Core Insights - Honeywell International Inc. reported quarterly earnings of $2.75 per share, exceeding the Zacks Consensus Estimate of $2.64 per share, and showing an increase from $2.49 per share a year ago, resulting in an earnings surprise of +4.17% [1] - The company achieved revenues of $10.35 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.33%, compared to $9.58 billion in the same quarter last year [2] - Honeywell's stock has increased approximately 5.9% since the beginning of the year, while the S&P 500 has gained 8.1% [3] Earnings Outlook - The future performance of Honeywell's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.50 on revenues of $9.93 billion, and for the current fiscal year, it is $10.40 on revenues of $40.21 billion [7] Industry Context - The Diversified Operations industry, to which Honeywell belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Exhibit 99 Contacts: Media Investor Relations Stacey Jones Sean Meakim (980) 378-6258 (704) 627-6200 stacey.jones@honeywell.com sean.meakim@honeywell.com HONEYWELL REPORTS SECOND QUARTER RESULTS; UPDATES 2025 GUIDANCE CHARLOTTE, N.C., July 24, 2025 -- Honeywell (NASDAQ: HON) today announced results for the second quarter that met or exceeded the company's guidance. The company also raised its full-year organic growth and adjusted earnings per share guidance ranges and reiterated its free cash flow guidance ...

Honeywell raised its full-year guidance for the second successive quarter, as the company shrugged off tariffs and increased its order backlog https://t.co/6i1snhU3Ue ...

Core Insights - Honeywell reported strong second-quarter results, with sales growth of 8% year-over-year and organic sales growth of 5%, exceeding guidance [2][3] - The company raised its full-year organic growth and adjusted earnings per share guidance, reflecting confidence in its performance and strategic initiatives [1][3] Financial Performance - Second-quarter sales reached $10.4 billion, with operating income increasing by 7% to $2.1 billion and segment profit rising 8% to $2.4 billion [2][9] - Earnings per share for the quarter was $2.45, a 4% increase year-over-year, while adjusted earnings per share rose 10% to $2.75 [2][9] - Operating cash flow was $1.3 billion, down 4% year-over-year, and free cash flow was $1.0 billion, down 9% year-over-year [2][9] Segment Performance - Aerospace Technologies sales increased 6% organically, driven by a 13% growth in defense and space [7] - Building Automation saw an 8% organic sales increase, with segment margin expanding 90 basis points to 26.2% [10] - Energy and Sustainability Solutions reported a 6% organic sales growth, with UOP growing 16% [11] Strategic Initiatives - Honeywell is pursuing a separation of its Automation and Aerospace businesses, aiming to create three publicly-listed industry leaders by the second half of 2026 [4][5] - The company has been actively optimizing its portfolio, including the acquisition of Johnson Matthey's Catalyst Technologies for £1.8 billion and the acquisition of Sundyne for $2.2 billion [5][9] - A comprehensive portfolio review has concluded, leading to a strategic evaluation of alternatives for its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses [5][9] Updated Guidance - Full-year sales are now expected to be between $40.8 billion and $41.3 billion, with organic sales growth projected at 4% to 5% [3][13] - Adjusted earnings per share guidance has been raised to a range of $10.45 to $10.65, reflecting a 20-cent increase at the midpoint from prior guidance [3][13]

Core Viewpoint - Honeywell International Inc. (HON) is expected to report second-quarter 2025 results on July 24, with projected revenues of $10 billion, reflecting a 4.6% year-over-year growth, and earnings per share (EPS) of $2.64, indicating a 6% increase from the previous year [1][9]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for HON's second-quarter revenues is $10 billion, which represents a 4.6% growth compared to the same quarter last year [1]. - The consensus estimate for earnings is $2.64 per share, which has increased by 1.1% over the past 60 days, indicating a 6% growth from the year-ago quarter [1][9]. - HON has consistently delivered better-than-expected results in the past four quarters, with an average earnings surprise of 6.6% [2]. Group 2: Segment Performance Insights - The Aerospace Technologies segment is anticipated to see a revenue increase of 10.1% year-over-year to $4.28 billion, driven by strong demand in commercial aviation and defense spending [3]. - The Building Automation segment is expected to generate revenues of $1.71 billion, reflecting an 8.8% decline year-over-year, influenced by solid demand but offset by project delays [4]. - The Energy and Sustainability Solutions segment is projected to grow by 1.8% year-over-year to $1.63 billion, supported by the Universal Oil Products business [5]. - The Industrial Automation Solutions segment is expected to decline by 5.7% year-over-year to $2.36 billion, due to ongoing weakness in sensing and safety technologies [6]. Group 3: Cost and Margin Considerations - High costs and expenses have negatively impacted HON's performance, with operating expenses expected to rise due to investments in digital infrastructure and business integration [7]. - The cost of sales is projected to increase by 5.1% year-over-year to $6.1 billion, leading to a decline in operating margin by 180 basis points to 18.8% [7]. Group 4: Earnings Prediction Model - The earnings prediction model indicates a potential earnings beat for HON, supported by a positive Earnings ESP of +0.58% and a Zacks Rank of 3 [8][10].

