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Honeywell Stock Rises as Firm Posts Strong Results, Plans to Counter Tariffs
Key Takeaways
Honeywell International ( HON ) shares advanced Tuesday as the diversified technology and manufacturing conglomerate posted better-than-expected results and raised the low end of its profit outlook as it announced plans to offset the potential impact of tariffs.
Honeywell reported first-quarter adjusted earnings per share of $2.51 on revenue that rose 8% year-over-year to $9.82 billion. Analysts surveyed by Visible Alpha expected $2.19 and $9.59 billion, respectively.
The gains were driven by a 9% sales increase at the company’s Aerospace Technologies unit, and an 8% sales rise at its Building Automation division. Sales fell at its Industrial Automation and Energy and Sustainability Solutions segments.
CEO Says Firm Faces 'Uncertain Global Demand Environment' for Rest of Year
CEO Vimal Kapur said despite what he called "the volatile macroeconomic backdrop," Honeywell's segment margin was consistent with last year. Kapur added that although the company hasn't seen it in its performance yet, it faces "an uncertain global demand environment for the remainder of 2025, and our company will work tirelessly, leveraging all tools available to us, to deliver for customers and shareholders."
To that end, the company intends to take a "multi-pronged approach to balance defending margins and protecting volumes." Those steps include targeted price actions, finding alternative supply lines, and accelerating use of artificial intelligence (AI) in engineering.
Honeywell now sees full-year adjusted EPS of $10.20 to $10.50, compared to its previous outlook of $10.10 to $10.50. Kapur also noted that the company was "even more confident" about the benefits of its planned split into three separate firms that was announced in February.
Even with today's 4.5% gains, shares of Honeywell International remain about 7% lower in 2025.
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