Honeywell Posts Better-Than-Expected Q4 Results, Issues Upbeat 2026 Outlook

Honeywell International Inc. (NASDAQ: HON) reported robust financial results for the fourth quarter of 2025, surpassing expectations for both earnings per share (EPS) and revenue. The company’s performance was driven by strong demand across its key segments, particularly in Aerospace and Building Automation.

Revenue Growth and EPS Gains Highlight Solid Q4 Performance

Honeywell International Inc. (NASDAQ: HON) delivered a strong performance in the fourth quarter of 2025, reporting an adjusted EPS of $2.59, which outperformed the anticipated $2.54. The company also reported adjusted sales of $10.1 billion, surpassing the expected $10.02 billion. This achievement marks a significant milestone for Honeywell, reflecting a 17% increase in adjusted EPS and a 10% rise in adjusted sales compared to the prior year.

The company’s growth was primarily driven by its Aerospace and Building Automation segments. Aerospace Technologies saw an organic sales increase of 21%, fueled by strong commercial aftermarket and defense sales. Building Automation also contributed with an 8% organic sales growth, supported by robust demand in North America and the Middle East.

Despite a 35% decrease in operating income, primarily due to one-time impairment charges, Honeywell’s overall performance exceeded expectations. The company’s strategic focus on high-demand segments and its ability to manage costs effectively played a crucial role in achieving these results.

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Honeywell Signals Confidence With Strong 2026 Guidance

Looking ahead to 2026, Honeywell provided an optimistic outlook, projecting adjusted EPS to range between $10.35 and $10.65, representing a growth of 6% to 9%. The company anticipates sales to reach between $38.8 billion and $39.8 billion, with organic sales growth expected to be between 3% and 6%.

Honeywell’s strategic initiatives, including the planned spin-off of its Aerospace division and continued focus on core automation expertise, are expected to drive future growth. The company aims to enhance its segment margin by 20 to 60 basis points, reflecting its commitment to operational excellence and cost management.

Additionally, Honeywell projects its free cash flow to be between $5.3 billion and $5.6 billion, highlighting its strong cash generation capabilities. This financial strength provides the company with the flexibility to invest in growth opportunities, pay dividends, and repurchase stock, thereby enhancing shareholder value.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.