Honeywell International Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.98%.
Did HON Beat Earnings? Q4 2025 Results
Honeywell closed out fiscal 2025 with a strong fourth quarter, posting adjusted EPS of $2.59 against a consensus estimate of $2.54, a beat of 1.97%, while revenue of $9.76 billion cleared the $7.02 billion estimate by nearly 39%, though reported sales slipped 3.3% year over year amid ongoing portfolio transformation. The single most compelling driver was Aerospace Technologies, where 21% organic sales growth, powered by commercial aftermarket momentum and a sustained defense build-up, anchored the quarter's outperformance. Record orders grew 23% organically, pushing backlog above $37.00 billion, a figure that underscores the durability of demand even as GAAP results were weighed down by a $373.00 million Flexjet litigation charge and goodwill impairments tied to businesses classified as held for sale. Honeywell's <a href="https://247wallst.com/investing/2025/12/03/3m-expands-margins-while-honeywell-absorbs-restructuring-pressure/">ongoing restructuring pressure</a> has not derailed its trajectory; management guided 2026 adjusted EPS to $10.35 to $10.65, representing 6% to 9% growth, with free cash flow expected between $5.30 billion and $5.60 billion as the planned aerospace separation moves ahead to Q3 2026.
- Strong commercial aftermarket demand in aerospace with 13% organic growth
- Defense and space sales rose 10% driven by sustained elevated global demand
- Orders grew 23% organically in Q4, driving record backlog over $37 billion
- Building Automation organic growth of 8% led by double-digit services growth
- Commercial original equipment growth accelerated from improving supply chain
- LNG acquisition contributing to ESS orders growth
“We concluded 2025 with strong results that exceeded the high end of our guidance for adjusted sales and adjusted EPS. Orders grew 23% stemming from robust demand in the Aerospace Technologies and Energy and Sustainability Solutions segments, including from our LNG acquisition that closed last year. As a result, we exited 2025 with a record backlog of over $37 billion which positions us well for 2026.”
Honeywell CEO, on the earnings call
Forward Guidance & Outlook
For 2026, Honeywell expects sales of $38.8 billion to $39.8 billion with organic sales growth of 3% to 6%. Segment margin is expected to be 22.7% to 23.1%, with expansion of 20 to 60 basis points. Adjusted EPS is expected to be $10.35 to $10.65, representing 6% to 9% growth. Operating cash flow is expected to be $4.7 billion to $5.0 billion, and free cash flow is expected to be $5.3 billion to $5.6 billion, representing growth of 4% to 10%. The outlook includes full-year expected results for Aerospace, PSS, and WWS, and does not incorporate the pending acquisition of Johnson Matthey's Catalyst Technologies business.
HON YoY Financials
HON Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.