01—Abstract
Summary
Summary of the 10-Q filed April 29, 2025. Cited figures are marked; the original filing is the authoritative source.
Honeywell International Inc. reported a net sales increase of 8% to $9.82 billiona for the first quarter of 2025 compared to the prior year period.
This growth was primarily driven by higher sales volumes, pricing adjustments to offset inflation, and contributions from recent acquisitions, partially offset by unfavorable foreign currency translation. Net income attributable to Honeywell was $1.45 billionb, resulting in earnings per diluted share of $2.22, a slight decrease from the prior year's $2.23, impacted by higher divestiture-related costs, interest expenses, and amortization of acquisition-related intangibles. The company continues to execute a strategic portfolio transformation, including announced plans to separate its Automation and Aerospace Technologies businesses, and the spin-off of its Advanced Materials business.
These strategic moves aim to create more focused, independent companies. Significant acquisitions in the prior year, such as Access Solutions and LNG, are beginning to contribute to revenue growth. The company also announced its intention to acquire Sundyne in the second quarter of 2025.
Looking ahead, Honeywell faces a dynamic macroeconomic environment with increased economic and trade policy uncertainty, geopolitical risks, and inflationary pressures. The company is proactively managing these challenges through pricing actions, hedging, supplier collaboration, and new supplier development to mitigate supply chain vulnerabilities and maintain product quality. Despite these headwinds, Honeywell's backlog of orders increased by 13% year-over-year to $36.1 billionc, indicating continued demand for its products and services.
02—Key points
Key Highlights
- Net sales increased by 8% to $9.82 billion in Q1 2025, driven by volume, price, and acquisitions, despite a 1% negative impact from foreign currency translation.
- Net income attributable to Honeywell was $1.45 billion, with diluted EPS of $2.22, a slight decrease from $2.23 in the prior year, mainly due to higher divestiture and interest costs.
- The company is undergoing significant strategic portfolio transformations, including planned separations of Automation and Aerospace Technologies businesses and the spin-off of Advanced Materials.
- Acquisitions, including Access Solutions and LNG from prior periods, are contributing to revenue growth, with a pending acquisition of Sundyne announced for Q2 2025.
- Backlog of orders increased by 13% year-over-year to $36.1 billion, indicating strong future demand.
- The Aerospace Technologies segment showed robust growth with a 14% increase in net sales, driven by commercial aviation aftermarket and defense and space.
- The company is actively managing macroeconomic uncertainties, including inflation and geopolitical risks, through various mitigation strategies.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Honeywell International kept $0.16.
- Revenue$8.93B100.0%
- Cost of revenue−$5.46B61.2%
- Gross profit$3.46B38.8%
- Operating costs−$1.46B16.4%
- Operating income$2.00B22.4%
- Interest, other & tax−$553.0M6.2%
- Net income$1.45B16.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 29, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $8.93B$8.16B | +9.4% |
| Cost of Revenue | $5.46B$5.58B | −2.1% |
| Gross Profit | $3.46B$3.22B | +7.4% |
| R&D Expenses | $416.00M$360.00M | +15.6% |
| SG&A Expenses | $1.31B$1.30B | +0.6% |
| Operating Income | $2.00B$2.09B | −4.4% |
| Net Income | $1.45B$1.46B | −0.9% |
| EPS (Basic) | $2.24$2.24 | 0.0% |
| EPS (Diluted) | $2.22$2.23 | −0.4% |
| Shares Outstanding (Basic) | 648.20M652.30M | −0.6% |
| Shares Outstanding (Diluted) | 651.70M656.60M | −0.7% |
05—Questions
Frequently Asked Questions
What is Honeywell's revenue performance for the first quarter of 2025?
Honeywell reported an 8% increase in net sales to $9.82 billion for the first quarter of 2025, compared to $9.11 billion in the prior year. This growth was driven by higher sales volumes, price adjustments to offset inflation, and contributions from acquisitions, slightly offset by unfavorable foreign currency translation.
What is Honeywell's profitability and earnings per share for the quarter?
Net income attributable to Honeywell was $1.45 billion, resulting in diluted earnings per share of $2.22. This is a slight decrease from $1.46 billion and $2.23 per diluted share in the same period of 2024. The decrease was primarily attributed to higher divestiture-related costs, increased interest and financial charges, and amortization of acquisition-related intangibles.
What are Honeywell's key strategic initiatives impacting its structure?
Honeywell is executing significant strategic transformations. This includes the announced intention to separate its Automation and Aerospace Technologies businesses into two independent public companies, and the planned spin-off of its Advanced Materials business. These moves are intended to create more focused entities and unlock shareholder value.
How is Honeywell managing macroeconomic headwinds and what is its outlook?
Honeywell is closely monitoring evolving macroeconomic conditions, including economic and trade policy uncertainty, geopolitical risks, and inflationary pressures. The company is implementing mitigation strategies such as pricing actions, hedging, and enhanced supplier collaboration to manage supply chain volatility and pricing fluctuations. Despite these challenges, the company's backlog increased by 13%, indicating sustained demand.
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