Honeywell International Inc. is now a standalone entity post-breakup, with Building Automation driving recent performance and margin expansion. HON reported Q2 2026 revenue of $5.2B (+4% organic), $1.95 EPS (+10% YoY), and free cash flow growth from $100M to $500M. Backlog stands at $20B (+9% YoY), with strong organic order growth, but Process Automation margins contracted and Industrial Automation stability depends on divestitures.
Honeywell Technologies and Emerson see automation growth, but differing trends and costs could shape their future potential.
HON targets higher 2026 margins as portfolio moves and stranded-cost cuts counter rising material, labor and financing expenses.
Honeywell Technologies is rated Buy, supported by strong order growth, margin expansion, and a discounted valuation versus automation peers. Orders grew 16% y/y in Q2 26, outpacing 4% sales growth, signaling likely revenue acceleration as backlog converts. Structural cost reductions and portfolio simplification are on track, targeting 22%+ segment margins exiting FY26 and further improvement in 2027.
Honeywell faces persistent weakness in Process Automation as lower catalyst shipments and project delays weigh on sales and margins despite firm LNG demand.
Honeywell Technologies faces near-term pressure from weak demand, rising costs and debt, but automation growth and a $20B backlog offer support.
Honeywell International NASDAQ: HON CFO Mike Stepniak said the company is off to a strong start following its portfolio transformation, citing favorable July order trends, broad regional demand and improving prospects for the second half of the year and into 2027.
Honeywell International Inc. (HON) Presents at Deutsche Bank's Chicago Industrials Summit Transcript
Shares of Honeywell (NASDAQ:HON | HON Price Prediction) are trading sharply lower Tuesday afternoon, down roughly 4.7% to $231.49 around 2:00 p.m.
Honeywell Technologies' Building Automation growth due to rising demand, building projects and data center investments points to further expansion.
Shares in Honeywell Aerospace Inc. cratered over 20% following the release of a weak Q2 print which included a cut to the forward outlook. The losses follow HONA's recently completed spinoff from Honeywell International. The underperformance somewhat validates the strategy of Honeywell International to focus on stronger units of growth in its home base.
Honeywell International Inc (NYSE:HON, XETRA:ALD) was upgraded to ‘Neutral' from ‘Underperform' by Bank of America, which raised its price objective to $265 from $220 following a second quarter performance that exceeded expectations and improved visibility into the company's growth outlook. The analysts highlighted stronger execution, broad-based order growth and increased 2026 guidance as key factors behind the rating change.