Honeywell reported third-quarter year-over-year sales growth of 7 per cent and organic sales growth of 6 per cent, led by double-digit organic sales growth in commercial aftermarket and defense and space.

Operating income decreased 6 per cent and segment profit increased 5 per cent to $2.4 billion led by growth in Energy and Sustainability Solutions and Building Automation. Operating margin contracted 220 basis points to 16.9 per cent and segment margin contracted 50 basis points to 23.1 per cent, meeting the high end of previous guidance. Earnings per share for the third quarter was $2.86, up 32 per cent year over year, and adjusted earnings per share1 was $2.82, up 9 per cent year over year. Operating cash flow was $3.3 billion, up 65 per cent year over year, and free cash flow1 was $1.5 billion, down 16 per cent year over year.

Vimal Kapur, Chairman and CEO, Honeywell, commented, "As we progressed toward separating into three industry-leading public companies, we drove strong financial results and unlocked new value creation opportunities during the third quarter. Increased orders across our business segments pushed the company's total backlog to another record high and reinforced the benefit of the new, innovative solutions we are delivering for customers. All of this translated to us exceeding the high end of our guidance for both organic growth and adjusted earnings per share in the quarter."

Kapur added, "Looking ahead, we are well positioned to continue building on our momentum and value creation efforts in the fourth quarter. Today, we are raising our full-year 2025 adjusted earnings per share guidance even while separating Solstice Advanced Materials at the end of October. We will remain focused on our compelling opportunities to deliver outcomes-based solutions to customers and are encouraged by the recent execution of our connected offerings through our Honeywell Forge platform, driving increased recurring revenue in our portfolio."

As a result of the company's third-quarter performance and management's outlook for the remainder of the year, Honeywell updated its full-year sales, segment margin2, adjusted earnings per share, and free cash flow guidance. Guidance now includes the impact of the Solstice Advanced Materials spin-off, set for completion on October 30, 2025, which is expected to reduce full-year sales compared to the prior year by $0.7 billion, adjusted earnings per share by $0.21, and free cash flow1 by $0.2 billion.

Full-year sales are now expected to be $40.7 billion to $40.9 billion with organic sales growth of approximately 6 per cent. Segment margin is expected to be in the range of 22.9 per cent to 23 per cent, with segment margin expansion of 30 to 40 basis points year over year.

Adjusted earnings per share is now expected to be in the range of $10.60 to $10.70, up 10 cents at the midpoint from the prior guidance range. Operating cash flow is now expected to be in the range of $6.4 billion to $6.8 billion, with free cash flow1 in the range of $5.2 billion to $5.6 billion.

Excluding the impact of the Bombardier agreement4 signed in the fourth quarter of 2024, the company expects organic sales1 growth of approximately 5 per cent, segment margin down 40 to 30 basis points year over year, and adjusted earnings per share up approximately 3 per cent year over year. The company expects adjusted earnings per share growth of 5 per cent to 6 per cent  when excluding both the impact of the Bombardier agreement and the October spin-off of Solstice Advanced Materials.