Honeywell International (HON)
NASDAQ:HON
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Honeywell International
(NASDAQ:HON)
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Rating:63Neutral
Price Target:
$232.00
â–¼(-0.66% Downside)
Action:Reiterated
Date:06/06/26
The score is driven primarily by solid underlying profitability and cash generation, tempered by stalled recent growth, a sharp decline in free cash flow, and elevated leverage. The latest earnings call was supportive due to reaffirmed guidance and strong orders/backlog, but near-term geopolitical, supply-chain, and PA&T timing headwinds limit upside. Technicals are weak-to-neutral and valuation remains high at ~33.7x earnings, keeping the overall score in the mid-range.
Positive Factors
Recurring aftermarket & services
Honeywell’s business mix leans on installed-base aftermarket, long-term service contracts and software in Aerospace and Building Technologies, creating recurring, higher-margin revenue streams. That reduces cyclicality of equipment sales, supports steady cash flow and underpins durable revenue visibility over multiple quarters.
Negative Factors
Elevated leverage
High absolute debt and a debt-to-equity ratio above historical norms constrain financial flexibility to fund buybacks, large M&A, or cushion cyclical downturns. Elevated leverage raises refinancing and interest-rate sensitivity, and limits optionality during the spin-off and capital-structure transitions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket & services
Honeywell’s business mix leans on installed-base aftermarket, long-term service contracts and software in Aerospace and Building Technologies, creating recurring, higher-margin revenue streams. That reduces cyclicality of equipment sales, supports steady cash flow and underpins durable revenue visibility over multiple quarters.
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
$136.68B
Dividend Yield2.24%
Average Volume (3M)4.41M
Price to Earnings (P/E)33.4
Beta (1Y)0.77
Revenue Growth1.15%
EPS Growth-19.00%
CountryUS
Employees102,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)7.08
Shares Outstanding633,653,140
10 Day Avg. Volume5,225,576
30 Day Avg. Volume4,413,083
Financial Highlights & Ratios
PEG Ratio-1.70
Price to Book (P/B)8.07
Price to Sales (P/S)3.33
P/FCF Ratio23.12
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue4.69
Enterprise Value/Gross Profit12.69
Enterprise Value/Ebitda26.32
Forecast
1Y Price Target
$251.00Price Target Upside7.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)10.51
Revenue Forecast (FY)$39.40B
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 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 Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously optimistic tone: clear operating strength evidenced by order growth, backlog expansion, margin improvement and EPS beat, together with material portfolio progress (Aerospace spin and divestitures). However, near-term headwinds from the Middle East conflict, temporary Aerospace supply‑chain constraints and weaker PA&T revenue in Q1 created cash-flow and timing pressures that temper immediate upside. Management reaffirmed full-year targets and highlighted confidence in a second-half rebound supported by backlog and project wins.Positive Updates
Orders Growth and Strong Backlog
Total orders grew 7% organically in Q1; book-to-bill was above 1.1; total backlog exceeded $38 billion (Honeywell reported backlog growth of ~15% year-over-year). Aerospace backlog was roughly $19 billion, up ~20% year-over-year.
Negative Updates
Middle East Conflict Impact on Revenue
Management estimates the Middle East conflict reduced revenue by ~0.5% in Q1 and assumed an additional ~1% revenue impact for Q2 due to logistics and shipment delays; Process Automation & Technology was most affected.
Read all updates
Q1-2026 Updates
Positive
Negative
Orders Growth and Strong Backlog
Total orders grew 7% organically in Q1; book-to-bill was above 1.1; total backlog exceeded $38 billion (Honeywell reported backlog growth of ~15% year-over-year). Aerospace backlog was roughly $19 billion, up ~20% year-over-year.
