10-QPeriod: Q3 FY2025

HONEYWELL INTERNATIONAL INC Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 23, 2025For Securities:HONHONIV

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
Beta

Revenue

$9.44B

34.3% Gross Margin

Net Income

$1.82B

19.3% Net Margin

EPS (Diluted)

$2.86

Total Assets

$80.92B

Cash & Equivalents

$12.93B

Free Cash Flow

$2.91B

Financial Statements
Beta
Revenue$9.44B
Cost of Revenue$6.86B
Gross Profit$3.23B
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.

Frequently Asked Questions

Honeywell's net sales increased by 7% year-over-year to $10.4 billion in the third quarter of 2025. This growth was driven by a combination of increased pricing to offset inflation, higher sales volumes across various segments, and a favorable impact from foreign currency translation due to the weakening U.S. dollar against the euro.

The termination of the Resideo indemnification and reimbursement agreement resulted in a significant one-time cash payment of $1.59 billion to Honeywell. This generated a pre-tax gain of $802 million, which substantially boosted net income and earnings per share for the third quarter and year-to-date periods. This gain helped offset other factors like increased divestiture-related costs and environmental liability adjustments.

Honeywell is actively reshaping its portfolio. Key actions include 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 into independent companies. These strategic moves are aimed at simplifying the business structure, enhancing focus on core strengths, and ultimately creating shareholder value.

As of September 30, 2025, Honeywell's total borrowings increased to $37.0 billion. However, the company maintains a strong liquidity position with $12.9 billion in cash and cash equivalents. It has access to credit facilities and is managing its debt strategically to fund acquisitions and other corporate needs, while also returning capital to shareholders through dividends and share repurchases.