Wall Street goes through cycles. One that recurs with some regularity is the shift between conglomeration and corporate separations. Right now, conglomerates are separating, creating multiple businesses from one. Honeywell is a good example of this trend, with the conglomerate breaking into Honeywell Technologies (HON +0.95%), Solstice Advanced Materials (SOLS +3.85%), and Honeywell Aerospace (HONA +3.90%).
If you are thinking about buying one of these three companies, you may want to consider following the CEO who orchestrated the corporate split. Here's what you need to know.
Image source: Getty Images.
What is the point of a conglomerate like Honeywell? When it comes to acquisitions, there can be a fine line between a CEO who is simply trying to build an empire and one who is piecing together a coherent business. Honeywell was a large industrial company with the financial resources to support the businesses it operated. Bringing more industrial businesses under one roof could increase revenue diversification, eliminate redundant tasks (such as accounting), share technology and innovation among businesses, and enable enhanced access to capital markets.
Those are all good things, but conglomerates also have their downsides. For example, business units often compete for funding. Bureaucracy can slow down decision-making. And sometimes small or underperforming business units get ignored, making poor performance hard to fix. When the negatives outweigh the positives, conglomerates often spin off businesses or break up, as Honeywell has done. That said, Wall Street's desire for de-conglomeration can also lead to business breakups simply to satisfy shifts in investor sentiment.
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By breaking a business into parts, each new business can focus all its energy on just one thing. That, in turn, is expected to lead to improved results for each of the newly independent businesses. Sometimes it works out, sometimes it doesn't. But it is usually worth watching to see which company the CEO who initiated the corporate split-up sticks around to manage.
What is Honeywell today? The company that retained the HON ticker is Honeywell Technologies, a pure-play industrial automation business. This is the company run by Vimal Kapur, the CEO who led Honeywell when it was an industrial conglomerate. That likely suggests that he believes automation is the most desirable business within Honeywell, noting that artificial intelligence (AI) is likely to be an important trend in industrial automation. When the company reported second-quarter 2026 earnings, the reason for his choice became clear.
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The spin-off of Honeywell Aerospace didn't occur until June 29. So it was still part of Honeywell for the quarter, but it will not be part of it going forward. Thus, Honeywell provided two sets of earnings, one with Honeywell Aerospace included and one without. One key number was very different. With the two businesses, orders rose 4%. If you isolate Honeywell Automation, however, orders rose 16%. Meanwhile, Honeywell Automation accounted for $20 billion of the combined business' $38 billion backlog. Adjusted earnings rose 10% year over year.
Automation looks like the business that is set to grow more rapidly. That's not to suggest that Honeywell Aerospace is a bad business; that's hardly true. Aviation spending is expected to remain strong as more people travel by plane. Still, when Honeywell Aviation reported second-quarter earnings, it lowered its organic sales growth guidance. It is clearly off to a bit of a rocky start.
But don't forget about Solstice Advanced Materials, the first business to be spun off, which reported an 11% year-over-year sales increase and a 23% jump in earnings per share in the second quarter, while increasing its full-year guidance. However, at a roughly $9.5 billion market cap, it is a relatively small business compared to Honeywell, which has a market cap of $65 billion. For reference, Honeywell Aerospace's market cap is $49 billion. If you owned Honeywell because it was a large business, Solstice Advanced Materials would be the smallest piece of the puzzle.
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No easy answers, but I'd follow the CEO You can make a case for owning any of the three businesses that have come out of Honeywell. Honeywell Aerospace lowering guidance out of the box probably makes it the easiest to pass over, despite the long-term opportunity in the aviation industry. Solstice Advanced Materials, despite solid early results, is the smallest of the three companies, which could be viewed as a negative. That leaves Honeywell's automation business, which is both large and appears to be doing relatively well.
But the real key could be that the CEO who initiated the corporate breakup decided to oversee Honeywell's large automation operations. The business is seeing robust demand, as evidenced by a growing backlog. Second quarter earnings rose a solid 10% when the company's automation operations were separated out. And AI is likely to lead to a renewed push for industrial automation as it is used to improve corporate operations. That's a very solid story, and I think it makes Honeywell the best pick of the three. Though, to be honest, I'd probably have preferred if Honeywell had just remained a diversified conglomerate.
Honeywell Aerospace is a high-quality, aftermarket-heavy aerospace franchise facing a classic transition year due to supply constraints, not demand weakness. Robust $18.2B backlog, double-digit order momentum, and reaffirmed 2030 targets underscore strong underlying demand and long-cycle visibility. Near-term earnings and margins are suppressed by supply bottlenecks, spin-related costs, and an elevated leverage profile post-spin.
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CHARLOTTE, N.C.--(BUSINESS WIRE)--Honeywell Technologies (NASDAQ: HON) today announced its participation at the Morgan Stanley Laguna Conference in Dana Point, California. On Tuesday, September 15, 2026, Vimal Kapur, Chairman and Chief Executive Officer, and Mike Stepniak, Senior Vice President and Chief Financial Officer, will present from 11:30 a.m. - 12:05 p.m. PDT (2:30 p.m. - 3:05 p.m. EDT). A real-time webcast of the presentation can be accessed at investor.honeywell.com, where related mat.
Newest episode of "The Angle" from T. Rowe Price features a conversation with Honeywell Technologies Chairman and CEO Vimal Kapur on business transformation, automation, artificial intelligence, and leadership
, /PRNewswire/ -- What can investors learn from the transformation of one of the world's largest industrial companies, and how could artificial intelligence and automation reshape the physical infrastructure that powers the global economy?
Vimal Kapur, Chairman & CEO of Honeywell Technologies and Eric Veiel, President, Co-Head of Global Investments and Chief Investment Officer of T. Rowe Price In the latest episode of "The Angle from T. Rowe Price," Eric Veiel, President, Co-Head of Global Investments and Chief Investment Officer for T. Rowe Price, speaks with Vimal Kapur, Chairman and CEO of Honeywell Technologies, about his leadership journey and the evolution of Honeywell through one of the most significant transformations in its history, culminating in its separation into three distinct companies.
Veiel and Kapur discuss the thinking behind the transformation, including Kapur's view that streamlining the company would allow each of its businesses to pursue distinct opportunities with greater focus. The conversation also explores the secular growth potential Kapur sees in industrial automation and how AI could make facilities ranging from hospitals and data centers to semiconductor fabricators and energy infrastructure increasingly autonomous. Kapur explains why access to industrial data and deep domain expertise are critical to applying AI in the physical world, and how agentic systems could help customers address skilled-labor shortages and improve productivity .
"Vimal brought a valuable perspective to several themes investors are watching closely, including how companies can create value through greater strategic focus, the growing infrastructure demands associated with AI, and the potential for physical AI to transform industrial automation," said Veiel. "Listeners will hear how Honeywell Technologies is thinking about applying AI to real-world customer problems across complex industries, as well as the role that data, domain expertise, and human judgment will continue to play as these technologies evolve. It's an insightful conversation for investors looking to better understand how AI is moving beyond the digital world and into the physical economy."
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"The Angle" podcast brings listeners dynamic insights on the forces shaping financial markets, featuring the T. Rowe Price global investing team and special guests. Through engaging conversations, "The Angle from T. Rowe Price" aims to foster curiosity by asking better questions and delivering better insights, allowing investors to gain a deeper understanding of today's evolving market themes.
Launched in 2024, "The Angle" has explored a range of topics, including artificial intelligence, health care innovation, forward-looking expectations for global markets, key market drivers from the perspectives of some of the world's leading CEOs, the key themes shaping tomorrow's energy landscape, taking a closer look at the future of AI integration at work, and more recently how consumer brands can use loyalty, scale, and technology to drive growth.
This is the seventeenth episode of T. Rowe Price's C-suite podcast series. The series' previous episodes, also available now, have featured H. Lawrence Culp, Jr., chairman and CEO of GE Aerospace; Meredith Kopit Levien, president and CEO of The New York Times Company; Gary Guthart, CEO of Intuitive Surgical; Jensen Huang, founder and CEO of NVIDIA Corporation; Darren Woods, chairman and CEO of ExxonMobil; Harvey Schwartz, Chief Executive Officer and Director, and David Rubenstein, Co-Founder and Co-Chairman of the Board of Carlyle; Jane Fraser, CEO of Citi; Sarah Friar, CFO of OpenAI; Dave Ricks, CEO of Eli Lilly; Srini Gopalan, CEO of T-Mobile; Jim Farley, President and CEO of Ford Motor Company; Kathy Warden, Chair, CEO, & President of Northrop Grumman; David Solomon, Chairman and CEO of Goldman Sachs; Lip-Bu Tan, CEO of Intel; and Chris Nassetta, President & CEO of Hilton Worldwide. "The Angle from T. Rowe Price" is available across multiple platforms, including Spotify and Apple Podcasts. Future episodes will be announced as they are produced. For more information on the podcast please click here.
"The Angle from T. Rowe Price" is T. Rowe Price's second podcast series. "CONFIDENT CONVERSATIONS® on Retirement," which features T. Rowe Price experts sharing their perspectives on retirement-related topics, is in its fifth season.
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T. Rowe Price (NASDAQ-GS: TROW) is a leading global asset management firm, entrusted with managing $1.87 trillion in client assets as of July 31, 2026, about two-thirds of which are retirement-related. Renowned for over 85 years of investment excellence, retirement leadership, and independent proprietary research, the firm leverages its longstanding expertise to ask better questions that can drive better investment decisions. Built on a culture of integrity and prioritizing client interests, T. Rowe Price empowers millions of investors worldwide to thrive amidst evolving markets. Visit troweprice.com/newsroom for news and public policy commentary.
Key Takeaways Honeywell Technologies' Q2 operating margin fell 50 bps to 12.8% as material and labor costs rose.Honeywell Technologies became a pure-play automation company after separating Aerospace in June 2026.HON expects a 20.1-20.5% segment margin in 2026, up 250-290 basis points year over year. Honeywell Technologies (HON - Free Report) has been dealing with the adverse impacts of high operating costs and expenses. On a consolidated basis, the company’s total cost of sales, comprising the cost of products and services sold, was up 7.2% year over year to $6.07 billion in the second quarter of 2026.
Research and development expenses surged 14.2% year over year to $524 million, while interest and other financial charges increased 10.3% to $363 million in the same period. HON incurred high costs and expenses related to rising direct and indirect material costs and increased labor costs. For standalone Honeywell Technologies, operating margin declined 50 basis points to 12.8% in the second quarter. Escalating expenses, if not controlled, are likely to hurt the company’s bottom line in the quarters ahead.
