Honeywell has reported its fourth quarter and full year 2025 results, with several key metrics experiencing significant changes compared to the previous period.
In the fourth quarter of 2025, Honeywell saw a 6% increase in sales, bringing it to $9.8 billion. Adjusted sales were even higher at $10.1 billion, up 10%, with organic growth at 11%. The company reported a 23% organic increase in orders, driving the backlog to over $37 billion. However, operating income decreased by 35% and operating margin contracted by 640 basis points to 10.2%.
The company's full-year reported sales increased by 8%, while adjusted sales increased by 9%, with organic sales up 7%. Operating income decreased by 6%, and operating margin contracted by 250 basis points. Full-year adjusted earnings per share (EPS) was reported at $9.78, up 12% year over year.
When breaking down the performance of various segments, Aerospace Technologies saw a 21% organic sales growth year over year, while Industrial Automation experienced a 1% organic growth. Building Automation sales increased by 8% organically, and Energy and Sustainability Solutions saw a 7% organic decrease in sales.
Looking forward to 2026, Honeywell expects sales of $38.8 billion to $39.8 billion, with organic sales growth expected in the range of 3% to 6%. The company anticipates an adjusted EPS of $10.35 to $10.65, representing a 6% to 9% increase. Additionally, the company expects operating cash flow of $4.7 billion to $5.0 billion and free cash flow of $5.3 billion to $5.6 billion.
Honeywell's Aerospace Technologies segment reported a 13% increase in sales for the fourth quarter, while Industrial Automation saw an 8% decrease in sales. Building Automation experienced a 10% sales increase, and Energy and Sustainability Solutions witnessed a 7% decrease in sales.
The company's portfolio optimization includes steps to separate its automation and aerospace businesses, with the spin-off of Solstice Advanced Materials completed in the fourth quarter.
Honeywell's performance in the fourth quarter and full year 2025 demonstrates both strong growth and challenges across its various segments, as it prepares for the anticipated spin-off of its aerospace business and continues its portfolio optimization efforts. As a result of these announcements, the company's shares have moved 2.03% on the market, and are now trading at a price of $219.39. For the full picture, make sure to review HONEYWELL INTERNATIONAL INC's 8-K report.
