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Key Takeaways Honeywell lifts 2026 EPS guidance to $8.40-$8.45 and organic sales growth outlook to 4-5%.HON's backlog climbs 7% to nearly $19 billion, driven by resilient orders and expanding energy projects.Honeywell's segment margin expands 370 basis points, supported by pricing, productivity and cost reductions.
Honeywell International Inc. (HON - Free Report) raised its 2026 outlook after its first quarter as a stand-alone automation company, emphasizing stronger orders, productivity gains and improving cash generation.

On the third-quarter earnings call, management highlighted an expanding energy-project backlog and an Industrial Automation recovery while addressing questions about project margins, inflation and growth sustainability.

Honeywell Raises Full-Year TargetsSenior vice president and CFO Mike Stepniak raised 2026 adjusted earnings guidance to $8.40-$8.45 per share from $8.05-$8.35, lifting the midpoint by 23 cents. Expected organic sales growth increased to 4-5% from 3-4%.

The company now targets $20.0-$20.1 billion in sales and approximately $2.1 billion in free cash flow. Its segment margin outlook is approximately 20.5%, at the upper end of the previous range.

For the fourth quarter, Stepniak projected 5-6% organic growth and adjusted earnings of $2.42-$2.47 per share. Responding to Deutsche Bank, he characterized the growth outlook as conservative rather than evidence of weakening demand.

HON Sees Resilient Orders and BacklogChairman and CEO Vimal Kapur said short-cycle orders increased 8%, excluding divested businesses, supported by Building Automation products and industrial sensing. Backlog rose 7% to nearly $19 billion on the same basis.

Kapur explained that large energy awards distorted year-over-year comparisons. Excluding a major prior-year award, third-quarter organic orders increased 3%.

When asked by Wolfe Research about fourth-quarter bookings, Kapur said the first three weeks of October met or exceeded expectations. Management anticipates high-single-digit underlying order growth after adjusting for another large prior-year award.

Honeywell Expects a Multiyear Process UpcycleProcess Automation and Technology generated 8% organic sales growth, including 14% growth in projects. Kapur highlighted investments in LNG, refining and petrochemicals across several regions.

He said the segment's backlog grew double digits, with more than $1 billion in incremental energy orders since the first quarter. Additional catalyst and lifecycle service opportunities could follow initial project installations.

JPMorgan questioned margin pressure from project mix and the Johnson Matthey Catalyst Technologies acquisition. Stepniak projected margins near 21.5% in the fourth quarter and similar levels in early 2027, followed by stronger expansion as integration progresses and catalyst mix improves.

HON Details Industrial Recovery and Building DemandIndustrial Automation posted 4% organic growth and expanded segment margin 350 basis points to 18.4%. Kapur told JPMorgan that improved deliveries and new products underpin management's expectation of mid-single-digit growth in 2027.

Utility meter rollout delays remain an issue. Answering Deutsche Bank, Kapur said customer testing could take six to nine months before broader deployments begin.

Building Automation delivered its eighth consecutive quarter of high-single-digit organic growth. During questions from Melius Research, Kapur credited fire and security product innovation, connected offerings and data center demand for continued momentum.

Honeywell Balances Pricing, Costs and Cash FlowStepniak attributed the company's 370-basis-point segment margin expansion to pricing, productivity, volume leverage and stranded-cost removal. He expects all remaining stranded costs to be eliminated by year-end.

Wells Fargo pressed management about inflation. Stepniak said pricing averaged 3.5% in the first half and should average 4.5% in the second half, with price-cost remaining slightly positive.

Free cash flow reached approximately $690 million, with 95% conversion. Stepniak anticipates conversion above 100% in the fourth quarter, while planned repayments should bring year-end gross debt below $13 billion.

HON Broadens Its Automation OpportunitiesKapur told Melius Research that Forge-related recurring revenues are approaching $1 billion in 2026. The platform supports service contracts, connected products and stand-alone software subscriptions.

Answering Citigroup, he described data centers as an opportunity spanning building controls, power systems and industrial sensing, including emerging liquid-cooling applications.

Kapur maintained that debt reduction comes before acquisitions. He identified sensing and measurement as the highest-priority area for potential deals beginning in 2027.

Honeywell Focuses on Execution Into 2027Management's message focused on converting the existing backlog, sustaining short-cycle demand and delivering further productivity.

Kapur expressed confidence that growth will meet or exceed the company's longer-term framework in 2027, though executives reserved detailed annual guidance for February.

What HON's Zacks Rank and Style Scores IndicateHON carries a Zacks Rank #3 (Hold), indicating a neutral near-term ranking. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Value Score is C, Growth Score is F, and Momentum Score is D, reflecting mixed valuation characteristics and weaker growth and momentum.

The combined VGM Score of F reflects unfavorable overall alignment across the three investing styles. These ratings fall short of the preferred combination of a Zacks Rank #1 or #2 with an A or B Style Score. The Zacks Rank can change as analysts revise earnings estimates following the latest results.

Honeywell CEO and Chairman Vimal Kapur discusses addressing cyber vulnerabilities, the Forge Cognition AI platform, the company's third-quarter earnings report and more on 'The Claman Countdown.' 00:00 Global Cyber Hacking and Infrastructure Risks 01:18 How AI Tools are Exposing New Vulnerabilities 02:31 Defining Physical AI in the Industrial Context 03:31 AI Partnerships with Nvidia, Dell, and Google 05:03 Honeywell Earnings Analysis & 2027 Outlook

Honeywell International Inc. (HON) Q3 2026 Earnings Call Transcript

Honeywell International Inc. (HON - Free Report) came out with quarterly earnings of $2.27 per share, beating the Zacks Consensus Estimate of $2.17 per share. This compares to earnings of $5.64 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +4.61%. A quarter ago, it was expected that this company would post earnings of $1.8 per share when it actually produced earnings of $1.95, delivering a surprise of +8.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Honeywell International, which belongs to the Zacks Diversified Operations industry, posted revenues of $4.99 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.42%. This compares to year-ago revenues of $10.41 billion. The company has topped consensus revenue estimates just once 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 45% since the beginning of the year versus the S&P 500's gain of 13.3%.

