Honeywell Technologies Reports Second Quarter Results

CHARLOTTE, N.C.--(BUSINESS WIRE)--Honeywell Technologies (NASDAQ: HON) today announced results for the second quarter of 2026. The consolidated results include the operations of Honeywell Aerospace (NASDAQ: HONA), which successfully separated in a spin-off from Honeywell Technologies on June 29, 2026 (third quarter 2026).

Second Quarter 2026 Consolidated Results (including legacy Aerospace Technologies segment):

• Orders up 4% leading to ~$38 billion backlog
• Sales of $9.7 billion, reported sales up 4% and organic¹ sales up 4%
• Operating margin of 17.9% and segment margin¹ of 23.1%
• Earnings per share (EPS) of $17.83, which reflects the impact of a one-time gain on deconsolidation of Quantinuum, and adjusted EPS¹ of $4.52

Second Quarter 2026 Honeywell Technologies Results (excluding Aerospace Technologies):

• Orders up 16% leading to ~$20 billion backlog
• Sales of $5.2 billion, up 3% reported and up 4% organic¹
• Operating margin of 12.8% and segment margin¹ of 19.0%
• EPS of $16.65 and adjusted EPS¹ of $1.95

Management Commentary

"The second quarter marked a historic milestone for Honeywell Technologies as we completed the separation of Honeywell Aerospace and began a new era as a leading pure-play automation company. The results we delivered this quarter are the outcome of a year-plus long process to simplify our business, and we are already seeing the benefits of this transformation today. Honeywell Technologies delivered strong organic orders and sales growth, and 100 basis points of segment margin expansion, leading to double digit earnings growth in the second quarter and reinforcing our confidence in the long-term targets that we shared at our recent investor day. As a simplified company, Honeywell Technologies is now positioned to further accelerate profitable growth as we leverage our deep domain expertise and vast installed base to create enduring value for our shareowners," said Vimal Kapur, chairman and chief executive officer of Honeywell Technologies.

Table 1: Summary of Consolidated Financial Results

Including Honeywell Technologies and Honeywell Aerospace business

(Dollars in millions, except per share amounts)

The information in Tables 2, 3 and 4 and all subsequent commentary (other than under the heading “Honeywell Aerospace”) refers to Honeywell Technologies only^*. Please refer to our quarterly report on Form 10-Q for the second quarter of 2026 for additional information.

Table 2: Summary of Honeywell Technologies Financial Results

(Dollars in millions, except per share amounts)

Table 3: Summary of Honeywell Technologies Segment Financial Results

(Dollars in millions)

Building Automation sales for the second quarter grew 9% organically¹ year over year. Building products grew 10% led by continued double-digit growth in the fire business, and building solutions grew 7%, driven by services. Orders increased 13% year over year led by robust growth in data center and hospitality verticals. Segment margin expanded 90 basis points to 27.1% driven by volume leverage and pricing, partially offset by inflation.

Process Automation and Technology sales for the second quarter decreased 1% organically¹ year over year. Projects sales increased 5% organically, led by continued strength in LNG and a return to growth in automation projects. This was offset by a 6% decline in aftermarket sales driven by higher catalyst shipments in the prior year. Orders were up 24% led by demand in LNG. Segment margin contracted 180 basis points to 22.1% driven by lower catalyst volumes and unfavorable product mix.

Industrial Automation sales for the second quarter grew 4% organically¹ year over year led by 10% growth in solutions, driven by strength in utilities projects and strong backlog conversion in the warehouse business. Products grew 1% led by demand in sensing and industrial measurement. Segment margin expanded 90 basis points year over year to 17.2% driven by pricing and productivity, partially offset by inflation.

Table 4: Honeywell Technologies Full-Year 2026 Guidance¹

2026 Outlook

Honeywell Technologies is updating its full-year outlook after a strong second quarter and improved organic growth fundamentals for process and industrial in the second half. The company now expects full-year sales of $19.8 billion to $20.0 billion with organic¹ sales growth of 3% to 4%, and 4% to 6% organic¹ growth in the second half. The company now expects segment margin¹ in the range of 20.1% to 20.5% with segment margin¹ expansion of 250 to 290 basis points year over year; and adjusted earnings per share¹ in the range of $8.05 to $8.35, up 25% to 29%. Operating cash flow is expected to be approximately $2.1 billion, while free cash flow¹ expectations are unchanged at approximately $2.0 billion for the full year. Guidance incorporates expected results for the acquisition of Johnson Matthey's Catalyst Technologies business, which closed on July 17, 2026, and the expected close of the Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) business divestitures by early August.

