Key Highlights

  • First-quarter revenue of $9.14 billion came in below the $9.3 billion consensus estimate, marking the third consecutive quarterly shortfall.
  • Ongoing Middle East tensions disrupted operations within the process automation and technology division, constraining revenue growth.
  • Reported net income declined 43.3% to $821 million, while adjusted earnings per share climbed 11% to $2.45, surpassing analyst projections.
  • Second-quarter outlook fell short of market expectations, with EPS guidance of $2.35–$2.45 compared to the $2.56 consensus.
  • The aerospace business separation has been accelerated to June 29, while Quantinuum submitted initial public offering documentation.

Shares of Honeywell International (HON) declined more than 6% during premarket hours Thursday following the industrial conglomerate’s first-quarter revenue shortfall, the third consecutive period of missing sales targets, as regional conflicts in the Middle East directly impacted operational performance.


HON Stock Card
Honeywell International Inc., HON

First-quarter revenue advanced 2.4% from the prior-year period to reach $9.14 billion, trailing the FactSet analyst consensus of $9.3 billion. A significant portion of the underperformance stemmed from the process automation and technology division, which experienced reduced activity levels in the Middle East due to ongoing regional tensions. Management pointed to supply-chain constraints and an adverse geopolitical landscape as primary headwinds.

Reported net income decreased 43.3% to $821 million, affected by expenses associated with debt refinancing and write-downs on assets designated for divestiture. Free cash generation of $100 million also declined compared to the year-ago quarter, partly attributable to postponed payment collections connected to the regional conflict.

Profit Metrics Exceed Targets While Future Projections Fall Short

Adjusted earnings per share increased 11% to reach $2.45, exceeding the FactSet consensus of $2.32. This performance represents the seventh consecutive quarter of surpassing analyst profit expectations.

Investor sentiment shifted based on forward-looking statements. Honeywell issued second-quarter EPS guidance ranging from $2.35 to $2.45, significantly below the Wall Street projection of $2.56. Revenue for the upcoming quarter is anticipated between $9.4 billion and $9.6 billion, falling short of the $9.73 billion analyst estimate.

Full-year projections remained unaltered, with revenue expected within a range of $38.8 billion to $39.8 billion, and adjusted EPS targeted between $10.35 and $10.65.

The defense and space segment posted a 4% revenue increase year over year, with management attributing the growth to heightened global tensions. This segment expansion proved insufficient to counterbalance weakness across other business units.

The premarket decline positioned the stock for its steepest post-earnings session since February 3, 2022, when shares retreated 7.6%.

HON has declined 9.7% from the onset of the Iran conflict through Wednesday’s close. The iShares U.S. Aerospace & Defense ETF (ITA) decreased 10.1% during the comparable timeframe. For the year to date, HON has advanced 12.8%, outpacing the S&P 500’s 4.3% gain.

Corporate Restructuring Initiatives Advance on Schedule

Honeywell provided updates on its portfolio transformation timeline. The aerospace business separation is now slated to complete on June 29, moving ahead of the previously communicated third-quarter timeframe.

On Wednesday, Quantinuum, the company’s quantum-computing venture, submitted documentation for an initial public offering.

The industrial giant also revealed an agreement to divest its Warehouse and Workflow Solutions business to American Industrial Partners through an all-cash arrangement. This transaction, combined with the previously disclosed sale of the Productivity Solutions and Services (PSS) division, is projected to finalize during the latter half of 2026.

Year to date, HON shares have retreated 12% from recent peak levels.