Overview

• US automation firm's Q2 sales rose 4% to $9.7 bln

• Adjusted EPS for Q2 of $4.52

• Company completed Aerospace spin-off, becoming a pure-play automation company

Outlook

• Honeywell Technologies now sees 2026 sales of $19.8 bln to $20.0 bln

• Honeywell Technologies lifts 2026 adj EPS forecast to $8.05-$8.35

Result Drivers

• BUILDING AUTOMATION GROWTH - Segment sales rose 9% organically, led by double-digit growth in fire products and strong demand in data center and hospitality verticals, driving margin expansion through volume leverage and pricing, partially offset by inflation

• INDUSTRIAL AUTOMATION RECOVERY - Segment sales grew 4% organically, driven by 10% growth in solutions from utilities projects and warehouse backlog conversion, with margin expansion supported by pricing and productivity

• PROCESS AUTOMATION WEAKNESS - Segment sales fell 1% organically due to a 6% decline in aftermarket sales from higher catalyst shipments in the prior year, resulting in margin contraction from lower catalyst volumes and unfavorable mix

Company press release: ID:nBw92DJCga

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales		$9.70 bln	$9.51 bln (5 Analysts)
Q2 Adjusted EPS		$4.52	$4.81 (5 Analysts)
Q2 EPS		$17.83
Q2 Organic Growth		4.00%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the consumer goods conglomerates peer group is "buy"

• Wall Street's median 12-month price target for Honeywell International Inc is $272.00, about 16.7% above its July 22 closing price of $232.99

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 21 - 3M boosts annual profit forecast driven by resilient industrial unit

• July 22 - Otis cuts annual profit forecast on rising costs; higher pricing offsets Mideast hit

• July 22 - GE Vernova Q2 revenue beats estimates, lifts 2026 outlook

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