Honeywell Aerospace

The former Aerospace Technologies segment now operates independently as Honeywell Aerospace and trades under the ticker symbol "HONA" following its spin-off from Honeywell Technologies on June 29. Consistent with precedent spin-off transactions, Honeywell Aerospace's financial results may differ from Aerospace Technologies financial information for the former segment due to the perimeter of the transaction, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items, for both current and prior reporting periods. Because the creation of carve-out financial statements requires a lengthier closing process, Honeywell Aerospace announced that it will issue its second quarter results on a standalone basis after market close on August 5.

The information below represents results for the former Aerospace Technologies segment on a basis consistent with Honeywell Technologies on a consolidated basis. Please refer to Honeywell Technologies' quarterly report on Form 10-Q for the second quarter of 2026 for information on results for or including the former Aerospace Technologies segment.

In the second quarter, Aerospace Technologies segment sales of $4.5 billion grew 5% organically year over year. Mechanical supply chain showed sequential improvement during the quarter though material supply continued to limit sales growth across end markets. Sales growth was led by a 17% increase in Commercial aviation original equipment due to shipments recoupling to build schedules, particularly in commercial air transport, and a 7% increase in Commercial aviation aftermarket driven by increasing demand from the installed base. Defense and space sales were flat as continued strong demand was constrained by output and program timing. Segment profit grew 2% from the prior year to $1.1 billion, which included approximately $40 million of inventory obsolescence charges related to lower demand for pockets of existing inventory stock driven by emerging repair technologies extending product lives.

Conference Call Details

Honeywell Technologies will discuss its second-quarter results and full-year 2026 guidance for during an investor conference call starting at 8:30 a.m. Eastern Daylight Time today. A live webcast of the investor call as well as related presentation materials will be available through the Investor Relations section of the company's website (www.honeywell.com/investor). A replay of the webcast will be available for 30 days following the presentation.

About Honeywell Technologies

Honeywell Technologies is a global, pure-play automation company with a legacy of innovating to help solve the world's most mission-critical challenges, enhancing the quality of life for people and communities around the world. We serve the building, industrial, and process sectors with a broad portfolio of services, solutions, and products, underpinned by our Honeywell Technologies Accelerator operating system and Honeywell Technologies Forge intelligence layer. By combining the deep domain expertise of our more than 50,000 employees with decades of data from our global installed base, we are uniquely positioned to lead the industrial sector's transition from automation to autonomy. For more news and information on Honeywell Technologies, please visit Honeywell Technologies Newsroom.

Additional Information

Honeywell Technologies uses our Investor Relations website, investor.honeywell.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media.

Forward Looking Statements

We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including statements related to the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. Forward-looking statements are those that address activities, events, or developments that we or our management intend, expect, project, believe, or anticipate will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control, including Honeywell Technologies' current expectations, estimates, and projections regarding the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements, including the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and the anticipated benefits of each. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as changes in or application of trade and tax laws and policies, including the impacts of tariffs and other trade barriers and restrictions, lower GDP growth or recession in the U.S. or globally, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, including ongoing conflicts in the Middle East, that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K, and our other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.

This release contains financial measures presented on a non-GAAP basis. Honeywell's and Honeywell Technologies' non-GAAP financial measures used in this release are as follows:

• Segment profit, on an overall Honeywell and Honeywell Technologies basis;
• Segment profit margin, on an overall Honeywell and Honeywell Technologies basis;
• Organic sales growth;
• Free cash flow; and
• Adjusted earnings per share.

Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.

Honeywell International Inc.
Consolidated Statement of Operations (Unaudited)
(Dollars in millions, except per share amounts)

Honeywell International Inc.
Segment Data (Unaudited)
(Dollars in millions)

Reconciliation of Segment Profit to Income Before Taxes

Honeywell International Inc.
Consolidated Balance Sheet (Unaudited)
(Dollars in millions)

Honeywell International Inc.
Consolidated Statement of Cash Flows (Unaudited)
(Dollars in millions)

Media
Stacey Jones
(980) 378-6258
stacey.jones@honeywell.com

Investor Relations
Mark Macaluso
(704) 627-6118
mark.macaluso@honeywell.com