impact on our operating performance and results of operations; the Company's project development and construction activities may not be successful; developing and operating solar Project exposes the Company to various risks; the Company faces a number of risks involving Power Purchase Agreements ("PPAs") and project-level financing arrangements; any changes to the laws, regulations and policies that the Company is subject to may present technical, regulatory and economic barriers to the purchase and use of solar power; the markets in which the Company competes are highly competitive and evolving quickly; an anti-circumvention investigation could adversely affect the Company by potentially raising the prices of key supplies for the construction of solar power projects; foreign exchange rate fluctuations; a change in the Company's effective tax rate can have a significant adverse impact on its business; seasonal variations in demand linked to construction cycles and weather conditions may influence the Company's results of operations; the Company may be unable to generate sufficient cash flows or have access to external financing; the Company may incur substantial additional indebtedness in the future; the Company is subject to risks from supply chain issues; risks related to inflation and tariffs; unexpected warranty expenses that may not be adequately covered by the Company's insurance policies; if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the renewable energy market; there are a limited number of purchasers of utility-scale quantities of electricity; compliance with environmental laws and regulations can be expensive; corporate responsibility may adversely impose additional costs; the future impact of any global pandemic on the Company is unknown at this time; the Company has limited insurance coverage; the Company will be reliant on information technology systems and may be subject to damaging cyberattacks; the Company may become subject to litigation; there is no guarantee on how the Company will use its available funds; the Company will continue to sell securities for cash to fund operations, capital expansion, mergers and acquisitions that will dilute the current shareholders; and future dilution as a result of financings.

The Company undertakes no obligation to update or revise any ‎forward-looking statements, whether as a result of new information, future events or ‎otherwise, except as may be required by law. New factors emerge from time to time, and it ‎is not possible for the Company to predict all of them, or assess the impact of each such ‎factor or the extent to which any factor, or combination of factors, may cause results to ‎differ materially from those contained in any forward-looking statement. Any forward-‎looking statements contained in this news release are expressly qualified in their entirety by ‎this cautionary statement.‎

SOURCE PowerBank Corporation

Agreement confirmed following the successful commercial operation of the SB 13-2 project developed by PowerBank Corporation under an Engineering, Procurement and Construction agreement

, /PRNewswire/ - PowerBank Corporation (NASDAQ: PBK) (Cboe CA: PBK) (FSE: 103) ("PowerBank" or the "Company"), a leader in independent energy development and asset ownership in North America, is pleased to announce its wholly owned subsidiary Abundant Solar Power Inc. has executed an Operations and Maintenance Services Agreement (the "Agreement") with Honeywell International Inc. (NASDAQ: HON) ("Honeywell" or "HON") to provide operations and maintenance services for a 21 MW portfolio of three projects named SB 13-1, SB 13-2, and SB-14 (the "Projects"). The Projects are built on an industrial brownfield owned by Honeywell, which is regulated by the New York State Department of Environmental Conservation. The Projects have been moved from Honeywell International Inc. to Honeywell Aerospace Inc., following the planned spinoff of Honeywell Aerospace on June 29, 2026.

The Agreement outlines the roles, responsibilities, and performance standards governing the long-term management of the Projects. It establishes requirements for routine inspection, maintenance, repair, and operational monitoring to ensure the Projects function effectively and in compliance with applicable regulations. The Agreement also defines reporting obligations, cost responsibilities, and coordination protocols between the parties, while setting clear expectations for environmental protection, safety, and system reliability over the term of the Agreement.

PowerBank's President and Chief Operating Officer Andrew van Doorn commented, "Securing the O&M agreement on the Honeywell portfolio is a natural extension of the work our team has been executing from day one. When you develop, permit, build, and commission a project, you know it better than anyone, and that knowledge is exactly what makes for reliable long-term operations. This agreement reflects the strength of our full-cycle platform, and the trust Honeywell has placed in PowerBank to deliver not just megawatts, but lasting performance."

In September 2023, the Company completed the sale of the Projects to Honeywell and entered into an engineering, procurement, and construction ("EPC") agreement to build the Projects through to commercial operation. The Agreement follows the announcement of the successful commissioning of the SB 13-2 project.

The Agreement for the portfolio of Projects with Honeywell demonstrates PowerBank's vertically integrated business model, offering services across development, EPC, and Operations and Maintenance to provide megawatts of power. Having now developed and constructed over 100 megawatts of clean energy projects across North America, with a pipeline exceeding one gigawatt, PowerBank is increasingly well-positioned to serve not only traditional utility and community solar offtakers, but also the rapidly growing demand for reliable, on-site power generation driven by AI compute infrastructure and modular data centers.