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 #4 (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 $2.41 on $5.28 billion in revenues for the coming quarter and $8.27 on $20.19 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 top 22% 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.

One other stock from the same industry, ITT (ITT - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on November 4.

This supplier of parts and services to a wide variety of industries is expected to post quarterly earnings of $2.07 per share in its upcoming report, which represents a year-over-year change of +16.3%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level.

ITT's revenues are expected to be $1.41 billion, up 40.9% from the year-ago quarter.

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

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

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

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

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

Management Commentary

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

Table 1: Summary of Financial Results

(Dollars in millions, except per share amounts)

  3Q 2026

3Q 2025

Change

Sales

$4,994

$4,929

1%

Organic1 Growth

7%

Operating Income

$740

$413

79%

Operating Income Margin

14.8%

8.4%

640 bps

Segment Profit1

$1,062

$866

23%

Segment Margin1

21.3%

17.6%

370 bps

Earnings Per Share - Continuing Operations

$2.40

$2.99

(20%)

Adjusted Earnings Per Share1

$2.27

$1.70

34%

Cash Flow from Operations - Continuing Operations

$607

$2,306

(74%)

Free Cash Flow1,4

$688

$599

15%

Table 2: Summary of Segment Financial Results

(Dollars in millions)

  BUILDING AUTOMATION

3Q 2026

3Q 2025

Change

Sales

$2,020

$1,878

8%

Organic1 Growth

8%

Segment Profit

$546

$502

9%

Segment Margin

27.0%

26.7%

30 bps

PROCESS AUTOMATION AND TECHNOLOGY

Sales

$1,859

$1,598

16%

Organic1 Growth

8%

Segment Profit

$412

$389

6%

Segment Margin

22.2%

24.3%

(210) bps

INDUSTRIAL AUTOMATION

Sales

$1,115

$1,450

(23%)

Organic1 Growth

4%

Segment Profit

$205

$216

(5%)

Segment Margin

18.4%

14.9%

350 bps

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

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

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

Table 3: Full-Year 2026 Guidance1

  Previous Guidance

Current Guidance

Sales

$19.8B - $20.0B

$20.0B - $20.1B

Organic Growth

3% - 4%

4% - 5%

Segment Margin2

20.1% - 20.5%

~20.5%

Expansion

Up 250 - 290 bps

Up ~290 bps

Adjusted Earnings Per Share2,3

$8.05 - $8.35

$8.40 - $8.45

Adjusted Earnings Growth3

25% - 29%

30% - 31%

Operating Cash Flow

~$2.1B

~$2.1B

Free Cash Flow4

~$2.0B

~$2.1B

1

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

2

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

3

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

4

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

Revised 2026 Guidance

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

Conference Call Details

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

About Honeywell Technologies

Honeywell Technologies is a global, pure-play automation company with a legacy of innovating to help solve the world's most mission-critical challenges, enhancing the quality of life for people and communities around the world. We serve the building, industrial, and process sectors with a broad portfolio of services, solutions, and products, underpinned by our Honeywell Technologies Accelerator operating system and Honeywell Technologies Forge intelligence layer. By combining the deep domain expertise of our more than 50,000 employees with decades of data from our global installed base, we are uniquely positioned to lead the industrial sector's transition from automation to autonomy. For more news and information on Honeywell Technologies, please visit Honeywell Technologies Newsroom.

Additional Information

Honeywell Technologies uses our Investor Relations website, investor.honeywell.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media.

Forward Looking Statements

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

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

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

Source: Honeywell Technologies

Earnings (HON-ER)

Honeywell International Inc.

Consolidated Statement of Operations (Unaudited)

(Dollars in millions, except per share amounts)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Product sales

$

3,628

$

3,573

$

10,856

$

10,724

Service sales

1,366

1,356

4,148

3,979

Net sales

4,994

4,929

15,004

14,703

Costs, expenses and other

Cost of products sold

2,127

2,041

6,421

6,179

Cost of services sold

849

1,114

2,593

2,749

Total Cost of products and services sold

2,976

3,155

9,014

8,928

Research and development expenses

239

268

825

774

Selling, general and administrative expenses

1,039

1,093

3,078

3,372

Impairment of assets held for sale

—

—

311

15

Loss on debt extinguishment

—

—

241

—

Gain on deconsolidation of subsidiary

—

—

(6,629

)

—

Other (income) expense

(389

)

(957

)

(301

)

(1,124

)

Interest and other financial charges

143

263

579

715

Total costs, expenses and other

4,008

3,822

7,118

12,680

Income from continuing operations before taxes and equity losses

986

1,107

7,886

2,023

Tax expense

60

153

1,378

427

Equity loss

147

—

412

—

Net income from continuing operations

779

954

6,096

1,596

Net (loss) income from discontinued operations

(103

)

905

1,061

3,299

Net income

676

1,859

7,157

4,895

Less: Net (loss) income attributable to noncontrolling interest

12

34

(10

)

51

Net income attributable to Honeywell Technologies

$

664

$

1,825

$

7,167

$

4,844

Earnings per share of common stock—basic:

Earnings per share of common stock from continuing operations—basic

$

2.42

$

3.01

$

19.30

$

5.02

Earnings per share of common stock from discontinued operations—basic

(0.33

)

2.73

3.29

10.11

Total earnings per share of common stock—basic

$

2.09

$

5.74

$

22.59

$

15.13

Earnings per share of common stock—assuming dilution:

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

$

2.40

$

2.99

$

19.19

$

4.99

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

(0.32

)

2.72

3.27

10.05

Total earnings per share of common stock—assuming dilution

$

2.08

$

5.71

$

22.46

$

15.04

Weighted average number of shares outstanding - basic

317.5

317.7

317.3

320.2

Weighted average number of shares outstanding - assuming dilution

319.2

319.4

319.1

322.0

Honeywell International Inc.