However, with the separation of the Aerospace business, Honeywell Technologies started operating as a premier pure-play automation company in June 2026. Also, the company completed the divestiture of its warehouse and workflow solutions and productivity solutions and services businesses. These strategic initiatives, along with tailwinds from stranded costs elimination, are expected to support its margin performance and operational efficiency.
For 2026, Honeywell Technologies expects a segment margin of 20.1-20.5%, indicating an increase of 250-290 basis points on a year-over-year basis.
Peer’s Margin performanceAmong its major peers, 3M Company (MMM - Free Report) is facing cost pressure. In second-quarter 2026, its total costs increased 4.7% year over year to $3.82 billion, while the metric, as a percentage of total revenues, climbed 120 basis points to reach 58.7%. Research, development and related expenses increased 4.9% year over year to $302 million.
Emerson Electric Co.’s (EMR - Free Report) cost of sales increased 2.7% year over year in the third quarter of fiscal 2026 (ended June 2026). Emerson’s selling, general and administrative expenses increased 6.1% year over year. Despite the increase in costs, Emerson’s adjusted segment EBITA margin improved 140 basis points to 28.5%, as price-cost actions and cost reductions offset inflationary impact.
The Zacks Rundown for HONShares of Honeywell Technologies have lost 12.2% in the past month compared with the industry’s decline of 0.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 22.85X, above the industry average of 15.48X. HON carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Honeywell Technologies’ earnings for 2026 and 2027 has declined in the past 60 days.
Image Source: Zacks Investment Research
HON stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Honeywell International Inc. (NASDAQ:HON) are trading sideways on Thursday. But a new uptrend may be forming. The shares may have reversed off a support level. This is why Honeywell is the Stock of the Day.
Stocks tend to reverse and rally after reaching support. Support is a price level at which there is a large number of buyers for a stock.
Sometimes, some of the buyers who created the support become anxious and impatient. They become concerned that other buyers will be willing to pay more.
They know the sellers will go to whoever is willing to pay the highest price. As a result, they increase their bid prices. Other anxious buyers see this and do the same thing.
This can create a snowball effect that forces the shares into an uptrend.
There is a reason for the support around the $215 level for Honeywell. It isn’t a coincidence.
As you can see on the chart, this level has been important since September. It has been both a resistance and a support level.
Seller’s remorse can convert resistance into support. People who sell at resistance regret it when the resistance breaks and the shares move higher.
A number of these disappointed sellers decide to repurchase their shares if they can buy them at their selling price.
If and when the shares drop back to the prior resistance level, they place buy orders. If there is a large quantity of them, it can create support.
Seller’s remorse can also keep support intact.
Some of the people who sold at the support level regret doing so when the shares rally. A number of them decided to buy their shares back…if they can get them for their sell price.
As a result, when the shares drop back to the support level, they place buy orders. If there are enough of them, it will form support.
Good traders know how to identify important price levels. This is one of the reasons they are successful.
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Key Takeaways HON sees growth in Building and Industrial Automation, but Process Automation remains weak.EMR's sales are benefiting from power, LNG, aerospace, defense and semiconductor demand.EMR's acquisitions are expanding its automation portfolio, while rising costs remain a concern. Honeywell Technologies (HON - Free Report) and Emerson Electric (EMR - Free Report) are prominent players in the industrial automation market. The companies are benefiting from growing investments in smart manufacturing, digital transformation and process automation. Both companies are expanding their automation portfolios through software, connected technologies and strategic growth initiatives.
HON is gaining from strength in its Industrial Automation, Building Automation, and Energy & Sustainability Solutions businesses, while EMR continues to benefit from portfolio optimization and growing demand across process and discrete automation markets.
But which stock offers better growth potential for investors? Let's take a closer look.
The Case for HONHoneywell Technologies has been facing weakness in its Process Automation and Technology segment. In the second quarter of 2026, the segment’s organic revenues declined 1% year over year due to a 6% decline in aftermarket organic sales, reflecting lower refining catalyst shipments and project delays. Lower customer demand in the Middle East amid ongoing geopolitical tensions also weighed on the segment’s performance. However, rising demand for liquefied natural gas (LNG) and increased automation projects are expected to support growth.
Honeywell Technologies has been dealing with the adverse impacts of the high cost of sales and operating expenses. On a consolidated basis, the company’s total cost of sales, comprising the cost of products and services sold, was up 7.2% year over year in the second quarter. In the same period, research and development expenses surged 14.2% year over year. Its operating margin fell 190 basis points to 17.9%.
The company incurred high costs and expenses related to rising direct and indirect material costs, increased labor costs, investment in digital infrastructure and business integration activities. For standalone Honeywell Technologies, operating margin declined 50 basis points to 12.8% in the second quarter. Escalating expenses, if not controlled, are likely to hurt the company’s bottom line in the quarters ahead.
At the end of the second quarter of 2026, HON’s consolidated long-term debt stood at $26.2 billion, primarily due to funds raised for the Aerospace business spin-off. Against this debt burden, cash and cash equivalents of $8.8 billion appear relatively modest. Interest expenses and other financial charges remained elevated at $363 million in the second quarter, up 10.3% year over year. Including current maturities, Honeywell Technologies’ total debt stood at $31.5 billion at the end of the quarter. Elevated debt could increase financial obligations and put pressure on profitability in the coming quarters.
However, increased demand for HON’s products and solutions, supported by rising building activity across the Americas, India and the Middle East, is likely to benefit the Building Automation segment. Higher order rates and increased capital investments in data centers and hospitality are also supporting growth. In the second quarter of 2026, the Building Automation segment’s organic revenues increased 9% year over year.
Also, the Industrial Automation segment is benefiting from favorable utilities project timing and solid momentum in sensing and industrial measurement, with organic revenues rising 4% year over year in the second quarter. Exiting the quarter, standalone Honeywell Technologies had a backlog of approximately $20 billion, supported by 16% organic order growth. For 2026, the company expects revenues of $19.8-$20.0 billion, with organic revenues projected to grow 3-4% year over year.
On June 29, HON became a separate public company following the spin-off of the Aerospace Technologies business from Honeywell International. This marked the completion of Honeywell’s multi-year portfolio restructuring, creating three stand-alone publicly traded companies. The move allows Honeywell Technologies to sharpen its focus on industrial automation and benefit from improved operational focus, capital allocation and financial flexibility.
The Case for EMREmerson has been experiencing healthy demand across most of its end markets. The company’s underlying sales increased 6% year over year in the third quarter of fiscal 2026. The company anticipates its overall underlying sales to grow approximately 3.5% year over year in fiscal 2026. Strength in power, life sciences, aerospace and defense, semiconductor and LNG end markets continues to support growth across key businesses.
Also, the company is benefiting from the performance of the Intelligent Devices and Software & Systems groups. Within the Intelligent Devices group, it is seeing strength in the Final Control segment, driven by momentum in power end markets. Sales from this segment increased 4% year over year in the fiscal third quarter. Growth across the Americas, including strength in power and LNG, is aiding the Sensors segment, whose sales rose 8% year over year in the fiscal quarter.
Within the Software & Systems group, strength in the power end market is supporting the Control Systems & Software segment. Sales from the segment increased 7% year over year in the fiscal third quarter. Strength in the aerospace & defense and semiconductor end markets is aiding the Test & Measurement segment. The segment’s sales surged 23% year over year in the quarter. Growth across the Americas is buoying the Safety & Productivity segment’s performance. The segment’s sales increased 3% year over year in the fiscal third quarter. Given the strength across its end markets, Emerson expects net sales to increase approximately 5% year over year in fiscal 2026.
Emerson believes in expanding its market presence, solidifying its customer base and enhancing product offerings through acquisitions. In August 2026, Emerson’s acquisition of Glue Inc. enhanced its Test & Measurement business by adding AI-enabled capabilities for test generation, planning and validation. The acquisition strengthened the company’s NI portfolio and complements its Nigel AI platform.
In March 2025, the company acquired all outstanding shares of Aspen Technology’s common stock that it did not own. It is worth noting that Emerson acquired a 55% majority stake in AspenTech in 2022, later increasing its ownership to around 57%. With the close of this buyout, AspenTech now operates as a fully owned subsidiary of Emerson. The inclusion of AspenTech boosted the company’s automation portfolio and expanded its reach into new markets. It enabled Emerson to advance its capabilities in software-defined control under industrial automation.
EMR is committed to rewarding its shareholders handsomely through dividend payments and share buybacks. In the first nine months of fiscal 2026, it paid out dividends of $935 million and repurchased common stocks worth $898 million. In November 2025, the company hiked its dividend. Emerson plans to repurchase shares worth approximately $1 billion and pay out dividends of about $1.2 billion in fiscal 2026. For fiscal 2026, it expects a free cash flow of approximately $3.6 billion.
However, Emerson has been experiencing rising expenses for a while. The company’s cost of sales increased 2.7% year over year in the third quarter of fiscal 2026. Its selling, general and administrative expenses increased 6.1% in the same period. However, SG&A expenses as a percentage of sales declined 20 basis points, reflecting leverage on higher sales and savings from cost-reduction actions.
The company’s operations are spread across the world, the majority of which are outside the United States. Therefore, it is exposed to global economic and political risks as well as unfavorable movements in foreign currencies. A stronger U.S. dollar may depress the company's overseas business results in the quarters ahead.
How Does the Zacks Consensus Estimate Compare for HON & EMR?While the Zacks Consensus Estimate for HON’s 2026 sales implies a year-over-year decrease of 49.5%, the same for its earnings per share (EPS) indicates a decline of 57.8%. The EPS estimates for 2026 and 2027 have decreased over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EMR’s fiscal 2026 sales and EPS implies year-over-year growth of 4.7% and 8.8%, respectively. Emerson’s EPS estimates for fiscal 2026 and fiscal 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Price Performance and Valuation of HON & EMRIn the past month, Honeywell Technologies shares have declined 10.7%, while Emerson stock has gained 4.2%.
Image Source: Zacks Investment Research
Honeywell Technologies is trading at a forward 12-month price-to-earnings ratio of 23.36X, above its median of 20.40X over the last five years. Emerson’s forward earnings multiple sits at 22.29X, above its median of 19.62X over the same time frame.
Image Source: Zacks Investment Research
Final TakeHON faces near-term pressure from weak Process Automation demand, rising costs and elevated debt, which could weigh on profitability. However, strong momentum in the Building and Industrial Automation segment, supported by robust order growth and backlog, provides a key growth cushion.
