HONEYWELL REPORTS FIRST QUARTER RESULTS; UPDATES 2025 GUIDANCE

Core Insights - Honeywell reported strong first-quarter results, exceeding guidance across all metrics, with a year-over-year sales growth of 8% and organic sales growth of 4% [2][3][8] - The company maintained its full-year organic growth guidance while raising its adjusted earnings per share guidance range [1][3][8] Financial Performance - First-quarter operating income increased by 6% to $1.97 billion, with segment profit rising 8% to $2.26 billion [2][6][14] - Earnings per share for the first quarter was $2.22, flat year over year, while adjusted earnings per share rose 7% to $2.51 [2][8][43] - Operating cash flow was $0.6 billion, and free cash flow increased by 61% year over year to $0.3 billion [2][8][14] Segment Performance - Aerospace Technologies sales grew 14% year over year, with a 9% organic growth driven by strong performance in commercial aftermarket and defense [7][14] - Industrial Automation sales declined 2% organically, with a segment margin contraction of 130 basis points to 17.8% [9][15] - Building Automation sales increased 19% year over year, with an 8% organic growth and segment margin expansion of 150 basis points to 26.0% [10][15] Strategic Initiatives - Honeywell is pursuing a separation of its Automation and Aerospace businesses, alongside a spin-off of Advanced Materials, expected to be completed in the second half of 2026 [4][5] - The company announced the acquisition of Sundyne for $2.2 billion and repurchased $1.9 billion of its shares during the quarter [5][8] Guidance Updates - Full-year sales are now expected to be between $39.6 billion and $40.5 billion, with organic sales growth projected in the range of 2% to 5% [3][13] - Adjusted earnings per share guidance has been raised to a range of $10.20 to $10.50, reflecting a 5-cent increase at the midpoint from prior guidance [3][13]