Honeywell reported strong fourth-quarter results, exceeding guidance for adjusted sales and adjusted EPS, driven by robust demand in Aerospace and Building Automation. The company is progressing with its portfolio transformation, including the expected spin-off of its aerospace business in Q3 2026, and has established a new go-forward segment structure.
Fourth quarter sales of $9.8 billion, up 6% reported and 10% adjusted, with organic sales up 11%.
positiveFourth quarter orders grew 23% organically, driving backlog to over $37 billion.
positiveFull-year adjusted EPS of $9.78, up 12% year over year.
positiveFull-year free cash flow of $5.1 billion, up 20% year over year.
positiveFourth quarter operating income decreased 35% to $996 million, and operating margin contracted 640 basis points to 10.2% due to one-time impairment charges and litigation settlements.
negativeFourth quarter GAAP EPS of $0.49 was down 72% primarily driven by one-time charges.
negativeIndustrial Automation segment margin contracted 120 basis points year over year to 18.4% driven by cost inflation.
attentionEnergy and Sustainability Solutions segment margin contracted 300 basis points to 23.7% driven by demand softness in petrochemical catalysts and unfavorable mix.
attentionFull-year operating income decreased 6% to $6.04 billion, and operating margin contracted 250 basis points.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Aerospace Technologies | N/A | — | — | — |
Industrial Automation | N/A | — | — | — |
Building Automation | N/A | — | — | — |
Energy and Sustainability Solutions | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
We concluded 2025 with strong results that exceeded the high end of our guidance for adjusted sales and adjusted EPS.
Orders grew 23% stemming from robust demand in the Aerospace Technologies and Energy and Sustainability Solutions segments, including from our LNG acquisition that closed last year.
As a result, we exited 2025 with a record backlog of over $37 billion which positions us well for 2026.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.