Honeywell Raises Full-Year Outlook Following Aerospace Spin-Off
The industrial conglomerate raised its full-year adjusted earnings per share guidance to a range of $8.05 to $8.35.
Honeywell International (HON), the industrial conglomerate, reported second-quarter consolidated sales of $9.7 billion, a 4% increase from the prior year.
The quarter was marked by a significant structural reorganization. The company completed the spin-off of Honeywell Aerospace on June 29, 2026, and executed a 1-for-2 reverse stock split of its common stock.
Consolidated organic sales growth for the quarter stood at 4%. Reported earnings per share were $17.83, a figure that included a one-time gain resulting from the deconsolidation of Quantinuum. While consolidated segment margins expanded 30 basis points to 23.1%, the consolidated operating income margin compressed 190 basis points to 17.9% from 19.8% in the second quarter of 2025.
Within the Honeywell Technologies unit, which excludes Aerospace, sales rose 3% to $5.2 billion, with organic growth of 4%. Segment margins for this unit expanded 100 basis points to 19.0%. Building Automation organic sales grew 9% and margins expanded 90 basis points to 27.1% due to pricing and volume leverage. Industrial Automation organic sales grew 4% with a 90-basis-point margin expansion to 17.2%.
Performance was offset by Process Automation and Technology, where organic sales decreased 1%. The segment margin contracted 180 basis points to 22.1% due to unfavorable product mix and lower catalyst volumes. Meanwhile, the former Aerospace Technologies segment saw organic sales growth of 5% to $4.5 billion, driven by a 17% increase in commercial aviation original equipment.
Honeywell raised its full-year 2026 organic sales growth guidance to 3%-4% from a previous range of 2%-3%. The company also increased its full-year segment margin guidance to 20.1%-20.5% and raised its adjusted EPS guidance to $8.05-$8.35.
The company closed the acquisition of Johnson Matthey's Catalyst Technologies business on July 17, 2026. It also expects to divest its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses by early August.