Core Viewpoint - The company, Nanji Guang, is focusing on increasing R&D investment and expanding into cutting-edge display technologies to provide high-quality display solutions for customers, while implementing a dual-track strategy for product layout [1][3]. Group 1: Company Strategy - Nanji Guang aims to focus on new consumer trends and the iteration of consumer electronics, specifically targeting segments such as e-sports, gaming, handheld devices, and outdoor wearables, to build differentiated competitive advantages [1]. - The company plans to closely monitor developments in AI and leverage existing solutions and technological reserves to strategically advance in related fields [1]. Group 2: Market Position and Clientele - Nanji Guang is recognized as a leading provider of backlight display module solutions in China, specializing in the R&D, production, and sales of LED backlight modules used in various display applications [3]. - The company's products are widely utilized in tablets, laptops, gaming, smart wearables, smartphones, automotive displays, medical displays, industrial control displays, home appliance displays, and other consumer electronics [3]. - Notable clients include major brands such as OPPO, VIVO, Xiaomi, Huawei, Honor, Samsung, LG, Lenovo, Haier, Midea, Honeywell, Panasonic, Canon, BYD, and SAIC Group [3]. Group 3: Government Support and Collaboration - The Shenzhen Municipal People's Congress emphasizes the importance of companies leveraging government resources and services, including industry support policies, talent introduction plans, financing support, market expansion guidance, and industry-academia-research cooperation platforms [3][5]. - The company recognizes the need to better utilize the diverse service systems and policy resources provided by the government to enhance its development [5]. - Nanji Guang plans to systematically review and study the various business-friendly policies and services introduced by the Shenzhen government to convert policy benefits into tangible outcomes for the company [5].

Core Insights - Nexceris has sold its Li-ion Tamer® off-gas monitoring solution to Honeywell, enhancing Honeywell's fire life safety portfolio and allowing Nexceris to focus on breakthrough technologies in energy markets [1][2] Company Overview - Nexceris is an established energy innovation company with over 30 years of experience in advanced materials and technology development, holding 16 U.S. patents and 28 international filings [6][7] - The company specializes in materials sciences and advanced ceramics across various technologies including battery, catalyst, electrolyzer, fuel cell, and sensing technologies [7] Strategic Transaction - The sale of Li-ion Tamer® enables Nexceris to concentrate on related technologies and commercialize packaged products through licensing or acquisition by industrial partners [2][4] - Nexceris has partnered with Honeywell for over five years, resulting in more than 400 million hours of sensing in energy storage applications [3] Future Directions - Nexceris plans to deploy products in catalyst, electric vehicles (EV), and electrochemical applications through its commercial brands, fuelcellmaterials and HeatPath Solutions [4] - The company's collaborative model combines client technology with scientific and engineering expertise to accelerate commercialization and deliver measurable results [4]

Core Viewpoint - BofAmerica Securities analyst Andrew Obin maintains a Buy rating on Honeywell International and raises the price target from $250 to $275, anticipating a strong second-quarter 2025 earnings report that could drive the stock higher [1] Group 1: Earnings Expectations - Honeywell is expected to report second-quarter earnings of $2.65 per share, reflecting a 1.7% organic growth and a slight margin contraction of 10 basis points year-over-year due to CAES integration in Aerospace [5] - For the third quarter, earnings are estimated at $2.50 per share, slightly below the consensus of $2.53, but management is not expected to guide in a way that lowers consensus [6] Group 2: Market Position and Valuation - Honeywell shares are trading at a discount of approximately 12% on an EV/EBITDA basis compared to peers, indicating potential for further re-rating [1] - The company has a record backlog of $35.8 billion at the start of 2025, up 11% year-over-year, which increased to $36.1 billion in the first quarter, suggesting strong revenue visibility [9] Group 3: Management Insights and Strategic Moves - Recent management discussions and macro indicators suggest resilience in key end markets, countering the anticipated short-cycle collapse [2][3] - Honeywell has implemented price increases tied to inflation, which could support margins in upcoming quarters [4] - The company has made several acquisitions while divesting its Safety/PP&E business, which is expected to add structural growth to Honeywell's total and Automation segments [8] Group 4: Future Outlook - The combination of conservative guidance, stronger pricing, improving volumes, and strategic M&A positions Honeywell for positive estimate revisions and multiple expansion in the latter half of 2025 [10] - The upcoming second-quarter earnings report is viewed as a key moment for Honeywell to reaffirm its position among industrial leaders [10]

Tax Policy Impacts - The "One Big Beautiful Bill" Act (OBBB) aims to extend and expand tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA), reducing the corporate tax rate from 35% to 21% permanently[1][7] - The Act repeals provisions from the Biden administration aimed at reducing traditional energy consumption, benefiting traditional energy companies[1][7] Indirect Support for Infrastructure and AI - OBBB does not directly fund traditional manufacturing or infrastructure projects but focuses on tax policy and deregulation, which may indirectly support infrastructure and AI development by reducing corporate costs[2][8] - Permanent full expensing provisions for equipment, R&D, and plants allow companies to deduct the full cost of capital investments immediately, reducing financial burdens and encouraging investment in advanced manufacturing[3][9] Opportunity Zones and Investment Attraction - The Act expands Opportunity Zones to attract private capital into economically distressed areas, enhancing investment in projects like smart city technology and logistics hubs[4][10] - Deregulation measures simplify the approval process for infrastructure projects, potentially accelerating project timelines[4][10] Economic Growth and Local Industry - Tax cuts and capacity expansion incentives are expected to enhance the profitability and competitiveness of domestic industrial enterprises in the U.S. market[5][11] - Increased production capacity is anticipated to improve market share and meet local manufacturing demands, while personal tax reductions may boost overall consumption[5][11] Investment Recommendations - Companies that may benefit from the policy's tax cuts and required equipment investments include Vistra, Constellation, Talen Energy, GE Vernova, Schneider Electric, Eaton, Vertiv, Honeywell, Cummins, and Caterpillar[6][12] Risk Factors - Potential risks include slower-than-expected U.S. economic growth, changes in U.S. policy, and geopolitical uncertainties[6][13]

Honeywell on Tuesday said it is evaluating "strategic alternatives" for two of its businesses ahead of its plan to split into three public companies by the end of next year. https://t.co/FlAgWvxczZ ...