Honeywell International Inc. (HON)

Honeywell reported third-quarter 2026 sales of $4,994 million on 22 October, up 1 percent from $4,929 million a year earlier 1.

It was the first quarter as a standalone automation company, after Honeywell Aerospace became a separate company on 29 June 2026 12.

Chief executive Vimal Kapur said organic sales growth of 7 percent, which leaves out currency moves, sold businesses and new acquisitions, was above the three-year target set at the June Investor Day 1.

Operating income rose 79 percent to $740 million, which the company credits to productivity, including the removal of stranded costs left by earlier spin-offs and divestitures 1.

Earnings per share from continuing operations fell 20 percent to $2.40, mainly because the prior year held a one-time gain from the Resideo termination agreement 1.

The company now expects 2026 sales of $20.0 billion to $20.1 billion, up from $19.8 billion to $20.0 billion before, and 5 to 6 percent organic growth in the fourth quarter 1.

The open question is debt: finance chief Mike Stepniak said gross debt should fall from $18 billion in the second quarter to under $13 billion by the end of this year, Manufacturing Dive reported 5.

The company traces its roots to the formation of the original Honeywell Heating Specialty Company in 1906, which made early temperature controls 2. In 1974 it introduced the first electronic control system, the start of modern distributed control, in which a network of small controllers runs a large plant 2.

Until the spin-off the company also made aircraft parts, so the sales it filed for 2023, 2024 and 2025 still carry that business: $33,009 million, $34,717 million and $37,442 million 3. In 2025 sales rose because of higher prices to offset inflation, sales from recent acquisitions and higher volumes, partly offset by the sale of the personal protective equipment business 3.

Acquisitions widened the automation lines: it bought Air Products' liquefied natural gas equipment business on 30 September 2024 for $1,843 million, and Sundyne in June 2025 for $2.2 billion 3.

By segment in 2025, aerospace sales rose $2,052 million on defense, space and airline aftermarket demand, and Building Automation rose $827 million, helped by $302 million from Access Solutions 3. Industrial Automation sales fell $705 million in 2025, because projects in Warehouse and Workflow Solutions and demand for protective equipment were lower 3.

In 2025 it also took in $1,590 million from Resideo, the home-controls company it spun off earlier, which paid once to end a standing deal to reimburse Honeywell for cleanup spending 2.

On 29 September 2025 it permanently divested its legacy Bendix asbestos liabilities, contributing $1.4 billion in cash and removing $1.5 billion of liabilities from its books 3. On 30 October 2025 it spun off its Advanced Materials business as Solstice Advanced Materials, giving holders one Solstice share for every four Honeywell shares 3.

On 4 June 2026 its quantum computing subsidiary Quantinuum listed its shares, and Honeywell kept a 48 percent stake and booked a deconsolidation gain of $6,629 million 2. On 29 June 2026 it separated Honeywell Aerospace, giving holders one aerospace share for every two Honeywell shares held on 15 June 2026, and combined its own shares one for two 2.

Aerospace had been the largest segment, with $17,510 million of 2025 sales against $9,401 million for Industrial Automation, $7,367 million for Building Automation and $3,134 million for Energy and Sustainability Solutions 3. In 2026 it bought Johnson Matthey's Catalyst Technologies business on 17 July for $1,743 million, then sold two industrial units for $157 million and $1,370 million 2.

Building Automation

Building Automation sells the systems that run a building: fire detection, controls and energy management software, access control and video management, plus installation and upgrades 2.

Its third-quarter 2026 sales were $2,020 million, up 8 percent, and its segment margin, the profit share before corporate costs, was 27.0 percent 1.

That is about 40 percent of the company's $4,994 million quarterly sales (computed) 1.

Building products grew 11 percent, led by fire and security, and building solutions, the project and service side, grew 4 percent on strength in services 1.

Its backlog of firm orders was $9,194 million on 30 September 2026 2.

The annual report names Johnson Controls, Schneider Electric and Siemens as key rivals in building automation 3.

Process Automation and Technology

This segment sells control systems and process technology for refineries, gas plants and chemical sites, including licensing, engineering and controls for turbomachinery, the large rotating machines in plants 2.

Sales were $1,859 million in the quarter, up 16 percent, or 8 percent organically, with a segment margin of 22.2 percent against 24.3 percent a year earlier 1.

Project sales grew 14 percent, led by liquefied natural gas and petrochemical projects, and aftermarket sales grew 4 percent on refining demand 1.

The company says margin fell 210 basis points as expected, because of project mix and the Johnson Matthey Catalyst Technologies purchase, which cost $1,743 million 12.

