Honeywell Posts Flat Industrial Automation Gross sales in 2Q

Because it prepares to finally break up into three standalone firms later this yr, industrial manufacturing conglomerate Honeywell reported its second quarter 2025 monetary outcomes on July 25, exhibiting a rise in whole gross sales in addition to natural gross sales year-over-year.

Charlotte, NC-based Honeywell reported that 2Q whole gross sales of $10.4 billion elevated 8.0% year-over-year, with natural gross sales likewise up 5.0%. Sequentially, gross sales elevated from $9.8 billion in 1Q.

Internet earnings for the quarter was $1.57 billion, nearly an identical a a yr earlier and up from 1Q25’s $1.4 billion. Working revenue elevated 7% year-over-year and working margin fell 30 foundation factors to twenty.4%.

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Efficiency by enterprise section:

• Aerospace Applied sciences reported whole gross sales of $4.3 billion elevated 11% year-over-year, with natural up 6.0%. Phase margin declined 170 bps to 25.5%.
• Industrial Automation reported whole gross sales of $2.3 billion, down 5% year-over-year. Phase margin of 19.2% elevated 20 bps.
• Constructing Automation posted whole gross sales of $1.8 billion, up 16.0% year-over-year, whereas natural development elevated 8.0%. Phase margin elevated 90 bps to 26.2%
• Power and Sustainability Options gross sales of $1.8 billion elevated 15% year-over-year, whereas natural development elevated 6.0%. Phase margin of 24.1% declined 110 bps.

2025 Outlook

In updating its 2025 full-year outlook, Honeywell raised its whole gross sales expectations from $39.6 billion to $40.5 billion, up from its earlier steerage to $40.8 billion to $41.3 billion.

The corporate additionally expects natural development between 4.0% to five.0% and section margin between 23.0% and 23.2%.

Honeywell Deliberate Separation Replace

On Feb. 6, Honeywell introduced it’ll break up into three unbiased publicly traded firms, separating from its automation and aerospace companies by the second half of 2026.

Honeywell’s 2Q report stated the choice adopted a complete portfolio evaluation by its board, and devoted separation administration workplaces had been fashioned to supervise the transition whereas sustaining give attention to day-to-day operations.

The deliberate breakup, together with the beforehand introduced spinoff of its superior supplies section — now anticipated within the fourth quarter of 2025 — will lead to three standalone industry-focused firms.

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Within the 2Q, the corporate repurchased $1.7 billion of its shares and accomplished the $1.3 billion sale of its PPE enterprise unit to Protecting Industrial Merchandise, whereas additionally launching a evaluation of strategic choices for its productiveness and warehouse options models.

Honeywell acquired Johnson Matthey’s Catalyst Applied sciences enterprise for $2.1 billion (USD) in Might, closed the $2.2 billion acquisition of Sundyne in June and accomplished the acquisition of Li-ion Tamer in July.