01—Abstract
Summary
Summary of the 10-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.
Honeywell International Inc. reported a solid performance in 2025, driven by broad-based growth across its business segments and strategic portfolio actions.
The company achieved an 8% increase in sales, reaching $37.4 billiona, with its Aerospace Technologies segment delivering a third consecutive year of double-digit growth. Honeywell's strategic focus on portfolio optimization was evident through the spin-off of its Advanced Materials business and the acquisition of Sundyne. The company also announced its intent to separate its Aerospace Technologies business into an independent entity, a move expected to be completed in the third quarter of 2026.
Financially, Honeywell demonstrated strong operational cash flow generation and continued its commitment to capital deployment through share repurchases and dividend increases. The company's robust backlog of $37.5 billionb provides a strong foundation for future growth. Despite macroeconomic headwinds such as inflation and supply chain disruptions, Honeywell's mitigation strategies proved effective, allowing it to navigate these challenges while focusing on long-term shareowner value.
02—Key points
Key Highlights
- Total sales increased by 8% to $37.4 billion in 2025.
- Aerospace Technologies segment achieved double-digit growth for the third consecutive year.
- Completed the spin-off of the Advanced Materials business into Solstice Advanced Materials, Inc.
- Acquired Sundyne for $2.2 billion and announced an agreement to acquire Johnson Matthey's Catalyst Technologies business.
- Announced plans to separate Honeywell Aerospace into an independent company, expected in Q3 2026.
- Maintained a strong backlog of $37.5 billion as of December 31, 2025.
- Returned $10.0 billion to shareholders in 2025 through capital expenditures, dividends, share repurchases, and M&A.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Honeywell International kept $0.13.
- Revenue$37.44B100.0%
- Cost of revenue−$23.61B63.1%
- Gross profit$13.83B36.9%
- Operating costs−$5.70B15.2%
- Operating income$8.13B21.7%
- Interest, other & tax−$3.40B9.1%
- Net income$4.73B12.6%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 17, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $37.44B$34.72B | +7.8% |
| Cost of Revenue | $23.61B$21.36B | +10.5% |
| Gross Profit | $13.83B$13.36B | +3.5% |
| R&D Expenses | $1.81B$1.45B | +24.6% |
| SG&A Expenses | $5.45B$5.24B | +4.1% |
| Operating Income | $8.13B$7.67B | +6.0% |
| Net Income | $4.73B$5.71B | −17.1% |
| EPS (Basic) | $7.40$8.76 | −15.5% |
| EPS (Diluted) | $7.36$8.71 | −15.5% |
| Shares Outstanding (Basic) | 639.00M650.90M | −1.8% |
| Shares Outstanding (Diluted) | 642.80M655.30M | −1.9% |
05—Questions
Frequently Asked Questions
What were the key drivers of Honeywell's sales growth in 2025?
Honeywell's sales growth in 2025 was driven by increased pricing and price adjustments to offset inflation, incremental sales from recent acquisitions (Sundyne, CAES, Civitanavi Systems, Access Solutions), and higher sales volumes across its segments, particularly in Aerospace Technologies and Building Automation. This growth was partially offset by lower sales from the divestiture of the PPE business and a settlement related to Flexjet litigation.
What is the status of the planned separation of Honeywell Aerospace?
Honeywell announced its intention to separate its Aerospace Technologies segment into an independent, U.S. publicly traded company. This separation is expected to be completed in the third quarter of 2026. The process is subject to customary closing conditions, including SEC filings, regulatory approvals, and final Board approval.
How did Honeywell manage macroeconomic challenges like inflation and supply chain disruptions?
Honeywell implemented several mitigation strategies to address macroeconomic challenges, including supply chain simplification, aligning to local supply sources, utilizing digital solutions for shortage management, implementing pricing actions and dual-sourcing strategies, longer-term planning for constrained materials, and direct engagement with key suppliers. These strategies helped minimize exposure to conditions such as inflation, supply chain vulnerabilities, and pricing fluctuations.
What significant portfolio changes did Honeywell undertake in 2025?
In 2025, Honeywell completed the spin-off of its Advanced Materials business into Solstice Advanced Materials, Inc. It also completed the acquisition of Sundyne and announced an agreement to acquire Johnson Matthey's Catalyst Technologies business. Additionally, the company divested its personal protection equipment (PPE) business and announced its intent to explore strategic alternatives for its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses.
06—Continue