- Honeywell Technologies raised its full-year outlook after its first quarter as a standalone company, following a multiyear restructuring that split the conglomerate into three publicly traded companies. Adjusted earnings of $2.27 a share topped the $2.17 analysts polled by FactSet expected.
- Sales rose 1.3% to $4.99 billion, roughly in line with forecasts, helped by pricing actions and demand across key end markets. Process automation and technology sales climbed 16% to $1.86 billion and building automation rose 7.6% to $2.02 billion, offsetting a 23% drop in industrial automation to $1.12 billion.
- The company now expects adjusted earnings of $8.40 to $8.45 a share, up from $8.05 to $8.35 and above analysts’ $8.31 estimate. Its new sales range of $20 billion to $20.1 billion, however, still sits below the $20.15 billion analysts expect.
- Backlog rose 7% from a year ago to nearly $19 billion. Reported profit fell to $664 million, or $2.08 a share, from $1.83 billion a year earlier, a period that benefited from a one-time gain.
What Happened?
Honeywell Technologies on Thursday raised its 2026 outlook on what CEO Vimal Kapur called strong results, The Wall Street Journal reported. Third-quarter profit was $664 million, or $2.08 a share, compared with $5.71 a share a year earlier, when results included a one-time gain. Excluding certain one-time items, earnings came to $2.27 a share. “As a result of this strong performance, we are raising our full-year 2026 outlook,” Kapur said.
Why It Matters?
The quarter is the first clean read on Honeywell after its breakup, and it shows a portfolio leaning on building and process automation while industrial automation shrinks. The earnings guidance moved up more than the sales outlook, which remains below consensus, pointing to margin strength rather than volume. That mix suggests pricing and execution are doing much of the work. A backlog near $19 billion gives some support to the view that demand in the stronger segments is durable.
What’s Next?
Investors will watch whether industrial automation stabilizes after its 23% decline, since that unit is the main drag. The gap between Honeywell’s sales range and the $20.15 billion consensus will put the spotlight on fourth-quarter revenue. Backlog conversion and further pricing will determine where the company lands within its new $8.40 to $8.45 range. Management commentary on end markets will show whether the raise is conservative or already stretched.
Affected Tickers and Coins: HON
Source: The Wall Street Journal
