Honeywell has reported its financial results for the second quarter of 2025, showing year-over-year sales growth and updating its full-year guidance. The company posted an 8% increase in total sales and a 5% rise in organic sales compared to the same period last year. This performance was led by strong gains in defense and space as well as UOP. Operating income rose by 7%, while segment profit increased by 8% to $2.4 billion, mainly due to growth in Building Automation.
Operating margin decreased by 30 basis points to 20.4%, and segment margin dropped by 10 basis points to 22.9%, which met prior guidance levels. Earnings per share for the quarter reached $2.45, up 4% from a year ago, while adjusted earnings per share climbed 10% to $2.75. Operating cash flow stood at $1.3 billion, down 4% from last year, and free cash flow was $1 billion, a decrease of 9%.
“Honeywell delivered outstanding results in the second quarter with both organic growth and adjusted earnings per share exceeding guidance despite the unpredictable macroeconomic backdrop,” said Vimal Kapur, chairman and chief executive officer of Honeywell. “With Building Automation leading the way, three out of four segments grew sales at better than 5% in the quarter, demonstrating the power of our Accelerator operating system to adapt quickly and drive growth even as business conditions change. During the quarter, we also saw promising results from our increased focus on new product innovation, which further supported the growth of our record backlog. In parallel, we continued to take a balanced approach to capital deployment, including selectively pursuing attractive M&A opportunities, such as the bolt-on acquisition of Johnson Matthey’s Catalyst Technologies business and the strategic tuck-in of Li-ion Tamer.”
Kapur added: “With the announcement of our review of strategic alternatives for our Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, this month also marked the conclusion of the in-depth portfolio review that I initiated early in my tenure as CEO to simplify and optimize Honeywell’s businesses. As we prepare to separate into three industry-leading public companies, we are confident that our efforts to shape our portfolio have positioned Honeywell to deliver significant value for customers, employees, and shareholders.”
Following these results and management’s outlook for the rest of the year, Honeywell updated its full-year projections: sales are now expected between $40.8 billion and $41.3 billion with organic sales growth forecasted at 4%–5%. Segment margin is projected at 23.0%–23.2%, representing an expansion over last year’s numbers; adjusted earnings per share are anticipated between $10.45–$10.65.
The company continues with its plan announced earlier this year to split into three separate publicly listed entities focused on Automation, Aerospace Technologies, and Advanced Materials (expected spin-off completion in late 2026). Dedicated separation management offices have been established to oversee this process.
In recent months Honeywell repurchased $1.7 billion worth of shares and completed several transactions including selling its personal protective equipment business for $1.3 billion (closed May), acquiring Johnson Matthey’s Catalyst Technologies business (£1.8 billion) in May, closing Sundyne acquisition ($2.2 billion) in June, and completing a strategic acquisition of Li-ion Tamer in July.
By carrying out these acquisitions since December 2023—totaling approximately $13.5 billion—Honeywell has surpassed previous commitments made during its Investor Day regarding capital deployment through high-return expenditures such as dividends or acquisitions.
Segment breakdowns show Aerospace Technologies’ organic sales up by 6%, driven mainly by double-digit increases in defense/space demand; Industrial Automation remained flat overall but saw some sub-segment improvements; Building Automation rose organically by 8%; Energy & Sustainability Solutions grew organically by 6%, with notable strength from UOP operations.
A live webcast discussing these results is available through Honeywell’s Investor Relations website (www.honeywell.com/investor).