In contrast, Emerson is benefiting from healthy demand across key end markets, with strength in power, LNG, aerospace and defense, semiconductors and life sciences. Strategic acquisitions are strengthening its automation, AI and software capabilities. However, rising costs and SG&A expenses remain concerns, although operating leverage and cost-reduction initiatives are helping mitigate the impact.
Considering EMR’s stronger recent stock performance, broader end-market momentum and improving earnings outlook, it appears to be a better investment choice than HON at present. While EMR currently carries a Zacks Rank #3 (Hold), HON has a Zacks Rank #5 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Honeywell International Inc. is now a standalone entity post-breakup, with Building Automation driving recent performance and margin expansion. HON reported Q2 2026 revenue of $5.2B (+4% organic), $1.95 EPS (+10% YoY), and free cash flow growth from $100M to $500M. Backlog stands at $20B (+9% YoY), with strong organic order growth, but Process Automation margins contracted and Industrial Automation stability depends on divestitures.
Honeywell International Inc. (HON - Free Report) closed the most recent trading day at $217.43, moving -1.34% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.25%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq decreased by 0.52%.
Heading into today, shares of the company had lost 8.9% over the past month, lagging the Conglomerates sector's loss of 0.2% and the S&P 500's gain of 4.34%.
The upcoming earnings release of Honeywell International Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $2.15, marking a 61.88% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.09 billion, down 51.13% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.25 per share and a revenue of $20.35 billion, representing changes of -57.82% and -49.54%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Honeywell International Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Honeywell International Inc. currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Honeywell International Inc.'s current valuation metrics, including its Forward P/E ratio of 26.71. This expresses a premium compared to the average Forward P/E of 13.01 of its industry.
One should further note that HON currently holds a PEG ratio of 4.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. HON's industry had an average PEG ratio of 1.53 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Honeywell Technologies is rated Buy, supported by strong order growth, margin expansion, and a discounted valuation versus automation peers. Orders grew 16% y/y in Q2 26, outpacing 4% sales growth, signaling likely revenue acceleration as backlog converts. Structural cost reductions and portfolio simplification are on track, targeting 22%+ segment margins exiting FY26 and further improvement in 2027.
Key Takeaways Honeywell Technologies' Process Automation organic revenues fell 1% in Q2 after a 6% drop in Q1.Aftermarket organic sales declined 6% on lower refining catalyst shipments and project delays.Honeywell Technologies' Process Technology orders rose 24% as LNG demand and automation projects strengthened. Honeywell Technologies (HON - Free Report) has been witnessing persistent weakness in the Process Automation and Technology segment. In the second quarter of 2026, the segment’s organic revenues decreased 1% year over year, following a 6% decline in the first quarter.
This decline was attributable to a 6% drop in organic sales in the aftermarket business owing to lower refining catalyst shipments and project delays. In the quarter, the segment margin declined 180 basis points to 22.1% owing to low catalyst volumes and unfavorable product mix. Although second-quarter orders in the Middle East grew organically, the segment’s operations remain exposed to the ongoing geopolitical tensions in the region.
Nevertheless, strong process technology liquefied natural gas (LNG) demand and an increase in automation projects bode well for the segment. In the second quarter, the Process Technology segment’s orders grew 24% year over year, while project sales grew 5% on an organic basis.
It is worth noting that on June 29, Honeywell Technologies became a standalone public company following the spin-off of the Aerospace Technologies business from Honeywell International. The separation completed the company's multi-year portfolio restructuring, creating three independent publicly traded companies.
Business Performance of HON's PeersRBC Bearings Incorporated (RBC - Free Report) is witnessing strength in the Industrial segment (revenues increased 8.4% year over year in first-quarter fiscal 2027). Stable demand for RBC Bearings’ highly engineered bearings and precision components in food & beverage, semiconductor and warehousing markets bodes well for the segment.
Another peer, 3M Company (MMM - Free Report) , has been witnessing solid momentum in the Safety and Industrial segment. Strong momentum in abrasives, industrial adhesives and tapes, specialties, roofing granules, personal safety and electrical markets has been driving the segment’s performance. Organic sales from 3M’s Safety and Industrial segment grew 8.2% year over year in the second quarter of 2026.
The Zacks Rundown for HONFrom a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 24.21X, above the industry average of 15.58X. HON carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Honeywell Technologies’ earnings for 2026 has declined in the past 60 days.
CHARLOTTE, N.C.--(BUSINESS WIRE)--Honeywell Technologies (Nasdaq: HON) announced the appointment of Billal Hammoud as President and CEO of Process Technology, a component of the company's Process Automation & Technology reportable business segment, effective Oct. 1, 2026. A veteran of Honeywell Technologies, Hammoud will succeed Ken West who is leaving the company to pursue an external opportunity as of Aug. 31, 2026. Juan Picon, President of Building Automation Americas, will succeed Hammo.
Vertical Aerospace: Pre-Flight Checks Point to a BreakoutHoneywell International NASDAQ: HON CFO Mike Stepniak said the company is off to a strong start following its portfolio transformation, citing favorable July order trends, broad regional demand and improving prospects for the second half of the year and into 2027.
Speaking at a Deutsche Bank conference, Stepniak said Honeywell has set three-year targets of 4% to 6% revenue growth, double-digit earnings-per-share growth toward $12 in 2029, margin expansion and free-cash-flow conversion above 90%.
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Brady Corp Wires Up a Massive AI-Powered Breakout“We’re off to a good start,” Stepniak said, adding that order activity has supported the company’s decision to raise guidance. He said the company has included contingency in its growth framework for potential demand disruptions, inflation and pricing variability.
Orders Strengthen Across Regions and Cycles
Stepniak said demand has been broad-based geographically, with North America particularly strong and Europe no longer presenting the headwind it had been in prior years. China remains pressured but is performing adequately, while the Middle East and other Asian markets have been strong, he said.
Boarding Passes Now Being Issued for the Ultimate eVTOL ArbitrageHoneywell is seeing both short-cycle growth and long-cycle demand, according to Stepniak. He pointed to improving backlog conversion in the process business and new demand tied to supply-chain resilience, security concerns and rebuilding activity in the Middle East.
The company expects second-half revenue growth of 4% to 6%, with Stepniak saying he hopes results will trend toward the upper end of that range. He also said Honeywell expects more pronounced margin expansion in the near term as it works through stranded costs associated with its portfolio changes.
For 2027, Stepniak said the company sees a favorable setup from improving order trends, lower stranded costs and a supportive macroeconomic backdrop. He said Honeywell is targeting roughly 15% EPS growth next year as part of its path toward its 2029 earnings objective.
Software, AI and New Product Development
Honeywell is targeting 45% of revenue from software and services over time, with its Forge platform central to that effort. Stepniak said the company connected more assets through Forge last year than in the preceding five years combined.
Honeywell currently has about 5 million connected assets and expects that total to reach about 9 million over the next 2.5 years, he said. The connections create opportunities to provide customer solutions and develop data-driven offerings. Stepniak tied that effort to a target of 15% annual revenue growth in software spending.
The company is also applying artificial intelligence internally and within Forge. Stepniak said Honeywell is using AI tools in engineering for drafting, drawing retrieval and proposal development, and in finance for balance-sheet analysis and internal audit work. He said the company has made a significant investment in equipping associates with AI tools and copilots.
New product introduction, or NPI, remains another key focus. Stepniak said Building Automation has the most mature NPI process, while Industrial Automation has been developing its program for about 18 months and is beginning to see results. New products generally carry better pricing or mix and can be accretive within their first two years, he said.
Building and Process Automation Demand
Stepniak said Building Automation’s growth has been supported by its diverse geographic and end-market exposure. While data centers account for about 5% of the segment today, up from close to zero three to four years ago, Honeywell aims to more than double that business to above $1 billion over the next several years.
The company supplies fire sensing, security, physical security, monitoring and building-management systems to data centers. Stepniak also cited opportunities in load management, liquid cooling and heat measurement as computing requirements increase.
Building Automation is expected to finish the year with margins above 27%, and Honeywell has a line of sight to 29% margins in 2029, according to Stepniak. He identified NPI, Forge commercialization and employee leverage as key margin drivers.
In Process Automation and Technology, Stepniak said demand has increased across projects, LNG and catalyst activity. Honeywell’s LNG business is taking orders for slots at the end of 2028 and continues to receive new customer inquiries, he said.
Second-half catalyst demand is expected to rise by double digits versus the first half, while second-half year-over-year catalyst demand is expected to increase by high single digits. However, Stepniak said projects are the larger driver of expected segment growth.
He said Process Technologies is seeing a more pronounced order pickup than Process Automation, which historically trails the technology business by roughly 18 to 24 months. Process Automation is also expanding into life sciences, pharmaceutical and medical-device production, cybersecurity, U.S. onshoring and semiconductors.
Honeywell expects the Process Automation and Technology segment to report about a 22.5% margin for the year, reflecting mix and the integration of Johnson Matthey. Stepniak said the acquired business will take two to three years to reach Honeywell-level margins, though he sees cost and demand-improvement opportunities. Honeywell continues to target 25% segment margins by 2029.
Industrial Automation and Capital Allocation
Industrial Automation is being positioned as a sensing-and-measurement-focused business. Stepniak said improved delivery performance, new product investment, pricing and organizational simplification are supporting its turnaround. The business has improved on-time delivery to approximately 80% and is targeting more than 85%.
Honeywell expects Industrial Automation to reach about a 22% margin rate in the fourth quarter, Stepniak said, adding that he was “100% confident” in its ability to reach 25% margins within three years.
On capital allocation, Stepniak said Honeywell is currently prioritizing debt reduction and aims to reduce its debt ratio below three by year-end. The company expects its dividend payout ratio to be around 35% and plans to keep its share count roughly flat while it focuses on debt repayment. Capital expenditures are expected to be about 3% of revenue.
Honeywell plans to continue pursuing bolt-on acquisitions, with preferred deal sizes of roughly $2 billion to $4 billion. Stepniak identified Industrial Automation as the company’s largest M&A opportunity because of the fragmented nature of the market, but said Honeywell intends to remain disciplined on valuation, strategic fit, synergies and return targets.
About Honeywell International (NASDAQ:HON)Honeywell International Inc is a diversified, publicly traded multinational conglomerate NASDAQ: HON that designs and manufactures a wide range of commercial and consumer products, engineering services and aerospace systems. The company operates through major business platforms that historically include Aerospace; Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. Its portfolio spans avionics and propulsion systems, building controls and HVAC equipment, process technologies and advanced materials, industrial automation software, and personal protective equipment and scanning solutions.
