Summary
Honeywell International Inc. (HON) reported strong financial results for the third quarter and nine months ended September 30, 2025. Net sales increased by 7% in the third quarter and 8% year-to-date, driven by a combination of higher pricing to offset inflation, increased sales volumes, and favorable foreign currency translation. The company also saw a significant boost in net income, largely attributable to a substantial gain from the termination of the Resideo indemnification and reimbursement agreement, which significantly offset increased divestiture-related costs and adjustments to environmental liabilities. The company is actively managing its portfolio through strategic acquisitions, including the pending acquisition of Johnson Matthey's Catalyst Technologies business, and divestitures, such as the recent sale of its PPE business. Furthermore, Honeywell is progressing with its plan to separate into three independent public companies, with the spin-off of its Advanced Materials business expected by October 30, 2025. Despite inflationary pressures and supply chain challenges, Honeywell's proactive mitigation strategies have helped to minimize disruptions, and the company maintains a strong liquidity position with substantial cash reserves and access to credit facilities.
Financial Highlights
55 data points| Revenue | $10.41B |
| Cost of Revenue | $6.86B |
| Gross Profit | $3.55B |
| R&D Expenses | $497.00M |
| SG&A Expenses | $1.30B |
| Operating Income | $2.41B |
| Net Income | $1.82B |
| EPS (Basic) | $2.87 |
| EPS (Diluted) | $2.86 |
| Shares Outstanding (Basic) | 635.30M |
| Shares Outstanding (Diluted) | 638.80M |
Key Highlights
- 1Net sales increased by 7% year-over-year to $10.4 billion in Q3 2025 and by 8% year-over-year to $30.6 billion year-to-date.
- 2Net income attributable to Honeywell increased significantly to $1.825 billion in Q3 2025, a 29% increase year-over-year, driven by a $0.8 billion gain from the Resideo termination agreement.
- 3Diluted EPS grew to $2.86 in Q3 2025, up from $2.16 in Q3 2024, with the Resideo gain contributing $1.23 per share (after tax).
- 4The company is undergoing significant portfolio transformation with the planned spin-off of its Advanced Materials business (Solstice) by October 30, 2025, and the ongoing separation of its Automation and Aerospace Technologies businesses.
- 5Aerospace Technologies segment showed robust growth with a 15% increase in net sales in Q3 2025, driven by strong performance in Commercial Aviation Aftermarket and Defense and Space.
- 6The company reported a substantial increase in cash and cash equivalents, totaling $12.9 billion as of September 30, 2025, supported by strong operating cash flows and strategic financial activities.
- 7Goodwill increased by $1.9 billion year-to-date to $23.7 billion, primarily due to acquisitions such as Sundyne and Air Products' LNG business.