TLDR
- Honeywell stock jumped nearly 7% after raising its 2025 profit forecast with adjusted EPS now expected between $10.60 and $10.70
- Q3 adjusted earnings of $2.82 per share beat analyst estimates of $2.57, while revenue of $10.41 billion topped expectations of $10.14 billion
- Orders increased 22% year-over-year, pushing total backlog to a record $39.1 billion
- The company’s Solstice Advanced Materials spin-off is set for October 30, 2025, with Honeywell receiving a $1.5 billion dividend
- Aerospace Technologies segment led growth with 12% organic sales increase, while Building Automation expanded margins by 80 basis points to 26.7%
Honeywell reported third quarter results that exceeded Wall Street expectations. The industrial company posted adjusted earnings of $2.82 per share.
Analysts had projected $2.57 per share. Revenue reached $10.41 billion versus the $10.14 billion estimate.
The strong performance prompted Honeywell to raise its full-year profit outlook. The company now expects 2025 adjusted EPS between $10.60 and $10.70.
Honeywell International Inc., HON
That compares to the previous range of $10.24 to $10.44. Shares rose nearly 7% to around $220.90 in early trading following the announcement.
Record Backlog Driven by Order Growth
Order momentum stood out in the quarterly results. Orders jumped 22% year-over-year across the business.
This growth pushed Honeywell’s total backlog to a record $39.1 billion. Organic sales grew 6% during the quarter.
That topped the company’s own guidance range of 2% to 4%. CEO Vimal Kapur said the company is entering the final quarter from a position of strength.
Honeywell returned $800 million to shareholders during the three-month period. The company maintained its capital allocation priorities.
Different business segments showed varying performance levels. Aerospace Technologies led the way with 12% organic sales growth.
The segment brought in $4.51 billion in quarterly revenue. Building Automation posted 7% organic growth.
It was the only segment to expand margins. The division improved by 80 basis points to reach 26.7%.
Industrial Automation grew 1% organically. Energy and Sustainability Solutions declined 2% on an organic basis.
The mixed segment results reflect different market conditions. Each division faces its own demand environment.
Transformation Plans Moving Forward
Honeywell continues advancing its portfolio restructuring strategy. The Solstice Advanced Materials spin-off is scheduled for October 30, 2025.
That date comes ahead of initial expectations. Honeywell will receive a $1.5 billion dividend from the transaction.
The Aerospace Technologies separation remains on track. That spin-off is planned for the second half of 2026.
After the Aerospace split, the remaining company will operate three segments. These include Building Automation, Process Automation & Technology, and Industrial Automation.
The new structure takes effect in the first quarter of 2026. Management designed it to streamline operations and sharpen focus.
Quantinuum raised over $600 million in new funding. The quantum computing venture achieved a $10 billion pre-money valuation.
That doubled its 2024 valuation. New investors include Quanta Computer and NVIDIA alongside existing backers.
Looking ahead to the fourth quarter, Honeywell expects sales between $10.1 and $10.3 billion. That represents 8% to 10% organic growth.
Fourth quarter adjusted EPS is projected at $2.52 to $2.62. For the full year, sales guidance sits at $40.7 to $40.9 billion.
The full-year outlook reflects approximately 6% organic growth. Free cash flow is forecast between $5.2 and $5.6 billion.
That represents growth of 6% to 14%. The guidance incorporates the impact of the October 30 Solstice spin-off.
Shares remain down about 2.2% year-to-date when including the session’s gains. The stock traded at $219.62 following the earnings release, approaching its 52-week high of $242.77.
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