Honeywell Reports Third Quarter Results; Updates 2025 Guidance

Honeywell, a global technology and manufacturing leader, has released its third-quarter results for 2025, showcasing a robust performance that exceeded the company's guidance. The company also updated its full-year guidance, reflecting the impact of its strategic initiatives, including the spin-off of its advanced materials business.

Financial Highlights

For the third quarter of 2025, Honeywell reported sales of $10.4 billion, marking a 7% increase year-over-year. Organic sales grew by 6%, driven by strong performance in the commercial aftermarket and defense and space sectors. The company achieved an earnings per share (EPS) of $2.86, a 32% increase from the previous year, and an adjusted EPS of $2.82, up 9% year-over-year. Operating cash flow surged by 65% to $3.3 billion, while free cash flow decreased by 16% to $1.5 billion.

Business and Operational Highlights

Honeywell's Aerospace Technologies segment saw a 12% organic sales growth, with commercial aftermarket sales increasing by 19% and defense and space sales growing by 10%. The Industrial Automation segment experienced a 1% organic sales growth, while Building Automation sales increased by 7% organically. The Energy and Sustainability Solutions segment reported a 2% decrease in organic sales, despite a 5% growth in advanced materials.

Strategic Initiatives and Corporate Developments

Honeywell announced several strategic initiatives, including the planned separation of its Automation and Aerospace businesses, which will result in three publicly-listed companies by the second half of 2026. The company also completed the divestiture of its Bendix-related legacy asbestos liabilities and terminated an indemnification agreement with Resideo, freeing up capital for new opportunities. Additionally, Honeywell's quantum computing venture, Quantinuum, raised over $600 million to advance quantum computing at scale.

Management's Perspective

Vimal Kapur, Honeywell's chairman and CEO, highlighted the company's strong financial results and the progress towards separating into three industry-leading public companies. Kapur emphasized the increased orders across business segments and the record-high backlog, attributing these achievements to the innovative solutions Honeywell delivers to its customers.

Future Outlook

Honeywell raised its full-year 2025 guidance, now expecting sales between $40.7 billion and $40.9 billion, with an organic sales growth of approximately 6%. The company anticipates an adjusted EPS range of $10.60 to $10.70 and operating cash flow between $6.4 billion and $6.8 billion. The guidance includes the impact of the Solstice Advanced Materials spin-off, set for completion on October 30, 2025.

Original SEC Filing: HONEYWELL INTERNATIONAL INC [ HON ] - 8-K - Oct. 23, 2025