10-QPeriod: Q2 FY2025

HONEYWELL INTERNATIONAL INC Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 24, 2025For Securities:HONHONIV

Summary

Honeywell International Inc. reported strong top-line growth for the second quarter and first half of 2025, with net sales increasing by 8% year-over-year for both periods. This growth was driven by a combination of increased pricing to offset inflation, incremental sales from recent acquisitions, and higher sales volumes across its business segments. The company also demonstrated effective portfolio management, completing the divestiture of its PPE business and the acquisition of Sundyne, while announcing an agreement to acquire Johnson Matthey's Catalyst Technologies business. Significant strategic initiatives are underway, including planned separations of its Aerospace Technologies and Automation businesses, and a spin-off of its Advanced Materials business, aimed at simplifying the portfolio and enhancing shareholder value. While the company faces macroeconomic uncertainties such as trade tensions and inflationary pressures, it has implemented proactive mitigation strategies. Financially, net income attributable to Honeywell saw a modest increase year-over-year, with diluted EPS rising due to higher segment profit and a lower effective tax rate, partially offset by increased financial charges and divestiture-related costs. The company maintained a robust cash position and continued its commitment to returning capital to shareholders through share repurchases and dividends.

Financial Highlights

55 data points
Beta

Revenue

$9.32B

39.3% Gross Margin

Net Income

$1.57B

16.8% Net Margin

EPS (Diluted)

$2.45

Total Assets

$78.42B

Cash & Equivalents

$10.35B

Free Cash Flow

$955.00M

Financial Statements
Beta
Revenue$9.32B
Cost of Revenue$6.33B
Gross Profit$3.66B
R&D Expenses$481.00M
SG&A Expenses$1.43B
Operating Income$2.37B
Net Income$1.57B
EPS (Basic)$2.46
EPS (Diluted)$2.45
Shares Outstanding (Basic)637.50M
Shares Outstanding (Diluted)640.90M

Key Highlights

  • 1Net sales increased by 8% for both the second quarter and the first half of 2025 compared to the prior year periods, driven by price increases, acquisitions, and volume growth.
  • 2The company completed the acquisition of Sundyne for $2.2 billion and announced an agreement to acquire Johnson Matthey's Catalyst Technologies business, while divesting its PPE business.
  • 3Strategic portfolio transformation continues with planned separations of Aerospace Technologies and Automation businesses (expected second half of 2026) and a spin-off of Advanced Materials (expected fourth quarter of 2025).
  • 4Aerospace Technologies segment sales grew 11% in Q2 and 12% year-to-date, driven by defense and space, and commercial aviation aftermarket, bolstered by acquisitions.
  • 5Building Automation segment sales increased 16% in Q2 and 17% year-to-date, supported by organic growth in products and the acquisition of Access Solutions.
  • 6Gross margin percentage remained flat at 38.9% for Q2 year-over-year, but slightly decreased to 38.7% year-to-date.
  • 7Diluted EPS increased to $2.45 in Q2 2025 from $2.36 in Q2 2024, reflecting higher segment profit and a lower effective tax rate.

Frequently Asked Questions

Honeywell's net sales increased by 8% in the second quarter of 2025 compared to the same period in 2024. This growth was primarily driven by increased pricing to offset inflation, incremental sales from recent acquisitions such as Sundyne and Access Solutions, and higher sales volumes across its key business segments.

Honeywell is actively transforming its portfolio. Key initiatives include the planned separation of its Aerospace Technologies and Automation businesses into independent public companies (expected in the second half of 2026), and the spin-off of its Advanced Materials business (expected in the fourth quarter of 2025). The company also recently acquired Sundyne and announced an agreement to acquire Johnson Matthey's Catalyst Technologies business, while divesting its PPE business.

For the second quarter of 2025, net income attributable to Honeywell was $1,570 million, a slight increase from $1,560 million in the prior year. Diluted earnings per share increased to $2.45 from $2.36. This improvement was attributed to higher segment profit and a lower effective tax rate, though partially offset by increased interest and other financial charges and divestiture-related costs.

Honeywell's total borrowings increased to $36.5 billion as of June 30, 2025, up from $31.1 billion at the end of 2024, primarily due to increased term loan borrowings and commercial paper usage. The company ended the quarter with $10.3 billion in cash and cash equivalents. Honeywell believes its operating cash flows, available cash, committed credit lines, and access to public markets provide sufficient liquidity to meet its obligations and fund future growth.