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Oct 23, 2025 8:40 AM

Honeywell Bets On Growth With New Segment Strategy And Spin-Off Plans

Honeywell International Inc. (NASDAQ:HON) on Thursday reported third-quarter 2025 results that beat Wall Street expectations and raised its full-year earnings and sales outlook.

Details

The company posted adjusted earnings of $2.82 per share, topping analysts’ estimates of $2.57.

Revenue for the quarter rose 7% year over year (Y/Y) to $10.41 billion, beating expectations of $10.14 billion.

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Organic sales increased 6% Y/Y, aided by double-digit growth in commercial aftermarket and defense and space.

Operating income declined 6% Y/Y, and segment profit increased 5% to $2.4 billion. This was led by strength in Energy and Sustainability Solutions and Building Automation segments.

The operating margin contracted 220 basis points to 16.9% and segment margin contracted 50 basis points to 23.1%.

Operating cash flow was $3.3 billion, up 65% Y/Y, and free cash flow was $1.5 billion, down 16% Y/Y in the quarter.

Segment Performance

Segment results were mixed. Aerospace Technologies generated $4.51 billion in sales, up 12% Y/Y organically. However, segment margins declined 160 basis points due to cost inflation ...