Strong Aerospace Demand Drives 7% Sales Growth and EPS Beat
Honeywell International Inc. (NASDAQ: HON) reported strong third-quarter results, exceeding expectations and raising its full-year guidance. The company continues to make strategic moves, including spinning off its advanced materials business, to focus on core segments and drive future growth.
In the third quarter of 2025, Honeywell reported sales of $10.4 billion, marking a 7% increase year-over-year. The company’s performance exceeded expectations, with an organic sales growth of 6%. This growth was primarily driven by significant gains in the aerospace technologies sector, which saw a 12% increase in organic sales. The commercial aftermarket and defense and space segments were particularly strong, contributing to the company’s robust performance.
Honeywell’s earnings per share (EPS) for the quarter stood at $2.86, a 32% increase from the previous year, while the adjusted EPS was $2.82, surpassing the expected EPS of $2.56. This impressive growth in EPS reflects the company’s ability to manage costs effectively and capitalize on market opportunities. Despite a 6% decrease in operating income, segment profit rose by 5% to $2.4 billion, underscoring the company’s operational efficiency.
Comparing these results to expectations, Honeywell not only met but exceeded its own guidance. The company’s ability to surpass the high end of its previous guidance for both organic growth and adjusted EPS highlights its strong market position and strategic execution. Orders increased by 22%, further bolstering the company’s backlog and setting a solid foundation for future growth.
Honeywell Lifts Guidance as Portfolio Realignment Gains Momentum
Looking ahead, Honeywell has raised its full-year 2025 guidance, reflecting its confidence in continued strong performance. The company now expects full-year sales to range between $40.7 billion and $40.9 billion, with organic sales growth of approximately 6%. Adjusted EPS is projected to be between $10.60 and $10.70, an increase of 10 cents at the midpoint from the prior guidance range.
Honeywell’s strategic initiatives, including the spin-off of Solstice Advanced Materials, are expected to impact full-year sales by reducing them by $0.7 billion. However, the company remains optimistic about its overall growth trajectory. The spin-off, set for completion on October 30, 2025, is part of Honeywell’s broader strategy to streamline operations and focus on its core segments.
The company’s updated guidance also considers the impact of the Solstice spin-off on adjusted EPS, which is expected to decrease by $0.21. Despite this, Honeywell anticipates adjusted EPS growth of 5% to 6% when excluding the effects of both the Bombardier agreement and the Solstice spin-off. This outlook is supported by Honeywell’s ongoing efforts to enhance its portfolio through strategic divestitures and investments in high-growth areas such as quantum computing and connected solutions.