Q4 2025 Honeywell International Inc Earnings Call Transcript
Key Points
- Honeywell International Inc (HON) delivered a strong fourth quarter, exceeding expectations for both adjusted sales and adjusted EPS, with orders up 23%, driving backlog to over $37 billion.
- The company achieved a sales growth of 6% excluding the impact of the 2024 Bombardier Agreement, demonstrating successful portfolio actions and a focus on innovation.
- Honeywell International Inc (HON) expects to drive strong organic growth in 2026, fueled by a record backlog, disciplined pricing, and new product introductions.
- The company is progressing faster than anticipated on its separation milestones, with the Aerospace spin expected in the third quarter of 2026.
- Quantinuum, Honeywell's quantum computing venture, raised approximately $840 million at a $10 billion pre-money valuation, indicating strong technological and commercial progress.
- The Energy & Sustainability Solutions segment saw a 7% decline in organic sales due to lower petrochemical catalyst shipments and continued project deferrals.
- Process Solutions sales were flat, with strength in aftermarket services offset by lower volumes in measurement and controls products.
- Industrial Automation sales were only up 1% organically, indicating slower growth compared to other segments.
- The company faces challenges with stranded costs related to the spins, which are expected to be eliminated within 12 to 18 months after the aerospace spin.
- Quantinuum's R&D and technology investments are expected to be a modest headwind to margins in 2026.
Thank you for standing by and welcome to the Honeywell fourth quarter 2025 earnings conference call. (Operator Instructions) I would now like to hand the call over to Sean Meakim, Vice President of Investor Relations. Please go ahead.
Thank you. Good morning and welcome to Honeywell's fourth quarter 2025 earnings and 2026 Outlook conference call. On the call with me today, our Chairman and Chief Executive Officer Vimal Kapur and senior Vice President and Chief Financial Officer Mike Stepniak, as well as Mark Macaluso, who will be leading Investor Relations for Honeywell going forward.
This webcast and the presentation materials, including non-GAAP reconciliations are available on our investor relations website. From time to time, we post new information that may be of interest or material to our investors on this website.
Our discussion today includes forward-looking statements that are based on our best view of the world and of our businesses as we
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