Honeywell's aerospace business supplies aircraft manufacturers and operators with engines and auxiliary power units, avionics, flight safety systems and aftermarket services.
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Honeywell International Inc. (NASDAQ:HON – Get Free Report) has been given a consensus rating of “Hold” by the twenty-five research firms that are currently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, eleven have given a hold recommendation and thirteen have issued a buy recommendation on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $254.25.
A number of research firms recently weighed in on HON. Daiwa Securities Group upgraded Honeywell International from a “neutral” rating to an “outperform” rating and set a $255.00 target price for the company in a research report on Tuesday, June 30th. Jefferies Financial Group set a $265.00 price target on shares of Honeywell International in a research report on Tuesday, July 28th. Weiss Ratings downgraded shares of Honeywell International from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, August 4th. Mizuho boosted their price objective on shares of Honeywell International from $240.00 to $265.00 and gave the stock an “outperform” rating in a report on Monday, July 27th. Finally, Morgan Stanley cut their price objective on shares of Honeywell International from $490.00 to $245.00 and set an “equal weight” rating for the company in a research note on Tuesday, July 14th.
Check Out Our Latest Analysis on Honeywell International
Honeywell International Stock Down 5.3% HON opened at $230.12 on Wednesday. The stock has a market cap of $72.93 billion, a PE ratio of 8.90, a P/E/G ratio of 5.44 and a beta of 0.89. The company has a quick ratio of 0.93, a current ratio of 1.21 and a debt-to-equity ratio of 1.39. Honeywell International has a 52 week low of $196.59 and a 52 week high of $261.24. The business’s fifty day simple moving average is $229.85 and its 200 day simple moving average is $229.51.
Honeywell International (NASDAQ:HON – Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The conglomerate reported $1.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.80 by $0.15. Honeywell International had a return on equity of 34.00% and a net margin of 23.90%.The firm had revenue of $9.72 billion during the quarter, compared to analyst estimates of $5.03 billion. During the same quarter in the previous year, the company posted $1.77 earnings per share. The company’s revenue was up 3.4% compared to the same quarter last year. Honeywell International has set its Q3 2026 guidance at 2.050-2.200 EPS and its Q4 2026 guidance at 2.280-2.430 EPS. As a group, research analysts expect that Honeywell International will post 8.25 earnings per share for the current fiscal year.
Honeywell International Cuts Dividend The firm also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 14th will be paid a $0.70 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.80 annualized dividend and a yield of 1.2%. Honeywell International’s payout ratio is currently 36.80%.
Insider Transactions at Honeywell International In other news, CEO Kenneth J. West sold 316 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $245.47, for a total transaction of $77,568.52. Following the transaction, the chief executive officer directly owned 2,004 shares of the company’s stock, valued at approximately $491,921.88. This trade represents a 13.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.15% of the stock is currently owned by insiders.
Institutional Investors Weigh In On Honeywell International Institutional investors have recently bought and sold shares of the stock. Exencial Wealth Advisors LLC grew its holdings in Honeywell International by 36.6% during the fourth quarter. Exencial Wealth Advisors LLC now owns 81,211 shares of the conglomerate’s stock valued at $15,844,000 after purchasing an additional 21,770 shares during the period. MADDEN SECURITIES Corp bought a new position in shares of Honeywell International in the fourth quarter worth about $1,418,000. Valley Wealth Managers Inc. raised its stake in shares of Honeywell International by 33.9% in the fourth quarter. Valley Wealth Managers Inc. now owns 114,016 shares of the conglomerate’s stock worth $22,243,000 after buying an additional 28,875 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Honeywell International by 3.5% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,683,119 shares of the conglomerate’s stock valued at $329,788,000 after buying an additional 57,441 shares in the last quarter. Finally, International Assets Investment Management LLC grew its stake in shares of Honeywell International by 2,165.9% during the 4th quarter. International Assets Investment Management LLC now owns 154,741 shares of the conglomerate’s stock valued at $30,188,000 after acquiring an additional 147,912 shares during the period. 75.91% of the stock is currently owned by hedge funds and other institutional investors.
About Honeywell International (Get Free Report)
Honeywell International Inc is a diversified, publicly traded multinational conglomerate (NASDAQ: HON) that designs and manufactures a wide range of commercial and consumer products, engineering services and aerospace systems. The company operates through major business platforms that historically include Aerospace; Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. Its portfolio spans avionics and propulsion systems, building controls and HVAC equipment, process technologies and advanced materials, industrial automation software, and personal protective equipment and scanning solutions.
Honeywell’s aerospace business supplies aircraft manufacturers and operators with engines and auxiliary power units, avionics, flight safety systems and aftermarket services.
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Shares of Honeywell (NASDAQ:HON | HON Price Prediction) are trading sharply lower Tuesday afternoon, down roughly 4.7% to $231.49 around 2:00 p.m. ET. The move reverses Monday’s close of $242.93 and leaves the stock trailing every major diversified industrial peer. On a one-week basis, HON is now down roughly 2% while the broader industrial complex has pushed higher.
Aerospace Spin-Off Fallout Weighs on Sentiment The pressure traces back to the June 29, 2026 separation of Honeywell Aerospace, now trading as HONA. That business’s first standalone quarter landed poorly, and analysts have quickly started resetting expectations for the newly independent unit. UBS cut its HONA price target to $213 from $231 on August 6, maintaining a Neutral rating and flagging softer post-spin fundamentals. That headline sentiment score on HON registered -0.225, Somewhat-Bearish, and the drag is spilling into the parent even though HON is now a pure-play automation company.
The Q2 report did little to steady the narrative. Reported revenue of $9.72 billion fell 6.1% year over year on the aerospace separation, while GAAP EPS of $17.83 was inflated by a one-time Quantinuum deconsolidation gain. Stripping out that noise, continuing operations grew organically and adjusted EPS came in at $4.52, prompting CEO Vimal Kapur to raise full-year adjusted EPS guidance. The lumpy optics still complicate the story for a market that wanted a clean beat.
Kapur framed the quarter as “a historic milestone for Honeywell Technologies as we completed the separation of Honeywell Aerospace and began a new era as a leading pure-play automation company.” Morningstar echoed some of that optimism, initiating HONA coverage on August 10 and labeling it undervalued. The market, so far, is not extending that benefit of the doubt back to the parent.
Peers Are Playing a Different Game 3M (NYSE:MMM) is up 1% to $183.18, extending a run that has produced a 16% one-month gain. On the fundamentals, 3M’s Q2 delivered a clean beat on adjusted EPS of $2.40, with Safety & Industrial organic growth of 8.2% and China sales up 16.4%. Management also raised full-year adjusted EPS guidance and pointed to strong free cash flow conversion.
Emerson Electric (NYSE:EMR) is climbing 2.6% to $162.81, building on its August 4 beat. Emerson posted 7.0% revenue growth, with Software & Systems up 11% and Test & Measurement surging 23%. Free cash flow jumped and adjusted EBITA margins expanded, giving CEO Lal Karsanbhai room to raise full-year adjusted EPS guidance. Clean beats, straightforward narratives, no restructuring overhang.
That is the divergence. MMM and EMR are delivering straightforward organic growth and margin expansion, while HON is asking investors to look past a smaller revenue base, one-time gains, stranded costs, and a wobbly aerospace sibling. Year to date, HON is still up 20%, but EMR has returned 21% and MMM 15% with far less complexity in the story. Peer performance helps explain why capital is rotating toward cleaner industrial cash flow profiles today.
Growth Guidance in Chicago Today Disappoints Honeywell is presenting at Deutsche Bank’s Chicago Industrials Summit today, and any commentary from Kapur on the HONA guidance reset, PSS and WWS divestiture timing, or the Johnson Matthey catalyst integration are in focus. It’s worth mentioning that the company’s presentation began at 10 a.m., and its share price began crumbling across the next hour and 15 minutes. It would appear investors didn’t like what Honeywell’s CFO had to say. We reviewed a transcript of the presentation and the area investors are likely focused on is exchanges around future growth. Here’s a key one:
“Nicole Sheree DeBlase (Deutsche Bank Research)
Okay. Great. Then maybe just shortening the lens a little bit, to 2027, we’re starting to get investors focused on 2027. It’s a big part of the conversation now. Strikes me that Honeywell could have really nice above average, maybe even top tier earnings growth in 2027. You’ve got stranded costs coming down, you’ve got interest expense coming down. And then on top of that, we have clear acceleration in order trends. Do you agree?
Michal Stepniak (Honeywell CFO)
I do agree. So in the second half, we’ll grow 4% to 6% hoping more closer to 6% versus 4%, as our first growth — that gives you a really good — I would say that up to 2027, especially the first time. So feel good about that as well. That bankers are in our favor, businesses are performing. As far as margin expansion, we talked about it at the Investor Day, we’ll get much more margin expansion in the near term versus later term. So ’28, ’29, we should get to the more normal 60 bps margin. In the near term, this year, next year, will the market expansion is going to be much more [indiscernible] we’re still working to tailwind from the portfolio transformation, trend the cost takeout set up.
As far as the EPS drop exchange, 15% is growth. I think that gets us to that $12 in 2029. But that’s something that we’re instrumenting the teams.”
Wall Street currently has $12.34 modeled in 2029 EPS, so this figure looks below expectations and could be the catalyst for today’s losses.
Contact [email protected] for any questions or corrections.
Key Takeaways Honeywell Technologies' Building Automation sales rose 10% to $2 billion in the second quarter.Higher demand lifted organic sales in both products and solutions businesses in the quarter.Rising orders and capex in data centers and health care support Building Automation's growth. Honeywell Technologies (HON - Free Report) has been benefiting from strength in its Building Automation segment. An increase in demand for its products and solutions, led by increasing building projects across the Americas, India and the Middle East, is aiding the segment. In the second quarter of 2026, the segment’s revenues totaled $2 billion, up 10% year over year. Organic sales increased 9% year over year.
The segment’s performance was supported by higher demand across both its products and solutions businesses. Products generated $103 million of higher organic sales in the second quarter, while Solutions contributed $59 million of higher organic sales. The company attributed the gains in both businesses to higher demand. Rising order rates and capex investments in data centers and health care projects also bode well for the segment.
The Building Automation segment also maintained strong momentum in the first half of 2026. Its sales increased 10% year over year to $3.88 billion, while organic sales grew 8% year over year.
Honeywell Technologies’ Building Automation segment is well-positioned for continued growth, supported by healthy demand across its products and solutions businesses. Strong sales momentum and ongoing investments in data center provide a solid foundation for further expansion in the coming quarters.
