Honeywell International (HON)
NASDAQ:HON
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Honeywell International
(NASDAQ:HON)
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Rating:69Neutral
Price Target:
$257.00
â–²(12.62% Upside)
Action:DowngradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Honeywell International (HON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$145.07B
Dividend Yield2.24%
Average Volume (3M)3.83M
Price to Earnings (P/E)24.3
Beta (1Y)0.75
Revenue Growth7.48%
EPS Growth9.55%
CountryUS
Employees102,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)2.59
Shares Outstanding635,675,700
10 Day Avg. Volume4,124,466
30 Day Avg. Volume3,828,209
Financial Highlights & Ratios
PEG Ratio-2.91
Price to Book (P/B)8.07
Price to Sales (P/S)3.33
P/FCF Ratio23.12
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue4.04
Enterprise Value/Gross Profit10.93
Enterprise Value/Ebitda17.17
Forecast
1Y Price Target
$255.81Price Target Upside12.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)10.49
Revenue Forecast (FY)$39.59B
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, e...
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 un...
Honeywell International Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across different business units, indicating where the company is generating most of its income and identifying potential areas for growth or concern.
Breaks down sales across different business units, indicating where the company is generating most of its income and identifying potential areas for growth or concern.
Data provided by:
The Fly
The FlyHoneywell International Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive outlook: strong order growth (23%), record backlog, double-digit Q4 organic sales in key segments (aerospace and building automation), robust EPS and free cash flow performance, and clear 2026 guidance (3%–6% organic sales growth, 6%–9% EPS growth). Strategic progress — Solstice spin complete, aerospace spin targeted for Q3 2026, and QuantiNUM progress — supports long-term value creation. Offsetting risks include softness in petrochemical catalysts and short-cycle industrial automation (specific weakness in Europe and China), P&T near-term flatness, margin pressure from R&D/Quantinuum investments (~30 bps), one-time Q1 cash items ($177M), and execution/timing risks around conversion of long-cycle orders and the aerospace spin. Overall, the positives (order/backlog strength, margin trajectory, cash generation, and clear portfolio roadmap) outweigh the near-term operational and timing headwinds.Positive Updates
Strong Order Growth and Record Backlog
Orders grew 23% organically in Q4, driving backlog to over $37 billion (backlog up 15% year over year to a new record), supporting conversion-driven revenue growth in 2026.
Negative Updates
Energy & Sustainability (ESS) Weakness — Catalyst Demand
Energy and Sustainability organic sales declined 7% in Q4 due to lower petrochemical catalyst shipments and project deferrals; slower-than-expected aftermarket order rates and industry overcapacity are pressuring catalyst volumes.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Order Growth and Record Backlog
Orders grew 23% organically in Q4, driving backlog to over $37 billion (backlog up 15% year over year to a new record), supporting conversion-driven revenue growth in 2026.
Read all positive updates
Company Guidance
Honeywell guided full-year 2026 sales of $38.8–$39.8 billion (3%–6% organic growth), adjusted EPS of $10.35–$10.65 (up 6%–9%), and segment margins of 22.7%–23.1% (up 20–60 bps), with free cash flow of $5.3–$5.6 billion (~14% cash margin, ~83% conversion at the high end / ~90% excluding noncash pension income); capital expenditures are expected to rise by roughly $250 million to support backlog, the tax rate is ~19%, average shares are expected to decline ~1% (adding ~$0.08 to EPS), and price is expected to contribute roughly 3%–3.5% (Q4 price was ~4 pts); Q1 guidance calls for 3%–5% organic sales growth, segment margin of 22.4%–22.6% and EPS growth of 2%–6%, and the company flagged a ~+$100 million increase in QuantiNUM/Continuum investment (about a ~30 bps margin headwind) while forecasting aerospace to grow high single digits, building automation above mid-single digits, P&T roughly flat, and industrial automation down low single digits to roughly flat, with backlog conversion and record backlog expected to drive second‑half strength.Honeywell International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| 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
Positive
228.21
Price Trends
233.19
Negative
215.47
Positive
209.28
Positive
Market Momentum
-2.03
Negative
47.53
Neutral
83.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HON, the sentiment is Positive. The current price of 228.21 is below the 20-day moving average (MA) of 229.30, below the 50-day MA of 233.19, and above the 200-day MA of 209.28, indicating a neutral trend. The MACD of -2.03 indicates Negative momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 83.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HON.
Honeywell International Risk Analysis
Honeywell International disclosed 21 risk factors in its most recent earnings report. Honeywell International reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Honeywell International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $7.88B | 23.29 | 20.28% | 0.63% | 1.23% | -22.77% | |
72 Outperform | $74.49B | 23.48 | 95.18% | 2.43% | -0.41% | -10.88% | |
70 Outperform | $302.78B | 32.35 | 45.88% | 0.48% | -19.21% | 31.83% | |
70 Outperform | $81.86B | 36.04 | 23.52% | 1.27% | -10.19% | 100.65% | |
69 Neutral | $145.07B | 24.26 | 31.25% | 2.24% | 7.48% | 9.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $76.11B | 26.32 | 71.89% | 1.82% | -13.09% | -20.63% |
* Industrials Sector Average
HON
Honeywell International
228.21
59.54
35.30%
MMM
3M
144.50
19.64
15.73%
GE
GE Aerospace
288.69
120.21
71.35%
ITW
Illinois Tool Works
258.48
45.46
21.34%
JCI
Johnson Controls
133.75
63.58
90.61%
VMI
Valmont
403.45
140.72
53.56%
Honeywell International Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Honeywell Reshapes Capital Structure Ahead of Aerospace Spin-Off
Positive
Mar 16, 2026
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 ca...
Business Operations and StrategyPrivate Placements and Financing
Honeywell Restructures Capital for Upcoming Aerospace Spin-Off
Positive
Mar 6, 2026
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 ...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresRegulatory Filings and Compliance
Honeywell Plans Aerospace Spin-Off With Nasdaq Listing
Positive
Mar 3, 2026
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 indepe...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Honeywell Updates 10-K, Advances Portfolio Optimization Strategy
Negative
Feb 17, 2026
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 classif...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.