Honeywell Reports Second Quarter Results; Updates 2025 Guidance
Honeywell has released its second-quarter results for 2025, showcasing a robust performance that exceeded the company's guidance. The company also updated its full-year organic growth and adjusted earnings per share guidance ranges, reflecting a positive outlook for the remainder of the year.
Financial Highlights
For the second quarter of 2025, Honeywell reported sales of $10.4 billion, an 8% increase from the previous year. Organic sales grew by 5%, driven by strong performance in defense and space, and UOP. The company's earnings per share (EPS) stood at $2.45, a 4% increase year-over-year, while adjusted EPS was $2.75, up 10% from the previous year. Operating income rose by 7% to $2.1 billion, and segment profit increased by 8% to $2.4 billion. However, operating cash flow decreased by 4% to $1.3 billion, and free cash flow fell by 9% to $1.0 billion.
Business and Operational Highlights
Honeywell's business segments showed varied performance. Aerospace Technologies saw a 6% organic sales increase, driven by strong demand in defense and space, and commercial aftermarket. Industrial Automation sales were flat, with a slight increase in process solutions and sensing and safety technologies, but a decline in warehouse and workflow solutions. Building Automation sales grew by 8% organically, led by building products and solutions. Energy and Sustainability Solutions reported a 6% organic sales increase, with UOP showing significant growth.
Strategic Initiatives and Corporate Developments
Honeywell has been active in portfolio optimization and capital deployment. The company completed the $2.2 billion acquisition of Sundyne and announced the £1.8 billion acquisition of Johnson Matthey's Catalyst Technologies business. Additionally, Honeywell sold its Personal Protective Equipment business for $1.3 billion. The company is also evaluating strategic alternatives for its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, as part of a comprehensive portfolio review initiated by CEO Vimal Kapur.
Management's Perspective
Vimal Kapur, Honeywell's chairman and CEO, expressed satisfaction with the company's performance, highlighting the resilience and adaptability of Honeywell's Accelerator operating system. Kapur emphasized the company's focus on new product innovation and balanced capital deployment, which have contributed to the growth of Honeywell's record backlog.
Future Outlook
Honeywell has updated its full-year 2025 guidance, now expecting sales between $40.8 billion and $41.3 billion, with organic sales growth of 4% to 5%. The company anticipates a segment margin of 23.0% to 23.2% and adjusted EPS in the range of $10.45 to $10.65. Operating cash flow is projected to be between $6.7 billion and $7.1 billion, with free cash flow expected to range from $5.4 billion to $5.8 billion.
SEC Filing: HONEYWELL INTERNATIONAL INC [ HON ] - 8-K - Jul. 24, 2025