Honeywell Q1 Results Beat Street, Lifts FY25 Earnings View, Backs Organic Sales Outlook; Stock Up

(RTTNews) - Honeywell International Inc. (HON), while reporting weak first-quarter profit despite revenue growth, on Tuesday updated its fiscal 2025 earnings and forecast, and maintained organic sales growth view.

In pre-market activity on the Nasdaq, Honeywell shares were gaining around 5.9 percent to trade at $212.50.

The company said its guidance incorporates the net expected impact of current tariffs, mitigation actions, and global demand uncertainty.

For the year, the company now projects adjusted earnings per share to be in the range of $10.20 to $10.50, up 5 cents at the midpoint from the prior guidance range of $10.10 to $10.50 per share.

Further, sales are now expected to be $39.6 billion to $40.5 billion, compared to previous outlook of sales between $39.6 billion and $40.6 billion.

The Wall Street analysts on average expect the company to report earnings of $10.37 per share on sales of $40.34 billion. Analysts' estimates typically exclude special items.

The company continues to project organic sales growth in the range of 2 percent to 5 percent.

Excluding the impact of the Bombardier agreement signed in the fourth quarter of 2024, the company expects adjusted earnings per share down 1 percent to up 2 percent year over year and organic sales growth of 1 percent to 4 percent.

Vimal Kapur, chairman and chief executive officer of Honeywell, said, "For the third straight quarter, we delivered both sequential and year-over-year backlog growth, driven by healthy order rates and continuing customer demand for our differentiated offerings. Despite the volatile macroeconomic backdrop, we maintained segment margin consistent with last year, which is a testament to the value delivered by our Accelerator operating system. Though we have not yet seen it in our results, we recognize we face an uncertain global demand environment for the remainder of 2025...."

In its first quarter, Honeywell's earnings totaled $1.449 billion or $2.22 per share, compared with $1.463 billion or $2.23 per share last year.

Adjusted earnings were $2.51 per share for the period, compared to $2.34 per share a year ago. Analysts expected earnings of $2.21 per share.

Operating margin contracted 30 basis points to 20.1 percent and segment margin was flat at 23.0 percent, exceeding previous guidance.

The company's sales for the period rose 7.9 percent to $9.822 billion from $9.105 billion last year. The Street was looking for sales of $9.60 billion.

Organic sales growth was 4 percent, led by a double-digit organic sales growth in both defense and space and building solutions.

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