EarningsQ3 2026 Earnings Report
MX:HON.STR Q3 2026 EPS Results
Actual EPS$42.41
Consensus EPS$40.45
Beat/MissBeat by +$1.96
One Year Ago EPS$52.03
MX:HON.STR Q3 2026 Revenue Results
Actual Revenue$93.31B
Expected Revenue$93.61B
Beat/MissMissed by -$302.82M
YoY Revenue Growth-52.02%
Earnings Announcement Details
QuarterQ3 2026
Date10/22/2026
TimeBefore Open
Conference CallThursday, October 22, 2026
MX:HON.STR Upcoming Earnings
Honeywell International's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:HON.STR Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Highlights significantly outweighed the lowlights, with broad-based 7% organic sales growth, 23% segment profit growth, 34% adjusted EPS growth, improved cash conversion, a nearly $19 billion backlog, accelerated stranded-cost elimination, and raised full-year guidance across all major metrics. The main challenges were Process Automation and Technology mix-related margin pressure, inflation, utility-meter deployment deferrals, and difficult prior-year comparisons, but management expressed confidence in the outlook and in continued improvement.Company Guidance
Broad-Based Organic Sales Growth
Third-quarter organic sales grew 7%, above the high end of the targets presented at Investor Day, with strong results across all segments.
Strong Short-Cycle Demand and Orders
Short-cycle orders increased 8% excluding divestitures, led by Industrial Automation and Building Automation. Total company orders increased 3% organically excluding the impact of the prior-year Q3 award, and fourth-quarter orders are expected to grow in the high single digit range excluding the large LNG awards.
Record Backlog and Book-to-Bill
Book-to-bill was 1.0x in the quarter, driving ending backlog to nearly $19 billion, up 7% excluding divestitures. Process Automation and Technology backlog increased double digits.
Process Automation and Technology Growth
Process Automation and Technology sales grew 8% organically, led by 14% year-over-year project sales growth from LNG and petrochemical backlog conversion, as well as a return to aftermarket growth driven by refining catalyst demand.
Energy Project Momentum
The company reported more than $1 billion of Process Automation and Technology orders since the first quarter of 2026. Backlog was more than 10% higher than a year ago, supported by LNG, refining and petrochemical, and low-carbon energy projects across North America, the Middle East, Africa, and Asia.
Building Automation Outperformance
Building Automation delivered 8% organic growth, its eighth straight quarter of high-single-digit growth. Product sales grew 11% organically, led by the fire and security businesses, while solutions grew 4% organically, driven by services.
Industrial Automation Turnaround
Industrial Automation organic sales increased 4%, led by double-digit solutions growth in industrial measurement and utilities. Core Industrial Automation orders increased 15% in the third quarter, and fourth-quarter orders are expected to grow in the high single digit range.
Margin Expansion and Productivity
Segment profit increased 23%, while segment margin expanded 370 basis points to 21.3%, driven by productivity, strategic pricing, accelerated stranded-cost elimination, and volume leverage. Industrial Automation margin expanded 350 basis points, and Building Automation margin increased 30 basis points to 27%.
Accelerated Stranded-Cost Elimination
The company expects to eliminate all remaining stranded costs by the end of 2026, approximately six months after the aerospace spin-off. Management also expects corporate costs to be about $400 million in 2027 and is targeting productivity and margin expansion north of 60 basis points.
Adjusted EPS Growth
Third-quarter adjusted EPS was $2.27, up 34% year over year, driven primarily by 23% segment profit growth and lower interest expense, which more than offset a higher adjusted tax rate.
Improved Free Cash Flow Conversion
Free cash flow increased 15% to roughly $690 million, with conversion reaching 95% in the quarter. The company expects free cash flow conversion to be above 100% in the fourth quarter, supported by working-capital improvements and strong receivable collections.
Raised 2026 Guidance
Full-year organic growth guidance was raised to 4% to 5% from 3% to 4%. Adjusted EPS guidance was raised to $8.40 to $8.45, a 23-cent improvement at the midpoint, with expected full-year earnings growth of approximately 30%. Free cash flow guidance increased by $100 million to $2.1 billion, and full-year margin is expected to be at the high end of the range at 20.5%.
Positive Fourth-Quarter Outlook
Fourth-quarter organic growth is expected to be 5% to 6%, with margin at approximately 22%. Industrial Automation is expected to reach 22% margin, Building Automation margins are expected to expand 70-90 basis points, and Process Automation and Technology is expected to end the quarter around 21.5%.
Leverage Reduction and Capital Flexibility
The company expects to reduce gross debt from $18 billion in the second quarter to under $13 billion at year-end 2026, with approximately $3 billion of cash and net debt around $10 billion. Continued leverage reduction is expected to increase capital-allocation flexibility, including capacity for disciplined M&A.
Forge and Recurring-Revenue Expansion
Forge is being sold through service contracts, embedded applications, and standalone SaaS offerings. Recurring revenue is expected to be close to $1 billion in 2026, while ARR is expected to grow approximately 12%-13% this year versus a 15% aspiration.
Data Center Growth Opportunity
Data center orders were up more than 100% year to date. Management expects the opportunity to expand across Building Automation, Process Automation, Process Technology, and Industrial Automation, including power islands, controls, energy storage, liquid cooling, sensing, and Sundyne pumps.
New Product and Cross-Selling Initiatives
The company continues to launch new Forge offerings in Building Automation and Process Automation and is introducing new security, fire, and building-management products. Management also cited cross-selling opportunities in data centers, life sciences, and semiconductors.
Catalyst Technologies Synergies
Management said cost synergies from integrating Johnson Matthey's Catalyst Technologies business are running higher than forecast, while sales synergies and pipeline development are also underway.
Improved Industrial Automation Execution
Industrial Automation on-time delivery improved from just under 40% to 60%, and past dues declined 18%. Management expects the business to progress from low-single-digit growth toward mid-single-digit growth as it moves from 2026 to 2027 and remains confident in reaching a 25% margin goal by 2029.
Long-Term Growth Confidence
Management expects 2027 organic growth to be at or above its long-term growth algorithm and said the company remains directionally on track to deliver its $12 or better long-term 2029 earnings commitment.
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