About PowerBank Corporation

PowerBank Corporation is a vertically integrated and independent North American energy company helping to power the digital economy. The Company develops, builds, owns, and operates solar and battery energy storage systems that deliver reliable, resilient, and behind-the-meter power to the electricity grid, commercial and industrial clients, and municipal and residential off-takers. As AI and digital infrastructure drive unprecedented electricity demand, PowerBank is uniquely positioned to deliver the speed, scale, and energy independence that the next generation of power consumers requires, without waiting years for grid interconnection. The Company has a potential development pipeline of over one gigawatt and has developed energy projects with a combined capacity of over 100 megawatts built. To learn more about PowerBank, please visit www.powerbankcorp.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information ‎within the meaning of Canadian securities legislation (collectively, "forward-looking ‎statements") that relate to the Company's current expectations and views of future events. ‎Any statements that express, or involve discussions as to, expectations, beliefs, plans, ‎objectives, assumptions or future events or performance (often, but not always, through the ‎use of words or phrases such as "will likely result", "are expected to", "expects", "will ‎continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", ‎‎"projection", "strategy", "objective" and "outlook") are not historical facts and may be ‎forward-looking statements and may involve estimates, assumptions and uncertainties ‎which could cause actual results or outcomes to differ materially from those expressed in ‎such forward-looking statements. In particular and without limitation, this news release ‎contains forward-looking statements pertaining to the Company's expectations regarding its industry trends and overall market growth; the energy capacity of the Projects; the details of the Agreement and its benefits to PowerBank; potential revenues; and the size of the Company's development pipeline. No assurance ‎can be given that these expectations will prove to be correct and such forward-looking ‎statements included in this news release should not be unduly relied upon. These ‎statements speak only as of the date of this news release.‎

Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward looking statements included in this news release, the Company has made various material assumptions, including but not limited to: obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; execution of definitive agreements for suitable solar or BESS sites; that power is available to be sufficient to support a modular data center; general business and economic conditions; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and services offered by the Company's competitors; that the Company's current good relationships with its service providers and other third parties will be maintained; and government subsidies and funding for renewable energy will continue as currently contemplated. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and the Company cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements.

Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed under "Forward-‎Looking Statements" and "Risk ‎Factors" in the Company's most recently completed Annual Information Form, and other public filings of the Company, which include: the Company may be adversely affected by volatile solar power market and industry conditions; failure to execute definitive agreements for suitable solar or BESS sites; power availability may not be sufficient to support a modular data center; the execution of the Company's growth strategy depends upon the continued availability of third-party financing arrangements; the Company's future success depends partly on its ability to expand the pipeline of its energy business in several key markets; governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power; general global economic conditions may have an adverse impact on our operating performance and results of operations; the Company's project development and construction activities may not be successful; developing and operating solar Project exposes the Company to various risks; the Company faces a number of risks involving Power Purchase Agreements ("PPAs") and project-level financing arrangements; any changes to the laws, regulations and policies that the Company is subject to may present technical, regulatory and economic barriers to the purchase and use of solar power; the markets in which the Company competes are highly competitive and evolving quickly; an anti-circumvention investigation could adversely affect the Company by potentially raising the prices of key supplies for the construction of solar power projects; foreign exchange rate fluctuations; a change in the Company's effective tax rate can have a significant adverse impact on its business; seasonal variations in demand linked to construction cycles and weather conditions may influence the Company's results of operations; the Company may be unable to generate sufficient cash flows or have access to external financing; the Company may incur substantial additional indebtedness in the future; the Company is subject to risks from supply chain issues; risks related to inflation and tariffs; unexpected warranty expenses that may not be adequately covered by the Company's insurance policies; if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the renewable energy market; there are a limited number of purchasers of utility-scale quantities of electricity; compliance with environmental laws and regulations can be expensive; corporate responsibility may adversely impose additional costs; the future impact of any global pandemic on the Company is unknown at this time; the Company has limited insurance coverage; the Company will be reliant on information technology systems and may be subject to damaging cyberattacks; the Company may become subject to litigation; there is no guarantee on how the Company will use its available funds; the Company will continue to sell securities for cash to fund operations, capital expansion, mergers and acquisitions that will dilute the current shareholders; and future dilution as a result of financings.

