Honeywell International (HON) AI Stock Analysis

• Market Cap: $149.07B
• Dividend Yield: 2.24%
• Average Volume (3M): 4.06M
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.74
• Revenue Growth: 7.48%
• EPS Growth: 9.55%
• Country: US
• Employees: 102,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 2.59
• Shares Outstanding: 635,675,700
• 10 Day Avg. Volume: 4,108,981
• 30 Day Avg. Volume: 4,057,549
• PEG Ratio: -2.91
• Price to Book (P/B): 8.07
• Price to Sales (P/S): 3.33
• P/FCF Ratio: 23.12
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 4.20
• Enterprise Value/Gross Profit: 11.39
• Enterprise Value/Ebitda: 17.88
• 1Y Price Target: $252.94
• Price Target Upside: 7.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 10.49
• Revenue Forecast (FY): $39.58B

• Rating: 73 Outperform
• Price Target: $266.00 ▲(13.43% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven mainly by solid operating performance and a constructive 2026 outlook (growth, margin expansion, and cash flow), supported by positive price momentum. Offsetting this are higher leverage and a relatively full valuation, plus execution/timing risks tied to long-cycle conversions and the aerospace separation.

Positive Factors

Cash Generation

Consistent, multi-billion dollar free cash flow provides durable funding for debt reduction, capex to support backlog, and shareholder returns. Strong FCF coverage versus earnings and guidance for similar FCF in 2026 underpin financial flexibility through the planned portfolio separation.

Backlog & Orders

A record backlog and meaningful order growth create a multi-quarter revenue runway that supports conversion-led growth and margin recovery. This pipeline reduces reliance on short-cycle demand and underpins structural revenue visibility into 2026 as long-cycle projects convert.

Portfolio Simplification

Moving to separate aerospace and divest non-core units narrows strategic focus and clarifies capital allocation. Creating a pure-play aerospace company and selling Productivity/Warehouse units should improve operational transparency, management accountability, and long-term returns for the remaining automation-focused business.

Negative Factors

Rising Leverage

Material debt increase and higher leverage reduce balance-sheet flexibility, raising refinancing and interest-cost sensitivity. Elevated debt complicates capital allocation around the spin, limits buffer for cyclical downturns, and increases reliance on disciplined cash generation to meet obligations.

Spin Execution Risk

The planned separation introduces operational and timing risk: transitional and stranded costs, standalone capital structures and potential execution slippage can erode near-term margins and distract management. Delays or higher separation costs would pressure cash flow and strategic outcomes.

End‑Market Weakness

Exposure to cyclic petrochemical catalysts and pockets of weak industrial automation demand reduces revenue visibility and creates mix pressure. Prolonged project deferrals or lower aftermarket volumes can compress margins and delay conversion of long-cycle orders into profit.

Honeywell International Business Overview & Revenue Model

Company Description

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spare parts; repair, overhaul, and maintenance services; thermal systems, as well as wireless connectivity and management services. The company's Honeywell Building Technologies segment offers software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrades of systems. Its Performance Materials and Technologies segment offers automation control, instrumentation, and software and related services; catalysts and adsorbents, equipment, and consulting; and materials to manufacture end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, as well as provides reduced and low global-warming-potential materials based on hydrofluoro-olefin technology. The company's Safety and Productivity Solutions segment provides personal protection equipment, apparel, gear, and footwear; gas detection technology; cloud-based notification and emergency messaging; mobile devices and software; supply chain and warehouse automation equipment, and software solutions; custom-engineered sensors, switches, and controls; and data and asset management productivity software solutions. The company was founded in 1906 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

Honeywell generates revenue through several key segments: Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. The Aerospace segment includes products and services for commercial and defense aircraft, which contribute significantly to revenue through the sale of systems, engines, and aftermarket services. Building Technologies focuses on solutions for smart buildings, energy efficiency, and safety, driving income from system installations and maintenance contracts. Performance Materials and Technologies offers advanced materials and chemical products, generating revenue through sales to various industries. The Safety and Productivity Solutions segment provides personal protective equipment and software solutions, contributing to earnings through both product sales and recurring software subscriptions. Additionally, strategic partnerships and collaborations with other companies in technology and engineering sectors enhance Honeywell's market reach and revenue potential.

