By: ICN Bureau
Last updated : July 28, 2025 8:25 am
Separations progressing successfully with Solstice Advanced Materials spin date targeted for fourth quarter of 2025
Honeywell announced results for the second quarter that met or exceeded the company's guidance. The company also raised its full-year organic growth and adjusted earnings per share guidance ranges and reiterated its free cash flow guidance range.
The company reported second-quarter year-over-year sales growth of 8% and organic sales growth of 5%, led by double-digit organic sales growth in defense and space and UOP.
Operating income increased 7% and segment profit increased 8% to $2.4 billion led by growth in Building Automation. Operating margin contracted 30 basis points to 20.4% and segment margin contracted 10 basis points to 22.9%, meeting previous guidance.
"Honeywell delivered outstanding results in the second quarter with both organic growth and adjusted earnings per share exceeding guidance despite the unpredictable macroeconomic backdrop," said Vimal Kapur, chairman and chief executive officer of Honeywell.
"With Building Automation leading the way, three out of four segments grew sales at better than 5% in the quarter, demonstrating the power of our Accelerator operating system to adapt quickly and drive growth even as business conditions change. During the quarter, we also saw promising results from our increased focus on new product innovation, which further supported the growth of our record backlog. In parallel, we continued to take a balanced approach to capital deployment, including selectively pursuing attractive M&A opportunities, such as the bolt-on acquisition of Johnson Matthey's Catalyst Technologies business and the strategic tuck-in of Li-ion Tamer."
Kapur added, "With the announcement of our review of strategic alternatives for our Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, this month also marked the conclusion of the in-depth portfolio review that I initiated early in my tenure as CEO to simplify and optimize Honeywell's businesses. As we prepare to separate into three industry-leading public companies, we are confident that our efforts to shape our portfolio have positioned Honeywell to deliver significant value for customers, employees, and shareholders."
As a result of the company's second-quarter performance and management's outlook for the remainder of the year, full-year sales are now expected to be $40.8 billion to $41.3 billion with organic sales growth in the range of 4% to 5%.