Honeywell Technologies reports second-quarter results

Honeywell Technologies reported second-quarter 2026 results that reflect its recent separation from Honeywell Aerospace, with consolidated orders up 4% and a backlog of about $38 billion. Consolidated sales rose 4% to $9.7 billion, both on a reported and organic basis, while operating margin was 17.9% and segment margin reached 23.1%. Earnings per share from continuing operations were $17.83, reflecting a one-time gain on the deconsolidation of Quantinuum, and adjusted EPS was $4.52. Cash flow from operations increased 20% to $1.28 billion and free cash flow rose 43% to $1.25 billion.

Excluding the former Aerospace Technologies business, Honeywell Technologies’ orders climbed 16%, building a backlog of roughly $20 billion. Sales increased 3% to $5.19 billion, or 4% organically. Operating income was $662 million, down 1% year over year, for a 12.8% operating margin. Segment profit rose 9% to $985 million, expanding segment margin 100 basis points to 19.0%. Earnings per share from continuing operations were $16.65, with adjusted EPS up 10% to $1.95. Cash flow from operations rose to $563 million and free cash flow to $456 million.

“The second quarter marked a historic milestone for Honeywell Technologies as we completed the separation of Honeywell Aerospace and began a new era as a leading pure-play automation company. The results we delivered this quarter are the outcome of a year-plus long process to simplify our business, and we are already seeing the benefits of this transformation today. Honeywell Technologies delivered strong organic orders and sales growth, and 100 basis points of segment margin expansion, leading to double digit earnings growth in the second quarter and reinforcing our confidence in the long-term targets that we shared at our recent investor day. As a simplified company, Honeywell Technologies is now positioned to further accelerate profitable growth as we leverage our deep domain expertise and vast installed base to create enduring value for our shareowners,” said Vimal Kapur, chairman and chief executive officer of Honeywell Technologies.

In segment results for Honeywell Technologies:
– Building Automation sales were $2.00 billion, up 10% reported and 9% organically, with 13% order growth led by data center and hospitality. Building products grew 10% on continued double-digit fire performance, and building solutions increased 7%, driven by services. Segment margin expanded 90 basis points to 27.1% on volume leverage and pricing, partially offset by inflation.
– Process Automation and Technology sales were $1.68 billion, up 4% reported but down 1% organically. Projects sales rose 5% organically on strength in LNG and a return to growth in automation projects, offset by a 6% decline in aftermarket due to higher catalyst shipments in the prior year. Orders rose 24%, led by LNG. Segment margin contracted 180 basis points to 22.1% due to lower catalyst volumes and unfavorable mix.
– Industrial Automation sales were $1.50 billion, down 5% reported but up 4% organically, with solutions up 10% on utilities projects and warehouse backlog conversion, and products up 1% on demand in sensing and industrial measurement. Segment margin improved 90 basis points to 17.2% on pricing and productivity, partially offset by inflation.

The company updated its 2026 outlook to reflect a stronger second quarter and improved second-half fundamentals in process and industrial. It now expects full-year sales of $19.8 billion to $20.0 billion, with organic growth of 3% to 4% and 4% to 6% organic growth in the second half. Segment margin is projected at 20.1% to 20.5%, representing 250 to 290 basis points of expansion year over year, and adjusted EPS is expected to be $8.05 to $8.35, up 25% to 29%. Operating cash flow is forecast at approximately $2.1 billion and free cash flow at approximately $2.0 billion. The outlook incorporates the acquisition of Johnson Matthey’s Catalyst Technologies business, which closed on July 17, 2026, and the expected closing of the Productivity Solutions and Services and Warehouse and Workflow Solutions divestitures by early August.

Honeywell Aerospace, which now trades under the ticker HONA following its June 29 spin-off, plans to report standalone second-quarter results after market close on August 5. On a basis consistent with prior consolidated reporting, the former Aerospace Technologies segment posted second-quarter sales of $4.5 billion, up 5% organically. Mechanical supply chain conditions improved sequentially, though material supply constrained growth. Sales were led by a 17% increase in commercial aviation original equipment as shipments recoupled to build schedules, particularly in commercial air transport, and a 7% increase in commercial aviation aftermarket on rising installed-base demand. Defense and space were flat. Segment profit grew 2% to $1.1 billion, including roughly $40 million of inventory obsolescence charges related to lower demand for pockets of existing inventory stock driven by emerging repair technologies extending product lives.

Honeywell Technologies will host an investor conference call to discuss second-quarter results and its 2026 guidance at 8:30 a.m. Eastern Daylight Time. A live webcast and replay will be available in the Investor Relations section of the company’s website at www.honeywell.com/investor.