Segmental Snapshot of HON’s PeersAmong HON’s major peers, 3M Company (MMM - Free Report) is poised to gain from solid momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for electrical infrastructure products like medium voltage cable accessories and insulation tapes augurs well for 3M’s unit. Revenues from 3M’s Safety and Industrial segment grew 8.2% year over year in the second quarter of 2026.
Honeywell Technologies’ another peer, Carlisle Companies Incorporated’s (CSL - Free Report) Carlisle Construction Materials segment, is benefiting from healthy re-roofing demand, strategic initiatives and strong commercial execution. Revenues from Carlisle’s unit increased 7.8% year over year in the second quarter of 2026. Carlisle’s segment’s adjusted EBITDA of $363 million increased 4.8% year over year in the quarter.
HON's Price Performance, Valuation and EstimatesFrom a valuation standpoint, HON is trading at a trailing price-to-earnings ratio of 20.90X. Honeywell carries a Value Score of f.
The Zacks Consensus Estimate for HON’s 2026 earnings has declined over the past 60 days.
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Zdroj: Bloomberg
Shares in Honeywell Aerospace Inc. cratered over 20% following the release of a weak Q2 print which included a cut to the forward outlook. The losses follow HONA's recently completed spinoff from Honeywell International. The underperformance somewhat validates the strategy of Honeywell International to focus on stronger units of growth in its home base.
Honeywell Aerospace (HONA -21.41%) stock plunged 20.8% through 9:50 a.m. ET in early trading on the Nasdaq Thursday, after missing on its first earnings report since spinning off from parent company Honeywell (HON -2.08%) in June.
The supplier of airplane navigation systems, engines, and power systems was expected to report earnings of $2.13 per share in pro forma Q2 2026 results, but could only muster up $1.87. Revenue for the quarter was $4.5 billion.
Image source: Getty Images.
Honeywell Aerospace's first independent earnings report Honeywell grew its sales 5%, relative to what it would have collected had it been a stand-alone company one year ago. Earnings for the quarter -- on the same metric -- declined 32% pro forma, while earnings calculated under generally accepted accounting principles (GAAP) tumbled 71%.
The official GAAP profit per diluted share was only $0.78.
Today's Change
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-2.08
%) $
-5.17
Current Price
$
242.95
What's next for Honeywell stock? So that's where things stand today. What about the future?
"Secular trends across our end markets remain strong," and Honeywell Aerospace is seeing "significant customer demand," says CEO Jim Currier, albeit "supply constraints" are limiting sales growth for the time being. So even with backlog growing a stronger-than-sales-growth 9% in the quarter, Honeywell Aerospace is adopting a conservative stance in its guidance.
It's lowering expectations, and telling investors to expect no more than 5% sales growth in the second half of this year, with H2 earnings of perhaps $7.75 per share and H2 free cash flow between $1 billion and $1.5 billion.
Annualized, that makes for perhaps a 10 P/E stock -- but trading for closer to 20 times annual FCF, which I admit gives me pause. For the time being, I'm calling Honeywell Aerospace a "wait and see" stock. I'd hold it, but I wouldn't rush out and buy it just yet.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Honeywell Aerospace and Honeywell Technologies. The Motley Fool has a disclosure policy.
Letecká a obranná společnost Honeywell Aerospace reportovala výsledky hospodaření za druhé čtvrtletí roku 2026 – první report od svého odštěpení od Honeywell International. Firma zároveň výrazně snížila celoroční výhled organického růstu tržeb i očištěného provozního zisku (EBIT), a to kvůli problémům v dodavatelském řetězci.
Výsledky společnosti Honeywell Aerospace (HONA) za 2Q 2026 2Q 2026 Konsensus 2Q 2026 2Q 2025 Tržby (mld. USD) 4,52 4,57 4,29 Čistý zisk (mld. USD) 0,26 -- 0,85 Očištěný zisk na akcii (EPS, USD/akcie) 1,87 1,98 2,75 Výsledky za 2Q Tržby dosáhly 4,52 mld. USD, meziročně vzrostly o 5 % jak na vykázané, tak na organické bázi, a mírně zaostaly za odhadem analytiků (4,57 mld. USD).
Očištěný provozní zisk dosáhl 995 mil. USD, meziročně pokles o 7 %, oproti odhadu 1,17 mld. USD. Výsledek zahrnoval přibližně 100 mil. USD nákladů souvisejících s odštěpením a odpisy zastaralých zásob.
Čistý zisk klesl na 256 mil. USD z 852 mil. USD ve stejném období loňského roku.
Objem zakázek (backlog) na konci čtvrtletí vzrostl na 18,15 mld. USD, meziročně o 9 %, přičemž zakázky za posledních dvanáct měsíců vzrostly o 8 %, taženy zejména segmentem obrany a vesmíru.
Tržby podle koncových trhů: Tržby ze segmentu komerčního servisu vzrostly o 8 % na 2,03 mld. USD, taženy poptávkou napříč instalovanou základnou včetně vyšších letových hodin v byznys letectví. Tržby z komerčních nových zařízení vzrostly o 6 % na 679 mil. USD. Tržby ze segmentu obrany a vesmíru vzrostly o 3 % na 1,82 mld. USD, když vyšší domácí objemy byly částečně kompenzovány nižšími mezinárodními objemy kvůli omezením v dodavatelském řetězci a útlumu jednoho vyhrazeného vládního programu.
Tržby ve 2Q 2026 podle koncových trhů, zdroj: Honeywell Aerospace
Výsledky dle segmentů: Tržby segmentu Elektronická řešení vzrostly o 8 % na 1,77 mld. USD, taženy silným výkonem obrany, vesmíru i komerčního servisu; segmentový očištěný zisk klesl o 3 % na 459 mil. USD. Tržby segmentu Motory a energetické systémy vzrostly o 1 % na 1,41 mld. USD; segmentový očištěný zisk klesl o 32 % na 174 mil. USD kvůli nepříznivému mixu a vyšším nákladům. Tržby segmentu Řídicí systémy vzrostly o 7 % na 1,34 mld. USD; segmentový očištěný zisk vzrostl o 8 % na 389 mil. USD.
Výsledky za 2Q 2026 dle segmentů, zdroj: Honeywell Aerospace
Výhled na FY 2026 Firma snížila výhled pro celý rok 2026 a nyní predikuje:
Organický růst tržeb 4 % až 5 % (dříve: 7 % až 9 %). Pro forma standalone očištěný zisk EBIT 4,35–4,45 mld. USD (dříve: 4,65–4,75 mld. USD). Meziroční růst pro forma standalone očištěného zisku EBIT beze změny až +3 % (dříve: +7 % až +10 %). Volný peněžní tok za druhé pololetí 1,0–1,5 mld. USD (beze změny). Komentář vedení Jim Currier, generální ředitel Honeywell Aerospace, uvedl: „Naše úspěšné odštěpení představuje důležitý milník a do této nové kapitoly vstupujeme se solidní dynamikou. V posledním čtvrtletí jako segment Honeywellu jsme dosáhli růstu tržeb ve středních jednotkách procent, jelikož výrazná poptávka zákazníků po našem klíčovém portfoliu pokračuje. Sekulární trendy napříč našimi koncovými trhy zůstávají silné, zatímco omezení v dodavatelském řetězci limitovala růst výstupu ve čtvrtletí.“
Currier dodal: „Pro druhou polovinu roku 2026 považujeme za rozumné přizpůsobit náš výhled prokázaným schopnostem našeho dodavatelského řetězce ke konci druhého čtvrtletí. Zároveň podnikáme strategické a taktické kroky nezbytné k tomu, abychom Honeywell Aerospace nasměrovali k zrychlujícímu růstu a přesvědčivým finančním výsledkům.“
Komentář analytiků Analytička Sheila Kahyaoglu z Jefferies (doporučení hold) uvedla, že první reakcí většiny investorů bude otázka, jak může letecká společnost růst pouze o 4 %, přičemž další vysvětlení nechává na vedení, které se soustředí na zvyšování výstupu a zlepšování dodavatelského řetězce. Zároveň poznamenala, že firma zatím nezaznamenala výraznější dopad na poptávku v souvislosti s konfliktem na Blízkém východě.
Analytik Ken Herbert z RBC Capital Markets (doporučení outperform) uvedl, že ziskovost byla ve čtvrtletí větším zklamáním. Poukázal na to, že společnost zahájila několik kroků v dodavatelském řetězci, včetně kvalifikace více než 50 nových dodavatelů a navýšení investic do dodavatelského nářadí o 20 %. Ocenění akcie podle něj zůstává atraktivní, přiznal však nedostatek katalyzátorů pro druhou polovinu roku.
Adam Crisafulli z Vital Knowledge označil snížení výhledu za obzvláště negativní vzhledem k obecně býčím výsledkům a výhledům většiny ostatních velkých leteckých společností, a to navíc v době prvního reportu Honeywell Aerospace jako samostatné společnosti.
Akcie Honeywell Aerospace Akcie Honeywell Aerospace Inc (HONA) klesají o 21,5 % na 159,84 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 50,7 P/E -- Vývoj za letošní rok (%) -- Očekávané P/E 18,9 52týdenní minimum (USD) 150,0 Prům. cílová cena (USD) 247,3 52týdenní maximum (USD) 297,5 Dividendový výnos (%) -- Zdroj: Honeywell Aerospace, Bloomberg
Letecká a obranná společnost Honeywell Aerospace reportovala výsledky hospodaření za druhé čtvrtletí roku 2026 – první report od svého odštěpení od Honeywell International. Firma zároveň výrazně snížila celoroční výhled organického růstu tržeb i očištěného provozního zisku (EBIT), a to kvůli problémům v dodavatelském řetězci.
Výsledky společnosti Honeywell Aerospace (HONA) za 2Q 2026 2Q 2026 Konsensus 2Q 2026 2Q 2025 Tržby (mld. USD) 4,52 4,57 4,29 Čistý zisk (mld. USD) 0,26 -- 0,85 Očištěný zisk na akcii (EPS, USD/akcie) 1,87 1,98 2,75 Výsledky za 2Q Tržby dosáhly 4,52 mld. USD, meziročně vzrostly o 5 % jak na vykázané, tak na organické bázi, a mírně zaostaly za odhadem analytiků (4,57 mld. USD).
Očištěný provozní zisk dosáhl 995 mil. USD, meziročně pokles o 7 %, oproti odhadu 1,17 mld. USD. Výsledek zahrnoval přibližně 100 mil. USD nákladů souvisejících s odštěpením a odpisy zastaralých zásob.