Honeywell International Financial Statement Overview

Summary

Profitability and cash generation remain solid (improving gross margin through 2024 and steady operating/free cash flow), but fundamentals softened in the latest year with slightly lower revenue and net income. The key risk is balance-sheet direction: debt rose materially and equity declined, pushing leverage higher and reducing flexibility.

Income Statement

Revenue has generally trended up from 2021–2024 (including ~5.0% growth in 2024), but the latest annual period shows a slight revenue decline (about -0.8%) and lower profits versus 2024 (net income down to ~$5.1B from ~$5.7B). Profitability remains solid based on 2022–2024 margins, with gross margin improving from ~32.8% (2022) to ~38.3% (2024) while net margin stayed healthy (~14–15%). The main watch-out is the recent step-down in EBIT/EBITDA and net income in the latest year after a stronger 2024.

Balance Sheet

Leverage has increased meaningfully: total debt rose from ~$20–22B (2021–2022) to ~$32–33B (2024–2025), and debt-to-equity climbed to ~1.73x in 2024 (from ~1.02x in 2021). Equity also fell in the latest year (~$15.4B in 2025 vs ~$18.6B in 2024), which further pressures balance sheet flexibility. Offsetting this, returns on equity have been strong in recent years (~29–36% from 2021–2024), indicating efficient profitability, but the higher leverage is the key risk factor.

Cash Flow

Cash generation is steady and supportive: operating cash flow improved to ~$6.38B in the latest year (from ~$6.10B in 2024) and free cash flow rose to ~$5.39B. However, the most recent year shows free cash flow down ~12.5% versus the prior year, signaling some near-term volatility. Where disclosed (2021–2024), free cash flow has consistently covered a large portion of net income (roughly ~0.81–0.85x), suggesting earnings quality is generally solid.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.44B	38.50B	36.65B	35.45B	34.39B
Gross Profit	13.83B	14.76B	14.29B	13.61B	12.77B
EBITDA	8.68B	9.61B	9.10B	8.00B	8.80B
Net Income	5.14B	5.71B	5.66B	4.97B	5.54B
Balance Sheet
Total Assets	74.11B	75.20B	61.52B	62.27B	64.47B
Cash, Cash Equivalents and Short-Term Investments	12.93B	10.95B	8.10B	10.11B	11.52B
Total Debt	34.58B	32.23B	21.54B	20.54B	20.63B
Total Liabilities	58.67B	56.03B	45.08B	44.95B	45.22B
Stockholders Equity	15.44B	18.62B	15.86B	16.70B	18.57B
Cash Flow
Free Cash Flow	5.39B	4.93B	4.30B	4.51B	5.14B
Operating Cash Flow	6.38B	6.10B	5.34B	5.27B	6.04B
Investing Cash Flow	-2.71B	-10.16B	-1.29B	-93.00M	-1.06B
Financing Cash Flow	-1.95B	6.84B	-5.76B	-6.33B	-8.25B

Honeywell International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 234.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HON, the sentiment is Neutral. The current price of 234.5 is below the 20-day moving average (MA) of 240.48, above the 50-day MA of 227.52, and above the 200-day MA of 207.98, indicating a neutral trend. The MACD of 2.09 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 29.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HON.

Honeywell International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	75 Outperform	$8.00B	23.29	20.28%	0.63%	1.23%	-22.77%
HON	73 Outperform	$149.07B	24.26	31.25%	2.24%	7.48%	9.55%
ITW	72 Outperform	$76.95B	23.48	95.18%	2.43%	-0.41%	-10.88%
GE	70 Outperform	$314.32B	37.76	45.88%	0.48%	-19.21%	31.83%
JCI	70 Outperform	$79.67B	36.04	23.52%	1.27%	-10.19%	100.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	55 Neutral	$79.51B	26.32	71.89%	1.82%	-13.09%	-20.63%

Honeywell International Corporate Events

Honeywell Restructures Capital for Upcoming Aerospace Spin-Off

On March 6, 2026, Honeywell moved to overhaul its capital structure around the planned third‑quarter 2026 spin‑off of Honeywell Aerospace Inc., arranging new revolving credit facilities for both Honeywell and Aerospace and terminating existing $3 billion 364‑day and $4 billion five‑year bank lines. The company also put in place a $6 billion term loan due March 31, 2026 and new 364‑day and five‑year revolving facilities totaling $7 billion for Honeywell and $4 billion for Aerospace, all on an unsecured, investment‑grade basis with no financial covenants, to support general corporate needs and the separation.

