Honeywell International Stock Earnings Reports

Honeywell reported a strong Q1 2026 quarter with broad-based order growth (7% organic) and backlog expansion to over $38 billion (book-to-bill >1.1). Sales grew modestly (about 2% organic) with strength in Building Automation, Electronic Solutions and Aerospace; Process Automation & Technology (PA&T) saw order momentum and a 22% backlog increase despite near-term revenue impact from the Middle East conflict. Company-wide adjusted operating margin expanded ~90 basis points to ~23.3% and adjusted EPS rose 11% to $2.45. Management announced major portfolio moves: the Aerospace spinoff is expected to close June 29, 2026, and sales of Productivity Solutions & Services and Warehouse & Workflow Solutions are expected to close in H2 2026. Aerospace faced temporary mechanical supplier constraints that depressed early-quarter output but showed recovery in March and April; Aerospace full-year organic growth guidance remains high single-digit. PA&T revenue carried a ~0.5% Q1 hit from the Middle East and guidance assumes ~1% headwind in Q2, but management expects a strong second-half ramp driven by backlog and LNG/refining project conversions. Q2 guidance: organic sales growth of 2%–4%, segment margin ~22.2%–22.5%, and adjusted EPS ~$2.40 at the midpoint (noting a ~ $0.16 adverse impact from a higher effective tax rate). Free cash flow was roughly $100M in Q1; the company returned ~$1.8B to shareholders in the quarter. Management reaffirmed full-year organic growth of 3%–6% and full-year margin guidance of 22.7%–23.1%, while remaining prudent given geopolitical uncertainty.