Shares of Honeywell International (NASDAQ:HON) fell 1.5% after the company released updated full-year adjusted earnings guidance that landed below analyst expectations at the midpoint.
Management projected adjusted earnings per share for 2025 in a range of $10.35 to $10.65. The midpoint of that band was reported as falling short of the $10.52 consensus estimate.
The company left its organic sales growth target unchanged at 3% to 6%, versus an external estimate of 4.6%, and maintained its sales guidance at $38.8 billion to $39.8 billion compared with a $39.39 billion consensus.
Honeywell also reaffirmed its free cash flow forecast of $5.3 billion to $5.6 billion, a projection that sits above the $5.23 billion estimate.
Preliminary outlook for Honeywell Technologies
As part of its update, Honeywell provided a preliminary guidance framework for Honeywell Technologies - the business that will remain after the planned separation of Honeywell Aerospace, which is scheduled to complete on June 29.
- 2026 sales are expected to be $19.9 billion to $20.2 billion, with organic sales growth of 2% to 3%.
- Adjusted earnings per share for Honeywell Technologies are projected at $3.95 to $4.15 for 2026, representing growth of 22% to 28%.
- Operating cash flow is expected to be $4.7 billion to $5.0 billion, while free cash flow is forecast at $5.3 billion to $5.6 billion - representing growth of 4% to 10%.
The guidance update arrives as the company advances the planned spin-off of its aerospace operations. Management presented the forward-looking figures for the post-spin entity as part of broader preparation for the separation.
Market and sector implications
The guidance miss at the midpoint for 2025 adjusted EPS coincided with a modest share price decline. The update touches industries tied to Honeywell's businesses, including industrials and aerospace, and will be observed by investors focused on earnings trajectory, organic growth and cash generation ahead of the corporate separation.