Honeywell beats Q4 expectations as aerospace spin-off accelerates

Investing.com -- Honeywell International Inc (NASDAQ: HON) reported fourth-quarter adjusted earnings and revenue that exceeded analyst expectations, driven by strong performance in its aerospace and building automation segments and robust order growth across its portfolio.

The industrial conglomerate posted adjusted earnings per share of $2.59 for the fourth quarter, surpassing the analyst estimate of $2.54. Revenue came in at $10.1 billion, above the consensus forecast of $10.02 billion and up 10% from the year-ago period. Organic sales increased 11% YoY. Orders grew 23% organically, pushing Honeywell's backlog to over $37 billion.

Honeywell's stock rose 1% following the announcement.

"We concluded 2025 with strong results that exceeded the high end of our guidance for adjusted sales and adjusted EPS," said Vimal Kapur, chairman and CEO of Honeywell. "Orders grew 23% stemming from robust demand in the Aerospace Technologies and Energy and Sustainability Solutions segments."

The aerospace technologies segment was the standout performer, with sales growing 21% organically, led by continued strength in commercial aftermarket and defense and space. Building automation sales increased 8% organically, driven by 9% growth in building solutions.

For fiscal 2026, Honeywell expects adjusted earnings per share of $10.35 to $10.65, compared to the analyst consensus of $10.42. The company projects sales of $38.8 billion to $39.8 billion, with organic growth of 3% to 6%.

The company also announced that the planned spin-off of Honeywell Aerospace is now expected to be completed in the third quarter of 2026, ahead of previous expectations. This accelerated timeline, along with the completed spin-off of Solstice Advanced Materials, marks significant progress in Honeywell's portfolio optimization strategy.

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