Honeywell International (NASDAQ:HON) Announces Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Honeywell International (NASDAQ:HON) issued its quarterly earnings data on Thursday. The conglomerate reported $2.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.17 by $0.10, FiscalAI reports. Honeywell International had a net margin of 23.90% and a return on equity of 34.00%. During the same period last year, the company posted $2.82 EPS. The business’s revenue was up 1.3% compared to the same quarter last year.

Here are the key takeaways from Honeywell International’s conference call:

• 2026 guidance was raised across key metrics: organic sales growth is now expected at 4%–5%, adjusted EPS at $8.40–$8.45, and free cash flow at $2.1 billion. Management expects fourth-quarter organic growth of 5%–6% and approximately 30% full-year earnings growth.
• Third-quarter performance was broad-based, with 7% organic sales growth, adjusted EPS up 34% year over year, and segment margins expanding 370 basis points to 21.3%. Building Automation grew 8% organically for its eighth consecutive quarter, while Process Automation & Technology grew 8%.
• Management sees a multiyear growth inflection in Process Automation & Technology, supported by nearly $19 billion of backlog, more than 10% PA&T backlog growth, and strong demand across LNG, refining, petrochemicals, and low-carbon energy. Data-center orders rose more than 100%, with opportunities expanding across Building Automation, process controls, sensing, and liquid cooling.
• Cash generation and balance-sheet execution improved, with quarterly free cash flow of approximately $690 million and 95% conversion; management expects conversion above 100% in the fourth quarter. Gross debt is targeted below $13 billion by year-end, reducing gross leverage below 3 times and creating greater flexibility for disciplined M&A.
• Near-term margins in Process Automation & Technology remain pressured by project mix and dilution from the Johnson Matthey Catalyst Technologies acquisition, with fourth-quarter margin expected around 21.5%. The company also continues to face elevated inflation, while utility meter deployments have been deferred and some refining-related aftermarket work may be delayed by high plant utilization.

Honeywell International Trading Down 1.4%

Honeywell International stock traded down $2.93 during midday trading on Thursday, reaching $211.80. 989,944 shares of the stock traded hands, compared to its average volume of 3,843,459. The firm has a market cap of $67.13 billion, a PE ratio of 8.25, a price-to-earnings-growth ratio of 1.59 and a beta of 0.86. The company has a current ratio of 1.21, a quick ratio of 0.93 and a debt-to-equity ratio of 1.39. The company has a 50-day simple moving average of $212.39 and a two-hundred day simple moving average of $221.99. Honeywell International has a 12-month low of $196.59 and a 12-month high of $261.24.

Honeywell International Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 13th will be issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Friday, November 13th. Honeywell International’s dividend payout ratio (DPR) is 27.60%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on HON. Jefferies Financial Group started coverage on shares of Honeywell International in a research report on Monday, August 17th. They set a “hold” rating and a $255.00 price target for the company. Rothschild & Co Redburn decreased their price objective on shares of Honeywell International from $237.00 to $234.00 and set a “neutral” rating on the stock in a report on Friday, September 25th. Zacks Research upgraded shares of Honeywell International from a “strong sell” rating to a “hold” rating in a report on Friday, September 4th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Honeywell International from $250.00 to $263.00 and gave the stock a “buy” rating in a research report on Tuesday, June 30th. Finally, Citigroup dropped their target price on shares of Honeywell International from $279.00 to $270.00 and set a “buy” rating for the company in a report on Monday, October 12th. Thirteen investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $249.60.

More Honeywell International News

Here are the key news stories impacting Honeywell International this week:

• Positive Sentiment: Honeywell reported third-quarter adjusted earnings of $2.27 per share, exceeding the $2.17 analyst consensus by $0.10, or 4.61%. Honeywell International Beats Q3 Earnings Estimates
• Positive Sentiment: Management raised its full-year projections for earnings, organic sales and cash flow, citing strong performance in the company’s first quarter as a standalone business following the aerospace spinoff. Honeywell Raises Annual Outlook as Q3 Profit Tops Expectations
• Positive Sentiment: The company’s valuation remains relatively low, with HON trading near 8.1 times earnings versus approximately 22.7 times for the median S&P 500 company. This could attract value-oriented investors if Honeywell can improve margins in its remaining automation businesses. Is Honeywell Stock a Real Bargain?
• Neutral Sentiment: The quarter represents an important early test of Honeywell’s strategy as a standalone company after separating its largest unit, Honeywell Aerospace. Investors are likely to focus on whether the retained automation operations can expand margins and sustain growth.
• Negative Sentiment: Third-quarter revenue of $4.99 billion fell slightly short of the $5.01 billion consensus, despite increasing just 1.3% year over year. Honeywell Misses Q3 Revenue Estimates, Lifts Guidance
• Negative Sentiment: Reported earnings declined from $2.82 per share in the prior-year quarter to $2.27, highlighting the need for Honeywell to demonstrate that its post-spinoff structure can generate improving profitability.

Insider Transactions at Honeywell International

In other Honeywell International news, CEO Kenneth West sold 316 shares of the business’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $245.47, for a total transaction of $77,568.52. Following the sale, the chief executive officer directly owned 2,004 shares in the company, valued at $491,921.88. This represents a 13.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.15% of the stock is owned by company insiders.

Honeywell International Company Profile

Honeywell International Inc is a diversified industrial technology company that develops products and systems for the aerospace, building automation, energy and industrial sectors. Its offerings include aircraft engines and avionics, industrial automation and control systems, building management technologies, fire and security products, personal protective equipment, and specialty materials and chemicals.

The company serves commercial aerospace, defense, airlines, building owners, manufacturers, energy producers and other industrial customers.