Honeywell International (HON)
NASDAQ:HON
Want to see HON full AI Analyst Report?
Top Page
Honeywell International
(NASDAQ:HON)
Select Model
Select Model
Rating:61Neutral
Price Target:
$232.00
â–¼(-0.66% Downside)
Action:ReiteratedDate:04/23/26
The score is led by steady underlying profitability and constructive guidance backed by strong order/backlog trends, but it is held back by weakening recent revenue/FCF trends and elevated leverage. Technically, the stock shows weak momentum (below key moving averages with negative MACD), and valuation is mixed with a supportive dividend but an unhelpful negative P/E.
Positive Factors
Backlog and Order Strength
A sustained, large backlog and 7% organic order growth provide multi-quarter revenue visibility and production runway across Aerospace and automation. High backlog supports durable aftermarket and project revenue conversion, reducing near-term sales volatility and underpinning second-half recovery potential.
Negative Factors
Elevated Leverage
Material trailing twelve‑month debt and a ~2.14x debt/equity ratio constrain financial flexibility for M&A, capex and buybacks. Elevated leverage raises refinancing and interest‑rate sensitivity risks, limiting the firm's ability to absorb shocks or accelerate strategic investment during the spin and transition period.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Order Strength
A sustained, large backlog and 7% organic order growth provide multi-quarter revenue visibility and production runway across Aerospace and automation. High backlog supports durable aftermarket and project revenue conversion, reducing near-term sales volatility and underpinning second-half recovery potential.
Read all positive factors
Honeywell International (HON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$135.08B
Dividend Yield2.24%
Average Volume (3M)3.53M
Price to Earnings (P/E)43.7
Beta (1Y)0.71
Revenue Growth1.15%
EPS Growth-19.00%
CountryUS
Employees102,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)2.45
Shares Outstanding633,653,140
10 Day Avg. Volume3,208,900
30 Day Avg. Volume3,531,384
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 Cap1.16
Enterprise Value/Revenue4.26
Enterprise Value/Gross Profit11.53
Enterprise Value/Ebitda23.91
Forecast
1Y Price Target
$252.71Price Target Upside8.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)10.53
Revenue Forecast (FY)$39.43B
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: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
Positive
233.55
Price Trends
234.60
Negative
218.87
Positive
210.27
Positive
Market Momentum
0.36
Negative
53.98
Neutral
66.71
Neutral
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 233.55 is above the 20-day moving average (MA) of 228.25, below the 50-day MA of 234.60, and above the 200-day MA of 210.27, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 53.98 is Neutral, neither overbought nor oversold. The STOCH value of 66.71 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.75B | 17.67 | 3.36% | 0.63% | 2.40% | 4.95% | |
72 Outperform | $77.61B | 23.48 | 95.18% | 2.43% | 0.92% | -10.50% | |
70 Outperform | $86.86B | 36.04 | 23.52% | 1.27% | -6.39% | 102.82% | |
68 Neutral | $296.93B | 38.03 | 46.39% | 0.48% | 21.75% | 26.48% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $135.08B | 43.68 | 23.56% | 2.24% | 1.15% | -19.00% | |
56 Neutral | $76.14B | 29.42 | 66.03% | 1.82% | 2.08% | -34.33% |
* Industrials Sector Average
HON
Honeywell International
212.05
16.97
8.70%
MMM
3M
145.77
9.89
7.28%
GE
GE Aerospace
284.56
85.12
42.68%
ITW
Illinois Tool Works
269.74
33.96
14.40%
JCI
Johnson Controls
143.38
62.17
76.56%
VMI
Valmont
497.99
204.70
69.79%
Honeywell International Corporate Events
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 ...
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.