Summary
Honeywell International Inc. reported net sales of $9,143 million for the first quarter of 2026, a 2% increase from the prior year's quarter, driven by pricing actions and favorable foreign currency translation, partially offset by lower sales volumes and the impact of divestitures. Net income attributable to Honeywell was $821 million, or $1.29 per diluted share, a significant decrease from $1,449 million, or $2.22 per diluted share, in the same period last year. This decline was primarily due to a $239 million loss on debt extinguishment, a $263 million impairment of assets held for sale, and higher divestiture-related costs. The company is actively managing its portfolio, with plans to separate its Aerospace Technologies business by June 29, 2026, and has reached agreements to sell its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. The acquisition of Johnson Matthey's Catalyst Technologies business is expected to close in the third quarter of 2026. Despite near-term headwinds from debt extinguishment and impairments, Honeywell's backlog increased by 15% to $38.3 billion, indicating strong future demand across its segments, particularly in Aerospace Technologies. The company continues to focus on operational cash flow generation as a primary source of liquidity.
Financial Highlights
55 data points| Revenue | $9.14B |
| Cost of Revenue | $5.60B |
| Gross Profit | $3.54B |
| R&D Expenses | $492.00M |
| SG&A Expenses | $1.31B |
| Operating Income | $2.13B |
| Net Income | $821.00M |
| EPS (Basic) | $1.29 |
| EPS (Diluted) | $1.29 |
| Shares Outstanding (Basic) | 634.70M |
| Shares Outstanding (Diluted) | 638.40M |
Key Highlights
- 1Net sales increased by 2% to $9.14 billion in Q1 2026 compared to Q1 2025, driven by pricing and favorable foreign exchange, though volume decreased.
- 2Net income attributable to Honeywell decreased significantly to $821 million ($1.29/share) from $1,449 million ($2.22/share) in the prior year quarter, impacted by substantial non-recurring charges.
- 3A loss of $239 million on debt extinguishment and a $263 million impairment of assets held for sale were key drivers of the net income decline.
- 4Honeywell is progressing with its strategic portfolio transformation, including the planned spin-off of its Aerospace Technologies business and agreements to sell its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses.
- 5The company's backlog of orders increased by 15% to $38.3 billion, signaling robust future demand, particularly in the Aerospace Technologies segment.
- 6Segment profit showed mixed performance, with Aerospace Technologies up 4%, Building Automation up 13%, Process Automation and Technology up 15%, and Industrial Automation up 5%, despite some revenue challenges in the latter.
- 7Net cash used for operating activities from continuing operations was negative $650 million, a decrease from positive $378 million in the prior year, impacted by working capital changes and a large litigation settlement payment.