Segment Data (Unaudited)

(Dollars in millions)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

Net sales

2026

2025

2026

2025

Building Automation

$

2,020

$

1,878

$

5,904

$

5,396

Process Automation and Technology

1,859

1,598

5,051

4,656

Industrial Automation

1,115

1,450

4,039

4,627

Total Segment sales

4,994

4,926

14,994

14,679

Quantinuum

—

3

10

24

Total Net sales

$

4,994

$

4,929

$

15,004

$

14,703

Reconciliation of Segment Profit to Income Before Taxes

  Three Months Ended
September 30,

Nine Months Ended
September 30,

Segment profit

2026

2025

2026

2025

Building Automation

$

546

$

502

$

1,584

$

1,421

Process Automation and Technology

412

389

1,142

1,088

Industrial Automation

205

216

703

704

Corporate and All Other

(101

)

(241

)

(438

)

(650

)

Total Segment profit

1,062

866

2,991

2,563

Interest and other financial charges

(143

)

(263

)

(579

)

(715

)

Interest income1

50

85

207

247

Amortization of acquisition-related intangibles2

(131

)

(135

)

(352

)

(364

)

Impairment of assets held for sale

—

—

(311

)

(15

)

Stock compensation expense3

(104

)

(22

)

(182

)

(115

)

Pension ongoing income4

90

75

263

151

Other postretirement income4

2

3

6

11

Repositioning and other gains (charges)5

(17

)

581

(133

)

516

Loss on debt extinguishment

—

—

(241

)

—

Divestiture-related costs6

(94

)

(25

)

(489

)

(70

)

Gain on deconsolidation of subsidiary

—

—

6,629

—

Equity loss

(147

)

—

(412

)

—

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

339

—

345

(30

)

Other expense7

(68

)

(18

)

(128

)

(36

)

Quantinuum Loss8

—

(40

)

(140

)

(120

)

Income before taxes

$

839

$

1,107

$

7,474

$

2,023

1

Amounts included in Other (income) expense.

2

Amounts included in Cost of products and services sold.

3

Amounts included in Selling, general and administrative expenses.

4

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

5

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

6

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

7

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

8

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

Honeywell International Inc.

Consolidated Balance Sheet (Unaudited)

(Dollars in millions)

  September 30, 2026

December 31, 2025

Assets

Current assets

Cash and cash equivalents

$

5,694

$

12,273

Short-term investments

492

443

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

5,086

4,429

Inventories

2,056

1,677

Assets held for sale

—

2,492

Other current assets

988

841

Current assets of discontinued operations

—

8,232

Total current assets

14,316

30,387

Equity method investments

7,273

195

Long-term receivables and other investments

1,114

1,113

Property, plant and equipment—net

2,706

2,466

Goodwill

17,561

18,054

Other intangible assets—net

5,442

5,161

Deferred income taxes

199

156

Other assets

4,487

4,537

Assets of discontinued operations

—

11,612

Total assets

$

53,098

$

73,681

Liabilities

Current liabilities

Accounts payable

$

3,592

$

3,434

Commercial paper and other short-term borrowings

2,424

5,893

Current maturities of long-term debt

3,783

1,541

Accrued liabilities

5,112

5,063

Liabilities held for sale

—

1,198

Current liabilities of discontinued operations

—

6,285

Total current liabilities

14,911

23,414

Long-term debt

10,386

27,137

Deferred income taxes

1,561

815

Postretirement benefit obligations other than pensions

80

111

Other liabilities

3,506

3,986

Liabilities of discontinued operations

—

3,188

Shareowners' equity

22,654

15,030

Total liabilities and shareowners’ equity

$

53,098

$

73,681

Honeywell International Inc.

Consolidated Statement of Cash Flows (Unaudited)

(Dollars in millions)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Cash flows from operating activities

Net income

$

676

$

1,859

$

7,157

$

4,895

Less: Net income from discontinued operations

(103

)

905

1,061

3,299

Net income from continuing operations

779

954

6,096

1,596

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

Depreciation

70

72

215

206

Amortization

186

176

483

510

Gain on deconsolidation of subsidiary

—

—

(6,629

)

—

Equity loss (income) of affiliated companies

157

(2

)

397

(14

)

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

(346

)

—

(351

)

29

Impairment of assets held for sale

—

—

311

15

Loss on debt extinguishment

—

—

241

—

Repositioning and other charges

13

(583

)

133

(516

)

Net payments for repositioning and other charges

(21

)

(93

)

(119

)

(307

)

Resideo indemnification and reimbursement agreement termination payment

—

1,590

—

1,590

Pension and other postretirement income

(91

)

(80

)

(268

)

(164

)

Pension and other postretirement benefit payments

3

(3

)

(6

)

(13

)

Stock compensation expense

104

23

182

115

Deferred income taxes

(533

)

(142

)

687

(248

)

Other

(322

)

(56

)

(2

)

(362

)

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

Accounts receivable

(217

)

93

(546

)

(344

)

Inventories

(18

)

(23

)

(50

)

(297

)

Other current assets

126

4

(206

)

(168

)

Accounts payable

(178

)

196

44

376

Accrued liabilities

1,019

(112

)

567

510

Income taxes

(124

)

292

(247

)

