Industrial conglomerate Honeywell (NASDAQ:HON) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 8.1% year on year to $10.35 billion. The company’s full-year revenue guidance of $40.8 billion at the midpoint came in 1.2% above analysts’ estimates. Its non-GAAP profit of $2.75 per share was 3.5% above analysts’ consensus estimates.
On Thursday, the major averages closed on a mixed note, with a fall in weekly jobless claims and some positive earnings reports helping the S&P 500 Index and the Nasdaq Composite to hit fresh highs.
Shares of industrial conglomerate Honeywell (NASDAQ:HON)
fell 5% in the afternoon session after the company reported second-quarter results that showed contracting margins and a decline in cash flow, which overshadowed a sales beat and raised full-year guidance. While the company exceeded sales expectations with 8% year-over-year growth and raised its full-year outlook for revenue and adjusted earnings per share, investors focused on signs of weakening profitability. The company's operating margin contracted by 30 basis points, and its overall segment margin also declined. This pressure was notable in key divisions, including the Aerospace Technologies segment. Furthermore, Honeywell lowered its full-year segment margin guidance and reported that its GAAP earnings per share missed analyst estimates. Weaker cash flow, with operating cash flow down 4%, added to the concerns.
Honeywell beats Q2 earnings with $10.35B revenue and $2.75 EPS, raises guidance, but shares dip slightly in pre-market trading. Aerospace and industrial segments drive growth.
Industrial conglomerate Honeywell (NASDAQ:HON) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 8.1% year on year to $10.35 billion. The company’s full-year revenue guidance of $40.8 billion at the midpoint came in 1.2% above analysts’ estimates. Its non-GAAP profit of $2.75 per share was 3.5% above analysts’ consensus estimates.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Bank of America analyst maintains Buy rating on Honeywell and raises price target from $250 to $275. Expecting strong Q2 and Q3, potential for re-rating.
Honeywell (NASDAQ: HON) is considering strategic options for its logistics-focused business units, as part of its restructuring to focus on automation. CEO Vimal Kapur says this aligns with their goal of concentrating on industrial, process, and building automation. The review process will not affect the planned spin-offs of other divisions. Jim Masso has been appointed to lead the process automation division. HON shares declined 0.24% premarket. Lockheed Martin leads in capital efficiency in the defense sector, but market response is lackluster.
