Honeywell Technologies raises 2026 profit forecast in first post-split earnings

By Aatreyee Dasgupta

July 23 (Reuters) - ‌Honeywell Technologies raised ​its ​full-year 2026 profit forecast on Thursday, helped by resilient demand for its industrial and building automation products, even as ‌quarterly profit missed analysts' expectations.

Shares of the company, which ⁠reported its first earnings as a standalone business after Honeywell's three-way split, rose more ‌than 5% during morning ‌trade.

Demand was led by Honeywell's Building Automation unit, where organic sales rose 9% and orders increased 13%, driven by double-digit growth in ​data centers, healthcare and hospitality, part of a broader push into high-growth areas including semiconductors and grid infrastructure.

Industrial Automation sales rose ⁠4% organically and orders climbed 10%, supported by strong demand for sensing and industrial measurement ​products.

While Process Automation & Technology sales fell 1%, orders surged 24% on robust LNG and gas-processing demand.

CEO Vimal Kapur said ​on a post-earnings call that orders ‌in the company's Middle East process technology business rose more than 50% during the quarter on refurbishment projects, ⁠and forecast a "sharp inflection" in Process Automation & Technology growth starting in the third quarter.

Adjusted profit for the quarter rose 10% from a year ago to $4.52 ⁠per share, compared with analysts' estimate of $4.81, according to data compiled by LSEG.

The ​company now expects annual adjusted earnings per share of $8.05 to $8.35, compared with last month's forecast of $7.90 to $8.30.

The company now sees full-year sales of $19.8 billion to $20.0 billion ‌and organic sales growth of 3% to 4%.

Second-quarter sales rose 4% to $9.72 billion, above analysts' estimate of $9.51 ‌billion.

Honeywell Technologies is the automation arm of a three-way split completed this ⁠year, after Honeywell Aerospace was ‌spun off in June ​and the advanced materials business was separated as Solstice Advanced Materials.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by ‌Tasim Zahid)

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