96

Net cash provided by operating activities from continuing operations

607

2,306

932

2,610

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

(488

)

982

(189

)

2,594

Net cash provided by operating activities

119

3,288

743

5,204

Cash flows from investing activities

Capital expenditures

(77

)

(150

)

(369

)

(375

)

Increase in investments

(266

)

(384

)

(771

)

(1,064

)

Decrease in investments

215

295

728

1,047

Receipts (payments) from settlements of derivative contracts

(2

)

12

123

(403

)

Cash paid for acquisitions, net of cash acquired

(1,743

)

(38

)

(1,763

)

(2,201

)

Deconsolidation of subsidiary cash

—

—

(623

)

—

Proceeds from sale of business, net of cash transferred

1,448

—

1,454

1,157

Net cash used for investing activities from continuing operations

(425

)

(265

)

(1,221

)

(1,839

)

Net cash used for investing activities from discontinued operations

—

(223

)

(252

)

(529

)

Net cash used for investing activities

(425

)

(488

)

(1,473

)

(2,368

)

Cash flows from financing activities

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

4,502

7,308

12,413

19,171

Payments of commercial paper and other short-term borrowings

(4,558

)

(6,721

)

(15,882

)

(16,711

)

Proceeds from issuance of common stock

47

42

246

140

Proceeds from issuance of long-term debt

—

—

—

4,035

Payments of long-term debt

(1,501

)

(246

)

(14,688

)

(1,555

)

Repurchases of common stock

—

(100

)

(1,000

)

(3,704

)

Cash dividends paid

(240

)

(735

)

(1,816

)

(2,214

)

Pre-separation funding

—

—

15,835

—

Spin-off cash

(1,000

)

—

(1,000

)

—

Other

(21

)

233

(125

)

198

Net cash used for financing activities

(2,771

)

(219

)

(6,017

)

(640

)

Effect of foreign exchange rate changes on cash and cash equivalents

22

—

(46

)

167

Net (decrease) increase in cash and cash equivalents

(3,057

)

2,581

(6,793

)

2,363

Cash and cash equivalents at beginning of period

8,751

10,349

12,487

10,567

Cash and cash equivalents at end of period

$

5,694

$

12,930

$

5,694

$

12,930

Appendix

Non-GAAP Financial Measures

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

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

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

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

Honeywell International Inc.

Reconciliation of Organic Sales Percent Change

(Unaudited)

  Three Months Ended
September 30, 2026

Honeywell Technologies

Reported sales percent change

1%

Less: Impact of divestitures to the prior period

(8)%

Reported sales percent change, adjusted for impact of divestitures

9%

Less: Foreign currency translation

—%

Less: Acquisitions

2%

Less: Other

—%

Organic sales percent change

7%

Building Automation

Reported sales percent change

8%

Less: Impact of divestitures to the prior period

—%

Reported sales percent change, adjusted for impact of divestitures

8%

Less: Foreign currency translation

—%

Less: Acquisitions

—%

Less: Other

—%

Organic sales percent change

8%

Process Automation and Technology

Reported sales percent change

16%

Less: Impact of divestitures to the prior period

—%

Reported sales percent change, adjusted for impact of divestitures

16%

Less: Foreign currency translation

—%

Less: Acquisitions

8%

Less: Other

—%

Organic sales percent change

8%

Industrial Automation

Reported sales percent change

(23)%

Less: Impact of divestitures to the prior period

(27)%

Reported sales percent change, adjusted for impact of divestitures

4%

Less: Foreign currency translation

—%

Less: Acquisitions

—%

Less: Other

—%

Organic sales percent change

4%

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

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

Honeywell International Inc.

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

(Unaudited)

(Dollars in millions)

  Three Months Ended
September 30,

Twelve Months
Ended
December 31,

2026

2025

2025

Operating income

$

740

$

413

$

1,171

Stock compensation expense1

104

22

153

Repositioning, other2,3

20

223

390

Pension and other postretirement service costs4

13

14

57

Amortization of acquisition-related intangibles5

131

135

509

Acquisition-related costs6

7

9

2

Divestiture-related costs7

2

—

—

ERP implementation costs1

9

—

—

Indefinite-lived intangible asset impairment1

—

—

44

Impairment of goodwill

—

—

724

Impairment of assets held for sale

—

—

270

Loss on Quantinuum8

—

50

187

Trademark licensing income9

36

—

—

Segment profit

$

1,062

$

866

$

3,507

Operating income

$

740

$

413

$

1,171

÷ Segment sales

4,994

4,929

19,915

Operating income margin %

14.8

%

8.4

%

5.9

%

Segment profit

$

1,062

$

866

$

3,507

÷ Segment sales

4,994

4,929

19,915

Segment profit margin %

21.3

%

17.6

%

17.6

%

1

Included in Selling, general and administrative expenses.

2

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

3

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

4

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

5

Included in Cost of products and services sold.

6

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

7

Included in Selling, general and administrative expenses.

8

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

9

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

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

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

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

Honeywell International Inc.

