Honeywell International Inc.

What they do

Honeywell Technologies operates three reportable segments: Building Automation, Process Automation and Technology, and Industrial Automation. The company sells products and services to commercial buildings, industrial process customers, and warehouse and workflow operations. It sells both product and service offerings, including long-cycle process technology equipment such as UOP and the recently acquired Johnson Matthey Catalyst Technologies business.

Revenue drivers

• Building Automation — Largest of the three post-spin segments, contributing $2.00 billion of the $5.19 billion in second-quarter 2026 Honeywell Technologies sales.
• Process Automation and Technology — New segment formed in Q1 2026 from UOP plus the core Process Solutions business; supplies process technology and equipment to energy and industrial customers.
• Industrial Automation — Recast segment after the Q1 2026 realignment; includes Productivity Solutions and Services and Warehouse and Workflow Solutions, both classified as held for sale as of December 31, 2025.
• Services — Honeywell sells product and service revenues separately across segments, with services tied to the installed base of automation equipment.

Recent performance

Second-quarter 2026 consolidated sales, including legacy Aerospace, were $9.719 billion, up 4% reported and 4% organic, with segment margin of 23.1% and adjusted EPS of $4.52. Excluding Aerospace, Honeywell Technologies sales were $5.187 billion, up 3% reported and 4% organic, with segment profit of $985 million and segment margin of 19.0%, up 100 basis points. Honeywell Technologies adjusted EPS was $1.95, up 10%, and free cash flow was $456 million versus $114 million a year earlier. Reported EPS of $16.65 reflected a one-time gain on the deconsolidation of Quantinuum. Full-year 2025 revenue was $37.44 billion with net income of $4.73 billion and diluted EPS of $7.36.

Strategy

The company is executing a portfolio transformation that included the June 29, 2026 spin-off of Honeywell Aerospace and the April 2026 agreements to sell Productivity Solutions and Services and Warehouse and Workflow Solutions in two transactions expected to close in the third quarter of 2026. It realigned segments in the first quarter of 2026, creating Process Automation and Technology and recasting Industrial Automation. On July 17, 2026 it acquired Johnson Matthey's Catalyst Technologies business for $1.75 billion, net of cash acquired. It also completed the Quantinuum IPO on June 4, 2026, retaining a 48% noncontrolling equity-method stake. Management describes Honeywell Technologies as a simplified pure-play automation company positioned to accelerate profitable growth.

Risks

• Geopolitical and energy market exposure — The company cites ongoing conflict in the Middle East and its impact on energy markets, trade flows, and shipping as a continuing source of uncertainty.
• Inflation and input cost volatility — Management notes that persistent inflationary pressures and market volatility remain elevated and may materially affect results of operations, cash flows, or financial condition.
• Supply chain and material availability — Critical material availability, logistics conditions, and supplier constraints require dual-sourcing, design modifications, and other mitigation actions.
• Portfolio transition execution — The pending sales of Productivity Solutions and Services and Warehouse and Workflow Solutions remain subject to closing conditions and regulatory approvals, with both expected to close in the third quarter of 2026.

Outlook

Management said the second-quarter results reinforce confidence in the long-term targets shared at its recent investor day. The company expects the two divestitures of Productivity Solutions and Services and Warehouse and Workflow Solutions to close in the third quarter of 2026, subject to regulatory approvals. Following the Aerospace spin-off, results are managed through Building Automation, Process Automation and Technology, and Industrial Automation.