Honeywell International stock surged Tuesday after the Dow Jones Industrial powerhouse cleared Q1 estimates and hiked its earnings outlook.
Honeywell on Tuesday reported earnings of $2.51 per share adjusted, clearing FactSet expectations for $2.21 per share. Revenue increased 8% to $9.82 billion. Analysts expected $9.59 billion.
Aerospace technologies revenue increased 9% organically for the quarter, driven by 15% commercial aftermarket sales growth. Defense and space sales increased 10% on an organic basis.
Industrial automation sales declined 2%, with a 5% decrease in sensing and safety technologies. Honeywell noted weaker volumes in personal protective equipment.
Building automation sales rose 8% for the quarter. The Dow Jones company's energy and sustainable solutions business recorded a 2% sales decline. Advanced materials sales slid 4%.
Honeywell sees 43.3% of its revenue from outside the U.S., according to FactSet. Mainland China is their top overseas market, generating 8.9% of total revenue. Germany is second largest, at 6.3%, followed by France at 4.3%.
Backlog, Outlook And Quantinuum
Honeywell's backlog rose 8% to a record $36.1 billion during the quarter.
Honeywell now expects 2025 earnings to range from $10.20 to $10.50 per share adjusted, up 5 cents at the midpoint of the prior range. Organic sales are expected to increase between 2% and 5% with revenue ranging from $39.6 billion to $40.5 billion. FactSet forecasts full-year earnings of $10.38 per share adjusted on $40.37 billion in revenue.
The company maintained its free cash flow guidance and anticipates a range of $5.4 billion to $5.8 billion.
The guidance includes the expected impact of current tariffs, mitigation actions and global demand uncertainty, Honeywell said.
Honeywell in February announced plans to pursue a separation of its Automation and Aerospace businesses, following the decision to spin out its Advanced Materials segment. The separation will result in three publicly-listed firms, which is intended to be completed in the second half of 2026.
Meanwhile, Honeywell expect to make further progress on Quantinuum — its stand-alone quantum computing business — throughout 2025 and 2026 and reach technical milestones for an eventual IPO, according to the earnings presentation.
Honeywell during the quarter also deployed $2.9 billion of capital in the form of share repurchases and dividends. The company in March also announced plans to acquire pump manufacturer Sundyne for $2.2 billion in cash. The company expects the Sundyne deal to close in the second quarter, subject to customary closing conditions.
Honeywell Stock Surges
HON stock jumped 5.4% Tuesday to rebound above its 50-day line. Shares led the Dow Jones stocks on the day, trailed by Sherwin-Williams with a 4.8% advance.
Honeywell stock is down 6.4% in 2025 as it tumbled from its Nov. 12 record high of 242.77.
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