Honeywell (NASDAQ:HON) today announced it was reaffirming its full-year 2026 guidance ahead of the planned Honeywell Aerospace spin-off on June 29, 2026. The company also provided a preliminary 2026 outlook for the remaining company post spin, which will conduct business under the name Honeywell Technologies. The company will discuss its latest outlook for 2026 during an investor conference call starting at 8:30 a.m. Eastern Daylight Time today, which precedes its 2026 Investor Day on June 11, 2026.
2026 Outlook
Honeywell continues to expect sales of $38.8 billion to $39.8 billion with organic1 sales growth in the range of 3% to 6%. Segment margin2 is expected to be 22.7% to 23.1%, with segment margin2,5 expansion of 20 to 60 basis points. Adjusted earnings per share3 is expected to be $10.35 to $10.65, up 6% to 9%. The company expects operating cash flow of $4.7 billion to $5.0 billion, while free cash flow1,4 is expected to be $5.3 billion to $5.6 billion, representing growth of 4% to 10% for the full year. A summary of the company's 2026 guidance can be found below in Table 1.
Honeywell Technologies Guidance Framework
The company also provided a preliminary guidance framework for the company that will remain after the Honeywell Aerospace spin-off, which is expected to be completed on June 29, 2026. This framework excludes full-year expected results for the aerospace segment. The outlook incorporates the impact of the planned divestitures of Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions, which the company announced it had reached agreements to sell in the second quarter and expects to close by the fourth quarter. The outlook includes estimated results for the Johnson Matthey Catalyst Technologies acquisition, which it announced in May 2025 and expects to close in the third quarter. Finally, the company announced that it intends to make certain changes to the presentation of its adjusted results, including removing the income stemming from an overfunded pension liability and removing the consolidated results of Quantinuum following the June 4 initial public offering. The company believes these changes provide investors with a better basis for evaluating performance going forward.
Considering these updates, Honeywell Technologies expects 2026 sales of $19.9 billion to $20.2 billion with organic1 sales growth in the range of 2% to 3%. Segment margin2 is expected to be 19.8% to 20.3%, with segment margin2 expansion of 220 to 270 basis points. Adjusted earnings per share3 is expected to be $3.95 to $4.15, up 22% to 28%. Finally, the company expects free cash flow1,4 of approximately $2.0 billion. A summary of Honeywell Technologies' 2026 guidance can also be found below in Table 1.
Table 1: Full-Year 2026 and 2H 2026 Guidance1
Prior Guidance (Honeywell International) | 2026 Guidance (Honeywell Technologies) | 2H 2026 Guidance (Honeywell Technologies) | |
| Sales | $38.8B - $39.8B | $19.9B - $20.2B | $10.1B - $10.3B |
| Organic1 Growth | 3% - 6% | 2% - 3% | 3% - 5% |
| Segment Margin | 22.7% - 23.1% | 19.8% - 20.3% | 20.9% - 21.6% |
| Expansion | 20 - 60 bps5 | 220 - 270 bps | 310 - 380 bps |
| Adjusted Earnings Per Share3 | $10.35 - $10.65 | $3.95 - $4.15 | $2.20 - $2.35 |
| Adjusted Earnings Growth3 | 6% - 9% | 22% - 28% | 22% - 31% |
| Operating Cash Flow | $4.7B - $5.0B | ~$2.1B | ~$2.3B |
| Free Cash Flow1,4 | $5.3B - $5.6B | ~$2.0B | ~$1.5B |
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