# Honeywell (HON) Q2 2025 Financial Results Summary
Charlotte, N.C., July 24, 2025 — Honeywell (NASDAQ: HON) today announced its financial results for the second quarter of 2025, highlighting several key performance metrics and strategic plans for the company’s future.
## Key Financial Metrics
– **Sales**:
– Reported Sales: $10.4 billion, up **8%** year over year (YOY).
– Organic Sales: Up **5%** YOY.
– **Earnings Per Share (EPS)**:
– GAAP EPS: $2.45, up **4%** YOY.
– Adjusted EPS: $2.75, up **10%** YOY.
– **Operating Income**:
– Increased to $2.114 billion, up **7%** YOY.
– **Segment Profit**:
– Rose to $2.366 billion, up **8%** YOY.
– **Operating Margin**:
– Contracted by **30 basis points** to **20.4%**.
– **Segment Margin**:
– Contracted by **10 basis points** to **22.9%**.
– **Operating Cash Flow**:
– Decreased to $1.319 billion, down **4%** YOY.
– **Free Cash Flow**:
– Recorded at $1.016 billion, down **9%** YOY.
## Strategic Developments
– **Acquisitions**:
– Completed the **$2.2 billion** acquisition of Sundyne.
– Announced a **£1.8 billion** acquisition of Johnson Matthey’s Catalyst Technologies business.
– **Divestitures**:
– Finalized the **$1.3 billion** sale of its PPE business.
– **Portfolio Management**:
– Initiated evaluation of strategic alternatives for its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses.
– **Separation Plans**:
– Honeywell is progressing toward a planned separation of its Automation and Aerospace businesses. The spin-off of Advanced Materials is targeted for Q4 2025.
## Upcoming Financial Guidance
Honeywell revised its full-year expectations for several financial metrics based on Q2 performance:
– **Sales Guidance**: Now anticipated to be **$40.8 billion to $41.3 billion**.
– **Organic Growth**: Revised to **4% to 5%** for the year.
– **Segment Margin**: Expected to expand between **40-60 basis points** YOY, now estimated between **23.0% and 23.2%**.
– **Adjusted EPS**: Now expected to be **$10.45 to $10.65**, up **$0.20** from previous guidance.
– **Operating Cash Flow Guidance**: Retained in the range of **$6.7 billion to $7.1 billion**.
– **Free Cash Flow Guidance**: Expected to be **$5.4 billion to $5.8 billion**.
## Shareholder Value Initiatives
– **Share Repurchases**: Honeywell repurchased **$1.7 billion** of its shares during the quarter.
– **Dividends**: The company paid **$747 million** in dividends during Q2 2025.
Honeywell’s strong Q2 performance reflects its successful strategy amidst a fluctuating economic environment. The company’s focus on acquisitions, divestitures, and strategic separations illustrates a commitment to bolstering its competitive advantages and delivering shareholder value.
| 2Q 2025 | 2Q 2024 | Change | |
|---|---|---|---|
| Product sales | $ 7,119 | $ 6,477 | |
| Service sales | $ 3,233 | $ 3,100 | |
| Net sales | $ 10,352 | $ 9,577 | 8% |
| Costs, expenses and other | |||
| Cost of products sold | $ 4,548 | $ 4,247 | |
| Cost of services sold | $ 1,781 | $ 1,609 | |
| Total Cost of products and services sold | $ 6,329 | $ 5,856 | |
| Research and development expenses | $ 481 | $ 382 | |
| Selling, general and administrative expenses | $ 1,428 | $ 1,361 | |
| Impairment of assets held for sale | $ — | $ — | |
| Other (income) expense | $ -87 | $ -246 | |
| Interest and other financial charges | $ 330 | $ 250 | |
| Total costs, expenses and other | $ 8,481 | $ 7,603 | |
| Income before taxes | $ 1,871 | $ 1,974 | |
| Tax expense | $ 302 | $ 414 | |
| Net income | $ 1,569 | $ 1,560 | |
| Less: Net income attributable to noncontrolling interest | $ -1 | $ 16 | |
| Net income attributable to Honeywell | $ 1,570 | $ 1,544 | |
| Earnings per share of common stock – basic | $ 2.46 | $ 2.37 | |
| Earnings per share of common stock – assuming dilution | $ 2.45 | $ 2.36 | |
| Weighted average number of shares outstanding – basic | 637.5 | 650.2 | |
| Weighted average number of shares outstanding – assuming dilution | 640.9 | 654.2 |
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $ 10,349 | $ 10,567 |
| Short-term investments | $ 328 | $ 386 |
| Accounts receivable, less allowances of $331 and $314, respectively | $ 8,823 | $ 7,819 |
| Inventories | $ 7,013 | $ 6,442 |
| Assets held for sale | $ — | $ 1,365 |
| Other current assets | $ 1,454 | $ 1,329 |
| Total current assets | $ 27,967 | $ 27,908 |
| Investments and long-term receivables | $ 1,427 | $ 1,394 |
| Property, plant and equipment—net | $ 6,405 | $ 6,194 |
| Goodwill | $ 23,804 | $ 21,825 |
| Other intangible assets—net | $ 7,356 | $ 6,656 |
| Insurance recoveries for asbestos-related liabilities | $ 166 | $ 171 |
| Deferred income taxes | $ 229 | $ 238 |
| Other assets | $ 11,065 | $ 10,810 |
| Total assets | $ 78,419 | $ 75,196 |
| LIABILITIES | ||
| Current liabilities | ||
| Accounts payable | $ 7,111 | $ 6,880 |
| Commercial paper and other short-term borrowings | $ 6,271 | $ 4,273 |
| Current maturities of long-term debt | $ 74 | $ 1,347 |
| Accrued liabilities | $ 8,163 | $ 8,348 |
| Liabilities held for sale | $ — | $ 408 |
| Total current liabilities | $ 21,619 | $ 21,256 |
| Long-term debt | $ 30,167 | $ 25,479 |
| Deferred income taxes | $ 1,894 | $ 1,787 |
| Postretirement benefit obligations other than pensions | $ 109 | $ 112 |
| Asbestos-related liabilities | $ 1,243 | $ 1,325 |
| Other liabilities | $ 6,733 | $ 6,076 |
| Redeemable noncontrolling interest | $ 7 | $ 7 |
| Shareowners’ equity | $ 16,647 | $ 19,154 |
| Total liabilities, redeemable noncontrolling interest and shareowners’ equity | $ 78,419 | $ 75,196 |
