Honeywell Reports Q3 2026 Results & Raises Full-Year Outlook

Honeywell International Inc. (HON) - Q3 2026 Earnings & Guidance Update

Key Highlights

• Revenue Growth: Sales reached $4.994B, representing a 1% increase on a reported basis and 7% organic growth year-over-year, driven by broad-based performance across all segments.
• Margin Expansion: Segment profit surged 23% to $1.062B, with segment margin expanding 370 basis points to 21.3%, driven by productivity initiatives, fixed cost reduction, and positive net pricing.
• Earnings Per Share: Reported EPS was $2.40 (down 20% due to comparison against a one-time settlement gain in Q3 2025). Adjusted EPS rose 34% to $2.27, outperforming internal forecasts.
• Cash Generation: Operating cash flow came in at $607M, while Free Cash Flow reached $688M (+15% YoY) with a 95% conversion rate.
• Backlog: Ended the quarter at nearly $19B, up 7% year-over-year (excluding WWS and PSS divestitures).

Segment Breakdown

• Building Automation: Sales of $2.020B (+8% organic YoY), segment profit of $546M (+9%), margin of 27.0% (+30 bps).
• Process Automation and Technology: Sales of $1.859B (+8% organic YoY), segment profit of $412M (+6%), margin of 22.2% (-210 bps due to project mix and integration of the Johnson Matthey Catalyst Technologies acquisition).
• Industrial Automation: Sales of $1.115B (+4% organic YoY), segment profit of $205M (-5%), margin of 18.4% (+350 bps).

Full-Year 2026 Guidance Revision

• Sales: Raised to $20.0B–$20.1B (from $19.8B–$20.0B).
• Organic Growth: Raised to 4%–5% (from 3%–4%).
• Segment Margin: Expected around 20.5% (~290 bps expansion, tracking at the top end of the prior 20.1%–20.5% range).
• Adjusted EPS: Raised to $8.40–$8.45 (from $8.05–$8.35), representing 30%–31% annual growth.