Honeywell Announces Second Quarter Results and Updates Full Year 2025 Guidance Range

CHARLOTTE, North Carolina, July 25, 2025 /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced second quarter 2025 results that met or exceeded the company's expectations. Honeywell raised its full-year organic growth and adjusted earnings per share guidance ranges and reaffirmed its full-year free cash flow guidance.

The company reported second quarter sales of $10.4 billion, up 8% year-over-year, with organic sales up 5%, including double-digit organic sales growth in the UOP business. Operating income increased 7% and segment profit increased 8% to $2.4 billion, mainly due to strong performance in the Intelligent Building Technologies Group. Operating profit margin decreased 30 basis points to 20.4%, and segment profit margin decreased 10 basis points to 22.9%, both in line with previous expectations. Second quarter earnings per share were $2.45, up 4% year-over-year, and adjusted earnings per share were $2.75, up 10% year-over-year. Operating cash flow was $1.3 billion, down 4% year-over-year, and free cash flow was $1 billion, down 9% year-over-year.

"Honeywell delivered strong second quarter results despite an uncertain macroeconomic environment, with both organic growth and adjusted earnings per share exceeding expectations," said Vimal Kapur, Honeywell Chairman and CEO. "Led by Building Technologies, three of our four business groups grew sales by more than 5% in the quarter, demonstrating the power of Honeywell's Accelerator operating system to respond to change and drive growth. We continued to invest in new product innovation during the quarter, further driving record backlog growth. At the same time, we continued to deploy capital prudently and selectively seized high-quality M&A opportunities, such as the acquisition of Johnson Matthey's catalyst technology business and the strategic acquisition of Li-ion Tamer."

"This month, we announced a strategic review of our Productivity Solutions & Services and Warehousing & Workflow Solutions businesses, completing the comprehensive simplification and optimization of our portfolio that I initiated early in my tenure," said Kalmar. "Honeywell is moving forward with its separation into three industry-leading public companies, and we believe this alignment will create greater value for our customers, employees and shareholders."

Based on the company's second-quarter performance and management's outlook for the second half of the year, Honeywell updated its full-year sales, segment margins and adjusted earnings per share guidance. The company's full-year sales are expected to be $40.8 billion to $41.3 billion, with organic sales growth expected to be 4% to 5%. Segment margins are expected to be 23.0% to 23.2%, up 40 to 60 basis points year-on-year. Adjusted earnings per share are expected to be $10.45 to $10.65, up 20 cents from the midpoint of the previous guidance range. Operating cash flow is still expected to be $6.7 billion to $7.1 billion, and free cash flow is expected to be $5.4 billion to $5.8 billion. Excluding the impact of the Bombardier agreement signed in the fourth quarter of 2024, the company expects organic sales to increase by 3% to 4% year-on-year, segment margins to decrease by 30 to 10 basis points year-on-year, and adjusted earnings per share to increase by 1% to 3% year-on-year. This guidance range already includes the impact of the Sundyne acquisition completed in June and the sale of the personal safety equipment business completed in May.

Business portfolio transformation

In February this year, Honeywell announced that the board of directors had completed a comprehensive business portfolio assessment and decided to advance the separation plan of the automation business and the aerospace business. The separation plan will be carried out simultaneously with the previously announced divestiture of the high-performance materials business (currently expected to be completed in the fourth quarter of 2025), and will eventually form three independently listed industry-leading companies, which is expected to be fully completed in the second half of 2026. To ensure a smooth transformation, Honeywell has established a dedicated separation management office to ensure that the leadership teams of each business continue to focus on daily operations management during the transformation.

In the second quarter, Honeywell continued to optimize its business portfolio around the upcoming spin-off plan and prudently deployed shareholder capital, including repurchasing $1.7 billion of the company's stock. In May, the company completed the sale of its personal safety protection equipment (PPE) business for $1.3 billion; in July, the company announced a strategic review of its productivity solutions and services business and its warehousing and workflow solutions business. In addition, Honeywell announced the acquisition of Johnson Matthey's catalyst technology business for £1.8 billion in May, completed the acquisition of Sundyne for $2.2 billion in June, and completed the strategic bolt-on acquisition of Li-ion Tamer in July. Through the above transactions, Honeywell has announced a total of $13.5 billion in acquisition projects since December 2023, exceeding its commitment made at the 2023 Investor Day to deploy at least $25 billion by 2025 for high-return capital expenditures, dividends, opportunistic stock repurchases and value-added acquisitions.