Čistý zisk klesl na 256 mil. USD z 852 mil. USD ve stejném období loňského roku.
Objem zakázek (backlog) na konci čtvrtletí vzrostl na 18,15 mld. USD, meziročně o 9 %, přičemž zakázky za posledních dvanáct měsíců vzrostly o 8 %, taženy zejména segmentem obrany a vesmíru.
Tržby podle koncových trhů: Tržby ze segmentu komerčního servisu vzrostly o 8 % na 2,03 mld. USD, taženy poptávkou napříč instalovanou základnou včetně vyšších letových hodin v byznys letectví. Tržby z komerčních nových zařízení vzrostly o 6 % na 679 mil. USD. Tržby ze segmentu obrany a vesmíru vzrostly o 3 % na 1,82 mld. USD, když vyšší domácí objemy byly částečně kompenzovány nižšími mezinárodními objemy kvůli omezením v dodavatelském řetězci a útlumu jednoho vyhrazeného vládního programu.
Tržby ve 2Q 2026 podle koncových trhů, zdroj: Honeywell Aerospace
Výsledky dle segmentů: Tržby segmentu Elektronická řešení vzrostly o 8 % na 1,77 mld. USD, taženy silným výkonem obrany, vesmíru i komerčního servisu; segmentový očištěný zisk klesl o 3 % na 459 mil. USD. Tržby segmentu Motory a energetické systémy vzrostly o 1 % na 1,41 mld. USD; segmentový očištěný zisk klesl o 32 % na 174 mil. USD kvůli nepříznivému mixu a vyšším nákladům. Tržby segmentu Řídicí systémy vzrostly o 7 % na 1,34 mld. USD; segmentový očištěný zisk vzrostl o 8 % na 389 mil. USD.
Výsledky za 2Q 2026 dle segmentů, zdroj: Honeywell Aerospace
Výhled na FY 2026 Firma snížila výhled pro celý rok 2026 a nyní predikuje:
Organický růst tržeb 4 % až 5 % (dříve: 7 % až 9 %). Pro forma standalone očištěný zisk EBIT 4,35–4,45 mld. USD (dříve: 4,65–4,75 mld. USD). Meziroční růst pro forma standalone očištěného zisku EBIT beze změny až +3 % (dříve: +7 % až +10 %). Volný peněžní tok za druhé pololetí 1,0–1,5 mld. USD (beze změny). Komentář vedení Jim Currier, generální ředitel Honeywell Aerospace, uvedl: „Naše úspěšné odštěpení představuje důležitý milník a do této nové kapitoly vstupujeme se solidní dynamikou. V posledním čtvrtletí jako segment Honeywellu jsme dosáhli růstu tržeb ve středních jednotkách procent, jelikož výrazná poptávka zákazníků po našem klíčovém portfoliu pokračuje. Sekulární trendy napříč našimi koncovými trhy zůstávají silné, zatímco omezení v dodavatelském řetězci limitovala růst výstupu ve čtvrtletí.“
Currier dodal: „Pro druhou polovinu roku 2026 považujeme za rozumné přizpůsobit náš výhled prokázaným schopnostem našeho dodavatelského řetězce ke konci druhého čtvrtletí. Zároveň podnikáme strategické a taktické kroky nezbytné k tomu, abychom Honeywell Aerospace nasměrovali k zrychlujícímu růstu a přesvědčivým finančním výsledkům.“
Komentář analytiků Analytička Sheila Kahyaoglu z Jefferies (doporučení hold) uvedla, že první reakcí většiny investorů bude otázka, jak může letecká společnost růst pouze o 4 %, přičemž další vysvětlení nechává na vedení, které se soustředí na zvyšování výstupu a zlepšování dodavatelského řetězce. Zároveň poznamenala, že firma zatím nezaznamenala výraznější dopad na poptávku v souvislosti s konfliktem na Blízkém východě.
Analytik Ken Herbert z RBC Capital Markets (doporučení outperform) uvedl, že ziskovost byla ve čtvrtletí větším zklamáním. Poukázal na to, že společnost zahájila několik kroků v dodavatelském řetězci, včetně kvalifikace více než 50 nových dodavatelů a navýšení investic do dodavatelského nářadí o 20 %. Ocenění akcie podle něj zůstává atraktivní, přiznal však nedostatek katalyzátorů pro druhou polovinu roku.
Adam Crisafulli z Vital Knowledge označil snížení výhledu za obzvláště negativní vzhledem k obecně býčím výsledkům a výhledům většiny ostatních velkých leteckých společností, a to navíc v době prvního reportu Honeywell Aerospace jako samostatné společnosti.
Akcie Honeywell Aerospace Akcie Honeywell Aerospace Inc (HONA) klesají o 21,5 % na 159,84 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 50,7 P/E -- Vývoj za letošní rok (%) -- Očekávané P/E 18,9 52týdenní minimum (USD) 150,0 Prům. cílová cena (USD) 247,3 52týdenní maximum (USD) 297,5 Dividendový výnos (%) -- Zdroj: Honeywell Aerospace, Bloomberg
Sales of $4.5 billion, reported and organic1 sales up 5% year over year Net income of $0.3 billion and adjusted EBIT1 of $1.0 billion, excluding pro forma standalone adjustments Revises full-year sales and pro forma standalone adjusted EBIT1 guidance and issues full-year pro forma standalone adjusted earnings per share1 guidance Completed spin-off from Honeywell Technologies on June 29 PHOENIX, Aug. 5, 2026 /PRNewswire/ -- Honeywell Aerospace (Nasdaq: HONA) today announced results for the second quarter following the completion of its spin-off from Honeywell International Inc. ("Honeywell Technologies", Nasdaq: HON). The company also updated its full-year 2026 outlook for organic1 sales and pro forma standalone adjusted EBIT1, initiated full-year 2026 pro forma standalone adjusted earnings per share1 guidance, and maintained its second half 2026 free cash flow1 guidance range.
CHARLOTTE, N.C.--(BUSINESS WIRE)--Honeywell Technologies (NASDAQ: HON) today announced the completion of the sale of its Productivity Solutions and Services (PSS) business to Brady Corporation in an all-cash transaction.“Closing the PSS divestiture is the final step toward completing our transition to a pure-play automation company,” said Vimal Kapur, chairman and CEO of Honeywell Technologies. “As Honeywell Technologies, we are fully focused on the building, industrial and process sectors and t.
Honeywell Technologies (NASDAQ: HON) today announced its participation at Deutsche Bank's Industrials Conference in Chicago on Tuesday, August 11, 2026. Mike St
CHARLOTTE, N.C.--(BUSINESS WIRE)--Honeywell Technologies (NASDAQ: HON) today announced its participation at Deutsche Bank's Industrials Conference in Chicago on Tuesday, August 11, 2026. Mike Stepniak, senior vice president and chief financial officer, will present from 9:00 a.m. - 9:45 a.m. CDT. Presentation Materials / Webcast Details Real-time webcasts of the presentations can be accessed at investor.honeywell.com, where related materials will be posted following presentations and a replay o.
Kenneth J. West, Pres/CEO Process Technologies of Honeywell International Inc. (HON -0.77%), sold 17,032 shares of common stock at $243.77 per share on July 27, 2026, as disclosed in an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$4.2 millionShares sold17,032Post-transaction shares (directly held)2,132Post-transaction shares (indirectly held)373Post-transaction value$615,603.75Transaction value based on SEC Form 4 weighted average sale price ($243.77); post-transaction value based on July 27, 2026, market close ($245.75).
Key questionsWhat was the structural nature of this disposition?
The transaction was a cash-out of equity compensation in which the executive exercised options that were either fully vested or part of a multi-year vesting schedule, immediately realizing the spread between the $200.61 exercise price and the $243.77 sale price.How does this affect the executive's total ownership interest?
Kenneth J. West reduced direct common stock ownership by 89%, though the executive retains 2,132 shares held directly, 373 shares held indirectly through a 401(k) plan, and 4,867 derivative securities in the form of employee stock options.What is the valuation context for the remaining position?
The total beneficial ownership is valued at $618,860 based on the July 28, 2026, market close of $247.05, representing an insider ownership stake of 0.0008% in the company.Company OverviewMetricValueShare Price (as of market close 2026-07-28)$247.05Market Capitalization$78.3 billionRevenue (TTM)$36.1 billionNet Income (TTM)$8.2 billionCompany SnapshotHoneywell International Inc. operates as a diversified global technology and manufacturing conglomerate, with primary revenue derived from its Aerospace division, which supplies critical components, including auxiliary power units, propulsion systems, integrated avionics, environmental control systems, and electrical power solutions for the aviation and space industries.The company generates revenue through the design, manufacture, and distribution of advanced technology products and systems across multiple industrial segments, including aerospace, building technologies, performance materials and technologies, and safety and productivity solutions.Honeywell serves a broad customer base encompassing commercial and regional airlines, aircraft manufacturers, defense and space agencies, building owners and operators, industrial enterprises, and automotive manufacturers across global markets.Honeywell International Inc. is a global industrial conglomerate with a market capitalization of $78.3 billion and TTM revenues of $36.1 billion, employing approximately 101,000 personnel across diversified business segments. The company maintains a competitive advantage through its integrated portfolio of aerospace technologies, building management systems, and industrial solutions, supported by significant research and development capabilities. With a one-year stock price appreciation of 9.59%, Honeywell demonstrates strong market performance and investor confidence in its diversified business model and operational execution.
What this transaction means for investorsAn executive at Honeywell International (HON) sold 17,032 shares on July 27, 2026. Here are some key takeaways for investors.
To start, it’s always important to recall that insiders can sell for many reasons, many of which have nothing to do with their view on the stock’s short-term price action. For example, some insiders sell as part of a long-term estate planning strategy. Others sell for tax purposes. Some may simply want to make a large charitable donation. In other words, context is key, along with a solid understanding of how the company is actually performing.
As for Honeywell, the company’s stock has underperformed in recent years. Since 2021, Honeywell stock has generated a total return of only 16%, with a compound annual growth rate (CAGR) of 3.1%. The S&P 500, meanwhile, has delivered an 81% total return, with a 12.6% CAGR.
However, there are signs that Honeywell might be turning a corner. The company recently reported positive second-quarter results. The company beat earnings estimates and raised full-year guidance.
While Honeywell still has much to prove, investors seeking exposure to an iconic industrial stock, might want to give the company a closer look.
Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Honeywell Technologies. The Motley Fool has a disclosure policy.
