Honeywell International (HON) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales reached $10.4B, up 8% year-over-year, with organic sales up 5%, both exceeding guidance.

• Adjusted EPS was $2.75, up 10% year-over-year; reported EPS $2.45, up 4%, both above guidance.

• Portfolio transformation advanced with planned separation into three public companies, including Solstice Advanced Materials spin-off in Q4 2025 and Aerospace separation in 2H 2026.

• Major M&A activity included $2.2B Sundyne acquisition, £1.8B Johnson Matthey's Catalyst Technologies deal (closing 1H 2026), and completed PPE business sale ($1.3B).

• Record backlog of $36.6B, up 14% year-over-year, driven by strong order growth.

Financial highlights

• Q2 2025 net sales: $10.4B (+8% YoY); organic sales up 5%; adjusted EPS $2.75 (+10% YoY); reported EPS $2.45 (+4% YoY).

• Segment profit rose 8% to $2.4B; segment margin at 22.9%, down 10 bps year-over-year but within guidance.

• Free cash flow was $1.0B, down 9% year-over-year, impacted by tariff-related inventory and capital spending.

• R&D expense increased to $481M (4.6% of sales), supporting future growth.

• Orders reached $10.5B, up 6% year-over-year.

Outlook and guidance

• Full-year sales guidance raised to $40.8B–$41.3B, with organic growth expected at 4–5%.

• Adjusted EPS guidance increased to $10.45–$10.65, up 6%–8% year-over-year.

• Segment margin expected at 23.0–23.2%, expanding 40–60 bps year-over-year.

• Free cash flow guidance maintained at $5.4B–$5.8B.

• Guidance incorporates Sundyne acquisition and PPE business sale; Catalyst Technologies acquisition expected to close 1H 2026.