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Honeywell International Inc
(NASDAQ:HONIV)
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Rating:68Neutral
Price Target:
$254.00
▲(2.81% Upside)
Action:Reiterated
Date:07/23/26
The score is primarily driven by solid but recently softening financial performance (slower/negative TTM growth, margin compression, weaker YoY free cash flow, and elevated leverage). Offsetting this, the earnings call was notably positive with raised guidance and strong orders/backlog, while technicals are mixed and valuation appears reasonable based on the provided P/E (with dividend yield treated cautiously due to its unusually high stated value).
Positive Factors
Installed base & recurring aftermarket
Honeywell's businesses (notably Aerospace and Building controls) generate recurring aftermarket revenue from long-lived installed bases. That creates predictable, high-margin service streams and durable revenue visibility over multiple years, supporting cash generation and cross-sell opportunities.
Negative Factors
Elevated leverage
Significantly higher leverage reduces financial flexibility and increases vulnerability to economic shocks. With equity down and debt elevated, the company has less room for cyclical investment or margin shocks without pressuring cash flow coverage and capital-return plans over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Installed base & recurring aftermarket
Honeywell's businesses (notably Aerospace and Building controls) generate recurring aftermarket revenue from long-lived installed bases. That creates predictable, high-margin service streams and durable revenue visibility over multiple years, supporting cash generation and cross-sell opportunities.
Read all positive factors
Honeywell International Inc (HONIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$77.03B
Dividend Yield44.89%
Average Volume (3M)N/A
Price to Earnings (P/E)18.1
Beta (1Y)N/A
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees101,000
SectorGeneral
Sector StrengthN/A
IndustryConglomerates
Share Statistics
EPS (TTM)14.16
Shares OutstandingN/A
10 Day Avg. VolumeN/A
30 Day Avg. VolumeN/A
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)4.62
Price to Sales (P/S)1.72
P/FCF Ratio11.84
Enterprise Value/Market Cap2.20
Enterprise Value/Revenue4.28
Enterprise Value/Gross Profit11.24
Enterprise Value/Ebitda17.45
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Honeywell International Inc Business Overview & Revenue Model
Company Description
This HONIV security is an "ex-distribution / when-issued" instrument, created in anticipation of Honeywell's separation of its Advanced Materials division. This divestiture will establish Solstice Advanced Materials Inc. as a new, independent comp...
How the Company Makes Money
Honeywell primarily makes money by selling products, systems, software, and services across its operating segments, generating revenue from a mix of original equipment sales, recurring aftermarket services, and long-term customer relationships.
1...
Honeywell International Inc 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 communicated strong operational momentum: broad-based order growth (16% organic), backlog expansion (+9%), margin expansion (+100 bps), an EPS beat in the quarter and raised full-year guidance for organic growth, margins and adjusted EPS. Management completed strategic portfolio actions (Aerospace spin, JM Catalyst acquisition) and accelerated divestitures, while demonstrating improving stranded-cost removal and healthy free cash flow expectations. Near-term challenges remain in Process Automation & Technology (Q2 sales down 1%, aftermarket -6%, margin contraction of 180 bps) and modest collection pockets in the Middle East, plus one-time repositioning and tax headwinds. Overall, the positives (strong orders, guidance raises, margin and EPS upside, cash generation, completed acquisition) materially outweigh the headwinds, pointing to a constructive outlook for the company.Positive Updates
Strong Order Growth and Backlog Expansion
Company-wide organic orders grew 16% in Q2 2026 with broad-based demand; short-cycle orders were double-digit across all segments and ending backlog increased 9% year-over-year, supporting a book-to-bill of ~1.1.
Negative Updates
PA&T Near-Term Weakness and Catalyst Volatility
Process Automation & Technology sales declined 1% organically in Q2 and segment margin contracted 180 basis points to 22.1%, primarily due to unfavorable mix and lower catalyst volumes. Aftermarket revenue declined ~6% YoY driven by a tough prior-year large catalyst shipment comparison.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Order Growth and Backlog Expansion
Company-wide organic orders grew 16% in Q2 2026 with broad-based demand; short-cycle orders were double-digit across all segments and ending backlog increased 9% year-over-year, supporting a book-to-bill of ~1.1.
Read all positive updates
Company Guidance
Honeywell Technologies raised its 2026 outlook: full‑year organic sales growth is now 3%–4% (up from 2%–3%), with second‑half organic growth targeted at 4%–6% (prior 3%–5%); full‑year segment margin expansion is expected to be 250–290 basis points (up 25 bps at the midpoint) with the company exiting the year above 22% segment margin; adjusted EPS guidance is $8.20 at the midpoint (up from $8.10 and roughly +27% versus prior year) and Q2 adjusted EPS was $1.95 (+10%); free cash flow is expected to be roughly $2.0 billion in 2026 with ~95% conversion in the second half and >90% conversion full year; Q2 operating metrics supporting the upgrade included 16% organic orders growth, ending backlog up 9%, company book‑to‑bill of 1.1 (PA&T orders +24% with PA&T book‑to‑bill >1.2), and segment‑level guidance calling for Building Automation to grow mid‑single‑digit plus, Process Automation & Technology to accelerate to high single digits in H2, and Industrial Automation to finish the year up low single digits.Honeywell International Inc 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 | 39.66B | 37.44B | 38.50B | 36.65B | 35.45B | 34.39B |
| Gross Profit | 15.09B | 14.35B | 14.76B | 14.29B | 13.61B | 12.77B |
| EBITDA | 9.72B | 8.60B | 9.61B | 9.10B | 8.00B | 8.80B |
| Net Income | 4.51B | 4.73B | 5.71B | 5.66B | 4.97B | 5.54B |
Balance Sheet | ||||||
| Total Assets | 73.99B | 73.68B | 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 | 37.75B | 35.56B | 32.23B | 21.54B | 20.54B | 20.63B |
| Total Liabilities | 59.32B | 58.65B | 56.03B | 45.08B | 44.95B | 45.22B |
| Stockholders Equity | 13.59B | 13.90B | 18.62B | 15.86B | 16.70B | 18.57B |
Cash Flow | ||||||
| Free Cash Flow | 4.20B | 5.42B | 4.93B | 4.30B | 4.51B | 5.14B |
| Operating Cash Flow | 5.16B | 6.41B | 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 Inc Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $77.03B | 18.08 | 29.89% | 44.89% | ― | ― | |
67 Neutral | $90.91B | 31.14 | 77.12% | 1.75% | 2.35% | -21.55% | |
67 Neutral | $9.30B | 19.01 | 29.84% | 0.60% | 3.80% | 138.85% | |
60 Neutral | $255.15M | -3.31 | -20.17% | ― | -3.08% | -9.56% | |
57 Neutral | $3.95B | 121.37 | 34.99% | 0.93% | -8.03% | -85.98% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | $200.51M | 13.47 | 37.76% | ― | 9.30% | 22.99% |
* General Sector Average
HONIV
Honeywell International Inc
247.05
37.72
18.02%
MMM
3M
180.71
31.76
21.32%
GFF
Griffon
106.30
39.03
58.02%
NNBR
NN
3.87
1.67
75.91%
RCMT
Rcm Technologies
28.53
5.80
25.52%
VMI
Valmont
491.91
126.38
34.57%
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.