Reconciliation of Earnings per Share to Adjusted Earnings per Share

(Unaudited)

  Three Months Ended
September 30,

Twelve Months Ended
December 31,

2026

2025

2025

2026(E)

Earnings per share of common stock from continuing operations - diluted1

$

2.40

$

2.99

$

3.24

$21.88 - $21.93

Pension income2

(0.21

)

(0.18

)

(0.13

)

No Forecast

Amortization of acquisition-related intangibles3

0.32

0.32

1.20

1.20

Acquisition-related costs4

0.10

0.05

0.11

0.12

Divestiture-related costs5

(0.04

)

0.57

0.81

No Forecast

Debt restructuring costs6

—

—

—

0.71

ERP implementation costs7

0.02

—

—

0.08

Impairment of assets held for sale8

—

—

0.65

0.74

Indefinite-lived intangible asset impairment9

—

—

0.14

—

Impairment of goodwill10

—

—

2.25

—

(Gain) loss on sale of business11

(0.67

)

—

0.09

(0.69)

Gain related to Resideo indemnification and reimbursement agreement termination12

—

(2.51

)

(2.50

)

—

Adjustment to estimated future environmental liabilities13

—

0.07

0.07

—

Loss on settlement of divestiture of asbestos liabilities14

—

0.35

0.35

—

Impact of Russia-Ukraine conflict15

—

—

—

0.02

Gain on deconsolidation of Quantinuum16

—

—

—

(15.83)

Equity loss of Quantinuum17

0.35

—

—

No Forecast

Loss on Quantinuum18

—

0.04

0.18

0.17

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

$

2.27

$

1.70

$

6.46

$8.40 - 8.45

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

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

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

15

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

16

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

17

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

18

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

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

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

Honeywell International Inc.

Reconciliation of Cash Provided by Operating Activities to Free Cash Flow

(Unaudited)

(Dollars in millions)

  Three Months
Ended
September 30,
2026

Three Months
Ended
September 30,
2025

Twelve Months
Ended
December 31,
2026(E)

Cash provided by operating activities from continuing operations

$

607

$

2,306

$

2.1

Capital expenditures

(77

)

(150

)

~(0.6)

Separation-related cost payments

158

2

~0.5

Quantinuum

—

31

~0.1

Resideo indemnification and reimbursement agreement termination payment

—

(1,590

)

—

Free cash flow

$

688

$

599

~$2.1

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

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

Honeywell International Inc.

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

(Dollars in millions)

  Three Months
Ended
September 30,
2026

Cash provided by operating activities from continuing operations

$

607

Capital expenditures

(77

)

Separation-related cost payments

158

Free cash flow

$

688

Net income attributable to Honeywell Technologies from continuing operations

$

767

Pension income1

(67

)

Amortization of acquisition-related intangibles2

102

Acquisition-related costs3

31

Divestiture-related costs4

(12

)

ERP implementation costs5

7

Gain on sale of business6

(216

)

Equity loss of Quantinuum7

112

Adjusted net income attributable to Honeywell Technologies

$

724

Cash provided by operating activities from continuing operations

$

607

÷ Net income attributable to Honeywell Technologies from continuing operations

$

767

Operating cash flow conversion %

79

%

Free cash flow

$

688

÷ Adjusted net income attributable to Honeywell Technologies

$

724

Adjusted free cash flow conversion %

95

%

1

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

2

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

3

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

4

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

5

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

6

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

7

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

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

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

More News From Honeywell Technologies

Honeywell Technologies raised its full-year outlook on the back of what Chief Executive Vimal Kapur called strong results in its first quarter as a standalone company.

For the second straight week, five of the 30 components in the Dow Jones Industrial Average will report quarterly financial results. This week's list includes several of the index's worst performers.

Key Takeaways Honeywell Technologies is expected to report Q3 revenues of $5.01 billion and EPS of $2.17.Process Automation weakness, divestitures, rising costs and a stronger dollar may weigh on results.Building Automation sales are expected to grow 7%, driven by building projects and data center demand. Honeywell Technologies (HON - Free Report) is scheduled to release third-quarter 2026 results on Oct. 22, before market open.

The Zacks Consensus Estimate for HON’s third-quarter revenues is pegged at $5.01 billion, indicating a decline of 51.8% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $2.17 per share, which has decreased a penny in the past 30 days. The figure indicates a decline of 61.5% from the year-ago quarter's figure.

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

The company delivered better-than-expected results in each of the trailing four quarters, the earnings surprise being 6.7% on average. In the last reported quarter, its bottom line beat the consensus estimate by 8.3%.

Let us see how things have shaped up for Honeywell Technologies this earnings season.

Factors Likely to Have Shaped HON’s Quarterly PerformanceHoneywell Technologies’ Process Automation and Technology segment is expected to have put up a weak show in the quarter due to softness in the aftermarket business with lower refining catalyst shipments and project delays. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions is likely to have hurt the segment’s performance in the third quarter.

Honeywell Technologies’ Industrial Automation Solutions segment is expected to have witnessed a year-over-year decrease in revenues due to the divestment of its Personal Protective Equipment business. For the third quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $1.19 billion, indicating a 47.6% decrease from the year-ago reported number.

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

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

However, healthy demand for its products and solutions, led by increasing building projects across the Americas, India and the Middle East, is expected to drive the Building Automation segment’s results. Increasing order rates and capex investments in data centers and health care projects are likely to have been a tailwind as well. For the third quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $2.01 billion, indicating a 7% rise from the year-ago reported number.

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

Earnings ESP: HON has an Earnings ESP of -0.44% as the Most Accurate Estimate is pegged at $2.16 per share, which is lower than the Zacks Consensus Estimate of $2.17. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: HON currently carries a Zacks Rank #4 (Sell).

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

Stocks With the Favorable CombinationStanley Black & Decker, Inc. (SWK - Free Report) has an Earnings ESP of +2.55% and a Zacks Rank of 2 at present. The company is slated to release third-quarter 2026 results on Nov. 4.

Stanley Black’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.3%.

Deere & Company (DE - Free Report) has an Earnings ESP of +3.59% and a Zacks Rank of 3 at present. The company is slated to release third-quarter 2026 results on Nov. 25.

Deere & Company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 11.1%.

Allegion plc (ALLE - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank of 3 at present. The company is slated to release third-quarter 2026 results on Oct. 22.

Allegion’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing the mark in the other, the average surprise being 1%.

