Honeywell International Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.33%.
Did HON Beat Earnings? Q1 2025 Results
Honeywell kicked off 2025 with a standout quarter, posting adjusted EPS of $2.51 against a consensus estimate of $2.21, a 13.64% beat, while revenue of $9.82 billion topped expectations by 2.32% and grew 7.9% year over year. The headline driver was Aerospace Technologies, where 9% organic sales growth, fueled by a 15% surge in commercial aftermarket demand and 10% growth in defense and space, provided the lift that carried results past the high end of prior guidance. Building Automation added to the momentum with 8% organic growth and segment margin expanding 150 basis points to 26.0%, helping offset softer results in Industrial Automation and Energy and Sustainability Solutions, both of which declined 2% organically. With investors across industrial and broader <a href="https://247wallst.com/investing/2025/04/17/live-nasdaq-composite-csx-nasdaq-csx-rises-amid-pivot-to-earnings/">earnings-driven markets</a> closely watching macro resilience, Honeywell raised its full-year adjusted EPS guidance to $10.20-$10.50 and maintained organic sales growth of 2%-5%, with the company noting the outlook already reflects the anticipated net impact of current tariffs and mitigation actions.
- Commercial aftermarket sales grew 15%, led by increased air transport demand and supply chain improvements
- Defense and space sales increased 10% organically amid ongoing geopolitical uncertainty
- Building solutions grew 11% organically for second consecutive quarter, led by Middle East and North America
- Backlog grew 8% excluding acquisitions with third consecutive quarter of sequential and YoY backlog growth
- Segment margin held flat at 23.0% despite volatile macro backdrop, supported by Accelerator operating system
- Energy and Sustainability Solutions segment margin expanded 230 bps to 22.2% from commercial excellence and margin-accretive LNG acquisition
- Warehouse and workflow solutions returned to growth, up 5%
- Free cash flow up 61% year over year
“Honeywell started the year off exceptionally well, exceeding guidance across all metrics, led by solid organic growth. For the third straight quarter, we delivered both sequential and year-over-year backlog growth, driven by healthy order rates and continuing customer demand for our differentiated offerings. Despite the volatile macroeconomic backdrop, we maintained segment margin consistent with last year, which is a testament to the value delivered by our Accelerator operating system. Though we have not yet seen it in our results, we recognize we face an uncertain global demand environment for the remainder of 2025, and our company will work tirelessly, leveraging all tools available to us, to deliver for customers and shareholders.”
Honeywell CEO, on the earnings call
Forward Guidance & Outlook
Honeywell updated full-year 2025 guidance: sales of $39.6B–$40.5B with organic growth of 2%–5%; segment margin of 23.2%–23.5% (60–90 bps expansion YoY); adjusted EPS of $10.20–$10.50 (raised $0.05 at midpoint from prior guidance); operating cash flow of $6.7B–$7.1B; free cash flow of $5.4B–$5.8B. Excluding the Bombardier agreement, the company expects organic sales growth of 1%–4%, segment margin down 10 to up 20 bps YoY, and adjusted EPS down 1% to up 2% YoY. Guidance incorporates the net expected impact of current tariffs, mitigation actions, and global demand uncertainty. Guidance assumes early May close of the PPE business sale but does not yet include the pending Sundyne acquisition. The separation into three public companies is targeted for completion in the second half of 2026.
HON YoY Financials
HON Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.