EarningsQ2 2026 Earnings Report
MX:HON.STR Q2 2026 EPS Results
Actual EPS$35.29
Consensus EPS$33.04
Beat/MissBeat by +$2.24
One Year Ago EPS$49.15
MX:HON.STR Q2 2026 Revenue Results
Actual Revenue$175.87B
Expected Revenue$90.94B
Beat/MissBeat by +$84.92B
YoY Revenue Growth-6.12%
Earnings Announcement Details
QuarterQ2 2026
Date07/23/2026
TimeBefore Open
Conference CallThursday, July 23, 2026
MX:HON.STR Upcoming Earnings
Honeywell International's next earnings date is estimated for October 22, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:HON.STR Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a decidedly positive tone: strong order growth (16% organic), backlog expansion (+9%), margin expansion (100 bps), an EPS beat and a raised full-year guide for organic growth and adjusted EPS. Strategic portfolio moves (JM acquisition, aerospace spin, Quantinuum IPO, accelerated divestitures) and improved stranded-cost progress underpin confidence in multi-year targets. Key risks include PA&T margin variability from catalyst mix, modest Middle East collection issues and a near-term revenue reduction (~$400M) from divestitures. Taken together, the positive operational momentum, guidance raises and cash generation materially outweigh the identified challenges.Company Guidance
Strong Orders and Backlog Momentum
Organic orders grew 16% in Q2 with broad-based demand and double-digit short-cycle order growth across all segments; PA&T orders up ~24% (book-to-bill >1.2); company book-to-bill 1.1 and ending backlog increased 9%.
Organic Sales Growth Led by Building and Industrial Automation
Total company organic sales grew 4% in Q2. Building Automation delivered 9% organic growth and strong order gains (notably >50% orders growth in certain high-growth verticals). Industrial Automation sales rose 4% (core IA excluding divestitures +2%).
Margin Expansion and Earnings Outperformance
Segment profit increased 9% and overall segment margin expanded 100 basis points to 19%. Building Automation margin expanded 90 bps to 27.1%; Industrial Automation margin expanded 90 bps to 17.2%. Adjusted EPS was $1.95, up 10% (would have been up ~20% excluding a $0.16 tax headwind).
Raised Full-Year Guidance and EPS
Full-year organic sales growth guidance increased to 3%–4% (from 2%–3%); second-half growth now expected at 4%–6%. Full-year adjusted EPS midpoint raised to $8.20 (up $0.10 from prior midpoint) and ~27% above prior year. Full-year segment margin expansion now expected to be 250–290 bps with exit margin above 22%.
Strong Cash Generation and Capital Deployment
Free cash flow was roughly $0.5 billion in the quarter and the company expects ~ $2 billion for 2026 with ~95% conversion in second half. Q2 deployments included ~$1.0 billion (≈$800M dividends, ~$200M capex); YTD cash deployed >$2.8 billion (buybacks, dividends, investments).
Strategic Portfolio Actions: Acquisition, Spin-off and Divestitures
Closed Johnson Matthey's Catalyst Technologies acquisition (July 17) at ~13x EBITDA with identified cost synergies and strategic fit into PA&T; completed Honeywell Aerospace spin-off (June 29); supported Quantinuum IPO (47% ownership) and expect to close Productivity Solutions & Services and Warehouse & Workflow Solutions divestitures by early August (about 2 months ahead of plan).
Process Automation Outlook and LNG Backlog
PA&T sales were down only 1% organically but orders and backlog point to a sharp inflection in growth in 2H26. Catalyst shipment volumes expected to rebound (management expects 2H volumes ~25%–30% higher versus 1H), and the company said it is sold out on LNG demand for the next three years.
Stranded Cost Reduction and Productivity Trajectory
Stranded cost removal is tracking ahead of plan (~$20M better than Investor Day expectations). Management expects to enter 2027 with roughly $60M–$65M of stranded costs and to drive ongoing operational margin expansion (management cited ~60 bps/year target plus over 200 bps from near-term actions).
MX:HON.STR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed