Honeywell International Inc.
HONFinancial Snapshot
ticker: HON step: 04 generated: 2026-05-12 source: quick-research
Honeywell International Inc. (HON) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|---|---|---|---|---|
| Revenue | $36.7B | $38.5B | ~$40B | +4% |
| Organic Sales Growth | -1% | +2% | +3–4% | accelerating |
| Adjusted Segment Profit Growth | -1% | +6% | +11% | accelerating |
| Adjusted Segment Margin | 22.1% | 22.1% | 22.5% | +40 bps |
| GAAP EPS | $8.47 | $7.57 | $7.57 | flat |
| Adjusted EPS | $9.16 | $8.71 | $9.78 | +12% |
Cash Flow & Capital Allocation (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | $6.1B (+19%) |
| Free Cash Flow | $5.1B (+20%) |
| Capital Expenditures | ~$1B |
| Dividends Paid | ~$2.9B |
| Quarterly Dividend | $1.13 |
| Dividend Yield | ~2.3% |
| Cash & Marketable Securities | ~$10B |
| Total Debt | ~$30B |
| Net Debt / EBITDA | ~1.8x |
Segment Detail (FY2025 approximate)
| Segment | Revenue | YoY Trend |
|---|---|---|
| Aerospace Technologies | ~$15.5B | mid-to-high single digit |
| Industrial Automation | ~$10B | low-to-mid single digit |
| Building Automation | ~$8.3B | low-to-mid single digit |
| Energy & Sustainability Solutions | ~$6.4B | mid-single digit |
FY2026 Guidance
| Metric | 2026 Guide |
|---|---|
| Sales | $38.8–39.8B (ex-Solstice spin already removed) |
| Organic Sales Growth | +3–6% |
| Segment Margin | 22.7–23.1% (+20–60 bps expansion) |
| Adjusted EPS | $10.35–10.65 (+6–9%) |
| Free Cash Flow | $5.3–5.6B (+4–10%) |
| Major Event Pending | Honeywell Aerospace spin-off Q3 2026 |
Key Ratios (approximate)
- P/E: ~20x (FY26 adjusted EPS midpoint) | EV/EBITDA: ~14x | FCF Yield: ~3.8%
- Revenue Growth (FY25): +4% | Organic Growth: +3–4%
- Adjusted Segment Margin: 22.5% (expanding to 23%)
- Dividend Yield: ~2.3% | Payout Ratio: ~57% of FCF
- Net Debt / EBITDA: ~1.8x
Growth Profile
FY25 was a strong margin-expansion year despite spin-off-related complexity:
- Adjusted EPS +12% on segment margin expansion + Industrial Automation acceleration.
- FCF +20% to $5.1B (multi-year inflection from prior years).
- All four segments delivered positive growth in 2025.
- Spin-off of Solstice Advanced Materials completed late 2025.
The defining narrative is the breakup completing in 2026:
- Q3 2026: Aerospace spin-off creates two new pure-play companies (RemainCo Honeywell Automation ~$25B + Honeywell Aerospace ~$15B). Historical precedent (GE, J&J, Kellogg, 3M) suggests breakup typically unlocks 15–25% of trapped value.
- Quantinuum IPO rumored — could be a standalone catalyst.
FY26 guide of +3–6% organic + +20–60 bps margin expansion + $10.35–10.65 adjusted EPS (+6–9%) shows the underlying businesses growing at trend mid-single-digit pace. The spin-off destroys some synergy (corporate overhead, shared services) but unlocks valuation.
Forward Estimates
FY2026 Guide:
- Revenue: $38.8–39.8B
- Adjusted EPS: $10.35–10.65 (+6–9%)
- FCF: $5.3–5.6B (+4–10%)
Bull case: Aerospace spin-off unlocks 20–25% combined market cap (matching GE-Vernova type breakup); both standalone companies receive premium aerospace + automation multiples (15–20x adj EPS). Quantinuum IPO adds incremental optionality. RemainCo + Aerospace combined trades 25%+ above pre-spin Honeywell. Bear case: Breakup costs exceed plan; dis-synergy weighs on FY26–27 EPS; Honeywell Aerospace pure-play overhang on aerospace cycle slowdown (Boeing/Airbus build rates); RemainCo lacks scale to compete with Emerson/Rockwell. Consensus targets ~$240–260 vs. trading ~$205–215 (~15–25% implied upside on sum-of-parts).
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $HON.