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Honeywell International
(NASDAQ:HON)
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Rating:74Outperform
Price Target:
$261.00
â–²(7.34% Upside)
Action:Upgraded
Date:07/23/26
The score is driven primarily by a strong, guidance-raising earnings update with robust orders/backlog and expanding margin outlook. Valuation is also supportive given the mid-teens P/E and high dividend yield. These positives are moderated by only solid (not top-tier) underlying financial quality due to elevated leverage and weaker recent cash conversion, plus mixed momentum signals from technical indicators.
Positive Factors
Order & Backlog Momentum
Sustained double-digit organic order growth and a growing backlog provide durable demand visibility across segments. A book-to-bill above 1.0 and higher short-cycle orders support multi-month revenue realization and reduce execution risk, underpinning predictable future top-line delivery.
Negative Factors
Elevated Leverage
Above-average leverage increases interest and refinancing sensitivity across economic cycles. Even with improved metrics versus 2025, sizable net debt constrains balance sheet flexibility, amplifies risk from weaker cash conversion or cyclical downturns and limits optionality for large strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Order & Backlog Momentum
Sustained double-digit organic order growth and a growing backlog provide durable demand visibility across segments. A book-to-bill above 1.0 and higher short-cycle orders support multi-month revenue realization and reduce execution risk, underpinning predictable future top-line delivery.
Read all positive factors
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 (HON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$72.93B
Dividend Yield4.19%
Average Volume (3M)3.77M
Price to Earnings (P/E)9.1
Beta (1Y)0.71
Revenue Growth-2.41%
EPS Growth53.63%
CountryUS
Employees101,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)27.05
Shares Outstanding316,940,000
10 Day Avg. Volume3,374,115
30 Day Avg. Volume3,767,635
Financial Highlights & Ratios
PEG Ratio-0.85
Price to Book (P/B)4.04
Price to Sales (P/S)1.66
P/FCF Ratio11.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$313.79Price Target Upside29.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)8.32
Revenue Forecast (FY)$20.16B
Honeywell International Business Overview & Revenue Model
Company Description
Honeywell International Inc. functions as a global leader in diversified technology and manufacturing. Its Aerospace division furnishes a comprehensive array of products and services for the aviation and space industries. This includes crucial com...
How the Company Makes Money
Honeywell makes money primarily by selling engineered products, software, and services across its operating segments. In Aerospace, revenue is generated from equipment sales (e.g., avionics, engines/APUs and related components, and other aircraft ...
Honeywell International Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a decidedly positive tone: strong order growth (16% organic), backlog expansion (+9%), margin expansion (100 bps), an EPS beat and a raised full-year guide for organic growth and adjusted EPS. Strategic portfolio moves (JM acquisition, aerospace spin, Quantinuum IPO, accelerated divestitures) and improved stranded-cost progress underpin confidence in multi-year targets. Key risks include PA&T margin variability from catalyst mix, modest Middle East collection issues and a near-term revenue reduction (~$400M) from divestitures. Taken together, the positive operational momentum, guidance raises and cash generation materially outweigh the identified challenges.Positive Updates
Strong Orders and Backlog Momentum
Organic orders grew 16% in Q2 with broad-based demand and double-digit short-cycle order growth across all segments; PA&T orders up ~24% (book-to-bill >1.2); company book-to-bill 1.1 and ending backlog increased 9%.
Negative Updates
PA&T Margin Contraction and Catalyst Mix Headwind
Process Automation & Technology segment margin contracted 180 basis points to 22.1% in Q2, largely driven by unfavorable mix from lower catalyst volumes. Aftermarket was down ~6% due to a tough prior-year comp (large catalyst shipment in Q2 2025).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Orders and Backlog Momentum
Organic orders grew 16% in Q2 with broad-based demand and double-digit short-cycle order growth across all segments; PA&T orders up ~24% (book-to-bill >1.2); company book-to-bill 1.1 and ending backlog increased 9%.
