Honeywell International Inc. (HON) has released its financial results for the first quarter of 2025, showcasing a steady performance that met market expectations. The company has also provided updated guidance for the full year, indicating confidence in its ongoing strategies and market position.
Honeywell International Reports Adj. EPS of $2.51, Revenue of $9.82 Billion for Q1
Honeywell International Inc. (HON) reported its financial performance for the first quarter of 2025, revealing a solid start to the year. The company achieved sales of $9.82 billion, an increase of 8% compared to the same period last year. This performance aligns closely with market expectations, which anticipated revenues of $9.6 billion. The earnings per share (EPS) stood at $2.22 and the adjusted EPS at $2.51, above the expected $2.21, demonstrating the company’s ability to meet financial targets.
When comparing the current performance against the previous year’s first quarter, Honeywell’s sales growth is evident. The segment profit increased by 8%, reaching $2.26 billion, while the segment margin remained stable at 23.0%. Operating income also showed a positive trend, climbing 6% to $1.97 billion. Despite these gains, the operating income margin saw a slight decline of 30 basis points to 20.1%, which is an area for potential improvement.
Breaking down the performance by segments, the Aerospace Technologies division led the growth with a 14% increase in sales, reaching $4.17 billion. This was followed by the Building Automation segment, which saw a 19% rise in sales. However, the Industrial Automation segment experienced a decline, with sales dropping by 4% and segment profit decreasing by 11%. These mixed results highlight the varied challenges and opportunities across Honeywell’s diverse business units.
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Honeywell Updates Guidance for Full Year 2025
Looking ahead, Honeywell has provided updated guidance for the full year 2025. The company has slightly adjusted its sales forecast to a range of $39.6 billion to $40.5 billion, a minor revision from the previous upper limit of $40.6 billion. This adjustment reflects a cautious approach amid global economic uncertainties. The expected organic growth remains unchanged at 2% to 5%, indicating a steady outlook for the company’s core operations.
In terms of profitability, Honeywell anticipates adjusted earnings per share to be between $10.20 and $10.50, a slight increase from the previous lower bound of $10.10. This upward revision suggests confidence in the company’s ability to manage costs and drive earnings growth. The segment margin is expected to expand by 60 to 90 basis points, slightly lower than the previous forecast of up to 100 basis points. This indicates a more measured expectation of margin improvements.
Honeywell’s guidance also includes projections for cash flow, with operating cash flow expected to range from $6.7 billion to $7.1 billion, and free cash flow projected between $5.4 billion and $5.8 billion. These figures underscore the company’s strong cash generation capabilities, which can support strategic investments, debt repayment, and shareholder returns. Overall, Honeywell’s updated guidance reflects a balanced approach, considering both the opportunities and challenges in the current economic landscape.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
