Honeywell International (HON) AI Stock Analysis

• Market Cap: $153.29B
• Dividend Yield: 2.24%
• Average Volume (3M): 4.49M
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.73
• 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: 3,454,891
• 30 Day Avg. Volume: 4,491,039
• 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: 4.35
• Enterprise Value/Gross Profit: 11.78
• Enterprise Value/Ebitda: 18.50
• 1Y Price Target: $246.47
• Price Target Upside: 1.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $266.00 ▲(9.03% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

HON scores 70 primarily on solid financial performance and a constructive 2026 outlook backed by strong orders/backlog and expected margin and cash-flow improvement. The score is held back by higher leverage and a recent step-down in profits, plus a premium valuation and somewhat overextended technical momentum.

Positive Factors

Record backlog & order growth

A record backlog and 23% organic order growth provide durable revenue visibility as long-cycle contracts convert. This backlog supports multi-quarter conversion-driven sales and cash flow, reducing short-term cyclicality and underpinning the 2026 revenue and margin guidance.

Strong cash generation

Consistent operating and free cash flow levels demonstrate robust cash conversion ability that funds capex, M&A, dividends and buybacks. Steady FCF supports strategic actions (debt paydown, spins) and cushions the business through cyclical downturns.

Portfolio simplification underway

Delivering spins and targeted divestitures refocuses Honeywell on higher-margin automation and aerospace businesses. Simplification should improve strategic clarity, allow capital redeployment to core franchises, and sharpen operating metrics over the medium term.

Negative Factors

Rising leverage

Material debt increases and a higher debt-to-equity ratio materially reduce financial flexibility. Elevated leverage increases interest and refinancing risk, constrains the ability to fund opportunistic M&A or cushion separation costs, and magnifies downside during cyclical revenue weakness.

Cyclical end-market exposure

Weakness in catalysts and short-cycle industrial automation highlights exposure to cyclical end markets and regional demand softness. Overcapacity and delayed project FIDs can defer revenue and margin benefits, making near-term conversion of backlog and forecasted growth less certain.

Execution & separation risks

Impairments, one-time settlement payments, and the complexity of multiple divestitures/spins create execution risk. Stranded costs, timing slippage on sales or the aerospace spin, and related charges could erode expected EPS/cash benefits and delay the intended simplification payoff.

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 generates revenue through several key segments: Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. The Aerospace segment includes products and services for commercial and defense aircraft, which contribute significantly to revenue through the sale of systems, engines, and aftermarket services. Building Technologies focuses on solutions for smart buildings, energy efficiency, and safety, driving income from system installations and maintenance contracts. Performance Materials and Technologies offers advanced materials and chemical products, generating revenue through sales to various industries. The Safety and Productivity Solutions segment provides personal protective equipment and software solutions, contributing to earnings through both product sales and recurring software subscriptions. Additionally, strategic partnerships and collaborations with other companies in technology and engineering sectors enhance Honeywell's market reach and revenue potential.

Honeywell International Financial Statement Overview

Summary

Durable profitability and generally steady cash generation (improving gross margin through 2024 and solid operating/FCF levels), but fundamentals softened in the latest year (slight revenue decline and lower profits) and balance-sheet risk increased as debt rose materially and equity fell, pressuring flexibility.

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: Positive
• Last Price: 243.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 243.97 is above the 20-day moving average (MA) of 233.83, above the 50-day MA of 215.01, and above the 200-day MA of 206.21, indicating a bullish trend. The MACD of 8.23 indicates Positive momentum. The RSI at 73.17 is Negative, neither overbought nor oversold. The STOCH value of 68.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$8.96B	27.10	20.41%	0.63%	1.23%	-22.77%
ITW	72 Outperform	$85.35B	28.23	93.75%	2.43%	-0.41%	-10.88%
HON	70 Outperform	$153.29B	32.78	31.71%	2.24%	7.48%	9.55%
GE	70 Outperform	$345.67B	40.53	45.24%	0.48%	-19.21%	31.83%
JCI	69 Neutral	$85.37B	26.24	13.15%	1.27%	-10.19%	100.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	55 Neutral	$86.47B	27.34	76.08%	1.82%	-13.09%	-20.63%

Honeywell International Corporate Events

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.

Honeywell Appoints Indra Nooyi as Independent Director

On December 10, 2025, Honeywell International announced the appointment of Indra Nooyi, former Chair and CEO of PepsiCo, as an Independent Director on its Board, effective January 1, 2026. Nooyi’s extensive experience in leading global businesses and her strategic insights are expected to enhance Honeywell’s board capabilities, supporting long-term growth and value creation for shareholders.

The most recent analyst rating on (HON) stock is a Buy with a $218.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.