Also on March 6, 2026, Honeywell announced that Aerospace had launched a private offering of up to $16 billion in senior notes, with part of the proceeds to be distributed to Honeywell and part used as exchange notes to retire amounts outstanding under the 2026 term loan. Honeywell, in turn, began cash tender offers for up to $3.75 billion and €1.25 billion of its existing bonds and issued or planned conditional redemptions covering about $3.9 billion and €1.4 billion of notes maturing between 2027 and 2030, signaling an aggressive refinancing and liability‑management push designed to optimize leverage, extend maturities and shape standalone capital structures for Honeywell and the future Aerospace entity.

The most recent analyst rating on (HON) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

Honeywell Plans Aerospace Spin-Off With Nasdaq Listing

On March 3, 2026, Honeywell announced that Honeywell Aerospace Inc., its Delaware-based aerospace and defense subsidiary, filed a Form 10 registration statement with the U.S. Securities and Exchange Commission for a planned spin-off into an independent, publicly traded company listed on Nasdaq under the ticker “HONA.” The move is part of Honeywell’s broader portfolio transformation aimed at sharpening strategic focus, improving organizational agility and aligning capital allocation.

The Form 10 outlines Honeywell Aerospace as a pure-play aerospace and defense company targeting net sales of $17.4 billion, pro forma net income of $1.5 billion and pro forma Adjusted EBIT of $4.3 billion in 2025, organized into Electronic Solutions, Engines & Power Systems and Control Systems segments. Management expects the spin-off, intended to be tax-free for Honeywell shareholders in the U.S., to be completed in the third quarter of 2026, with an Investor Day set for June 3, 2026 in Phoenix to detail strategy, growth prospects and financial outlook, signaling a significant change in Honeywell’s structure and a bid to unlock value for customers, employees and investors.

The most recent analyst rating on (HON) stock is a Buy with a $293.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

Honeywell Updates 10-K, Advances Portfolio Optimization Strategy

On February 17, 2026, Honeywell filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and detailed further steps in its portfolio optimization strategy centered on its core automation businesses. The company has classified its Productivity Solutions and Services and Warehouse and Workflow Solutions units as assets held for sale since the fourth quarter of 2025, with the planned divestitures expected to narrow Honeywell’s focus and reshape its industrial automation footprint.

Following its January 29, 2026 earnings release, Honeywell recorded additional impairment charges tied to these businesses, including an incremental $436 million goodwill impairment in the Industrial Automation segment and a $35 million impairment on assets held for sale, partially offset by a $61 million tax benefit. These adjustments lowered full-year 2025 reported metrics to earnings per share from continuing operations of $6.94, net income from continuing operations of $4,468 million, operating income of $5,573 million, and a 14.9% operating margin, but did not affect previously announced adjusted results or 2026 guidance, which the company reaffirmed while signaling it still expects to complete the PSS and WWS sales in the first half of 2026.

The most recent analyst rating on (HON) stock is a Hold with a $235.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

Honeywell Plans Q4 Charge Amid Flexjet Settlement Talks

Honeywell has disclosed that it is in active settlement negotiations over litigation brought on March 1, 2023, by private jet operator Flexjet, which alleges breach of an aircraft engine maintenance service agreement and seeks liquidated damages for delayed engine repairs. Based on the current state of those talks, Honeywell expects to record a one-time charge in the fourth quarter of 2025 within its Aerospace Technologies segment that would reduce GAAP sales by about $310 million and operating income by about $370 million through contra-revenue accounting, and anticipates that comprehensive settlements would entail roughly $470 million in aggregate one-time cash payments to Flexjet and other parties to the dispute, signaling a potentially significant but contained financial impact as the company seeks to resolve the long-running contractual conflict.

The most recent analyst rating on (HON) stock is a Buy with a $255.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

Honeywell Appoints Indra Nooyi as Independent Director

On December 10, 2025, Honeywell International announced the appointment of Indra Nooyi, former Chair and CEO of PepsiCo, as an Independent Director on its Board, effective January 1, 2026. Nooyi’s extensive experience in leading global businesses and her strategic insights are expected to enhance Honeywell’s board capabilities, supporting long-term growth and value creation for shareholders.

The most recent analyst rating on (HON) stock is a Buy with a $218.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.