HONEYWELL TECHNOLOGIES REPORTS THIRD QUARTER RESULTS, RAISES FULL-YEAR 2026 OUTLOOK
HONEYWELL INTERNATIONAL INC (HON) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 Contacts: Media Investor Relations Stacey Jones Mark Macaluso (980) 378-6258 (704) 627-6118 stacey.jones@honeywell.com mark.macaluso@honeywell.com HONEYWELL TECHNOLOGIES REPORTS THIRD QUARTER RESULTS, RAISES FULL-YEAR 2026 OUTLOOK • Sales of $5.0 billion, up 1% reporte
How this was made
The 30-second read
Why it matters
The raised guidance signals improved operational performance, likely supporting a bullish stance on the stock.
Market read
Honeywell's guidance lift is a material corporate event that can move the stock and affect related industrial sectors.
Timing
today
HONEYWELL TECHNOLOGIES REPORTS THIRD QUARTER RESULTS, RAISES FULL-YEAR 2026 OUTLOOK
Third-quarter organic sales growth was 7%, segment profit increased 23%, adjusted EPS increased 34%, free cash flow increased 15%, and the company raised full-year organic growth, adjusted EPS and free cash flow guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Product sales (Dollars in millions)GAAP | $3.63B | – | – |
| Q3 2026 Service sales (Dollars in millions)GAAP | $1.37B | – | – |
| Q3 2026 Net sales (Dollars in millions)GAAP | $4.99B | – | 1% |
| Q3 2026 Organic sales growthnon-GAAP | 7% | – | 7% |
| Q3 2026 Operating income (Dollars in millions)GAAP | $740M | – | 79% |
| Q3 2026 Operating income marginGAAP | 14.8% | – | 640 bps |
| Q3 2026 Segment profit (Dollars in millions)non-GAAP | $1.06B | – | 23% |
| Q3 2026 Segment profit marginnon-GAAP | 21.3% | – | 370 bps |
| Q3 2026 Net income from continuing operations (Dollars in millions)GAAP | $779M | – | – |
| Q3 2026 Net income (Dollars in millions)GAAP | $676M | – | – |
| Q3 2026 Net income attributable to Honeywell Technologies (Dollars in millions)GAAP | $664M | – | – |
| Q3 2026 Diluted earnings per share from continuing operationsGAAP | $2.40 | – | (20%) |
| Q3 2026 Total diluted earnings per shareGAAP | $2.08 | – | – |
| Q3 2026 Basic earnings per share from continuing operationsGAAP | $2.42 | – | – |
| Q3 2026 Total basic earnings per shareGAAP | $2.09 | – | – |
| Q3 2026 Adjusted earnings per share from continuing operations - dilutednon-GAAP | $2.27 | – | 34% |
| Q3 2026 Cash provided by operating activities from continuing operations (Dollars in millions)GAAP | $607M | – | (74%) |
| Q3 2026 Free cash flow (Dollars in millions)non-GAAP | $688M | – | 15% |
| Q3 2026 Adjusted free cash flow conversionnon-GAAP | 95% | – | – |
| Nine Months 2026 Net sales (Dollars in millions)GAAP | $15.00B | – | – |
| Nine Months 2026 Operating income (Dollars in millions)GAAP | $7.89B | – | – |
| Nine Months 2026 Net income from continuing operations (Dollars in millions)GAAP | $6.10B | – | – |
| Nine Months 2026 Net income attributable to Honeywell Technologies (Dollars in millions)GAAP | $7.17B | – | – |
| Nine Months 2026 Diluted earnings per share from continuing operationsGAAP | $19.19 | – | – |
| Nine Months 2026 Total diluted earnings per shareGAAP | $22.46 | – | – |
| Nine Months 2026 Cash provided by operating activities from continuing operations (Dollars in millions)GAAP | $932M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Building AutomationBuilding products grew 11%, fueled by the fire and security businesses, while building solutions grew 4% on continued strength in services. Segment margin expanded 30 basis points to 27.0%, benefiting from volume leverage and pricing actions that offset inflation. | $2.02B | – | 8% |
| Process Automation and TechnologyOrganic sales increased 8%. Project sales grew 14% led by continued growth in LNG and petrochemical projects, while aftermarket grew 4% driven primarily by refining demand. Margins contracted 210 basis points as expected driven by project mix and dilution from the acquisition of Johnson Matthey’s Catalyst Technologies business. | $1.86B | – | 16% |
