Honeywell International Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.43%.
Did HON Beat Earnings? Q2 2026 Results
Honeywell Technologies posted a stronger-than-expected second quarter, delivering adjusted EPS of $4.52 and beating consensus estimates for the fifth consecutive quarter, even as reported revenue of $9.72 billion reflected a 6.1% year-over-year decline tied to the late-June separation of its Aerospace Technologies segment as an independent company. Stripping out the divested aerospace operations, the industrial conglomerate generated $5.19 billion in continuing sales, up 3% on a reported basis and 4% organically, with Building Automation emerging as the clear standout, growing 9% organically to $2.00 billion on double-digit fire business gains and a 13% surge in data center and hospitality orders. The quarter also captured a $6.63 billion one-time gain from the deconsolidation of Quantinuum, inflating GAAP EPS to $17.83, while free cash flow from continuing operations climbed 43% year over year to $1.25 billion. With the Johnson Matthey Catalyst Technologies acquisition now closed and two divestitures expected to wrap in early August, management raised full-year adjusted EPS guidance to $8.05 to $8.35, representing growth of 25% to 29%, with organic sales growth of 3% to 4%.
- Building Automation organic sales growth of 9% driven by double-digit fire business growth and building solutions services
- Robust orders growth of 13% in Building Automation led by data center and hospitality verticals
- Process Automation orders up 24% driven by LNG demand
- Industrial Automation 10% solutions growth driven by utilities projects and warehouse backlog conversion
- 100 basis points of segment margin expansion for Honeywell Technologies
- Aerospace Technologies sales grew 5% organically led by 17% increase in Commercial aviation OE
“The second quarter marked a historic milestone for Honeywell Technologies as we completed the separation of Honeywell Aerospace and began a new era as a leading pure-play automation company. The results we delivered this quarter are the outcome of a year-plus long process to simplify our business, and we are already seeing the benefits of this transformation today. Honeywell Technologies delivered strong organic orders and sales growth, and 100 basis points of segment margin expansion, leading to double digit earnings growth in the second quarter and reinforcing our confidence in the long-term targets that we shared at our recent investor day. As a simplified company, Honeywell Technologies is now positioned to further accelerate profitable growth as we leverage our deep domain expertise and vast installed base to create enduring value for our shareowners.”
Honeywell CEO, on the earnings call
Forward Guidance & Outlook
Honeywell Technologies raised its full-year 2026 guidance after a strong Q2. The company now expects sales of $19.8B to $20.0B with organic sales growth of 3%-4% (4%-6% organic growth expected in H2). Segment margin is expected in the range of 20.1%-20.5%, representing 250-290 basis points of year-over-year expansion. Adjusted EPS is guided at $8.05-$8.35, up 25%-29%. Operating cash flow is expected at approximately $1.9B-$2.2B and free cash flow at approximately $1.8B-$2.1B. Guidance incorporates the acquisition of Johnson Matthey's Catalyst Technologies business (closed July 17, 2026) and expected early-August close of the PSS and WWS divestitures.
HON YoY Financials
HON Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.