UPDATE 3-Honeywell Technologies raises 2026 profit forecast in first post-split earnings
Solstice Advanced Materials, Inc. SOLS | 0.00 | |
Honeywell International Inc. HON | 0.00 | |
Honeywell Aerospace Inc HONA | 0.00 |
Updates share movement in paragraph 2, adds details on segment-wise business in paragraphs 3-5, CEO comment from call in paragraph 6
By Aatreyee Dasgupta
July 23 (Reuters) - Honeywell Technologies HON.O 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 HONA.O was spun off in June and the advanced materials business was separated as Solstice Advanced Materials SOLS.O.