HON
Honeywell International Inc (HON) Q1 2026 Earnings Call Highlights: Strong Earnings Growth Amid ...
Article Summary
HOLD- Honeywell International Inc. (NYSE: HON) delivered strong first-quarter results with 11% adjusted earnings growth, driven by 7% organic orders growth driven by Building and Industrial Automation and petrochemical and refining verticals.
- Honeywell International expanded its margin by 90 basis points to over 23%, aided by pricing discipline, productivity, and accelerated stranded cost removal.
- Aerospace backlog increased 20% to $19 billion, supported by 28% orders growth over the last 12 months, with the company returning $1.8 billion through share repurchases and dividends.
- The Middle East conflict impacted revenue by approximately 0.5% in Q1 and is expected to cause a 1% impact in Q2, with temporary mechanical supply chain constraints in Aerospace affecting sales growth.
- The Process Automation segment declined 6% organic due to timing delays in refining catalyst reloads and automation service up, while free cash flow declined to $100 million from $200 million last year.
- Full-year guidance calls for organic growth of 3% to 6% and segment margin of 22.7% to 23.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 1.2% | 25% | 20.0 ptsMinimal (1.2%) - Very weak |
| EPS Growth Next 5Y ? | 8.9% | 25% | 20.0 ptsWeak (8.9%) - Low expectations |
| Target Price Upside ? | 17.5% | 20% | 60.0 ptsModerate Upside (17.5%) - Target: $251.43 vs Current: $213.90 |
| Gross Margin % ? | 38.1% | 15% | 60.0 ptsSolid (38.1%) - Decent margins |
| Drawdown from 52-Wk High ? | -13.8% | 15% | 40.0 ptsMild Pullback (-13.8%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About HON
- Honeywell International Inc. engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the United States, Europe, and internationally.
- The company's Aerospace Technologies segment offers auxiliary power units, propulsion engines, integrated avionics, connectivity services, electric power systems, management and technical services, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; thermal systems; and spare parts; repair, overhaul, and maintenance services.
- Its Industrial Automation segment provides automation control and instrumentation products and services; smart energy products; sensing technologies with custom-engineered sensors and services; gas detection technologies and personal protective equipment; and system design automation equipment, as well as software and analytics for manufacturing, distribution, and fulfillment operations.
- Its Building Automation segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrade of systems.
- The company's Energy and Sustainability Solutions segment, through its UOP business, delivers licensed process technology, equipment, engineering, catalysts, adsorbents, and services for refining, petrochemicals, low-carbon energy, gas and LNG, and industrial solutions; as well as connectivity, data integration and software solutions.
- Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.