Honeywell Q2 Results Lift Guidance After Spin-Off

Honeywell Technologies reported second-quarter results on July 23, 2026, showing stronger sales, higher orders, and adjusted earnings in its first report since the June 29 spin-off. The company raised full-year profit and sales guidance following the results.

Honeywell Technologies Q2 Results and Guidance

Honeywell Technologies said in a press release that this was its first earnings report since completing a three-way breakup, reporting both consolidated and Honeywell Technologies-only results.

Consolidated orders rose 4%, producing a backlog of about $38 billion. Sales reached $9.7 billion, up 4% on both a reported and organic basis year over year. The operating margin was 17.9%, with a non-GAAP segment margin of 23.1%. GAAP earnings per share (EPS) were $17.83, boosted by a one-time gain from the deconsolidation of Quantinuum. Adjusted EPS was $4.52, a roughly 10% increase from the prior year but below a $4.81 consensus.

Excluding Aerospace, the automation-focused Honeywell Technologies remain-co saw orders rise 16%, leaving a backlog near $20 billion. Sales were $5.2 billion, up 3% reported and 4% organically. The remain-co’s operating margin was 12.8%, with a segment margin of 19.0%. GAAP EPS was $16.65, and adjusted EPS was $1.95, exceeding pre-earnings expectations of about $1.80–$1.82.

Management raised full-year 2026 adjusted EPS guidance to $8.05–$8.35 and set a sales forecast of $19.8–$20.0 billion, with organic growth of 3–4%. The company attributed the higher outlook to resilient demand in industrial and building automation, highlighting strength from North American building projects and rising orders tied to data-center and healthcare capital spending. Analysts noted that rising operating costs could pressure margins despite solid demand.

The Aerospace segment, now trading independently as Nasdaq: HONA, recorded $4.5 billion in sales with about 5% organic growth before separation. Consolidated results still included Aerospace operations for the quarter.

Honeywell Aerospace will report its second-quarter financial results on Aug. 5, 2026, after market close. The sizable orders and backlog, combined with the raised guidance, position the automation remain-co for continued revenue and margin growth. Meanwhile, the completed HONA spin-off and its upcoming report create distinct near-term catalysts for investors.

"The consolidated results include the operations of Honeywell Aerospace (NASDAQ: HONA), which successfully separated in a spin-off from Honeywell Technologies on June 29, 2026," the company said in its press release.