Honeywell International Inc (NYSE:HON, XETRA:ALD) was upgraded to ‘Neutral’ from ‘Underperform’ by Bank of America, which raised its price objective to $265 from $220, above current levels of $247, following a second quarter performance that exceeded expectations and improved visibility into the company's growth outlook.
The analysts highlighted stronger execution, broad-based order growth and increased 2026 guidance as key factors behind the rating change.
"Honeywell Technologies delivered a broad-based Q2 beat and raised its 2026 organic growth, segment margin and adjusted EPS guidance," the analysts wrote. "The more important takeaway, in our view, was broad-based order strength across all three segments."
Bank of America said the results helped ease previous concerns around aerospace execution, inconsistent operational performance and limited growth visibility.
"We are more positive following the quarter, as improving execution supports the earnings ramp while management's cautious initial approach to guiding the new company appears to leave some contingency in the outlook and room for positive revisions into the year end," the analysts wrote.
Honeywell reported total orders of $5.7 billion, up 16% organically, with a book-to-bill ratio above 1.1x and backlog increasing 9%. Orders rose 24% organically in Performance Aerospace & Technologies, 13% in Building Automation and 10% in Industrial Automation.
Bank of America said the order growth supports Honeywell's outlook for 4% to 6% organic growth in both the third and fourth quarters, with backlog conversion expected to accelerate in Performance Aerospace & Technologies and Industrial Automation growth improving in the second half.
The firm raised its 2026 adjusted EPS estimate to $8.25 from $8.05 and increased its segment margin forecast to 20.3% from 20.1%, while maintaining its revenue estimate at $20.1 billion. Bank of America expects continued strength in Building Automation, improving growth in Performance Aerospace & Technologies and higher Industrial Automation margins into 2027.
Honeywell International Inc (NYSE:HON, XETRA:ALD) was upgraded to ‘Neutral’ from ‘Underperform’ by Bank of America, which raised its price objective to $265 from $220, above current levels of $247, following a second quarter performance that exceeded expectations and improved visibility into the company's growth outlook.
The analysts highlighted stronger execution, broad-based order growth and increased 2026 guidance as key factors behind the rating change.
"Honeywell Technologies delivered a broad-based Q2 beat and raised its 2026 organic growth, segment margin and adjusted EPS guidance," the analysts wrote. "The more important takeaway, in our view, was broad-based order strength across all three segments."
Bank of America said the results helped ease previous concerns around aerospace execution, inconsistent operational performance and limited growth visibility.
"We are more positive following the quarter, as improving execution supports the earnings ramp while management's cautious initial approach to guiding the new company appears to leave some contingency in the outlook and room for positive revisions into the year end," the analysts wrote.
Honeywell reported total orders of $5.7 billion, up 16% organically, with a book-to-bill ratio above 1.1x and backlog increasing 9%. Orders rose 24% organically in Performance Aerospace & Technologies, 13% in Building Automation and 10% in Industrial Automation.
Bank of America said the order growth supports Honeywell's outlook for 4% to 6% organic growth in both the third and fourth quarters, with backlog conversion expected to accelerate in Performance Aerospace & Technologies and Industrial Automation growth improving in the second half.
The firm raised its 2026 adjusted EPS estimate to $8.25 from $8.05 and increased its segment margin forecast to 20.3% from 20.1%, while maintaining its revenue estimate at $20.1 billion. Bank of America expects continued strength in Building Automation, improving growth in Performance Aerospace & Technologies and higher Industrial Automation margins into 2027.
CHARLOTTE, N.C.--(BUSINESS WIRE)--Honeywell Technologies (NASDAQ: HON) today announced it has completed the sale of its Warehouse and Workflow Solutions (WWS) business to American Industrial Partners (AIP) in an all-cash transaction. The business operates commercially under the Intelligrated and Transnorm brands. The divestiture of WWS allows Honeywell Technologies to further focus on its pure-play automation portfolio in the Building, Industrial and Process end markets, and the long-term growt.
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
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.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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.
Shares in Honeywell Technologies (HON +5.70%) rose by as much as 7.4% in early trading today on the back of an excellent set of results that completely surprised investors and further supported the idea that the industrial sector is firmly in recovery mode in 2026.
Honeywell surprises the market In a nutshell, Honeywell Technologies beat revenue and earnings expectations across all three of its segments; namely, building automation, process automation and technology, and industrial automation in its second quarter. In addition, management raised its full-year 2026 guidance for organic sales, profit margin, and earnings per share.
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Moreover, readers should note that the previous guidance was issued in early June, ahead of the Honeywell Aerospace spinoff. This indicates a recent strengthening of its business, which is giving management cause for confidence.
Key highlights from the full-year 2026 guidance update on the earnings report:
Organic sales growth expected to be 3%-4% compared to prior guidance for 2%-3% Segment margin expected to be 20.1%-20.5% compared to prior guidance for 19.8%-20.3% Adjusted EPS expected to be $8.05-$8.35 compared to prior guidance for $7.90-$8.30 Why Honeywell raised guidance Discussing the reasons why Honeywell raised guidance so soon after the June update, CEO Vimal Kapur noted that " Orders grew 16% organically with broad-based demand across all segments, resulting in a 9% increase in ending backlog. Notably, short-cycle orders grew double-digit across all segments."
Image source: Getty Images.
The pickup in short-cycle orders is particularly interesting, as it implies continued momentum in the industrial sector through 2026, with the Institute for Supply Management Purchasing Managers' Index having indicated growth in every month in 2026. It also suggests the negative impact of the conflict in Iran hasn't derailed the manufacturing recovery this year as yet.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Honeywell Technologies. The Motley Fool has a disclosure policy.
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.
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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.
Key Takeaways HON beat Q2 estimates as automation strength drove revenue, earnings and orders growth. HON raised 2026 organic sales, segment margin and adjusted EPS outlook despite a lower sales forecast.Honeywell Technologies expects stronger Q3 and Q4 earnings, margins and organic sales growth. Honeywell Technologies (HON - Free Report) reported second-quarter 2026 adjusted earnings of $1.95 per share, which surpassed the Zacks Consensus Estimate of $1.80. The bottom line increased 10% year over year on an adjusted basis. On a reported basis, the company’s earnings were $16.65 per share compared with $1.21 in the year-ago quarter, reflecting the impact of a one-time gain related to the deconsolidation of Quantinuum.
Total revenues of $5.19 billion surpassed the consensus estimate of $4.98 billion. The top line increased 3% from the year-ago quarter, driven by strength in the Building Automation and Industrial Automation segments. Organic sales increased 4% year over year. Orders rose 16%, while backlog increased 9% to approximately $20 billion.
Including the Honeywell Aerospace business, Honeywell International reported total revenues of $9.72 billion in the second quarter of 2026, up 4% year over year from $9.32 billion.
HON’s Q2 Performance by Business SegmentFollowing the separation of Honeywell Aerospace on June 29, 2026, the company operates as a pure-play automation business under the segments discussed below.
Industrial Automation revenues declined 5% year over year to $1.50 billion. However, organic sales grew 4% year over year. Organic sales growth was driven by strength in utilities projects, warehouse backlog conversion, and sensing and industrial measurement businesses.
Building Automation revenues totaled $2 billion, up 10% year over year. Organic sales increased 9% year over year. The upside was driven by continued strength in both the building products and building solutions businesses. While sales from the building products business grew 10%, the same from the building solutions business increased 7%, driven by services.
Process Automation and Technology revenues increased 4% to $1.68 billion. However, organic sales fell 1% year over year. The results were driven by continued strength in LNG and a return to growth in automation projects. However, lower catalyst shipments compared with the year-ago quarter offset the gains.
Costs & Margins of HONIncluding the Honeywell Aerospace business, the company’s total cost of sales, comprising the cost of products and services sold, was about $6.07 billion, up 7.2% year over year. Selling, general and administrative expenses were $1.34 billion, down 1.3% year over year. Interest expenses and other financial charges were $363 million, reflecting an increase of 10.3% year over year.
Operating income was $1.74 billion, down 5.8% year over year. The operating income margin was 17.9% compared with 19.8% in the year-ago period.
Excluding the Honeywell Aerospace business, operating income was $662 million, down 0.6% year over year. The operating income margin was 12.8% compared with 13.3% in the year-ago period.
HON’s Balance Sheet & Cash FlowIncluding the Honeywell Aerospace business, HON had cash and cash equivalents of $8.75 billion at the end of the second quarter of 2026 compared with $12.49 billion at the end of December 2025. Long-term debt was $26.23 billion, lower than $27.14 billion at 2025-end.
Excluding the Honeywell Aerospace business, Honeywell Technologies generated $563 million in cash from continuing operating activities in the second quarter of 2026 compared with $187 million in the prior-year period. Capital expenditures totaled $187 million compared with $108 million in the prior-year quarter. Free cash flow was $456 million compared with $114 million in the year-ago quarter.
Q3 Guidance by HONFor the third quarter of 2026, Honeywell Technologies expects sales to be in the range of $4.9-$5 billion. Organic sales are expected to increase 4-6%.
HON expects a segment margin of 20-20.7%. The metric indicates an increase of 240-310 basis points year over year. Adjusted earnings per share are expected to be between $2.05 and $2.20. The metric indicates an increase of 21-29% on a year-over-year basis.
The adjusted effective tax rate is expected to be approximately 17%.
Q4 Guidance by HONFor the fourth quarter of 2026, Honeywell Technologies expects sales to be in the range of $5-$5.1 billion. Organic sales are expected to increase 4-6%.
HON expects a segment margin of 22-22.7%. The metric indicates an increase of 400-470 basis points year over year. Adjusted earnings per share are expected to be between $2.28 and $2.43. The metric indicates an increase of 25-33% on a year-over-year basis.
The adjusted effective tax rate is expected to be approximately 17%.
Honeywell’s 2026 OutlookFor 2026, Honeywell Technologies raised its organic sales growth, segment margin and adjusted earnings outlook. Excluding the Honeywell Aerospace business, the company expects sales to be in the range of $19.8-$20 billion compared with the previous projection of $19.9-$20.2 billion. The lower sales forecast reflects the earlier-than-expected divestitures of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses.
Organic sales are expected to increase 3-4%, up from the prior projection of 2-3%. HON expects a segment margin of 20.1-20.5%. The metric indicates an increase of 250-290 basis points year over year.
Adjusted earnings per share are expected to be between $8.05 and $8.35, up from the previous projection of $7.90-$8.30. The metric indicates an increase of 25-29% on a year-over-year basis.
