WS Investor
29 Jan 2026, 17:09
Honeywell reported fourth-quarter and full-year 2025 results that exceeded the high end of its guidance on an adjusted basis, while also issuing a positive outlook for 2026 and updating plans for its aerospace spin-off.
In the fourth quarter, sales rose 6% to $9.8 billion, while adjusted sales increased 10% to $10.1 billion, reflecting 11% organic growth. Growth was driven mainly by strong demand in Aerospace and Building Automation. GAAP EPS came in at $0.49, sharply lower year over year due to one-time charges, while adjusted EPS reached $2.59. Orders surged 23% organically, lifting backlog to a record level above $37 billion.
Reported operating income declined and margins contracted due to impairment charges linked to assets held for sale and a one-time litigation-related charge in the aerospace segment. Excluding these items, adjusted segment profit rose strongly, supported by aerospace and building automation performance. Free cash flow increased despite weaker operating cash flow in the quarter.
For the full year, reported sales increased 8% and adjusted sales rose 9%, with organic growth of 7%, exceeding original guidance. Full-year adjusted EPS climbed 12% to $9.78, while operating and free cash flow both showed solid growth. Management highlighted strong order momentum and portfolio actions as key drivers of performance.
Looking ahead, Honeywell forecast 2026 adjusted EPS in the range of $10.35 to $10.65, representing growth of 6% to 9%. The company also announced that the spin-off of Honeywell Aerospace into a standalone public company is now expected to be completed in the third quarter of 2026, earlier than previously anticipated, as part of its broader portfolio simplification strategy.
In the fourth quarter, sales rose 6% to $9.8 billion, while adjusted sales increased 10% to $10.1 billion, reflecting 11% organic growth. Growth was driven mainly by strong demand in Aerospace and Building Automation. GAAP EPS came in at $0.49, sharply lower year over year due to one-time charges, while adjusted EPS reached $2.59. Orders surged 23% organically, lifting backlog to a record level above $37 billion.
Reported operating income declined and margins contracted due to impairment charges linked to assets held for sale and a one-time litigation-related charge in the aerospace segment. Excluding these items, adjusted segment profit rose strongly, supported by aerospace and building automation performance. Free cash flow increased despite weaker operating cash flow in the quarter.
For the full year, reported sales increased 8% and adjusted sales rose 9%, with organic growth of 7%, exceeding original guidance. Full-year adjusted EPS climbed 12% to $9.78, while operating and free cash flow both showed solid growth. Management highlighted strong order momentum and portfolio actions as key drivers of performance.
Looking ahead, Honeywell forecast 2026 adjusted EPS in the range of $10.35 to $10.65, representing growth of 6% to 9%. The company also announced that the spin-off of Honeywell Aerospace into a standalone public company is now expected to be completed in the third quarter of 2026, earlier than previously anticipated, as part of its broader portfolio simplification strategy.