The Company undertakes no obligation to update or revise any ‎forward-looking statements, whether as a result of new information, future events or ‎otherwise, except as may be required by law. New factors emerge from time to time, and it ‎is not possible for the Company to predict all of them, or assess the impact of each such ‎factor or the extent to which any factor, or combination of factors, may cause results to ‎differ materially from those contained in any forward-looking statement. Any forward-‎looking statements contained in this news release are expressly qualified in their entirety by ‎this cautionary statement.‎

SOURCE PowerBank Corporation

Key Takeaways Honeywell Technologies completed the Aerospace spin-off, creating an independent public company. HON shareholders received one Honeywell Aerospace share for every two shares held.Honeywell Technologies now focuses on industrial automation and software services. Honeywell Technologies (HON - Free Report) recently emerged as a separate public company, following the spin-off of Aerospace Technologies business from Honeywell International. The Aerospace Technologies business now operates as an independent public company under the name Honeywell Aerospace. Honeywell Technologies continues to trade on the Nasdaq under the ticker symbol "HON," while Honeywell Aerospace has started trading separately under the ticker symbol "HONA."

Inside the HeadlinesThe separation became effective on June 29, 2026. Under the transaction terms, Honeywell Technologies’ shareholders of record as of June 15, 2026, received one share of Honeywell Aerospace for every two shares of Honeywell Technologies common stock they held.

As a result, every two outstanding shares were combined into one, reducing the company's outstanding shares from about 634 million to approximately 317 million. At the same time, the number of authorized shares was reduced from 2 billion to 1 billion, while the stock's par value remained unchanged. Outstanding equity awards and share units under HON’s benefit plans were adjusted accordingly.

The spin-off marks the completion of Honeywell's portfolio transformation, creating three independent companies, including Honeywell Technologies, Honeywell Aerospace and Solstice Advanced Materials.

As a standalone company, Honeywell Technologies is focused on industrial automation. It provides automation solutions, software and services for the building, process and industrial sectors, helping customers improve safety, productivity, efficiency and operational performance.

HON’s Zacks RankSolid demand for its products and solutions, led by increasing building projects, particularly in North America, will likely be beneficial for HON’s Building Automation segment. Increasing order rates and capex investments in data centers and health care projects bode well for it.

The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

However, the company has been dealing with increasing operating costs, which might hurt its margins and profitability.

Stocks to ConsiderBetter-ranked companies are discussed below.

GPGI, Inc. (GPGI - Free Report) currently sports a Zacks Rank of 1. GPGI delivered a trailing four-quarter average earnings surprise of 28.3%.

In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has increased 28.6%.

3M Company (MMM - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 4.6%.

The Zacks Consensus Estimate for MMM’s 2026 earnings has increased a penny in the past 60 days.

Public Policy Holding Company, Inc. (PPHC - Free Report) presently carries a Zacks Rank of 2. PPHC delivered a trailing two-quarter average earnings surprise of 25%.

In the past 60 days, the consensus estimate for Public Policy Holding’s 2026 earnings has increased 95.5%.

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.

Marks completion of Honeywell's plan to create three independent, focused market leaders Honeywell Technologies will continue to trade on Nasdaq under the ticker symbol "HON" Honeywell Aerospace will begin trading today on Nasdaq under the ticker symbol "HONA" Reverse stock split for shares of Honeywell Technologies effective today , /PRNewswire/ -- Honeywell Technologies (NASDAQ: HON) today announced it has completed the previously announced spin-off of its Aerospace Technologies business, which now operates as Honeywell Aerospace. Honeywell Technologies will continue to trade "regular way" on the Nasdaq Stock Market LLC ("Nasdaq") under the ticker symbol "HON," and shares of Honeywell Aerospace common stock will begin trading "regular way" on Nasdaq under the ticker symbol "HONA," effective at the market opening today.

"Today is a defining moment in Honeywell's legacy," said Vimal Kapur, Chairman and CEO of Honeywell Technologies. "With the completion of this separation, we have successfully transformed Honeywell into three independent, industry-leading companies: Honeywell Technologies, Honeywell Aerospace and Solstice Advanced Materials. Each company is built around a distinct strategy with greater focus and financial flexibility to pursue a long-term growth agenda."

Kapur added, "This milestone is the culmination of years of disciplined execution and marks the conclusion of the portfolio transformation we began in 2023. As standalone companies, Honeywell Technologies and Honeywell Aerospace are uniquely positioned to accelerate innovation, invest with greater precision and capitalize on the value creation opportunities in our respective industries. We are confident each company is strongly positioned to create enduring value for decades to come."

Honeywell Technologies is now uniquely positioned to lead the industrial sector's transition from automation to autonomy with a portfolio that spans the building, process and industrial sectors. By pairing its deep domain expertise with decades of data from its vast global installed base, Honeywell Technologies is delivering mission-critical outcomes for customers through services, solutions and products that enable safety, productivity, efficiency and uptime. 

