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Honeywell Profit Tops Views as Middle East Disruptions Weigh on Outlook

Honeywell now targets a June 29 Aerospace spinoff to speed a three‑way breakup.

Overview

  • Honeywell, which reported results Thursday, posted $9.14 billion in Q1 sales and adjusted EPS of $2.45, beating profit forecasts but missing on revenue as the stock fell about 6% in premarket trading.
  • The company guided Q2 sales to $9.4–$9.6 billion and EPS to $2.35–$2.45, below Wall Street expectations, citing Middle East conflict that delayed Process Automation and Technology shipments and reduced high‑margin aftermarket work.
  • Management accelerated the Aerospace separation to June 29 and moved to streamline the portfolio with a sale of Warehouse and Workflow Solutions to American Industrial Partners and a $1.4 billion sale of Productivity Solutions and Services to Brady.
  • Free cash flow fell sharply, with the company pointing to separation costs, Flexjet litigation expenses, and slower collections, even as pricing and early removal of stranded costs lifted margins.
  • Organic orders rose about 7% and backlog reached roughly $38.3 billion, and leadership kept full‑year growth and margin targets, signaling confidence that delayed Middle East business can recover later in the year.