| Industrial AutomationOrganic sales grew 4%, led by 16% growth in solutions, driven primarily by industrial measurement and utilities. Products were flat year over year as double-digit growth in sensing was largely offset by industry-wide meter deployment deferrals in utilities. Segment margin expanded 350 basis points to 18.4%. | $1.11B | – | (23)% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full-Year 2026 outlook
- Revenue$20.0B - $20.1B
- NoteOrganic Growth: 4% - 5%
- NoteFourth-quarter organic growth: 5% - 6%
- NoteSegment Margin: ~20.5%
- NoteSegment Margin Expansion: Up ~290 bps
- NoteAdjusted Earnings Per Share: $8.40 - $8.45
- NoteAdjusted Earnings Growth: 30% - 31%
- NoteOperating Cash Flow: ~$2.1B
- NoteFree Cash Flow: ~$2.1B
Capital returns
- Q3 2026 repurchases of common stock: $0; Q3 2025: $(100) (Dollars in millions).
- Nine Months 2026 repurchases of common stock: $(1,000); Nine Months 2025: $(3,704) (Dollars in millions).
- Q3 2026 cash dividends paid: $(240); Q3 2025: $(735) (Dollars in millions).
- Nine Months 2026 cash dividends paid: $(1,816); Nine Months 2025: $(2,214) (Dollars in millions).
What drove it
- Broad-based strength across all three segments, pricing actions, and continued demand across key end markets drove 7% organic sales growth.
- Backlog increased 7% year over year to nearly $19 billion, excluding WWS and PSS divestitures in 3Q 2026.
- Segment profit increased 23%, driven by productivity, elimination of stranded costs related to prior spin-offs and divestitures, pricing actions that more than offset inflation, and volume leverage.
- Adjusted EPS increased 34%, driven by organic sales growth, higher segment profit, and lower net interest expense.
- Free cash flow increased 15%, driven by higher operating income and lower capital expenditures.
Concerns
- Reported sales increased 1%, while the organic sales growth reconciliation shows an (8)% impact of divestitures to the prior period and a 2% impact from acquisitions.
- Process Automation and Technology segment margin contracted 210 basis points due to project mix and dilution from the acquisition of Johnson Matthey’s Catalyst Technologies business.
- Industrial Automation reported sales declined (23)% and segment profit declined (5)%, although organic sales growth was 4% and segment margin expanded 350 basis points.
- Cash provided by operating activities from continuing operations decreased 74%, primarily due to the one-time settlement from the Resideo termination agreement in the prior year.
- Reported diluted EPS from continuing operations decreased 20%, primarily due to a one-time gain from the Resideo termination agreement in the prior year.
What to watch
- Delivery of 5% to 6% fourth-quarter organic growth.
- Achievement of approximately 20.5% full-year segment margin and approximately 290 basis points of expansion.
- Process Automation and Technology margin performance amid project mix and acquisition dilution.
- Industrial Automation product demand, including industry-wide meter deployment deferrals in utilities.
- Conversion of nearly $19 billion of backlog, excluding WWS and PSS divestitures in 3Q 2026.
- Delivery of approximately $2.1B of both operating cash flow and free cash flow.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $5,694; December 31, 2025: $12,273 (Dollars in millions).
- Short-term investments at September 30, 2026: $492; December 31, 2025: $443 (Dollars in millions).
- Commercial paper and other short-term borrowings at September 30, 2026: $2,424; December 31, 2025: $5,893 (Dollars in millions).
- Current maturities of long-term debt at September 30, 2026: $3,783; December 31, 2025: $1,541 (Dollars in millions).
- Long-term debt at September 30, 2026: $10,386; December 31, 2025: $27,137 (Dollars in millions).
- Q3 2026 capital expenditures: $(77); Q3 2025: $(150) (Dollars in millions).
