Q2 2026 Honeywell International Inc Earnings Call Transcript
Key Points
- Honeywell International Inc (HON) reported 4% organic sales growth, driven by strong performance in Building Automation and better-than-expected results in Process Automation and Industrial Automation.
- Orders grew 16% organically, with a 9% increase in ending backlog, indicating strong demand across all segments.
- The company expanded segment margin by 100 basis points, overcoming cost inflation through productivity and volume leverage.
- Honeywell International Inc (HON) raised its full-year outlook for organic growth, segment margin, and adjusted earnings per share.
- The acquisition of Johnson Matthey's Catalyst Technologies is expected to expand the company's installed base and strengthen its portfolio in refining, petrochemicals, and renewable fuels.
- Process Automation Technologies sales decreased by 1% organically, although still ahead of original expectations.
- The company faced collection issues in the Middle East, although these were described as modest and not material.
- The divestitures of Productivity Solutions and Services and Warehouse and Workflow Solutions are expected to reduce 2026 revenue by approximately $400 million.
- There was a 6% decline in aftermarket sales in Process Automation Technologies due to a tough prior-year comparison.
- The company is dealing with persistent inflation, particularly in electronics, memory, copper, and labor, which it is managing through pricing strategies.
Good morning. Thank you for standing by, and welcome to the Honeywell second quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's call is being recorded.
I would now like to hand the call over to Mark Macaluso, Senior Vice President of Investor Relations. Please go ahead.
Thank you. Good morning, and welcome to Honeywell Technology's second quarter 2026 earnings conference call. Joining me today are Honeywell Technology's Chairman and Chief Executive Officer, Vimal Kapur; and Senior Vice President and Chief Financial Officer, Mike Stepniak.
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 on the Investor Relations website that may be of interest or material to our investors.
Our discussion today will include forward-looking statements that are based on our best view of the world and of
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