-- Honeywell International (HON) reported mixed first-quarter results on Thursday, with revenue falling short of Wall Street's estimates, while the industrial conglomerate affirmed its full-year outlook.
Sales were up 2% year-on-year to $9.14 billion in the March quarter, but missed the FactSet-polled consensus of $9.3 billion. The company's adjusted earnings rose to $2.45 a share from $2.21 the year before, topping the Street's $2.32 view.
Honeywell's stock fell 2.2% in Thursday trade, reducing its year-to-date gain to about 10%.
"Honeywell delivered a strong start to the year while navigating a challenging geopolitical environment," Chief Executive Vimal Kapur said in a statement.
The group continues to project adjusted EPS between $10.35 and $10.65 on revenue of $38.8 billion to $39.8 billion for 2026. The Street is looking for non-GAAP EPS of $10.52 and sales of $39.55 billion for the year.
Sales in the aerospace technologies business advanced 4% to $4.32 billion in the first quarter. Industrial automation revenue dropped 11% to $1.42 billion, while building automation rose to $1.88 billion from $1.69 billion. The process automation and technology segment saw sales move 5% higher.
For the ongoing three-month period, the company anticipates adjusted EPS of $2.35 to $2.45 and sales between $9.4 billion and $9.6 billion, according to an earnings presentation. The average analyst estimate on FactSet is for non-GAAP EPS of $2.56 and sales of $9.74 billion.
Honeywell agreed to sell its warehouse and workflow solutions business to private equity firm American Industrial Partners. The deal, financial terms of which weren't disclosed, is expected to complete in the second half. The business generated about $935 million in revenue in 2025, according to the group.
Earlier in the week, the company agreed to sell its productivity solutions and services business to Brady (BRC) for $1.4 billion.
"We took the final steps to conclude our multi-year portfolio transformation with our announcements to sell productivity solutions and services and warehouse and workflow solutions," Kapur said. "Further, the Honeywell aerospace spin-off is now expected to be completed in the third quarter on June 29."
Honeywell disclosed plans in February 2025 to split into three publicly listed entities. The separation of its advanced materials business unit was completed in October.
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