Free cash flow is expected to be approximately $2 billion. The outlook includes the projected results of the Johnson Matthey Catalyst Technologies business following the completion of the acquisition on July 17, 2026.
HON’s Zacks Rank & Key PicksThe company currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks are discussed below.
3M Company (MMM - Free Report) currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MMM delivered a trailing four-quarter average earnings surprise of 4.1%. In the past 60 days, the Zacks Consensus Estimate for 3M’s 2026 earnings has increased 0.9%.
Applied Industrial Technologies (AIT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 4.0%.
The Zacks Consensus Estimate for AIT’s fiscal 2026 (ended June 2026) earnings has improved by a penny in the past 60 days.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.3%.
In the past 60 days, the consensus estimate for CR’s 2026 earnings has increased by 0.3%.
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
Vertical Aerospace: Pre-Flight Checks Point to a BreakoutHoneywell International NASDAQ: HON reported stronger-than-expected second-quarter 2026 results for its newly defined Honeywell Technologies business and raised its full-year outlook, citing broad order strength, margin expansion and momentum across its automation-focused portfolio.
Chairman and Chief Executive Officer Vimal Kapur said the quarter marked “an important milestone” as the company began operating as a pure-play automation company following the June 29 spin-off of Honeywell Aerospace. Senior Vice President of Investor Relations Mark Macaluso noted that the results and guidance discussed on the call exclude Honeywell Aerospace, remove pension income and Quantinuum from adjusted results, and reflect the impact of a one-for-two reverse stock split on adjusted earnings per share.
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Brady Corp Wires Up a Massive AI-Powered BreakoutKapur said Honeywell Technologies delivered 4% organic sales growth in the quarter, driven by continued strength in Building Automation and better-than-expected performance in Process Automation and Technology, or PA&T, and Industrial Automation. Organic orders rose 16%, while ending backlog increased 9%.
“Our results this quarter have demonstrated the strength of the new Honeywell Technologies portfolio,” Kapur said.
Second-Quarter Results Top Expectations Boarding Passes Now Being Issued for the Ultimate eVTOL ArbitrageChief Financial Officer Mike Stepniak said total sales grew 4% organically in the second quarter. Building Automation led the company’s growth with a 9% organic sales increase, supported by double-digit growth in products and continued strength in solutions. Stepniak said the segment saw double-digit growth in both fire and services, with regional strength led by Asia Pacific, the Middle East and the Americas.
Industrial Automation sales rose 4%, exceeding expectations, with strength in solutions and continued momentum in sensing and industrial measurement. Excluding planned divestitures, the core Industrial Automation business grew 2% organically.
Process Automation and Technology sales declined 1% organically, but Stepniak said the result was materially ahead of Honeywell’s prior outlook. Projects grew 5%, driven by gas, LNG and petrochemicals, while aftermarket sales declined 6% due largely to a tough comparison with a large catalyst shipment in the second quarter of 2025.
Segment profit increased 9%, and segment margin expanded 100 basis points to 19%. Building Automation margin rose 90 basis points to 27.1%, while Industrial Automation margin increased 90 basis points to 17.2%. PA&T margin contracted 180 basis points to 22.1% because of unfavorable mix from lower catalyst volumes, though Stepniak said that was also ahead of the company’s original margin outlook.
Adjusted earnings per share were $1.95, up 10% from the prior year. Stepniak said the increase was primarily driven by higher segment profit, lower net interest expense tied to debt paydown and a lower share count, partially offset by higher repositioning costs and a $0.16 headwind from a higher adjusted effective tax rate.
Honeywell Raises 2026 Guidance Honeywell raised its full-year organic sales growth outlook to 3% to 4%, up from previous guidance of 2% to 3%. The company now expects second-half organic growth of 4% to 6%, compared with its prior outlook of 3% to 5%.
Stepniak said Building Automation is expected to deliver mid-single-digit-plus organic growth, supported by strong orders in focus verticals including healthcare, hospitality and data centers. PA&T is expected to accelerate to high-single-digit growth in the second half as global energy projects resume, backlog conversion improves and catalyst shipment volumes rise significantly. Industrial Automation is also expected to grow in the second half, supported by short-cycle demand for industrial measurement and sensing, continued growth in Europe and China, and strengthening demand in the Americas.
The company also raised its full-year segment margin expansion outlook to 250 to 290 basis points, up 25 basis points at the midpoint. Stepniak said the improvement reflects second-quarter outperformance, progress on stranded cost elimination and accretion related to the accelerated timing of divestitures.
Honeywell now expects full-year adjusted EPS of $8.20 at the midpoint, up from $8.10 previously and approximately 27% higher than the prior year. The company maintained its expectation for roughly $2 billion of free cash flow in 2026, with most of that expected in the second half and an approximately 95% conversion rate.
Portfolio Transformation Advances Kapur said Honeywell completed the separation of Honeywell Aerospace and supported Quantinuum’s successful initial public offering in June. Honeywell retains a 47% ownership stake in Quantinuum, and Kapur said the company expects to provide more color on its plans for that stake by early next year.
The company also closed its acquisition of Johnson Matthey’s Catalyst Technologies business on July 17. Kapur said the business will become part of the PA&T segment and will expand Honeywell UOP’s capabilities across refining, petrochemicals and renewable fuels. He said the acquisition adds a differentiated technology portfolio and expands Honeywell’s installed base.
In response to an analyst question, Kapur said Honeywell acquired the business for commercial synergies, though the company is not counting those in the early stages. Stepniak added that Honeywell believes it acquired the business “at the bottom” and said second-half catalyst activity looks stronger, including within Honeywell’s own catalyst business.
Honeywell also expects to close divestitures of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses by early August, about two months ahead of its initial planning assumption. Kapur said the accelerated timing reduced 2026 revenue expectations by about $400 million but should sharpen focus and simplify the Industrial Automation portfolio.
Orders Strength and End-Market Trends Kapur highlighted broad-based order momentum across the company. PA&T orders rose 24% organically, with process technology orders up roughly 50%, producing a book-to-bill ratio above 1.2 for the segment. Total company book-to-bill was 1.1.
Building Automation orders were supported by high-growth verticals, where Kapur said orders rose more than 50% and organic sales grew 30%. The fire business also posted approximately 30% orders growth. In Industrial Automation, orders in the remaining core business after divestitures rose 11%, or 7% sequentially, while sensing and industrial measurement orders increased more than 20%.
On the Middle East, Kapur said Honeywell is assuming current conditions persist without a significant escalation or further supply chain disruption. He said the company experienced some revenue loss in the first and second quarters and modest collection issues in pockets, but no major disputes. Stepniak said most of the collection issues occurred in March and April and have started to normalize.
Asked about data centers, Kapur said Honeywell sees opportunities beyond fire, security and building management systems. He cited growth outside the U.S., on-site power generation that could involve Process Automation, and longer-term opportunities in liquid cooling sensors.
Long-Term Targets Reaffirmed Kapur said Honeywell’s strategy is centered on growing its installed base and monetizing it through software, services and outcome-based solutions. He said the company is increasing exposure to higher-growth verticals such as data centers, LNG, grid infrastructure and life sciences.
The company reiterated long-term goals discussed at its June Investor Day, including adjusted EPS of approximately $12, more than 10% annual adjusted EPS growth and free cash flow conversion above 90%. Kapur said margin expansion is expected to come from stranded cost removal, portfolio actions, an aerospace trademark agreement, price, mix, new product introductions and productivity.
“We are pleased with Honeywell Technologies’ second quarter results, which enabled us to increase our 2026 outlooks across all key metrics,” Kapur said. “Today is only the beginning of that journey.”
About Honeywell International (NASDAQ:HON)Honeywell International Inc is a diversified, publicly traded multinational conglomerate NASDAQ: HON that designs and manufactures a wide range of commercial and consumer products, engineering services and aerospace systems. The company operates through major business platforms that historically include Aerospace; Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. Its portfolio spans avionics and propulsion systems, building controls and HVAC equipment, process technologies and advanced materials, industrial automation software, and personal protective equipment and scanning solutions.
Honeywell's aerospace business supplies aircraft manufacturers and operators with engines and auxiliary power units, avionics, flight safety systems and aftermarket services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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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.
Honeywell International Inc. (HON - Free Report) came out with quarterly earnings of $1.95 per share, beating the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $5.5 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.33%. A quarter ago, it was expected that this company would post earnings of $4.62 per share when it actually produced earnings of $4.9, delivering a surprise of +6.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Honeywell International, which belongs to the Zacks Diversified Operations industry, posted revenues of $5.19 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.19%. This compares to year-ago revenues of $10.35 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Honeywell International shares have lost about 40.3% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Honeywell International?While Honeywell International has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Honeywell International was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.25 on $5.33 billion in revenues for the coming quarter and $10.34 on $20.04 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Diversified Operations is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, ITT (ITT - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This supplier of parts and services to a wide variety of industries is expected to post quarterly earnings of $1.93 per share in its upcoming report, which represents a year-over-year change of +17.7%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level.
ITT's revenues are expected to be $1.39 billion, up 43.3% from the year-ago quarter.
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 logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 23 (Reuters) - Honeywell Technologies (HON.O), opens new tab raised its full-year 2026 profit forecast on Thursday, helped by resilient demand for its industrial and building automation products, even as quarterly profit missed analysts' expectations.
Shares of the company, which reported its first earnings as a standalone company after a three-way split, rose 1.6% before the bell.
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Adjusted profit for the quarter rose 10% from a year ago to $4.52 per share, compared with analysts' estimate of $4.81, according to data compiled by LSEG.
The company now expects annual adjusted earnings per share of $8.05 to $8.35, compared with last month's forecast of $7.90 to $8.30.
Management last month laid out a plan to increase organic sales by expanding in areas such as data centers, semiconductors, LNG, grid infrastructure, life sciences, healthcare and hospitality.
The company now sees full-year sales of $19.8 billion to $20.0 billion and organic sales growth of 3% to 4%.
Second-quarter sales rose 4% to $9.72 billion, coming above analysts' estimate of $9.51 billion.
In February 2025, Honeywell said it would separate into three standalone companies focused on automation, aerospace and advanced materials.
Honeywell Aerospace (HONA.O), opens new tab was spun off in June, while the advanced materials business was previously separated as Solstice Advanced Materials (SOLS.O), opens new tab, leaving Honeywell Technologies as a pure-play automation company focused on industrial, process and building technologies.
Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Tasim Zahid
Our Standards: The Thomson Reuters Trust Principles., opens new tab
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.
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