Its backlog was $7,971 million, and the annual report lists Clariant, Flowserve and Topsoe among rivals of the energy business it came from 23.

Industrial Automation

Industrial Automation sells sensing and measurement gear: gas detectors, sensors, switches, burner controls, fiscal custody transfer systems, which measure material as it changes owners, and safety gear for chip plants 2.

Sales were $1,115 million, down 23 percent after the two sales, but up 4 percent organically, with solutions up 16 percent on industrial measurement and utilities 1.

Products were flat, because double-digit growth in sensing was largely offset by deferred meter deployments across utilities, and the segment margin widened 350 basis points to 18.4 percent 1.

Its backlog was $1,633 million, and the annual report names Emerson Electric, Itron, MSA Safety, Rockwell Automation and Zebra Technologies among its rivals 23.

Plants, people and rivals

The annual report counts about 667 locations, 142 of them manufacturing sites, and 220 of the locations, 50 of the plants, are in the United States 3.

At 31 December 2025 it employed about 101,000 people in 79 countries, around 36,000 of them in the United States, before the aerospace spin-off 3.

Vimal Kapur is chairman and chief executive, and Mike Stepniak is chief financial officer 15.

Over half of annual sales come from outside the United States and about one-third from high-growth regions, the 10-Q says 2.

Problems and open items

The company's equity share of Quantinuum's losses was $147 million in the quarter and $412 million over nine months 2.

It still answers for environmental liabilities at properties it kept, while Honeywell Aerospace took over and agreed to cover the environmental liabilities that moved with the aerospace businesses 2.

Utility customers deferred meter deployments across the industry, which held Industrial Automation products flat in the quarter 1.

The umbrella, in words

The main brands are Honeywell, with its Accelerator operating system and Forge intelligence layer, plus Experion controls for process plants, UOP process technology, Sundyne and Tridium 24.

Its subsidiaries exhibit lists, among many, Honeywell Automation India Limited at 75 percent, Sinopec Honeywell Tianjin Limited at 55 percent and Shanghai UOP Ltd. at 70 percent, as the latest annual report lists them 4.

The exhibit also lists Elster companies, such as Elster Solutions Corporation and Elster Metering Ltd., each held in full 4.

Honeywell owns a 48 percent stake in Quantinuum, carried at $7,113 million on 30 September 2026 and counted as an equity method investment 2.

It agreed with Honeywell Aerospace a transition services agreement, a tax matters agreement and a trademark license, under which the aerospace company pays $1.125 billion over about five years, $18.75 million a month 2.

It owns outright the businesses it bought recently, including Air Products' liquefied natural gas business for $1,843 million, bought on 30 September 2024, Sundyne for $2.2 billion and Access Solutions 3.

Its land includes a placer claim for a chabazite ore surface mine in Arizona, run by a wholly owned subsidiary 3.

The annual report gives 30,150 holders of record of the common stock at 31 December 2025, and the shares are listed on Nasdaq under HON; it names no controlling holder 3.

The company expects 2026 sales of $20.0 billion to $20.1 billion, organic growth of 4 to 5 percent, segment margin of about 20.5 percent and adjusted earnings per share of $8.40 to $8.45 1. It also expects operating cash flow and free cash flow of about $2.1 billion each, and 5 to 6 percent organic growth in the fourth quarter 1. Segment margin is the profit before corporate costs as a share of sales, and the 20.5 percent aim would be an expansion of about 290 basis points 1.

Kapur said the results give him confidence in the company's ability to deliver on its 2029 targets, which were set at the June Investor Day 1.

Stepniak said gross debt should fall to under $13 billion by year end, and Manufacturing Dive reported a $19 billion order backlog to work through in coming quarters 5. Kapur said large energy projects have brought over $1 billion of process technology orders since the first quarter of 2026, and the plants should later drive demand for catalyst and services 5.

The 364-day credit agreement, cut to $2.0 billion after the spin-off, must be repaid by 5 March 2027 unless converted into a term loan, and nothing was borrowed under it on 30 September 2026 2. Honeywell Aerospace is to keep paying $18.75 million a month for the trademark license, whose term is 75 years, including an initial term of six years 2.

The accounting for the Johnson Matthey purchase is not final, and the 10-Q says it may still change for how long-lived assets and intangibles are measured, for goodwill, working capital and taxes 2.

The 10-Q puts the backlog of firm orders at $18.8 billion on 30 September 2026, up 1 percent from a year earlier, which is the work the three segments have yet to deliver 2.