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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 introduced Forge Cognition, a self-contained agentic AI and simulation platform for facility operations—developed with technology from NVIDIA and Dell Technologies—across a range of physical environments, such as buildings, campuses and industrial operations. Facility teams must sift through alarms and equipment data to identify problems, plan maintenance and manage energy use. Forge Cognition combines real-time digita.

Investors looking for stocks in the Diversified Operations sector might want to consider either Marubeni Corp. (MARUY - Free Report) or Honeywell International Inc. (HON - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Marubeni Corp. has a Zacks Rank of #2 (Buy), while Honeywell International Inc. has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MARUY has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

MARUY currently has a forward P/E ratio of 12.22, while HON has a forward P/E of 25.34. We also note that MARUY has a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HON currently has a PEG ratio of 1.79.

Another notable valuation metric for MARUY is its P/B ratio of 1.7. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, HON has a P/B of 3.52.

Based on these metrics and many more, MARUY holds a Value grade of A, while HON has a Value grade of C.

MARUY sticks out from HON in both our Zacks Rank and Style Scores models, so value investors will likely feel that MARUY is the better option right now.

In the latest trading session, Honeywell International Inc. (HON - Free Report) closed at $208.11, marking a -2.24% move from the previous day. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.66%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

Shares of the company witnessed a gain of 2.22% over the previous month, beating the performance of the Conglomerates sector with its loss of 2.74%, and the S&P 500's gain of 1.4%.

The upcoming earnings release of Honeywell International Inc. will be of great interest to investors. The company's earnings report is expected on October 22, 2026. The company's earnings per share (EPS) are projected to be $2.17, reflecting a 61.52% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.07 billion, down 51.31% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.28 per share and revenue of $20.33 billion, indicating changes of -57.67% and -49.59%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Honeywell International Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% lower. Honeywell International Inc. currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Honeywell International Inc. is currently being traded at a Forward P/E ratio of 25.71. Its industry sports an average Forward P/E of 13.3, so one might conclude that Honeywell International Inc. is trading at a premium comparatively.

Meanwhile, HON's PEG ratio is currently 1.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. HON's industry had an average PEG ratio of 1.25 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 37, putting it in the top 16% of all 250+ industries.

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

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Honeywell International Inc. (HON - Free Report) closed at $213.80 in the latest trading session, marking a +1.36% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.2%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.04%.

Heading into today, shares of the company had gained 2.36% over the past month, outpacing the Conglomerates sector's loss of 3.73% and the S&P 500's loss of 0.35%.

Analysts and investors alike will be keeping a close eye on the performance of Honeywell International Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on October 22, 2026. The company's upcoming EPS is projected at $2.17, signifying a 61.52% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.05 billion, down 51.45% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.29 per share and revenue of $20.31 billion, indicating changes of -57.62% and -49.64%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Honeywell International Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Honeywell International Inc. currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Honeywell International Inc. is at present trading with a Forward P/E ratio of 25.46. This expresses a premium compared to the average Forward P/E of 12.95 of its industry.

Investors should also note that HON has a PEG ratio of 3.53 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Diversified Operations industry stood at 1.35 at the close of the market yesterday.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HON in the coming trading sessions, be sure to utilize Zacks.com.

Key Takeaways Honeywell Technologies will supply technologies and services for a proposed 700,000-barrel-per-day refinery.The project will use HON's technologies to produce gasoline, diesel, jet fuel and polypropylene.Honeywell Technologies' scope is expected to be worth approximately $300 million. Honeywell Technologies (HON - Free Report) has been selected by Dangote Petroleum Refinery and Petrochemicals FZE to offer technologies and services for a proposed refinery in Kenya with a processing capacity of 700,000 barrels per day. The collaboration will involve Honeywell Technologies supplying technology licensing, process technologies, engineering expertise, equipment and digital solutions and proprietary catalysts for the new refinery.

Based in Nigeria, Dangote Petroleum Refinery and Petrochemicals FZE is part of the Dangote Group and operates the Dangote refinery in Lekki. The company is engaged in refining crude oil into products such as gasoline, diesel and jet fuel, while also producing petrochemical products.

Inside the HeadlinesPer the deal, Honeywell Technologies will leverage engineering designs previously developed for Dangote’s Lekki refinery. This is expected to accelerate the development schedule of the new project by nearly two years, or about 30%, compared with other new refinery projects.

The planned refinery in Kenya will use HON’s refining and petrochemical technologies to generate gasoline, diesel, jet fuel and polypropylene. The facility will also be designed to process crude oils ranging from light to heavy grades, providing greater flexibility in sourcing feedstock. Once completed, the refinery will be the world’s largest single-train refinery.

Honeywell Technologies' scope for the project is expected to be worth approximately $300 million, similar to its involvement in the Lekki refinery in Nigeria. The agreement expands HON’s relationship with Dangote and creates an opportunity to deploy its process technologies, engineering capabilities and digital solutions in another large-scale energy project.

HON’s Zacks RankOn 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.

Honeywell Technologies benefits from broad automation demand, with Building Automation and core Industrial Automation segments supported by growing orders, an expanding backlog and exposure to data centers, utilities and other mission-critical markets.

In the past month, this Zacks Rank #3 (Hold) company’s shares have risen 2.4% against the industry’s 1.2% decline.

Image Source: Zacks Investment Research

However, HON has been witnessing weakness in the Process Automation and Technology segment. Lower sales in the aftermarket business owing to lower refining catalyst shipments are ailing the segment.

Stocks to ConsiderSome better-ranked companies are discussed below.

3M Company (MMM - Free Report) currently carries 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 0.7%.

ITT Inc. (ITT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 7.4%.

The Zacks Consensus Estimate for ITT’s 2026 earnings has increased 4.6% in the past 60 days.

Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank of 2. GFF delivered a trailing four-quarter average earnings surprise of 6.6%.

