Start here if you're new
what it is
Honeywell sells the parts, software, and services that keep planes, factories, warehouses, and buildings running.
how it gets paid
Last year Honeywell made $37.4B in revenue. Aerospace was the main engine at $15.0B, or 40% of sales.
why it's growing
Revenue grew 283.7% last year. The quarter was driven by aerospace strength and a 6% revenue increase vs. prior year.
what just happened
Honeywell posted $2.59 in quarterly EPS, beating the $2.57 estimate by a hair while revenue rose to $9.8B.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
95/100 earnings predictability — you can trust these numbers
18.4x trailing p/e — priced about right
2.4% dividend yield — cash in your pocket every quarter
21.5% return on capital — every dollar works hard here
xvary composite: 81/100 — above average
What they do
Honeywell sells the parts, software, and services that keep planes, factories, warehouses, and buildings running.
Honeywell wins because its products sit where failure is expensive. If your jet, refinery, warehouse, or hospital runs on Honeywell systems, switching is painful and downtime is worse. That is why a business with $37.4 billion of revenue still posts a 25.8% operating margin (operating margin → profit after running the business → it shows pricing power).
How they make money
$37.4B
annual revenue · their business grew +283.7% last year
Aerospace
$15.0B
Industrial Automation
$9.7B
Building Automation
$6.4B
Energy and Sustainability Solutions
$6.4B
The products that matter
supplies avionics and engines
Aerospace
$15.0B · 40% of revenue
it is a $15.0B business and roughly 40% of total sales. that makes it both the center of gravity today and the biggest variable in the planned separation.
40% of revenue
provides building automation systems
Building Technologies
$7.5B · 20% of revenue
this $7.5B segment accounts for one-fifth of sales and benefits from systems that customers usually do not rip out once installed.
installed base
makes industrial process technologies
Performance Materials & Technologies
$5.6B · portfolio in motion
this $5.6B business is tied to process technologies and materials exposure. the page data is thin here, but it is clearly part of the portfolio Honeywell is actively reshaping.
in transition
Key numbers
18.4x
trailing p/e
P/E → price compared with annual profit per share → you are paying $18.40 for each $1 of earnings, which is reasonable next to a 25.8% operating margin and 21.5% return on capital.
25.8%
operating margin
Operating margin → profit left after core costs → Honeywell keeps about $0.26 from each sales dollar before interest and taxes.
21.5%
return on capital
Return on capital → profit earned on money put into the business → Honeywell turns investment into profit far better than an average industrial company.
2.4%
dividend yield
Dividend yield → annual cash payout divided by stock price → you get paid while waiting for the breakup story to play out.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 1 — safer than 95% of stocks
- price stability 95 / 100
- long-term debt $30.1B (20% of capital)
- net profit margin 19.2% — keeps 19 cents of every dollar in revenue
- return on equity 44% — $0.44 profit for every $1 investors have put in
A+ with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in HON 3 years ago → it's now worth $10,450.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Honeywell posted $2.59 in quarterly EPS, beating the $2.57 estimate by a hair while revenue rose to $9.8B.
The quarter was driven by aerospace strength and a 6% revenue increase vs. prior year. Gross margin was 35.6%, which tells you the company still has room to absorb restructuring noise.
$9.8B
revenue
$2.59
eps
35.6%
gross margin
the number that mattered
$2.59 mattered because it beat consensus and showed the business is still producing through the spin-off setup.
-
honeywell spun off its advanced materials arm at the end of october last year.the new entity is called solstice advanced materials and it trades on the nasdaq under the ticker sols.
-
for every four shares of hon held shareowners received one share of sols.solstice will focus on sustainability-driven materials like refrigerants, battery materials, and co2 capture.
-
its forecasted sales for 2025 were $3.75 billion-$3.85 billion.the parent company’s plan remains the same: split into three companies with the aerospace business primed to be spun out in the second half of 2026.
-
our presentation now reflects the advanced material spin off, but not the aerospace move.
-
with another breakup on the horizon, honeywell continues to beat quarterly expectations.
source: company earnings report, 2026
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What could go wrong
the top risk is aerospace separation execution.
med
the biggest asset is also the next spin
Aerospace is about $15.0B of revenue, or roughly 40% of current sales. separating the crown jewel is the whole thesis and the whole operational risk at the same time.
if the second-half 2026 timeline slips, investors may stop paying for a cleaner future company and go back to valuing a slower industrial conglomerate.
med
acquisition discipline is under the microscope
the page data flags a 26% price cut tied to a supplier in a business Honeywell was buying. whether that reflects overpayment, weaker economics, or messy deal timing, it is not the kind of headline you want during a portfolio makeover.
capital allocation matters more when revenue already fell 2.7% last year. a mediocre deal can eat a lot of the value a breakup is supposed to create.
med
steady does not mean immune
Honeywell still sells into industrial, construction, and aerospace end markets. this is a higher-quality operator than most peers, but $37.4B in revenue still fell from last year.
the market forgives a slow top line when the portfolio story is working. it gets less patient if both growth and simplification disappoint at once.
the company is reshaping a business where Aerospace alone is about $15.0B, or 40% of sales. if the separation slips or capital allocation gets sloppy, the sum-of-the-parts case loses its cleanest argument.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
aerospace spin-off timeline
management still points to the second half of 2026. that date is now one of the few numbers that matters more than the quarter itself.
metric
fy2026 revenue path to $40B
the current estimate is $40B versus $37.4B last year. if that recovery stalls, the breakup story has less help from the underlying business.
risk
deal quality during the portfolio reset
the 26% price-cut datapoint around an acquired business puts extra attention on whether management is simplifying the portfolio at the right price.
trend
can aerospace offset slower legacy growth
Aerospace is 40% of current sales. if that segment carries results while others stay soft, the post-breakup narrative stays alive.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts think the stock is acting normal, not signaling a clear short-term edge.
risk profile
safest 5%
stability score 1 — lower risk than almost any stock in the dataset. this is the defensive part of the HON story.
chart momentum
below average
technical score 4 — the chart has not earned the market's enthusiasm yet. quality is there. urgency is not.
earnings predictability
95 / 100
management usually lands close to expectations. for newcomers: this means the business is easier to model than most industrial names.
source: institutional data
Institutional activity
1,171 buyers vs. 1,170 sellers in 3q2025. total institutional holdings: 0.5B shares.
source: institutional data
Price targets
3-5 year target range
$168
$312
$196
current price
$240
target midpoint · +22% from current · 3-5yr high: $305 (+55% · 14% ann'l return)
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