HONEYWELL REPORTS THIRD QUARTER RESULTS; UPDATES 2025 GUIDANCE

Core Insights - Honeywell reported third-quarter results that met or exceeded guidance, with a year-over-year sales growth of 7% and organic sales growth of 6% [2][10] - The company raised its full-year organic growth and adjusted earnings per share guidance, while also updating its free cash flow guidance [1][4] Financial Performance - Third-quarter operating income decreased by 6%, while segment profit increased by 5% to $2.4 billion, driven by growth in Energy and Sustainability Solutions and Building Automation [2][18] - Earnings per share for the third quarter was $2.86, reflecting a 32% increase year over year, and adjusted earnings per share was $2.82, up 9% year over year [2][18] - Operating cash flow was reported at $3.3 billion, a 65% increase year over year, while free cash flow decreased by 16% to $1.5 billion [2][18] Segment Performance - Aerospace Technologies saw a 12% organic sales growth, with commercial aftermarket sales increasing by 19% [11][19] - Industrial Automation experienced a 1% organic sales growth, while Building Automation reported a 7% organic growth [12][13] - Energy and Sustainability Solutions sales decreased by 2% year over year on an organic basis, with advanced materials growing by 5% [14][19] Guidance Updates - Full-year sales are now expected to be between $40.7 billion and $40.9 billion, with organic sales growth projected at approximately 6% [4][16] - Adjusted earnings per share guidance has been raised to a range of $10.60 to $10.70, reflecting a 10-cent increase at the midpoint from prior guidance [4][16] - The impact of the upcoming spin-off of Solstice Advanced Materials is expected to reduce full-year sales by $0.7 billion and adjusted earnings per share by $0.21 [3][4] Strategic Initiatives - Honeywell is progressing towards separating into three publicly-listed companies, with the spin-off of Solstice Advanced Materials set for October 30, 2025 [3][6] - The company announced a reorganization into a simplified structure for its automation businesses, expected to begin in the first quarter of 2026 [7][8]