# Honeywell (HON) Q2 2026 earnings

Results filed 2026-07-23 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/hon/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/773840/000077384026000120/0000773840-26-000120-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Honeywell reported second quarter 2026 sales of $9.7 billion, up 4%, with EPS of $17.83 reflecting a one-time gain on deconsolidation of Quantinuum, and adjusted EPS of $4.52.

Honeywell completed the spin-off of Honeywell Aerospace on June 29, 2026, and now calls itself a pure-play automation company. Including the former Aerospace business, sales were $9.7 billion, up 4%. Reported EPS of $17.83 was inflated by a one-time gain on deconsolidating Quantinuum, while adjusted EPS fell 4% to $4.52. For Honeywell Technologies alone, sales were $5.2 billion, orders rose 16% and segment margin rose 100 basis points to 19.0%.
Management raised its full-year 2026 outlook for Honeywell Technologies. It now expects organic growth of 3% to 4%, segment margin of 20.1% to 20.5% and adjusted EPS of $8.05 to $8.35. It lowered the sales range to $19.8 billion to $20.0 billion and left free cash flow at about $2.0 billion. The main tension is the second half, where organic growth must accelerate to 4% to 6%. Process Automation sales fell 1% organically and its margin shrank.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Consolidated sales (including legacy Aerospace Technologies) | $9.7 billion | up 4% from a year ago | GAAP |
| Net income attributable to Honeywell Technologies | $5,682 |  | GAAP |
| Diluted EPS from continuing operations | $17.83 | up 312% from a year ago | GAAP |
| Adjusted EPS | $4.52 | down 4% from a year ago | non-GAAP |
| Operating income | $1,737 | down 6% from a year ago | GAAP |
| Operating margin | 17.9% | down 190 bps from a year ago | GAAP |
| Cash flow from operations, continuing operations | $1,276 | up 20% from a year ago | GAAP |
| Free cash flow | $1,252 | up 43% from a year ago | non-GAAP |
| Segment margin (consolidated) | 23.1% | up 30 bps from a year ago | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Building Automation sales | $2,002 | up 10% reported, 9% organic |
| Process Automation and Technology sales | $1,679 | up 4% reported, down 1% organic |
| Industrial Automation sales | $1,501 | down 5% reported, up 4% organic |
| Aerospace Technologies sales (former segment) | $4.5 billion | up 5% organically |
| Honeywell Technologies sales | $5,187 | up 3% reported, 4% organic |
| Honeywell Technologies segment margin | 19.0% | up 100 bps from a year ago |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Honeywell Technologies sales | full year 2026 | $19.8 billion to $20.0 billion |
| Organic sales growth | full year 2026 | 3% to 4% |
| Organic sales growth | second half of 2026 | 4% to 6% |
| Segment margin | full year 2026 | 20.1% to 20.5% |
| Adjusted EPS | full year 2026 | $8.05 to $8.35 |
| Operating cash flow | full year 2026 | approximately $2.1 billion |
| Free cash flow | full year 2026 | approximately $2.0 billion |

## Key takeaways

1. **Aerospace spin-off completed on June 29, 2026** Honeywell Aerospace now trades separately as HONA, and Honeywell Technologies describes itself as a pure-play automation company. Aerospace will report standalone results after market close on August 5.
2. **Reported EPS inflated by Quantinuum deconsolidation gain** EPS of $17.83 reflects a one-time gain on deconsolidation of Quantinuum. Adjusted EPS of $4.52 was down 4% from $4.72 a year ago.
3. **Building Automation drove Technologies' margin expansion** Building Automation sales grew 9% organically and segment margin rose 90 basis points to 27.1%, with orders up 13% led by data center and hospitality. Process Automation margin fell 180 basis points to 22.1%.
4. **Full-year guidance raised on margin and EPS** Segment margin guidance rose to 20.1% to 20.5% and adjusted EPS to $8.05 to $8.35. The sales range fell to $19.8 billion to $20.0 billion from $19.9B - $20.2B.
5. **Second-half acceleration to 4% to 6% organic growth** Full-year organic growth of 3% to 4% implies 4% to 6% in the second half. Honeywell Technologies orders were up 16%, leading to a ~$20 billion backlog.

## Questions

**What were Honeywell's headline results for Q2 2026?** Consolidated sales were $9.7 billion, up 4% and up 4% organically, with operating margin of 17.9% and segment margin of 23.1%. EPS was $17.83 and adjusted EPS was $4.52.
**Why is reported EPS so much higher than adjusted EPS?** EPS of $17.83 reflects a one-time gain on deconsolidation of Quantinuum, which was $6,629 million in the income statement. Adjusted EPS of $4.52 excludes such items and was down 4% from $4.72 a year ago.
**How did Honeywell Technologies perform without Aerospace?** Sales were $5.2 billion, up 3% reported and 4% organic, orders rose 16% and segment margin expanded 100 basis points to 19.0%. Adjusted EPS was $1.95, up 10% from $1.77.
**What is the updated full-year 2026 outlook?** Honeywell Technologies expects sales of $19.8 billion to $20.0 billion, organic growth of 3% to 4%, segment margin of 20.1% to 20.5% and adjusted EPS of $8.05 to $8.35. Operating cash flow is about $2.1 billion and free cash flow is unchanged at about $2.0 billion.
**Which segments were strong or weak in the quarter?** Building Automation was strongest, with 9% organic growth and a 27.1% segment margin. Process Automation and Technology sales fell 1% organically and its margin fell 180 basis points to 22.1% on lower catalyst volumes and unfavorable product mix.