Honeywell International (HON) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached $9.6B–$9.58B, up 5% year-over-year, with organic sales up 4% and strong performance in Aerospace and Energy segments.

• Adjusted EPS was $2.49, up 8% year-over-year and above guidance; reported EPS was $2.36, up 6%.

• Orders and backlog remain robust, with orders up 4% and backlog at a record $32B, supporting expectations for accelerated organic growth in the second half of 2024.

• Deployed $6.4B in capital in Q2 2024, including closing the $4.9B–$5B Access Solutions acquisition and announcing two more deals totaling $3.7B.

• Portfolio strategy advanced with $10B in acquisitions since 2023, focused on automation, aviation, and energy transition megatrends.

Financial highlights

• Q2 2024 net sales: $9.6B–$9.58B, up 5% year-over-year; organic sales up 4%.

• Segment profit grew 4% year-over-year; segment margin contracted 10 bps to 23.0% due to mix pressures.

• Free cash flow was $1.1B, flat year-over-year, with working capital improvements offset by higher cash taxes.

• Net income for Q2 was $1.54B–$1.56B, up from $1.49B–$1.50B a year ago.

• Gross margin for Q2 2024 increased to 38.9% from 38.5% in Q2 2023.

Outlook and guidance

• Full-year 2024 sales guidance raised to $39.1B–$39.7B, with organic sales growth of 5%–6%.

• Adjusted EPS guidance for 2024 is $10.05–$10.25, up 6%–8% year-over-year.

• Segment margin guidance for 2024 is 23.3%–23.5%, flat to down 20 bps year-over-year.

• Free cash flow expected at $5.5B–$5.9B, up 4%–11% excluding prior year settlements.

• Guidance incorporates recent CAES and LNG acquisitions.