olivLaw · US equity research
Honeywell Technologies HON
Aircraft Engines & Engine Parts · SIC 3724 · Vertical: Aircraft Engines & Engine Parts (SIC 3724)
Honeywell Technologies (formerly Honeywell International, traded on NASDAQ as HON) reported third-quarter 2026 sales of $5.0 billion, up 7% organically. The company raised its 2026 outlook, now expecting sales of $20.0 billion to $20.1 billion and organic growth of 4% to 5%. Following the Aerospace spin-off and the Catalyst Technologies acquisition from Johnson Matthey, its profile has changed considerably.
At the close of 04 Nov 2026, Honeywell Technologies (HON) stock was 228.47 USD (+1.97% on the day), with market capitalisation 72.5 bn USD, P/E 10.9 on diluted EPS of 21.02 USD over the last 12 months, dividend yield 2.39%, beta 0.77, 52-week range 197.32–260.14 USD. Latest reported quarter (Q3 2026): revenue of 5.0 bn USD (+1.3% YoY), net income of 664.0 m USD (−63.6% YoY), diluted EPS 2.08 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 69.5
- strong (55–70)
- Bollinger (20, 2)
- 202.80 – 228.44
- above the upper band · %B 1.00 · band width 11.9%
- SMA 50 / 200
- 212.23 / 230.72
- mixed trend
- MACD (12, 26, 9)
- 3.42 / 2.08
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +6.7% | −1.1% | +7.8 pp | — |
| 3 months | −7.9% | −0.5% | −7.5 pp | — |
| 6 months | +0.5% | +4.4% | −3.9 pp | — |
| Year to date | +11.7% | +12.3% | −0.7 pp | — |
| 1 year | +10.9% | +13.5% | −2.7 pp | +6.6% |
| 3 years | +22.3% | +76.4% | −54.1 pp | +218.2% |
| 5 years | +2.2% | +63.7% | −61.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 9.2 bn | 8.9 bn | 9.3 bn | 4.9 bn | 9.8 bn | 9.1 bn | 9.7 bn | 5.0 bn |
| Cost of revenue | 3.9 bn | 5.5 bn | 5.7 bn | 3.2 bn | 14.7 bn | 5.6 bn | 6.1 bn | 3.0 bn |
| Gross profit | 3.4 bn | 3.5 bn | 3.7 bn | 3.2 bn | 3.5 bn | — | — | — |
| Research & development | 344.0 m | 416.0 m | 459.0 m | 268.0 m | 1.0 bn | 492.0 m | 524.0 m | 239.0 m |
| SG&A | 1.2 bn | 1.3 bn | 1.4 bn | 1.1 bn | 2.1 bn | 1.3 bn | 1.3 bn | 1.0 bn |
| Operating income | 1.1 bn | 2.0 bn | 2.1 bn | 866.0 m | 5.6 bn | 2.1 bn | 2.2 bn | 1.1 bn |
| Depreciation & amortisation | 196.0 m | 325.0 m | 348.0 m | 248.0 m | 672.0 m | 357.0 m | 312.0 m | 256.0 m |
| Interest expense | 281.0 m | 285.0 m | 329.0 m | 263.0 m | 629.0 m | 356.0 m | 363.0 m | 143.0 m |
| Pre-tax income | 575.0 m | 1.7 bn | 1.6 bn | 1.1 bn | 3.5 bn | 886.0 m | 7.3 bn | 839.0 m |
| Income tax | 30.0 m | 369.0 m | 244.0 m | 153.0 m | 581.0 m | 91.0 m | 1.6 bn | 60.0 m |
| Net income | 1.3 bn | 1.4 bn | 1.6 bn | 1.8 bn | -115.0 m | 821.0 m | 5.7 bn | 664.0 m |
| Diluted EPS | 1.96 | 2.22 | 4.90 | 5.71 | -0.18 | 1.29 | 17.83 | 2.08 |
| Operating cash flow | 2.3 bn | 597.0 m | 1.3 bn ≈ | 3.3 bn ≈ | 1.2 bn | -650.0 m | 1.3 bn ≈ | 117.0 m ≈ |
| Capex | 100.0 m | 190.0 m | 226.0 m ≈ | -41.0 m ≈ | 611.0 m | 223.0 m | 315.0 m ≈ | -169.0 m ≈ |
| Dividends paid | 741.0 m | 732.0 m | 747.0 m ≈ | 735.0 m ≈ | 762.0 m | 781.0 m | 795.0 m ≈ | 240.0 m ≈ |
| Share repurchases | 455.0 m | 1.9 bn | 1.7 bn ≈ | 100.0 m ≈ | 100.0 m | 1.0 bn | 0 ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 5 percentile of its own 44-quarter history (min 9.1, median 21.9, max 74.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 41.8 bn | 36.7 bn | 32.6 bn | 34.4 bn | 35.5 bn | 33.0 bn | 34.7 bn | 37.4 bn |
| Revenue YoY | +3.1% | −12.2% | −11.1% | +5.4% | +3.1% | −6.9% | +5.2% | +7.8% |
| Net income | 6.8 bn | 6.1 bn | 4.8 bn | 5.5 bn | 5.0 bn | 5.7 bn | 5.7 bn | 4.7 bn |
