Honeywell International (NASDAQ:HON) Releases Earnings Results, Beats Estimates By $0.10 EPS

Honeywell International (NASDAQ:HON) posted its quarterly earnings results on Thursday. The conglomerate reported $2.27 EPS for the quarter, beating the consensus estimate of $2.17 by $0.10, FiscalAI reports. Honeywell International had a net margin of 23.90% and a return on equity of 34.00%. The business had revenue of $4.99 billion during the quarter, compared to analyst estimates of $5.01 billion. During the same period in the previous year, the business posted $2.82 EPS. The company’s quarterly revenue was up 1.3% on a year-over-year basis.

Here are the key takeaways from Honeywell International’s conference call:

• 2026 guidance was raised across key metrics: organic sales growth is now expected at 4%–5%, adjusted EPS at $8.40–$8.45, and free cash flow at $2.1 billion. Management expects fourth-quarter organic growth of 5%–6% and approximately 30% full-year earnings growth.
• Third-quarter performance was broad-based, with 7% organic sales growth, adjusted EPS up 34% year over year, and segment margins expanding 370 basis points to 21.3%. Building Automation grew 8% organically for its eighth consecutive quarter, while Process Automation & Technology grew 8%.
• Management sees a multiyear growth inflection in Process Automation & Technology, supported by nearly $19 billion of backlog, more than 10% PA&T backlog growth, and strong demand across LNG, refining, petrochemicals, and low-carbon energy. Data-center orders rose more than 100%, with opportunities expanding across Building Automation, process controls, sensing, and liquid cooling.
• Cash generation and balance-sheet execution improved, with quarterly free cash flow of approximately $690 million and 95% conversion; management expects conversion above 100% in the fourth quarter. Gross debt is targeted below $13 billion by year-end, reducing gross leverage below 3 times and creating greater flexibility for disciplined M&A.
• Near-term margins in Process Automation & Technology remain pressured by project mix and dilution from the Johnson Matthey Catalyst Technologies acquisition, with fourth-quarter margin expected around 21.5%. The company also continues to face elevated inflation, while utility meter deployments have been deferred and some refining-related aftermarket work may be delayed by high plant utilization.

Honeywell International Price Performance

Shares of NASDAQ HON opened at $210.04 on Thursday. Honeywell International has a fifty-two week low of $196.59 and a fifty-two week high of $261.24. The firm’s 50-day simple moving average is $212.39 and its 200 day simple moving average is $221.99. The company has a quick ratio of 0.93, a current ratio of 1.21 and a debt-to-equity ratio of 1.39. The stock has a market cap of $66.57 billion, a P/E ratio of 8.01, a P/E/G ratio of 1.59 and a beta of 0.86.

Honeywell International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 13th will be issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, November 13th. Honeywell International’s dividend payout ratio (DPR) is 27.60%.

Wall Street Analysts Forecast Growth

HON has been the topic of a number of recent research reports. Morgan Stanley raised their target price on shares of Honeywell International from $245.00 to $250.00 and gave the stock an “equal weight” rating in a report on Monday, August 31st. Royal Bank Of Canada lowered their target price on Honeywell International from $293.00 to $270.00 and set an “outperform” rating for the company in a report on Wednesday, October 14th. Deutsche Bank Aktiengesellschaft upped their target price on Honeywell International from $250.00 to $263.00 and gave the company a “buy” rating in a report on Tuesday, June 30th. Citigroup dropped their price target on Honeywell International from $279.00 to $270.00 and set a “buy” rating on the stock in a research report on Monday, October 12th. Finally, Zacks Research raised Honeywell International from a “strong sell” rating to a “hold” rating in a report on Friday, September 4th. Thirteen research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $249.60.

Insiders Place Their Bets

In related news, CEO Kenneth West sold 316 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $245.47, for a total value of $77,568.52. Following the completion of the transaction, the chief executive officer owned 2,004 shares in the company, valued at $491,921.88. This represents a 13.62% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 0.15% of the stock is owned by insiders.

About Honeywell International

Honeywell International Inc is a diversified industrial technology company that develops products and systems for the aerospace, building automation, energy and industrial sectors. Its offerings include aircraft engines and avionics, industrial automation and control systems, building management technologies, fire and security products, personal protective equipment, and specialty materials and chemicals.

The company serves commercial aerospace, defense, airlines, building owners, manufacturers, energy producers and other industrial customers.