Read all positive updates
Company Guidance
Management raised 2026 guidance, updating full-year organic sales growth to 3–4% (from 2–3%) and second‑half growth to 4–6% (from 3–5%), with Building Automation expected to deliver mid‑single‑digit plus growth, Process Automation & Technology to accelerate to high‑single‑digits in H2, and Industrial Automation to grow low‑single‑digits in H2; Q2 organic orders were +16% (PA&T +24% with PA&T book‑to‑bill >1.2; company book‑to‑bill 1.1), ending backlog +9%, and short‑cycle orders double‑digit across segments (BA orders >50% in the quarter). Q2 segment margin expanded 100 bps to 19% (BA 27.1%, +90 bps; IA 17.2%, +90 bps; PA&T 22.1%, -180 bps), and full‑year segment margin expansion is now guided to 250–290 bps (up 25 bps at the midpoint) with the company exiting the year above 22%. Adjusted EPS midpoint was raised to $8.20 (up ~$0.10 from prior midpoint and ~27% year‑over‑year at midpoint); Q2 adjusted EPS was $1.95 (+10%). Free cash flow is still expected to be roughly $2.0 billion in 2026 (Q2 FCF ≈ $0.5B) with ~95% conversion in H2 and >90% conversion for the year. Management also noted the JM Catalyst acquisition closed July 17, PSS and WWS divestitures now expected by early August (reducing 2026 revenue by ≈ $400M), and stranded costs now projected at roughly $60–65M entering 2027 (≈ $20M better than prior).Honeywell International Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.13B | 37.44B | 34.72B | 33.01B | 35.47B | 34.39B |
| Gross Profit | 13.21B | 13.83B | 13.36B | 12.37B | 13.12B | 12.33B |
| EBITDA | 12.55B | 8.21B | 8.44B | 7.94B | 8.00B | 8.80B |
| Net Income | 8.21B | 4.73B | 5.71B | 5.66B | 4.97B | 5.54B |
Balance Sheet | ||||||
| Total Assets | 77.34B | 74.11B | 75.20B | 61.52B | 62.27B | 64.47B |
| Cash, Cash Equivalents and Short-Term Investments | 9.20B | 12.93B | 10.95B | 8.10B | 10.11B | 11.52B |
| Total Debt | 28.71B | 34.58B | 32.23B | 21.54B | 20.54B | 20.63B |
| Total Liabilities | 52.12B | 58.67B | 56.03B | 45.08B | 44.95B | 45.22B |
| Stockholders Equity | 25.23B | 15.44B | 18.62B | 15.86B | 16.70B | 18.57B |
Cash Flow | ||||||
| Free Cash Flow | 4.12B | 5.39B | 5.23B | 4.60B | 4.51B | 5.14B |
| Operating Cash Flow | 5.09B | 6.38B | 6.10B | 5.34B | 5.27B | 6.04B |
| Investing Cash Flow | -1.88B | -2.71B | -10.16B | -1.29B | -93.00M | -1.06B |
| Financing Cash Flow | -4.78B | -1.95B | 6.84B | -5.76B | -6.33B | -8.25B |
Honeywell International Technical Analysis
Negative
243.15
Price Trends
234.21
Negative
233.41
Negative
227.30
Positive
Market Momentum
2.61
Positive
42.89
Neutral
34.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HON, the sentiment is Negative. The current price of 243.15 is above the 20-day moving average (MA) of 238.76, above the 50-day MA of 234.21, and above the 200-day MA of 227.30, indicating a neutral trend. The MACD of 2.61 indicates Positive momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 34.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $83.49B | 26.45 | 101.74% | 2.28% | 4.30% | -3.22% | |
75 Outperform | $93.74B | 26.48 | 26.94% | 1.12% | 6.81% | 70.90% | |
74 Outperform | $72.93B | 9.13 | 41.71% | 4.05% | -2.41% | 53.63% | |
74 Outperform | $381.89B | 42.88 | 49.03% | 0.47% | 21.69% | 18.42% | |
67 Neutral | $94.44B | 32.47 | 77.12% | 1.75% | 2.35% | -21.55% | |
67 Neutral | $9.52B | 19.45 | 29.84% | 0.60% | 3.80% | 138.85% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HON
Honeywell International
235.34
22.96
10.81%
MMM
3M
183.78
26.52
16.87%
GE
GE Aerospace
365.33
97.83
36.57%
ITW
Illinois Tool Works
292.51
31.78
12.19%
JCI
Johnson Controls
152.79
48.37
46.33%
VMI
Valmont
492.91
114.60
30.29%
Honeywell International Corporate Events
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresM&A TransactionsRegulatory Filings and ComplianceStock Split
Honeywell Completes Aerospace Spin-Off and Reverse Stock Split
Positive
Jun 29, 2026
Honeywell Technologies announced that, effective 12:01 a.m. New York City time on June 29, 2026, it completed the spin-off of its Aerospace Technologies business into Honeywell Aerospace, which is now an independent public company trading on Nasda...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesStock Split
Honeywell Board Approves Aerospace Spin-Off and Restructuring
Positive
Jun 15, 2026
On June 13, 2026, four Honeywell directors—Craig Arnold, William Ayer, D. Scott Davis and Deborah Flint—told the board they will resign immediately before the planned spin-off of Honeywell’s Aerospace Technologies business, with ...
Business Operations and StrategyM&A TransactionsStock Split
Honeywell Sets Aerospace Spin-Off and Reverse Split
Positive
Jun 5, 2026
On June 5, 2026, Honeywell’s board set June 15, 2026 as the record date for the spin-off of its Aerospace Technologies business into Honeywell Aerospace Inc., with shareowners to receive one Honeywell Aerospace share for every two Honeywell ...
Business Operations and StrategyExecutive/Board Changes
Honeywell Adds Independent Director to Support Portfolio Transformation
Positive
Jun 2, 2026
On June 1, 2026, Honeywell appointed Jillian Evanko, chief executive of Duravant and former CEO and CFO of Chart Industries, as an independent director and member of its Audit Committee, effective immediately. Evanko, who brings more than 25 years...
Executive/Board ChangesShareholder MeetingsStock Split
Honeywell Shareholders Approve Board Slate and Reverse Split
Positive
May 27, 2026
At its Annual Meeting of Shareowners held on May 22, 2026, Honeywell International shareholders elected all nominated directors to the board, approved on an advisory basis the compensation of the company’s named executive officers, and ratif...
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.