Honeywell Reports Strong Q4 2025 Results and 2026 Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy HON?
Source: Benzinga
Honeywell International Inc's stock rose 3.44% as it reached a 20-day high amid a challenging market environment, with the Nasdaq-100 down 0.49% and the S&P 500 down 0.03%.
The company reported Q4 2025 sales of $9.758 billion, a 6% year-over-year increase, driven by strong demand in Aerospace and Building Automation, with orders growing 23% year-over-year. Despite a significant decline in reported EPS due to one-time charges, adjusted EPS increased by 17% to $2.59, surpassing analysts' expectations. Honeywell also provided an optimistic outlook for 2026, expecting adjusted EPS between $10.35 and $10.65, reflecting confidence in future growth despite some caution in market conditions.
This strong performance highlights Honeywell's resilience and strategic positioning in key sectors, suggesting potential for continued growth as the company navigates through market challenges and prepares for its Aerospace business spin-off in 2026.
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Analyst Views on HON
Wall Street analysts forecast HON stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 242.650
Low
195.00
Averages
235.07
High
262.00
Current: 242.650
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is an integrated operating company serving a range of industries and geographies around the world, with a portfolio that is underpinned by its Honeywell Accelerator operating system and Honeywell Forge platform. The Company provides actionable solutions for aerospace, building automation, industrial automation, process automation, and process technology. The Company supplies products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets. The Company’s portfolio of solutions and services is used in buildings worldwide for fire prevention, controls, access and security. Its offerings serve as the fundamental building blocks of industrial automation. Its sensor technologies and value-added smart edge devices offer connectivity across a variety of sensing and measurement applications. The Company offers a comprehensive portfolio of end-to-end process automation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Restructuring Plans: Honeywell intends to sell its PSS and WWS businesses in the first half of 2026, aiming to refocus resources on its core automation portfolio, signaling a strategic move to enhance efficiency and competitiveness in the market.
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- Earnings Revision: Due to these impairments, Honeywell's earnings per share were revised to $6.94, with net income at $4.468 billion and operating income at $5.573 billion, reflecting challenges in optimizing its asset portfolio amidst ongoing market pressures.
- Strategic Restructuring Plans: Honeywell intends to sell its PSS and WWS businesses in the first half of 2026, aiming to refocus resources on its core automation portfolio, signaling a strategic move to enhance efficiency and competitiveness in the market.
- Ongoing Investor Relations Focus: Honeywell utilizes its Investor Relations website to disclose annual reports and financial information, ensuring transparency and compliance with regulatory requirements, demonstrating the company's commitment to effective investor communication.
See More
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- Increased Impairment Charges: The latest annual report reveals additional impairment charges, including a $436 million goodwill impairment related to the Industrial Automation segment and a $35 million impairment on assets held for sale, although these losses do not affect previously announced adjusted financial results for 2025.
- Revised Earnings Per Share: Due to the impairment charges, Honeywell's reported earnings per share from continuing operations was revised to $6.94, with net income adjusted to $4.468 billion and operating income at $5.573 billion, reflecting challenges in financial management.
- Future Outlook: Honeywell expects to complete the sale of the PSS and WWS businesses in the first half of 2026, continuing its strategic restructuring efforts to adapt to market changes and enhance competitiveness.
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- Increased Competitive Pressure: Amid Boeing's gradual recovery, sentiment around Airbus has notably shifted, with analysts noting that while Airbus delivered 793 aircraft in 2025, the decline in delivery numbers may affect its market share.
- Financial Performance Exceeds Expectations: Airbus reported an adjusted EBIT of €2.98 billion in the fourth quarter, surpassing market expectations of €2.87 billion, indicating the company's resilience in maintaining profitability despite challenges.
- Cautious Future Outlook: Airbus expects an adjusted EBIT of around €7.5 billion in 2026; however, the downward adjustment of delivery targets may heighten investor concerns regarding its long-term growth prospects.
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- Net Income Adjustment: As a result of these impairment charges, Honeywell revised its FY 2025 net income from continuing operations to $4.47 billion, or $6.94 per share, and adjusted operating income to $5.57 billion with operating margins declining to 14.9%, reflecting the financial pressures faced during its business spin-off process.
- Full-Year Performance Review: Last month, Honeywell reported that its net income from continuing operations for FY 2024 totaled $4.89 billion, or $7.57 per share, with operating income of $6.04 billion and operating margins at 16.1%, showcasing strong profitability prior to the impairment.
- Unchanged Future Outlook: Despite the impairment losses, Honeywell reiterated its guidance for FY 2026, projecting adjusted earnings between $10.35 and $10.65 per share on revenues of $38.8 billion to $39.8 billion, indicating confidence in future growth prospects.
See More
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See More
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Industrial Sector Performance: The industrial sector is showing signs of recovery, with companies benefiting from recent Federal Reserve rate cuts and improved manufacturing metrics, indicating potential for a new growth phase.
Company Highlights: Illinois Tool Works and Deere & Company are among the firms reporting strong earnings and growth, with Illinois Tool Works focusing on high-value clients and Deere leveraging automation in agriculture to enhance margins.
Investment Recommendations: Analysts are identifying five stocks as top picks for investors, suggesting that these companies are well-positioned for growth and should be considered for investment before broader market trends catch up.
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