- Nine Months 2026 capital expenditures: $(369); Nine Months 2025: $(375) (Dollars in millions).
- Q3 2026 net cash provided by operating activities: $119; Q3 2025: $3,288 (Dollars in millions).
- Nine Months 2026 net cash provided by operating activities: $743; Nine Months 2025: $5,204 (Dollars in millions).
Analysis
Honeywell reported Q3 2026 net sales of $4,994 million, up 1%, while organic sales growth was 7%. The organic growth result reflected broad-based strength across all three segments, pricing actions and continued demand across key end markets. Backlog increased 7% year over year to nearly $19 billion, excluding the WWS and PSS divestitures in 3Q 2026. The reported-growth gap reflected the divestiture effect disclosed in the organic growth reconciliation.
Profitability improved materially. Operating income increased 79% to $740 million and operating income margin expanded 640 basis points to 14.8%. Segment profit increased 23% to $1,062 million and segment margin expanded 370 basis points to 21.3%. Management attributed the improvement to productivity, the elimination of stranded costs associated with prior spin-offs and divestitures, pricing that more than offset inflation and volume leverage.
All three operating segments posted organic growth, but mix differed. Building Automation recorded $2,020 million of sales, up 8%, with fire and security supporting building-products growth and services supporting building-solutions growth. Process Automation and Technology posted $1,859 million of sales, up 16% reported and 8% organically, but margin contracted 210 basis points because of project mix and acquisition dilution. Industrial Automation generated $1,115 million of sales, down 23% reported but up 4% organically; its segment margin expanded 350 basis points to 18.4%, while meter deployment deferrals in utilities offset strong sensing growth.
GAAP diluted EPS from continuing operations was $2.40, down 20%, primarily because the prior-year period included a one-time gain from the Resideo termination agreement. Adjusted diluted EPS rose 34% to $2.27, supported by organic growth, higher segment profit and lower net interest expense. Cash provided by operating activities from continuing operations was $607 million, down 74% because of the prior-year Resideo settlement, while free cash flow increased 15% to $688 million and adjusted free cash flow conversion was 95%.
The company raised its full-year 2026 outlook. It now expects sales of $20.0B to $20.1B, organic growth of 4% to 5%, segment margin of approximately 20.5%, adjusted EPS of $8.40 to $8.45, operating cash flow of approximately $2.1B and free cash flow of approximately $2.1B. The guide calls for 5% to 6% organic growth in the fourth quarter and places expected segment margin at the upper end of the previous guidance range.
Management, verbatim
Honeywell Technologies delivered strong results across the business in our first quarter as a standalone company. Continued momentum across all three segments, together with our improving position in high-growth verticals, translated to 7% organic sales growth, above the three-year target set at our June Investor Day. This performance, coupled with continued progress reducing fixed cost, enabled adjusted operating income to increase at more than three times the rate of sales, while adjusted EPS rose 34%, well ahead of our expectations for the quarter. As a result of this strong performance, we are raising our full-year 2026 outlook, which gives me great confidence in our long-term strategy and our ability to deliver on our 2029 targets,
Vimal Kapur, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Gross-margin guidance was not reported.
- Tax rate and tax-rate guidance were not reported.
- Prior-quarter comparative figures were not reported for the listed quarterly metrics.
- A previous-release outlook section was not provided; therefore, no reported-period comparison with prior guidance is included.
- Quarterly free cash flow conversion for the prior-year period was not reported.
- Non-GAAP adjusted EPS for the nine-month period was not reported.
- Free cash flow for the nine-month period was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Honeywell Technologies reported Q3 2026 results and raised its full-year outlook, citing organic sales growth and margin expansion.
Ticker impact
Honeywell raised full-year 2026 outlook, increasing sales and EPS guidance.
likely upward pressure as investors price in raised guidance
guidance lift suggests stronger earnings and cash flow, prompting buying interest
Market effects
Industrial automation and building automation sectors may see uplift from Honeywell's stronger outlook.
U.S. industrial and technology stocks could benefit.
Global industrial supply chains may be positively influenced by Honeywell's guidance.
Key entities
- companyHoneywell Technologies
Industrial conglomerate reporting Q3 results and raising guidance.
