Honeywell International Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.45%.
Did HON Beat Earnings? Q3 2025 Results
Honeywell delivered a standout third quarter, posting adjusted EPS of $2.82 and revenue of $10.41 billion that beat consensus estimates of $2.57 and $10.16 billion by 9.87% and 2.46%, respectively, with sales climbing 7.0% year over year. The headline driver was a resurgent Aerospace Technologies segment, which posted 12% organic growth fueled by a 19% surge in commercial aftermarket demand and a tenth consecutive quarter of double-digit defense and space expansion, pushing the division's sales to $4.51 billion. Orders company-wide jumped 22% year over year, lifting total backlog to a record high and signaling durable demand momentum heading into the portfolio restructuring. Building Automation was another bright spot, growing 7% organically with margin expanding 80 basis points to 26.7%. Encouraged by the broad-based strength, Honeywell raised its full-year 2025 adjusted EPS guidance to $10.60 to $10.70 and narrowed sales guidance to $40.70 billion to $40.90 billion, even as management absorbed a $0.21 per share dilution impact from the planned October 30 Solstice Advanced Materials spin-off.
- Commercial aftermarket sales increased 19% year over year supported by ongoing supply chain unlock
- Defense and space grew 10% year over year, seventh consecutive quarter of double-digit growth
- Orders up 22%, pushing total backlog to record high
- Building solutions led by continued gains in North America and the Middle East
- Fire products delivered fourth consecutive quarter of double-digit growth
- Sensing sales increased 6% on continued strength in healthcare sensors
- Advanced materials grew 5% driven by strength in refrigerants
“As we progressed toward separating into three industry-leading public companies, we drove strong financial results and unlocked new value creation opportunities during the third quarter. Increased orders across our business segments pushed the company's total backlog to another record high and reinforced the benefit of the new, innovative solutions we are delivering for customers. All of this translated to us exceeding the high end of our guidance for both organic growth and adjusted earnings per share in the quarter.”
Honeywell CEO, on the earnings call
Forward Guidance & Outlook
Honeywell raised its full-year 2025 guidance. Sales are now expected to be $40.7B to $40.9B with organic sales growth of approximately 6%. Adjusted EPS is expected to be $10.60 to $10.70, raised 10 cents at the midpoint from prior guidance despite a $0.21 impact from the Solstice Advanced Materials spin-off set for October 30, 2025. Operating cash flow is expected to be $6.4B to $6.8B, with free cash flow of $5.2B to $5.6B. Segment margin is expected at 22.9% to 23.0% with 30 to 40 basis points of expansion year over year. Excluding the Bombardier agreement impact, the company expects organic sales growth of approximately 5% and adjusted EPS growth of 5% to 6% when also excluding the Solstice spin impact.
HON YoY Financials
HON Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.