In the past 60 days, the consensus estimate for Griffon’s fiscal 2026 earnings has increased 4.4%.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Dangote Petroleum Refinery and Petrochemicals FZE has selected Honeywell Technologies (NASDAQ: HON) to provide process technologies, licensing, engineering services, proprietary catalysts, equipment and digital solutions for its planned 700,000 barrel-per-day refinery in Kenya. Once complete, the facility is expected to become the world's largest single-train refinery.The project builds on nearly a decade of collaboration between the two companies and leverages.

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 December 4, 2026, out of surplus to holders of record at the close of business on November 13, 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-cri.

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

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

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in HON over 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.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

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.

Investors often look to industrial giants for stability, but choosing between a machinery titan and a diversified technology leader requires looking at the data. Let's compare Caterpillar (CAT -1.89%) and Honeywell International (HON -1.25%).

Caterpillar is the world's leading manufacturer of construction and mining equipment, relying on a vast global dealer network. Honeywell operates as a diversified conglomerate currently refocusing its portfolio on high-growth automation and aerospace technologies. Comparing these two involves weighing heavy equipment dominance against a technology-led transition.

The case for CaterpillarCaterpillar operates as a global powerhouse among industrial stocks, primarily serving the construction, mining, and energy sectors. The company sells its heavy machinery through a massive independent dealer network, consisting of 41 dealers in the United States and 109 international dealers across 190 countries. Recent strategic moves in 2026 include the acquisitions of Skycatch, Monarch Tractor, and RPMGlobal, which are intended to boost the company's capabilities in mining and agricultural technology.

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In FY 2025, according to its latest annual report, revenue reached nearly $67.6 billion, representing approximately 4.3% growth over the previous year. Net income for the period was roughly $8.9 billion, yielding a net margin of close to 13.1%. While revenue grew, this net margin was lower than the 16.7% achieved in FY 2024, when net income was approximately $10.8 billion.

As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 2.0x, calculated as total debt divided by shareholders' equity. The current ratio, which measures the ability to pay short-term obligations by dividing current assets by current liabilities, was approximately 1.4x. Free cash flow for FY 2025 reached nearly $7.5 billion, representing cash generated after paying for operating costs and equipment upgrades.

According to its latest annual report, filed for FY 2025, Honeywell is transforming into an organization focused on independent aerospace and automation businesses. It provides advanced technology and services to building operators, energy sector partners, and defense customers. Following a strategic review, the company is divesting its Warehouse and Workflow Solutions business and has already spun off its aerospace segment, Honeywell Aerospace (HONA -2.06%).

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In FY 2025, revenue reached roughly $37.4 billion, which is an increase of approximately 7.8% over the previous year. Net income for the same period was close to $4.7 billion, resulting in a net margin of roughly 12.6%. This reflects a decline in net margin from FY 2024, when the company reported net income of approximately $5.7 billion and a net margin of nearly 16.4%.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 2.2x. The current ratio for the same period was roughly 1.3x, indicating the company's ability to cover its short-term liabilities with its current assets. Free cash flow, which is the cash a company generates after accounting for capital expenditures, reached nearly $5.4 billion in FY 2025.

Risk profile comparisonCaterpillar faces significant cyclicality risk, as demand for its heavy machinery is highly sensitive to commodity price volatility and global economic shifts. Operational risks include potential disruptions in complex global supply chains and a reliance on dealer inventory management. The company also faces intense competition from global rivals such as Komatsu (KMTUF -6.09%) and Deere (DE -1.72%), which can lead to pricing and margin pressure.

Honeywell is exposed to risks associated with integrating numerous acquisitions and executing its complex strategic divestitures. The company faces ongoing legal and litigation risks, including substantial settlements related to past commercial agreements. Additionally, it must manage competitive threats from peers such as GE Vernova (GEV -0.85%) in technology-driven markets while navigating the operational impact of its corporate reorganizations.

Valuation comparisonHoneywell appears to be the more affordable option based on its P/S ratio, though Caterpillar carries a higher valuation relative to its Forward P/E and future earnings estimates.

MetricCaterpillarHoneywell InternationalForward P/E29.7x24.8xP/S ratio5.5x1.7xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?Caterpillar and Honeywell are both titans of the industrial sector. Therefore, investors will need to dig beneath the surface to determine which stock could be the right choice for them. Here, we'll take a look at what each stock has to offer.

First, there's Caterpillar. The company is an industrial mainstay and provides much of the equipment used to create global infrastructure. In recent years, Caterpillar has benefited from the artificial intelligence (AI) boom. Right now, and going forward, Caterpillar equipment will be hard at work constructing the data centers needed as AI infrastructure comes into being. What's more, Caterpillar's fundamentals are rock solid, with nearly $68 billion in revenue and close to $9 billion in net income.

As for Honeywell, it is also a mainstay in the industrial sector. However, the company is undergoing a restructuring. This has resulted in some short-term turbulence, as the company must pivot operationally. The remaining corporate parent is focused on transforming into an industrial automation company. Here, it hopes to capitalize on the AI data center build-out and automate existing warehouses to improve logistics. At any rate, Honeywell stock remains a turnaround story. Shares currently trade at an affordable price-to-sales (P/S) valuation of only 1.7x. That's far below Honeywell's five-year average P/S of 3.2x.

In summary, different types of investors may favor different stocks here. Caterpillar is a company firing on all cylinders. Its valuation reflects that. Honeywell, on the other hand, may appeal to value-oriented investors willing to wait for its turnaround to bear fruit. At any rate, both stocks have solid fundamentals that will appeal to long-term investors.

Investors interested in stocks from the Diversified Operations sector have probably already heard of Mitsui & Co. (MITSY) and Honeywell International Inc. (HON). But which of these two stocks offers value investors a better bang for their buck right now?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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].

