Honeywell International Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did HON Beat Earnings? Q2 2025 Results
Honeywell turned in a convincing second quarter, posting adjusted EPS of $2.75 against a consensus of $2.66, a 3.49% beat, while revenue of $10.35 billion topped estimates by 2.87% and grew 8.1% year over year. The industrial conglomerate's outperformance was anchored by broad segment strength, with Building Automation leading the way at 8% organic growth and Aerospace Technologies adding 6% organically on the back of a 13% surge in defense and space demand, even as CEO Vimal Kapur acknowledged navigating an unpredictable macro environment. Three of four segments delivered organic growth above 5%, giving the company confidence to raise its full-year adjusted EPS guidance to $10.45 to $10.65 and lift its revenue outlook to $40.80 billion to $41.30 billion, implying organic sales growth of 4% to 5%. The quarter also marked meaningful progress in Honeywell's sweeping portfolio transformation, including the close of its $2.20 billion Sundyne acquisition and an announced deal for Johnson Matthey's Catalyst Technologies business, as the company advances its planned three-way separation into Automation, Aerospace, and Advanced Materials by the second half of 2026.
- Double-digit organic growth in defense and space (13% YoY) and UOP (16% YoY)
- Commercial aftermarket sales increased 7% driven by air transport and supply chain unlock
- Building Automation led segments with 8% organic growth and 90 bps margin expansion
- Strong petrochemical catalyst shipments and higher licensing sales in gas processing at UOP
- Record backlog supported by strong double-digit order growth
- Honeywell Accelerator operating system enabling rapid adaptation to changing conditions
“Honeywell delivered outstanding results in the second quarter with both organic growth and adjusted earnings per share exceeding guidance despite the unpredictable macroeconomic backdrop. With Building Automation leading the way, three out of four segments grew sales at better than 5% in the quarter, demonstrating the power of our Accelerator operating system to adapt quickly and drive growth even as business conditions change. During the quarter, we also saw promising results from our increased focus on new product innovation, which further supported the growth of our record backlog. In parallel, we continued to take a balanced approach to capital deployment, selectively pursuing attractive M&A opportunities, such as the bolt-on acquisition of Johnson Matthey's Catalyst Technologies business and the strategic tuck-in of Li-ion Tamer.”
Honeywell CEO, on the earnings call
Forward Guidance & Outlook
Honeywell raised its full-year 2025 guidance. Sales are now expected to be $40.8B to $41.3B (up from $39.6B–$40.5B) with organic sales growth of 4% to 5% (narrowed from 2%–5%). Segment margin is expected at 23.0% to 23.2% with 40–60 bps of expansion. Adjusted EPS guidance was raised to $10.45–$10.65, up $0.20 at the midpoint, representing 6%–8% adjusted earnings growth. Operating cash flow is still expected at $6.7B–$7.1B, with free cash flow of $5.4B–$5.8B. Guidance now includes the impact of the Sundyne acquisition and the PPE divestiture. Excluding the Bombardier agreement impact, organic sales growth is expected at 3%–4%, segment margin down 30 to 10 bps YoY, and adjusted EPS up 1%–3% YoY. The Solstice Advanced Materials spin-off is targeted for Q4 2025, with the full three-way separation expected to complete in H2 2026.
HON YoY Financials
HON Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.