The spin-off was completed through the distribution, effective as of today at 12:01 a.m. New York City time, of all of the issued and outstanding shares of Honeywell Aerospace common stock to Honeywell Technologies shareowners of record on the basis of one share of Honeywell Aerospace common stock for every two shares of Honeywell Technologies common stock held as of the close of business on June 15, 2026, the record date for the distribution. Honeywell Technologies shareowners of record will receive cash in lieu of any fractional shares to which they would otherwise be entitled.

Information on the spin-off and prior transactions can be found in the "About Our Spin-offs" section of Honeywell Technologies' investor relations website at investor.honeywell.com.

Reverse Stock Split

Honeywell Technologies also announced today that it has completed the previously announced reverse stock split of Honeywell Technologies common stock at a ratio of 1-for-2 and a proportionate reduction in the number of authorized shares of Honeywell Technologies common stock.

Honeywell Technologies common stock will begin trading on a split-adjusted basis effective at the market opening today and will continue trading on Nasdaq under the symbol "HON", with a new CUSIP number (438516205).

As a result of the reverse stock split, every two shares of Honeywell Technologies common stock issued and outstanding or held by Honeywell Technologies as treasury shares were automatically combined into one share of Honeywell Technologies common stock. This reduced the number of issued and outstanding shares of Honeywell Technologies common stock from approximately 634 million as of March 31, 2026 to approximately 317 million. Concurrently with the reverse stock split, the number of shares of Honeywell Technologies common stock authorized for issuance was also reduced from 2 billion to 1 billion. The par value of Honeywell Technologies common stock did not change. Outstanding Honeywell Technologies equity-based awards and shares or share units under Honeywell Technologies' benefit plans were proportionately adjusted.

No fractional shares were issued in connection with the reverse stock split. As soon as practicable after the effective time of the reverse stock split, Honeywell Technologies' transfer agent will aggregate such fractional shares into whole shares and sell the whole shares at the then-prevailing trading prices in the open market on behalf of those shareowners who would otherwise be entitled to receive a fractional share, and after Honeywell Technologies' transfer agent's completion of such sale, such shareowners will receive a cash payment (without interest or deduction) from Honeywell Technologies' transfer agent in an amount equal to their respective pro rata shares of the total net proceeds of that sale and, where shares are held in certificated form, upon the surrender of such shareowners' stock certificates.

Supplemental Quarterly Information for Honeywell Technologies

In connection with the spin-off, Honeywell Technologies will file a Current Report on Form 8-K later this morning presenting the former Aerospace Technologies (now Honeywell Aerospace) business as discontinued operations, along with the former Advanced Materials (now Solstice Advanced Materials) business which was previously presented as discontinued operations effective Q4 2025. The information in the filing will contain recast historical financial information for Honeywell Technologies and its segments on a quarterly basis for fiscal years 2024 and 2025, and Q1 2026, and will include reported and organic sales percentage change, operating income and segment profit, and Earnings per share of common stock– diluted and Adjusted earnings per share of common stock– diluted.

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.

Advisors

Goldman Sachs & Co. LLC acted as lead financial advisor and Morgan Stanley & Co. LLC acted as financial advisor to Honeywell Technologies. Wachtell, Lipton, Rosen & Katz and DLA Piper LLP acted as legal counsel to Honeywell Technologies.

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

Certain statements in this release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes, or anticipates 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. Some of the important factors that could cause Honeywell Technologies' actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to: (i) the possibility that the spin-off transaction will not achieve its intended benefits; (ii) the impact of the spin-off transaction on Honeywell Technologies' businesses, including the impact on Honeywell Technologies' resources, systems, procedures and controls, diversion of management's attention and the impact on, and possible disruption of, existing relationships with regulators, customers, suppliers, employees and other business counterparties; (iii) the possibility of disruption, including disputes, litigation or unanticipated costs, in connection with the spin-off transaction; (iv) the uncertainty of the expected financial performance of Honeywell Technologies following completion of the spin-off transaction; (v) the ability to achieve anticipated tax treatments in connection with the spin-off transaction and future, if any, divestitures, mergers, acquisitions and other portfolio changes and the impact of changes in relevant tax and other laws; and (vi) the failure to realize expected benefits and effectively manage and achieve anticipated synergies and operational efficiencies in connection with the spin-off transaction and completed and future, if any, divestitures, mergers, acquisitions, and other portfolio management, productivity and infrastructure actions. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K and other filings with the SEC. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.

SOURCE Honeywell Technologies