Honeywell reported first-quarter results that surpassed its guidance across all metrics, with the company also raising its adjusted earnings per share forecast for 2025. The Charlotte-based industrial conglomerate posted year-over-year sales growth of 8% and organic sales growth of 4%, driven by strong performance in defense and space as well as building solutions.
Operating income increased by 6% and segment profit rose by 8% to $2.3 billion, attributed to acquisitions and a focus on commercial operations. Operating margin contracted slightly to 20.1%, while segment margin remained flat at 23%. Earnings per share for the quarter were $2.22, unchanged from the previous year, while adjusted earnings per share climbed 7% to $2.51. Free cash flow grew by 61% compared to the same period last year.
“Honeywell started the year off exceptionally well, exceeding guidance across all metrics, led by solid organic growth,” said Vimal Kapur, chairman and chief executive officer of Honeywell. “For the third straight quarter, we delivered both sequential and year-over-year backlog growth, driven by healthy order rates and continuing customer demand for our differentiated offerings. Despite the volatile macroeconomic backdrop, we maintained segment margin consistent with last year, which is a testament to the value delivered by our Accelerator operating system. Though we have not yet seen it in our results, we recognize we face an uncertain global demand environment for the remainder of 2025, and our company will work tirelessly, leveraging all tools available to us, to deliver for customers and shareholders.”
Kapur continued: “As we look ahead to our planned spin of Advanced Materials and separation of our Automation and Aerospace businesses, we are even more confident about the significant opportunities for value creation and sustained growth as we transform into three industry-leading public companies.”
Following these results and management’s outlook for the rest of the year, Honeywell updated its full-year sales expectations to between $39.6 billion and $40.5 billion with projected organic sales growth ranging from 2% to 5%. Segment margin is expected between 23.2% and 23.5%, representing an expansion of up to 90 basis points over last year’s figures. Adjusted earnings per share are now forecast between $10.20 and $10.50.
The company reiterated that its operating cash flow should reach between $6.7 billion and $7.1 billion this year; free cash flow is expected in a range from $5.4 billion to $5.8 billion.
In February this year Honeywell’s board decided after a comprehensive review that it would pursue a separation of its Automation and Aerospace businesses alongside spinning off Advanced Materials into standalone companies—a process scheduled for completion in late 2026.
To manage these transitions without disrupting ongoing operations Honeywell established dedicated separation management offices during this quarter.
Capital deployment continued through strategic acquisitions such as Sundyne (announced in March at a price of $2.2 billion) as well as repurchasing shares worth $1.9 billion during Q1; Honeywell maintains its commitment toward deploying at least $25 billion through high-return capital expenditures, dividends, share buybacks or further acquisitions through next year.
By business unit:
– Aerospace Technologies saw organic sales increase by 9%, supported by commercial aftermarket demand (up 15%) due partly to air transport needs.
– Industrial Automation experienced a decline in organic sales (-2%), though warehouse solutions returned to growth (+5%). Process solutions were flat overall.
– Building Automation posted an organic sales rise of 8%; building solutions within this unit grew organically by double digits.
– Energy & Sustainability Solutions recorded a small decline in organic sales (-2%), though advanced materials orders increased due largely to fluorine products’ performance.
Honeywell plans an investor conference call regarding these results at www.honeywell.com/investor where related materials are also available.
The company continues adjusting its portfolio: assets tied to personal protective equipment were marked held-for-sale on September 30th last year; this quarter included a valuation allowance write-down related to those assets.
Honeywell operates globally across automation technologies (including software), aviation advancements, energy transition initiatives—and states that it aligns business strategy with major trends such as digitalization in industry sectors.
