Honeywell International (HON) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached $9.8B, up 8% year-over-year, with organic sales up 4%, exceeding the high end of guidance on all metrics.

• Adjusted EPS was $2.51, up 7% year-over-year and $0.26 above the high end of guidance; reported EPS was $2.22, flat year-over-year.

• Portfolio transformation is progressing, including planned separations of Advanced Materials, Automation, and Aerospace businesses, the sale of the PPE business, and the $2.2B Sundyne acquisition.

• Strong cash performance and order growth, with backlog at a record $36.1B, supporting continued momentum.

• Leadership changes and a dedicated separation office announced to support separation and M&A execution.

Financial highlights

• Q1 organic sales grew 4% year-over-year to $9.8B, led by Aerospace Technologies and Building Automation.

• Segment margin was flat at 23.0%; segment profit up 8% year-over-year to $2.26B.

• Adjusted EPS was $2.51 (up 7%); reported EPS $2.22 (flat); free cash flow was $346M, up 61% year-over-year.

• Orders grew 3% organically; backlog reached a record $36.1B, up 8%–13% year-over-year.

• Operating cash flow was $597M, up 33% year-over-year.

Outlook and guidance

• Full-year 2025 sales expected at $39.6B–$40.5B, organic growth 2%–5%; adjusted EPS guidance raised to $10.20–$10.50.

• Segment margin guidance raised to 23.2%–23.5%, up 60–90 bps year-over-year.

• Free cash flow for 2025 expected at $5.4B–$5.8B, up 10%–18% year-over-year.

• Q2 organic sales growth expected at 1%–4%; adjusted EPS guidance for Q2 at $2.60–$2.70.

• Guidance incorporates tariff impacts, mitigation actions, and global macroeconomic uncertainty.