Honeywell 8-K
EarningsGuidance raised
Aerospace spin-off shifts FY outlook to Honeywell Technologies; improved H2 process and industrial growth fundamentals support higher EPS guidance.
Filed 2026-07-23 06:01 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with updated FY2026 guidance. Honeywell completed the Aerospace spin-off on June 29; Q2 consolidated results still include Aerospace, while the full-year outlook is for Honeywell Technologies excluding Aerospace. Consolidated EPS includes a one-time Quantinuum deconsolidation gain; adjusted EPS gives a view excluding that gain.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Sales | $9.72B | $9.32B | 4% |
| Operating income | $1.74B | $1.84B | (6%) |
| Net income from continuing operations | $5.69B | $1.38B | 311% |
| Diluted EPS from continuing operations | $17.83 | $4.33 | 312% |
| Adjusted diluted EPS, non-GAAP | $4.52 | $4.72 | (4%) |
| Operating cash flow from continuing operations | $1.28B | $1.06B | 20% |
| Free cash flow, non-GAAP | $1.25B | $878M | 43% |
- Honeywell Technologies excluding Aerospace: sales $5.19B (+3% reported; +4% organic), operating income $662M (−1%), and operating margin 12.8% (down 50 bp). Segment profit, a non-GAAP measure, was $985M (+9%) and segment margin was 19.0% (up 100 bp); adjusted EPS was $1.95 (+10%).
- The $17.83 consolidated diluted EPS reflects the one-time Quantinuum deconsolidation gain. Honeywell Technologies’ diluted EPS was $16.65, versus $1.21 a year earlier.
- Cash and cash equivalents were $8.75B at June 30, 2026, versus $12.5B at December 31, 2025; total debt carrying value was $34.0B versus $34.6B.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Sales | FY2026 | $19.8B-$20.0B | $19.9B-$20.2B | Lowered |
| Organic sales growth | FY2026 | 3%-4% | 2%-3% | Raised |
| Organic sales growth | H2 2026 | 4%-6% Y/Y | — | — |
| Segment margin, non-GAAP | FY2026 | 20.1%-20.5% | 19.8%-20.3% | Raised |
| Segment margin expansion, non-GAAP | FY2026 | Up 250-290 bp Y/Y | Up 220-270 bp | Raised |
| Adjusted EPS, non-GAAP | FY2026 | $8.05-$8.35 | $7.90-$8.30 | Raised |
| Adjusted EPS growth, non-GAAP | FY2026 | 25%-29% | 22%-28% | Raised |
| Operating cash flow | FY2026 | ≈$2.1B | ≈$2.1B | Reaffirmed |
| Free cash flow, non-GAAP | FY2026 | ≈$2.0B | ≈$2.0B | Reaffirmed |
The company cited a strong Q2 and improved second-half organic growth fundamentals in process and industrial businesses. Outlook includes the July 17 close of Johnson Matthey’s Catalyst Technologies acquisition and assumes PSS and WWS divestitures close by early August.
Investor Takeaways
- Honeywell Aerospace plans to report standalone Q2 results after market close on August 5.
- Watch second-half organic growth against the 4%-6% outlook and whether PSS and WWS divestitures close by early August.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3