Honeywell

HON Q1 2025 Earnings

Reported Apr 29, 2025 at 6:05 AM ET · SEC Source

Q1 25 EPS

$2.51

BEAT +13.64%

Est. $2.21

Q1 25 Revenue

$9.82B

BEAT +2.32%

Est. $9.60B

vs S&P Since Q1 25

-20.0%

TRAILING MARKET

HON +10.0% vs S&P +30.0%

Market Reaction

Did HON Beat Earnings? Q1 2025 Results

Honeywell kicked off 2025 with a standout quarter, posting adjusted EPS of $2.51 against a consensus estimate of $2.21, a 13.64% beat, while revenue of $9.82 billion topped expectations by 2.32% and grew 7.9% year over year. The headline driver was A… Read more Honeywell kicked off 2025 with a standout quarter, posting adjusted EPS of $2.51 against a consensus estimate of $2.21, a 13.64% beat, while revenue of $9.82 billion topped expectations by 2.32% and grew 7.9% year over year. The headline driver was Aerospace Technologies, where 9% organic sales growth, fueled by a 15% surge in commercial aftermarket demand and 10% growth in defense and space, provided the lift that carried results past the high end of prior guidance. Building Automation added to the momentum with 8% organic growth and segment margin expanding 150 basis points to 26.0%, helping offset softer results in Industrial Automation and Energy and Sustainability Solutions, both of which declined 2% organically. With investors across industrial and broader earnings-driven markets closely watching macro resilience, Honeywell raised its full-year adjusted EPS guidance to $10.20-$10.50 and maintained organic sales growth of 2%-5%, with the company noting the outlook already reflects the anticipated net impact of current tariffs and mitigation actions.

Key Takeaways

  • Commercial aftermarket sales grew 15%, led by increased air transport demand and supply chain improvements
  • Defense and space sales increased 10% organically amid ongoing geopolitical uncertainty
  • Building solutions grew 11% organically for second consecutive quarter, led by Middle East and North America
  • Backlog grew 8% excluding acquisitions with third consecutive quarter of sequential and YoY backlog growth
  • Segment margin held flat at 23.0% despite volatile macro backdrop, supported by Accelerator operating system
  • Energy and Sustainability Solutions segment margin expanded 230 bps to 22.2% from commercial excellence and margin-accretive LNG acquisition
  • Warehouse and workflow solutions returned to growth, up 5%
  • Free cash flow up 61% year over year
24/7 Wall St

HON YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

HON Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Honeywell started the year off exceptionally well, exceeding guidance across all metrics, led by solid organic growth. For the third straight quarter, we delivered both sequential and year-over-year backlog growth, driven by healthy order rates and continuing customer demand for our differentiated offerings. Despite the volatile macroeconomic backdrop, we maintained segment margin consistent with last year, which is a testament to the value delivered by our Accelerator operating system. Though we have not yet seen it in our results, we recognize we face an uncertain global demand environment for the remainder of 2025, and our company will work tirelessly, leveraging all tools available to us, to deliver for customers and shareholders.”

— Vimal Kapur, Q1 2025 Earnings Press Release