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FY2025 Q3
Raised
Honeywell International Inc. earnings call
Buzzberg read
Orders grew 22% organically, broad-based across segments
Honeywell delivered a strong Q3 with 6% organic sales growth and orders up 22%, leading to a third guidance raise for the year. Management highlighted the upcoming spin-off of Solstice (Oct 30) and a new segment realignment for 2026. Margins in Aerospace and Building Automation are improving, while ESS faces transitory headwinds from catalyst delays. Cross-company signals include Gulfstream naming Honeywell for its new G300 jet and Nvidia investing in Honeywell's quantum venture Quantinuum. Organic sales grew 6% in Q3, above expectations; adjusted EPS $2.82 (+9% YoY).
Buzzberg read Orders grew 22% organically, broad-based across segments Honeywell delivered a strong Q3 with 6% organic sales growth and orders up 22%, leading to a third guidance raise for the year. Management highlighted the upcoming spin-off of Solstice (Oct 30) and a new segment realignment for 2026. Margins in Aerospace and Building Automation are improving, while ESS faces transitory headwinds from catalyst delays. Cross-company signals include Gulfstream naming Honeywell for its new G300 jet and Nvidia investing in Honeywell's quantum venture Quantinuum. Organic sales grew 6% in Q3, above expectations; adjusted EPS $2.82 (+9% YoY). Read full analysisCollapse analysis
Honeywell delivered a strong Q3 with 6% organic sales growth and orders up 22%, leading to a third guidance raise for the year. Management highlighted the upcoming spin-off of Solstice (Oct 30) and a new segment realignment for 2026. Margins in Aerospace and Building Automation are improving, while ESS faces transitory headwinds from catalyst delays. Cross-company signals include Gulfstream naming Honeywell for its new G300 jet and Nvidia investing in Honeywell's quantum venture Quantinuum. Organic sales grew 6% in Q3, above expectations; adjusted EPS $2.82 (+9% YoY).
- Orders surged 22% YoY to $11.9B, with book-to-bill above 1 across all segments.
- Full-year revenue guidance raised to $40.7-40.9B; EPS raised to $10.60-10.70.
- Solstice spin-off completed early (Oct 30); Aerospace separation on track for H2 2026.
Revenue$10.408BReported
EPS$2.82Reported
Gross margin34.08%Reported
Operating margin16.85%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Guidance
Raising full-year EPS guidance for the third time
Margins
Aerospace margins bottomed in Q2, set to expand in 2026
Show 3 more callouts
Margins
ESS margins to expand in 2026 despite Q4 contraction
Pricing
Pricing to become stronger tailwind in 2026
Capital Allocation
Continuum raises capital at double prior valuation
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $10.408B | Reported |
| EPS | $2.82 | Reported |
| Gross margin | 34.08% | Reported |
| Operating margin | 16.85% | Reported |
| Free cash flow | $2.914B | Reported |
| Capex | $0.374B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2025 | $10.60–$10.70 | $10.65 | Raised |
| EPS | FY2025 Q4 | $2.52–$2.62 | $2.57 | Guided |
| Free cash flow | FY2025 | $5.2B–$5.6B | $5.4B | Maintained |
| Revenue | FY2025 | $40.7B–$40.9B | $40.8B | Raised |
| Revenue | FY2025 Q4 | $10.1B–$10.3B | $10.2B | Guided |
AI, capex & demand read
Management read
Confident
Management expressed confidence in raising guidance for the third time, highlighted strong order growth and portfolio transformation progress, and provided positive forward-looking statements about 2026 margin expansion.
Investment and capacity
Capital expenditures were mentioned as a factor in the quarter's free cash flow decline due to timing, and the company committed $400 million to high return capital projects in the quarter.
all 5 named companies below
Companiesreturns since call
Customers
Customers
Vimal Kapoor
Gulfstream's selection of Honeywell for the new G300 platform indicates progress in the business jet market, potentially expanding Honeywell's aftermarket revenue and reinforcing Gulfstream's product pipeline.
Evidence
“Gulfstream recently announced that Honeywell's engines and avionics will power its new super midsize G300 business jet platform”
Partners
Partners
Vimal Kapoor
Nvidia's investment in Quantinuum signals a deepening partnership in quantum computing, potentially accelerating Nvidia's quantum software/hardware ecosystem and providing credibility for Quantinuum's roadmap.
Evidence
“collaboration with new shareholders such as Quanta and Nvidia, in addition to others like JP Morgan, Amgen, and Mitsui”
Supply chain
Supply chain
Vimal Kapoor
Honeywell's termination of the indemnification agreement with Resideo simplifies its balance sheet; the $1.6B cash inflow reduces Honeywell's liabilities but has no direct operational impact on Resideo.
Evidence
“We also terminated an indemnification and reimbursement agreement with Resideo in exchange for $1.6 billion in cash.”
Supply chain
Mike Stepniak
Honeywell's aerospace OE sales have recoupled with build rates of large customers after months of decoupling, supporting margin recovery in 2026. — The recoupling suggests that Boeing and Airbus production rates are stabilizing or improving, reducing supply-chain friction for aerospace component suppliers and enabling faster revenue conversion.
Evidence
“Commercial OEE returned to growth as expected as our sales recoupled to the delivery rates of our large customers”
External signals
Supply-chain alpha · 3returns since call
Honeywell's quantum venture Quantinuum added Nvidia as a shareholder and partner in its latest capital raise, doubling valuation to $10B pre-money.
Evidence
“the company announced in September a second raise at double the prior valuation. As important as the capital contributions... the collaboration with new shareholders such as Quanta and Nvidia”
Honeywell's aerospace OE sales have recoupled with build rates of large customers after months of decoupling, supporting margin recovery in 2026.
Honeywell is gaining momentum in data-center building controls, albeit from a low base, and recently partnered with LS Electric.
Evidence
“data center is becoming a bigger part of our building automation business ... starting from a very low position, but we are certainly gaining more and more momentum”
Methodology & coverage
Management-only analysis. All 5 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.