Should You Invest $1,000 in Honeywell International Right Now?Before you consider Honeywell International, you'll want to hear this.

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Honeywell International Inc. (HON) Morgan Stanley's 14th Annual Laguna Conference September 15, 2026 2:30 PM EDT

Company Participants

Vimal Kapur - Chairman & CEO
Mike Stepniak - Senior VP & CFO

Presentation

Unknown Analyst

Good afternoon, everyone. Just quick disclosures. For important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley representative.

So this morning, I'm happy to introduce Vimal Kapur, Chairman and CEO of Honeywell Technologies; and Mike Stepniak, CFO. And Vimal is going to kick it off with some opening remarks.

Vimal Kapur
Chairman & CEO

Thank you very much, and good to be back in Laguna. I would say we are 75 days as a new company. It looks like a 100-year-old company, and we are definitely reinvented ourselves with the changes of completed spin of aerospace and advanced materials. I'm not going to belabor that. I think everybody is aware of the story. I think where we are focused on is, as a new company, how we execute on the commitment we made on the Investor Day.

On our very simple investment thesis, we are a pure-play automation coming out of the gate playing into 3 end markets: Building, Process and Industrial. And building and mining installed base is our business model. We live with that every day. We are accelerating growth of our installed base by moving towards verticals which are growing at a higher rate and mining installed base using much more AI-based tools so that we can get more value out of it.

The good news is our strategy execution is pacing at a rate better than we had expected. The Q3 start for the first 2 months have been good or very good depending on how you want to

Geopolitical pressures, from the Iran war to U.S.-China conflicts and the Russia-Ukraine war, provide plenty of reasons for defense stocks to have tailwinds in 2026. That's because these pressures are likely to increase global defense spending. At home, the fiscal 2027 National Defense Authorization Act, passed by the House on July 22 but still awaiting a vote in the Senate, proposes a record $1.15 trillion in U.S. military spending.

Plenty of defense stocks benefit from that extra spending, but one of the best buys right now is Honeywell Aerospace (HONA +2.93%). The company, which spun off from Honeywell Technologies in late June, is trading down more than 21% since its spinoff, falling from $220 per share to roughly $157 as of Sept. 11.

There were valid reasons for the stock's tumble, mainly a trim to full-year guidance in the second-quarter earnings report. However, at its current share price, the stock is more than a bargain. Here's why I like this company.

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Honeywell Aerospace is a steal at its current price Even with its trimmed full-year guidance, the stock trades at a low valuation relative to peers, roughly 21 times forward earnings. It's as if investors are still tying the company to the drag its parent put on its margins and not seeing it for what it is -- a pure-play aerospace and defense company.

Today's Change

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Honeywell supplies engines, mission-critical avionics, and control systems to commercial and defense customers. Global flight hours, fleet use, and ongoing aircraft delivery backlogs at major original equipment manufacturers continue to drive demand for high-margin repair, maintenance, and overhaul (MRO) and replacement components, such as auxiliary power units, avionics, and flight controls.

Yes, its second-quarter earnings were uneven. It reported $4.5 billion in revenue, up 5% year over year, but earnings per share were $0.78, down 71%. The company trimmed its full-year organic growth guidance from 7%-9% to 4%-5%. It also narrowed its full-year earnings before interest and taxes from a range of $4.65 billion to $4.75 billion to a range of $4.35 billion to $4.45 billion. Most of the reasons for the lowered earnings expectation involved spinoff costs, which will eventually go away.

Analysts are optimistic about the company's future, with an average price target of $213, about 35% above its current price.

It has a huge backlog of orders Honeywell Aerospace's backlog grew 9% year over year to $18.2 billion in the second quarter. The company already has built-in customers and added $15 billion in new contracts in the quarter.

That backlog is largely tied to defense modernization programs, military avionics upgrades, and next-generation propulsion systems. With rising global defense budgets and long-term procurement commitments, the defense segment provides steady cash flow visibility even during broader macroeconomic pullbacks.

The company's biggest problem is solving supply chain issues to meet its pent-up demand for orders, and as a stand-alone company, it can focus more on that than it could as part of Honeywell International, which changed its name to Honeywell Technology (HON +0.09%).

Don't fight these growing trends Honeywell Aerospace won't remain underappreciated for long because it is at the nexus of two major trends: increased spending on aircraft parts and rising global defense spending.

The global aircraft spare parts market was valued at $97.8 billion in 2025 and is expected to reach $160.2 billion by 2034, according to a report by MarketIntelo. Defense spending is also expected to take off, according to a report by Spherical Insights, rising from a $2.7 trillion market in 2024 to a $6.38 trillion market by 2035.

Honeywell International Inc. (HON - Free Report) closed the most recent trading day at $204.93, moving -1.59% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.48%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.

Prior to today's trading, shares of the company had lost 9.51% lagged the Conglomerates sector's loss of 7.68% and the S&P 500's loss of 0.97%.

The investment community will be closely monitoring the performance of Honeywell International Inc. in its forthcoming earnings report. The company's upcoming EPS is projected at $2.16, signifying a 61.70% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.05 billion, down 51.45% from the prior-year quarter.

HON's full-year Zacks Consensus Estimates are calling for earnings of $8.29 per share and revenue of $20.31 billion. These results would represent year-over-year changes of -57.62% and -49.64%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Honeywell International Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.42% rise in the Zacks Consensus EPS estimate. Honeywell International Inc. is currently a Zacks Rank #3 (Hold).

With respect to valuation, Honeywell International Inc. is currently being traded at a Forward P/E ratio of 25.13. This signifies a premium in comparison to the average Forward P/E of 13.73 for its industry.

Meanwhile, HON's PEG ratio is currently 3.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. HON's industry had an average PEG ratio of 1.33 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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.

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.