DBT Bureau
Pune, 26 July 2026
Honeywell Technologies reported its results for the second quarter of 2026. The consolidated results include the operations of Honeywell Aerospace, which successfully separated in a spin-off from Honeywell Technologies on June 29, 2026 (third quarter 2026).
Second Quarter 2026 Consolidated Results (including legacy Aerospace Technologies segment):
- Orders up 4% leading to ~$38 billion backlog
- Sales of $9.7 billion, reported sales up 4% and organic sales up 4%
- Operating margin of 17.9% and segment margin of 23.1%
- Earnings per share (EPS) of $17.83, which reflects the impact of a one-time gain on deconsolidation of Quantinuum, and adjusted EPS of $4.52
Second Quarter 2026 Honeywell Technologies Results (excluding Aerospace Technologies):
- Orders up 16% leading to ~$20 billion backlog
- Sales of $5.2 billion, up 3% reported and up 4% organic
- Operating margin of 12.8% and segment margin of 19.0%
- EPS of $16.65 and adjusted EPS1 of $1.95
Management Commentary
“The second quarter marked a historic milestone for Honeywell Technologies as we completed the separation of Honeywell Aerospace and began a new era as a leading pure-play automation company. The results we delivered this quarter are the outcome of a year-plus long process to simplify our business, and we are already seeing the benefits of this transformation today. Honeywell Technologies delivered strong organic orders and sales growth, and 100 basis points of segment margin expansion, leading to double digit earnings growth in the second quarter and reinforcing our confidence in the long-term targets that we shared at our recent investor day. As a simplified company, Honeywell Technologies is now positioned to further accelerate profitable growth as we leverage our deep domain expertise and vast installed base to create enduring value for our shareowners,” said Vimal Kapur, chairman and chief executive officer of Honeywell Technologies.
Automation business performance
Building Automation sales for the second quarter grew 9% organically year over year. Building products grew 10% led by continued double-digit growth in the fire business, and building solutions grew 7%, driven by services. Orders increased 13% year over year led by robust growth in data center and hospitality verticals. Segment margin expanded 90 basis points to 27.1% driven by volume leverage and pricing, partially offset by inflation.
Process Automation and Technology sales for the second quarter decreased 1% organically year over year. Projects sales increased 5% organically, led by continued strength in LNG and a return to growth in automation projects. This was offset by a 6% decline in aftermarket sales driven by higher catalyst shipments in the prior year. Orders were up 24% led by demand in LNG. Segment margin contracted 180 basis points to 22.1% driven by lower catalyst volumes and unfavorable product mix.
Industrial Automation sales for the second quarter grew 4% organically year over year led by 10% growth in solutions, driven by strength in utilities projects and strong backlog conversion in the warehouse business. Products grew 1% led by demand in sensing and industrial measurement. Segment margin expanded 90 basis points year over year to 17.2% driven by pricing and productivity, partially offset by inflation.
2026 Outlook
Honeywell Technologies is updating its full-year outlook after a strong second quarter and improved organic growth fundamentals for process and industrial in the second half. The company now expects full-year sales of $19.8 billion to $20.0 billion with organic sales growth of 3% to 4%, and 4% to 6% organic1 growth in the second half. The company now expects segment margin1 in the range of 20.1% to 20.5% with segment margin expansion of 250 to 290 basis points year over year; and adjusted earnings per share in the range of $8.05 to $8.35, up 25% to 29%. Operating cash flow is expected to be approximately $2.1 billion, while free cash flow expectations are unchanged at approximately $2.0 billion for the full year. Guidance incorporates expected results for the acquisition of Johnson Matthey’s Catalyst Technologies business, which closed on July 17, 2026, and the expected close of the Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) business divestitures by early August.
