Honeywell Technologies Beats and Raises Full-Year 2026 Guidance in First Standalone Quarter
HON is trading near its 52-week low of $195.769 (9.4% above the low).
Summary
Honeywell Technologies posted 7% organic growth and $2.27 adjusted EPS in its first quarter as a standalone company, then raised full-year adjusted EPS guidance to $8.40-$8.45 from $8.05-$8.35.
Key Events · Earnings and Guidance · HON
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Q3 Beat on Organic Growth
Sales of $4,994 million rose 1% reported but 7% organic, above the 3%-4% full-year target set at the June Investor Day; adjusted EPS of $2.27 rose 34% year over year.
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Full-Year Guidance Raised
Adjusted EPS guidance lifted to $8.40-$8.45 from $8.05-$8.35 (a $0.23 midpoint increase), organic growth to 4%-5% from 3%-4%, and sales to $20.0B-$20.1B from $19.8B-$20.0B.
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Margins Expand Sharply
Operating margin of 14.8% rose 640 basis points and segment margin of 21.3% rose 370 basis points, led by Industrial Automation (18.4%, up 350 bps) and Building Automation (27.0%).
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Cash Flow Optics Distorted
Operating cash flow fell 74% to $607 million on a prior-year one-time Resideo settlement, but free cash flow rose 15% to $688 million with 95% conversion; full-year free cash flow guidance raised to ~$2.1B.
Analysis · HON · Manufacturing
Honeywell's first quarter as a standalone automation company came in well ahead of plan: 7% organic sales growth against a 3%-4% full-year target, adjusted EPS of $2.27 up 34%, and segment margin of 21.3% up 370 basis points. Management raised full-year adjusted EPS to $8.40-$8.45 from $8.05-$8.35 — a $0.23 increase at the midpoint — and lifted organic growth to 4%-5%. For a $68B industrial, that is a meaningful reset of the year's earnings base, and it lands after the Aerospace spin-off left a cleaner, higher-margin portfolio. The one blemish is cash: operating cash flow fell 74% to $607 million, though that comparison is distorted by a prior-year one-time Resideo settlement, and free cash flow actually rose 15% to $688 million.
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At the time of this filing, HON was trading at $214.10 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $68.1B. The 52-week trading range was $195.77 to $260.15. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.