Honeywell International (NASDAQ:HON) Issues Earnings Results

Key Points

• Honeywell beat earnings expectations: Quarterly EPS was $2.27 versus the $2.17 consensus, while revenue of $4.99 billion slightly missed estimates and increased 1.3% year over year.
• Management raised 2026 guidance for organic sales growth to 4%–5%, adjusted EPS to $8.40–$8.45, and free cash flow to $2.1 billion. Growth was broad-based, led by Building Automation and Process Automation & Technology, though the latter faces near-term margin pressure.
• Honeywell declared a quarterly dividend of $0.70, equivalent to an annualized $2.80 payout and a 1.3% yield. Shares opened down 2.2% at $210.04, while analysts’ average rating remained “Hold” with a $249.60 target price.

Honeywell International (NASDAQ:HON - Get Free Report) posted its quarterly earnings data on Thursday. The conglomerate reported $2.27 earnings per share for the quarter, beating analysts' consensus estimates of $2.17 by $0.10, FiscalAI reports. The company had revenue of $4.99 billion during the quarter, compared to analysts' expectations of $5.01 billion. Honeywell International had a net margin of 23.90% and a return on equity of 34.00%. The firm's revenue for the quarter was up 1.3% on a year-over-year basis. During the same period in the prior year, the company posted $2.82 EPS.

Here are the key takeaways from Honeywell International's conference call:

• 2026 guidance was raised across key metrics: organic sales growth is now expected at 4%–5%, adjusted EPS at $8.40–$8.45, and free cash flow at $2.1 billion. Management expects fourth-quarter organic growth of 5%–6% and approximately 30% full-year earnings growth.
• Third-quarter performance was broad-based, with 7% organic sales growth, adjusted EPS up 34% year over year, and segment margins expanding 370 basis points to 21.3%. Building Automation grew 8% organically for its eighth consecutive quarter, while Process Automation & Technology grew 8%.
• Management sees a multiyear growth inflection in Process Automation & Technology, supported by nearly $19 billion of backlog, more than 10% PA&T backlog growth, and strong demand across LNG, refining, petrochemicals, and low-carbon energy. Data-center orders rose more than 100%, with opportunities expanding across Building Automation, process controls, sensing, and liquid cooling.
• Cash generation and balance-sheet execution improved, with quarterly free cash flow of approximately $690 million and 95% conversion; management expects conversion above 100% in the fourth quarter. Gross debt is targeted below $13 billion by year-end, reducing gross leverage below 3 times and creating greater flexibility for disciplined M&A.
• Near-term margins in Process Automation & Technology remain pressured by project mix and dilution from the Johnson Matthey Catalyst Technologies acquisition, with fourth-quarter margin expected around 21.5%. The company also continues to face elevated inflation, while utility meter deployments have been deferred and some refining-related aftermarket work may be delayed by high plant utilization.

Honeywell International Stock Down 2.2%

Shares of Honeywell International stock opened at $210.04 on Thursday. The company has a quick ratio of 0.93, a current ratio of 1.21 and a debt-to-equity ratio of 1.39. The firm has a market cap of $66.57 billion, a P/E ratio of 8.01, a P/E/G ratio of 1.59 and a beta of 0.86. Honeywell International has a fifty-two week low of $196.59 and a fifty-two week high of $261.24. The business has a 50-day moving average price of $212.39 and a 200 day moving average price of $221.99.

Honeywell International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 13th will be paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Friday, November 13th. Honeywell International's dividend payout ratio (DPR) is 27.60%.

Insider Buying and Selling

In other Honeywell International news, CEO Kenneth West sold 17,032 shares of the stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $243.77, for a total transaction of $4,151,890.64. Following the transaction, the chief executive officer owned 2,132 shares of the company's stock, valued at $519,717.64. This trade represents a 88.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.15% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of research analysts recently commented on HON shares. Deutsche Bank Aktiengesellschaft increased their price target on Honeywell International from $250.00 to $263.00 and gave the company a "buy" rating in a report on Tuesday, June 30th. Melius Research downgraded Honeywell International from a "buy" rating to a "hold" rating and set a $190.00 price objective on the stock. in a report on Monday, September 14th. BMO Capital Markets lifted their price objective on Honeywell International from $253.00 to $276.00 and gave the stock an "outperform" rating in a report on Monday, July 27th. Weiss Ratings lowered Honeywell International from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, September 25th. Finally, Bank of America upgraded Honeywell International from an "underperform" rating to a "neutral" rating and increased their target price for the company from $205.00 to $265.00 in a research note on Tuesday, July 28th. Thirteen investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $249.60.

About Honeywell International

Honeywell International Inc is a diversified industrial technology company that develops products and systems for the aerospace, building automation, energy and industrial sectors. Its offerings include aircraft engines and avionics, industrial automation and control systems, building management technologies, fire and security products, personal protective equipment, and specialty materials and chemicals.

The company serves commercial aerospace, defense, airlines, building owners, manufacturers, energy producers and other industrial customers.

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