Read all positive updates
Company Guidance
Honeywell guided Q2 organic sales growth of 2%–4% with segment margin expected at 22.2%–22.5% and adjusted EPS about $2.40 at the midpoint (normalized-tax EPS roughly $2.55), noting a ~$0.16 headwind from a higher Q2 tax rate (~21% vs 16% a year ago); management reiterated full‑year organic growth of 3%–6% and full‑year segment margin of 22.7%–23.1% (with Aerospace called out for high single‑digit organic sales growth and PA&T roughly flat for the year). They said operational margin expansion of roughly 50–90 bps is expected for the year (with ~30 bps drag from Quantinuum), pricing above 3% (trending toward ~4%), and that backlog and orders (orders +7% organic, total backlog >$38B; Aerospace backlog ≈$19B, up ~20% y/y, book‑to‑bill >1.1; PA&T backlog +22%) support a stronger second half; Q2 dynamics include about $0.06 of higher segment profit, $0.04–$0.07 of below‑the‑line pension benefit, and modest EPS impacts of roughly $0.01 each from share count reduction and FX, while free cash flow guidance was unchanged.Honeywell International Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.76B | 37.44B | 34.72B | 33.01B | 35.47B | 34.39B |
| Gross Profit | 13.58B | 13.83B | 13.36B | 12.37B | 13.12B | 12.33B |
| EBITDA | 6.55B | 8.21B | 8.44B | 7.94B | 8.00B | 8.80B |
| Net Income | 4.10B | 4.73B | 5.71B | 5.66B | 4.97B | 5.54B |
Balance Sheet | ||||||
| Total Assets | 73.99B | 74.11B | 75.20B | 61.52B | 62.27B | 64.47B |
| Cash, Cash Equivalents and Short-Term Investments | 12.39B | 12.93B | 10.95B | 8.10B | 10.11B | 11.52B |
| Total Debt | 33.64B | 34.58B | 32.23B | 21.54B | 20.54B | 20.63B |
| Total Liabilities | 52.68B | 58.67B | 56.03B | 45.08B | 44.95B | 45.22B |
| Stockholders Equity | 21.31B | 15.44B | 18.62B | 15.86B | 16.70B | 18.57B |
Cash Flow | ||||||
| Free Cash Flow | 4.17B | 5.39B | 4.93B | 4.30B | 4.51B | 5.14B |
| Operating Cash Flow | 5.13B | 6.38B | 6.10B | 5.34B | 5.27B | 6.04B |
| Investing Cash Flow | -2.46B | -2.71B | -10.16B | -1.29B | -93.00M | -1.06B |
| Financing Cash Flow | -506.00M | -1.95B | 6.84B | -5.76B | -6.33B | -8.25B |
Honeywell International Technical Analysis
Negative
233.55
Price Trends
221.79
Negative
226.36
Negative
210.82
Positive
Market Momentum
-0.38
Positive
42.84
Neutral
6.60
Positive
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 233.55 is above the 20-day moving average (MA) of 222.78, above the 50-day MA of 221.79, and above the 200-day MA of 210.82, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 6.60 is Positive, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.36B | 30.13 | 21.43% | 0.63% | 2.40% | 4.95% | |
71 Outperform | $90.14B | 25.40 | 25.46% | 1.27% | -0.60% | 49.11% | |
70 Outperform | $73.81B | 23.60 | 97.38% | 2.43% | 2.90% | -5.25% | |
67 Neutral | $344.76B | 39.60 | 46.39% | 0.48% | 21.75% | 26.48% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $136.68B | 33.38 | 23.56% | 2.24% | 1.15% | -19.00% | |
55 Neutral | $81.57B | 29.68 | 66.03% | 1.82% | 2.08% | -34.33% |
* Industrials Sector Average
HON
Honeywell International
205.88
-2.33
-1.12%
MMM
3M
156.85
12.37
8.56%
GE
GE Aerospace
318.71
74.48
30.50%
ITW
Illinois Tool Works
250.17
9.64
4.01%
JCI
Johnson Controls
139.36
37.58
36.92%
VMI
Valmont
512.25
192.04
59.97%
Honeywell International Corporate Events
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...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Honeywell Realigns Segments, Updates Automation Reporting Structure
Neutral
Apr 23, 2026
Honeywell has recast its historical segment information for the year ended December 31, 2025 to reflect a 2026 realignment that created a new Process Automation and Technology segment and reshaped its Industrial Automation segment. The move combin...
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 ...
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.