Honeywell has reported strong results for the second quarter of 2025, surpassing its own guidance with an 8% increase in sales to $10.4 billion. Organic sales rose by 5%, fueled by robust performance in defense, space, and UOP. The company’s earnings per share reached $2.45, marking a 4% year-over-year increase, while adjusted EPS rose by 10% to $2.75. Operating income climbed 7% to $2.1 billion, and segment profit grew 8% to $2.4 billion. However, operating cash flow saw a 4% decline to $1.3 billion, and free cash flow decreased by 9% to $1.0 billion.
Honeywell’s business segments showed mixed results. Aerospace Technologies experienced a 6% organic sales boost due to strong demand in defense, space, and commercial aftermarket. Industrial Automation sales remained flat, with slight increases in process solutions and sensing and safety technologies but a decline in warehouse and workflow solutions. Building Automation sales increased by 8% organically, driven by building products and solutions. The Energy and Sustainability Solutions segment reported a 6% organic sales increase, with notable growth in UOP.
Strategically, Honeywell has been actively optimizing its portfolio and deploying capital. The company completed a $2.2 billion acquisition of Sundyne and announced plans to acquire Johnson Matthey’s Catalyst Technologies business for £1.8 billion. Additionally, Honeywell sold its Personal Protective Equipment business for $1.3 billion and is considering strategic alternatives for its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses.
CEO Vimal Kapur expressed satisfaction with the company’s performance, attributing success to Honeywell’s resilient operating system and focus on innovation and balanced capital deployment. Looking ahead, Honeywell has updated its full-year 2025 guidance, projecting sales between $40.8 billion and $41.3 billion with organic sales growth of 4% to 5%. The company expects a segment margin of 23.0% to 23.2% and adjusted EPS between $10.45 and $10.65. Operating cash flow is anticipated to range from $6.7 billion to $7.1 billion, with free cash flow expected between $5.4 billion and $5.8 billion.
