Honeywell Q4 profit beats on strong aerospace demand

Overview

• Diversified technology firm's Q4 adjusted EPS beat analyst expectations

• Company's Q4 adjusted sales rose 10%, driven by Aerospace and Building Automation

• Honeywell Aerospace spin-off expected in Q3 2026

Outlook

• Honeywell expects 2026 adjusted EPS of $10.35 to $10.65, up 6% to 9%

• Company anticipates 2026 sales of $38.8 bln to $39.8 bln

• Honeywell forecasts 2026 free cash flow of $5.3 bln to $5.6 bln

Result Drivers

• AEROSPACE DEMAND - Strong demand in Aerospace Technologies drove 21% organic sales growth, supported by commercial aftermarket and defense sales

• BUILDING AUTOMATION GROWTH - Building Automation sales increased 8% organically, driven by growth in building solutions and products

• BACKLOG INCREASE - Orders grew 23% organically, increasing backlog to over $37 billion, driven by Aerospace Technologies and ESS

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the consumer goods conglomerates peer group is "buy"

• Wall Street's median 12-month price target for Honeywell International Inc is $235.50, about 8.7% above its January 28 closing price of $216.64

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPnDGCsla

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