Honeywell International (HON) AI Stock Analysis

• Market Cap: $147.11B
• Dividend Yield: 2.24%
• Average Volume (3M): 3.86M
• 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: 4,187,053
• 30 Day Avg. Volume: 3,859,026
• 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: 4.15
• Enterprise Value/Gross Profit: 11.23
• Enterprise Value/Ebitda: 17.63
• 1Y Price Target: $252.94
• Price Target Upside: 9.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 10.5
• Revenue Forecast (FY): $39.59B

• Rating: 69 Neutral
• Price Target: $257.00 ▲(11.05% Upside)
• Action: Downgraded Date: 03/17/26
• Date: Action: Downgraded 03/17/26

The score is driven primarily by solid but slightly softening fundamentals and higher leverage (financial performance), partially offset by constructive 2026 guidance supported by strong orders/backlog (earnings call). Technical signals are mixed and valuation is reasonable but not cheap, keeping the overall score in the upper-middle range.

Positive Factors

Backlog and Order Growth

Record backlog above $37B from 23% organic order growth gives multi-quarter revenue visibility and conversion tailwinds. This durable backlog supports planned 2026 revenue and margin guidance, underpins aftermarket/service revenue conversion, and reduces near-term cyclicality risk.

Free Cash Flow Strength

Substantial operating and free cash flow, historically covering a large portion of net income (~0.81–0.85x), provides durable internal funding. Steady FCF supports debt paydown, necessary capex, buybacks and strategic investments (including Quantinuum) without materially impairing operations.

Margin Expansion and Profitability

Sustained gross- and net-margin improvement indicates pricing power, product mix shift to higher-margin aftermarket/software, and cost discipline. Durable margin expansion bolsters EPS and free cash flow resilience, cushioning earnings through slower revenue cycles.

Negative Factors

Elevated Leverage

Material increase in debt and higher debt/equity constrains financial flexibility and raises interest and refinancing vulnerability. Elevated leverage limits optionality for M&A or aggressive buybacks, and amplifies downside risk if free cash flow or conversion of long-cycle orders softens.

Cyclical End‑Market Exposure

Significant exposure to petrochemical catalysts, refining/LNG project cycles and industrial automation creates multi-quarter revenue and margin volatility if final investment decisions or project conversions slip. These end-market cyclicals can depress results despite strong backlog elsewhere.

Spin Execution and Capital-Structure Risk

The planned aerospace spin and associated debt issuance/guarantees add execution and contingent liability risk until separation closes. Complex refinancing, parent guarantees and potential stranded costs raise credit and timing risk over the 12–18 month separation window and could constrain strategic flexibility.

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 makes money primarily by selling products, engineered systems, software, and lifecycle services across its major operating segments. A significant portion of revenue comes from Aerospace, including aircraft engines and auxiliary power unit (APU) components, avionics, flight safety and navigation systems, and maintenance/repair/overhaul and spare parts; this business typically benefits from a large installed base that drives recurring aftermarket sales over the life of an aircraft. In Building Technologies, Honeywell generates revenue from building management systems (e.g., controls, sensors, fire and security solutions) and associated installation, service contracts, and software, with ongoing service and upgrades providing recurring revenue beyond initial equipment sales. In Performance Materials and Technologies, Honeywell sells process automation and control solutions (hardware and software), industrial sensing and productivity solutions, and catalyst and process-technology offerings used by refiners and chemical producers; revenue is earned from both project-based system sales and recurring streams such as software, services, consumables, and catalyst replacements. In Advanced Materials, it earns revenue from specialty chemicals and materials (for example, fluorine-related products and electronic materials) sold to industrial customers, typically on a volume-based basis. Across segments, Honeywell’s earnings are influenced by the mix of original equipment sales versus higher-margin aftermarket/service and software, long-term customer relationships and service agreements tied to installed equipment, and demand cycles in commercial aerospace, industrial capital spending, energy/chemicals, and construction/retrofit activity.

Honeywell International Financial Statement Overview

Summary

Profitability and cash generation are solid (improving gross margins through 2024 and steady operating/free cash flow), but the latest period shows softer revenue/profit versus 2024 and the balance sheet is a key constraint with materially higher debt and lower equity driving elevated leverage.

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: 231.42
• 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 231.42 is below the 20-day moving average (MA) of 239.69, above the 50-day MA of 229.06, and above the 200-day MA of 208.23, indicating a neutral trend. The MACD of 0.99 indicates Positive momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 20.84 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	$7.99B	23.29	20.28%	0.63%	1.23%	-22.77%
ITW	72 Outperform	$77.16B	23.48	95.18%	2.43%	-0.41%	-10.88%
GE	70 Outperform	$316.84B	37.76	45.88%	0.48%	-19.21%	31.83%
JCI	70 Outperform	$81.14B	36.04	23.52%	1.27%	-10.19%	100.65%
HON	69 Neutral	$147.11B	24.26	31.25%	2.24%	7.48%	9.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	55 Neutral	$78.51B	26.32	71.89%	1.82%	-13.09%	-20.63%

Honeywell International Corporate Events

Honeywell Reshapes Capital Structure Ahead of Aerospace Spin-Off

On March 16, 2026, Honeywell fully repaid and terminated a $1.0 billion fixed-rate term loan agreed in August 2024, while also discharging all obligations under a separate March 2026 term loan via an exchange of newly issued Aerospace notes and cash. These moves are part of a broader capital-structure reshaping linked to the planned spin-off of Honeywell Aerospace and the retirement or refinancing of existing Honeywell debt.

In connection with the spin-off, Honeywell Aerospace issued $16 billion of senior notes across multiple maturities from 2028 to 2066 in a private offering to institutional and non-U.S. investors, with Honeywell guaranteeing the notes on a senior unsecured basis until the separation closes. A portion of the proceeds funded a cash distribution back to Honeywell, enabling tender offers and redemptions of Honeywell’s outstanding bonds, including a planned April 10, 2026 redemption of €750 million 2.250% notes due 2028, signaling an active effort to optimize leverage and extend the debt maturity profile across both the parent and the soon-to-be independent aerospace business.

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 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.