Honeywell International (HON.STR) AI Stock Analysis

Company Guidance

Honeywell Technologies now expects full year 2026 organic growth of 4% to 5%, up from 3% to 4% previously, fourth-quarter organic growth of 5% to 6%, full year margin at 20.5%, approximately 22% for the fourth quarter, Industrial Automation at 22% margin in the fourth quarter, Building Automation margins to expand 70-90 basis points, and Process Automation and Technology to end the fourth quarter around 21.5%; adjusted EPS is expected to be $8.40 to $8.45, representing a 23¢ improvement at the midpoint and full year earnings growth of approximately 30%, while free cash flow guidance is $2.1 billion and free cash flow conversion is expected to be above 100% in the fourth quarter. Fourth-quarter orders are expected to grow in the high single digit range excluding the large LNG awards, full year gross debt is expected to be under $13 billion, year end cash balance approximately $3 billion, and net debt around $10 billion; all remaining stranded costs are expected to be eliminated by the end of 26, next year corporate cost is planned to be about $400 million with productivity and margin expansion north of 60 bps, 2027 organic growth is expected to be at or above the long term growth algorithm, and Forge ARR has an aspiration of 15%, with 2026 likely slightly shy of that, more likely 12-13%.