| Net income YoY | +337.9% | −9.2% | −22.2% | +16.0% | −10.4% | +13.9% | +0.8% | −17.1% |
| Diluted EPS | 8.98 | 8.41 | 6.72 | 7.91 | 7.27 | 8.47 | 8.71 | 7.36 |
| Diluted EPS YoY | +349.0% | −6.3% | −20.1% | +17.7% | −8.1% | +16.5% | +2.8% | −15.5% |
| net % | 16.2% | 16.7% | 14.6% | 16.1% | 14.0% | 17.1% | 16.4% | 12.6% |
| Free cash flow | 5.6 bn | 6.1 bn | 5.3 bn | 5.1 bn | 4.5 bn | 4.6 bn | 5.2 bn | 5.4 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 12.3 bn USD
- Financial debt
- 34.6 bn USD
- Net debt
- 22.3 bn USD
- Equity
- 15.0 bn USD
- Total assets
- 73.7 bn USD
- Debt / equity
- 2.30x
- Current ratio
- 1.30x
- ROE
- 27.7%
- ROA
- 6.4%
- FCF margin
- 14.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 32.6 bn | 34.4 bn | 35.5 bn | 33.0 bn | 34.7 bn | 37.4 bn | SEC (XBRL)· 17 Feb 2026verified |
| Cost of revenue | 22.2 bn | 22.1 bn | 22.3 bn | 20.6 bn | 21.4 bn | 23.6 bn | SEC (XBRL)· 17 Feb 2026verified |
| Gross profit | 10.5 bn | 12.3 bn ≈ | 13.1 bn ≈ | 12.4 bn ≈ | 13.4 bn ≈ | 13.8 bn ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Research & development | 1.3 bn | 1.3 bn | 1.5 bn | 1.4 bn | 1.5 bn | 1.8 bn | SEC (XBRL)· 17 Feb 2026verified |
| SG&A | 4.8 bn | 4.8 bn | 5.2 bn | 4.9 bn | 5.2 bn | 5.5 bn | SEC (XBRL)· 17 Feb 2026verified |
| Operating income | — | — | 8.0 bn | 7.6 bn | 7.7 bn | 8.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Depreciation & amortisation | 1.0 bn | 1.1 bn | 1.2 bn | 1.0 bn | 1.2 bn | 1.4 bn | SEC (XBRL)· 17 Feb 2026verified |
| EBITDA | — | — | 9.2 bn ≈ | 8.6 bn ≈ | 8.8 bn ≈ | 9.5 bn ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Interest expense | 359.0 m | 343.0 m | 414.0 m | 749.0 m | 1.0 bn | 1.3 bn | SEC (XBRL)· 17 Feb 2026verified |
| Pre-tax income | 6.0 bn | 7.2 bn | 6.4 bn | 6.2 bn | 6.2 bn | 5.5 bn | SEC (XBRL)· 17 Feb 2026verified |
| Income tax | 1.1 bn | 1.6 bn | 1.4 bn | 1.3 bn | 1.2 bn | 1.0 bn | SEC (XBRL)· 17 Feb 2026verified |
| Net income | 4.8 bn | 5.5 bn | 5.0 bn | 5.7 bn | 5.7 bn | 4.7 bn | SEC (XBRL)· 17 Feb 2026verified |
| Diluted EPS | 6.72 | 7.91 | 7.27 | 8.47 | 8.71 | 7.36 | SEC (XBRL)· 17 Feb 2026verified |
| Weighted average diluted shares | 711.2 m | 700.4 m | 683.1 m | 668.2 m | 655.3 m | 642.8 m | SEC (XBRL)· 17 Feb 2026verified |
| Dividend per share | 3.63 | 3.77 | 3.97 | 4.17 | 4.37 | 4.58 | SEC (XBRL)· 17 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 14.3 bn | 11.0 bn | 9.6 bn | 7.9 bn | 9.9 bn | 12.3 bn | SEC (XBRL)· 22 Oct 2026verified |
| Receivables | 6.8 bn | 6.8 bn | 7.4 bn | 7.5 bn | 7.2 bn | 4.4 bn | SEC (XBRL)· 22 Oct 2026verified |
| Inventories | 4.5 bn | 5.1 bn | 5.5 bn | 6.2 bn | 5.9 bn | 1.7 bn | SEC (XBRL)· 22 Oct 2026verified |
| Current assets | 28.2 bn | 25.4 bn | 25.0 bn | 23.5 bn | 27.9 bn | 30.4 bn | SEC (XBRL)· 17 Feb 2026verified |
| Property, plant & equipment, net | 5.6 bn | 5.6 bn | 5.5 bn | — | — | — | SEC (XBRL)· 10 Feb 2023verified |
| Goodwill | 16.1 bn | 17.8 bn | 17.5 bn | 17.2 bn | 21.0 bn | 18.1 bn | SEC (XBRL)· 22 Oct 2026verified |
| Intangibles (excl. goodwill) | 3.6 bn | 3.6 bn | 3.2 bn | 3.2 bn | 6.6 bn | 5.2 bn | SEC (XBRL)· 22 Oct 2026verified |
| Total assets | 64.6 bn | 64.5 bn | 62.3 bn | 61.5 bn | 75.2 bn | 73.7 bn | SEC (XBRL)· 17 Feb 2026verified |
| Accounts payable | 5.8 bn | 6.5 bn | 6.3 bn | 6.8 bn | 6.1 bn | 3.4 bn | SEC (XBRL)· 22 Oct 2026verified |
| Short-term debt | 3.6 bn | 3.5 bn | 2.7 bn | 2.1 bn | 4.3 bn | 5.9 bn | SEC (XBRL)· 17 Feb 2026verified |
| Long-term debt | 18.8 bn | 16.1 bn | 16.9 bn | 18.4 bn | 26.8 bn | 28.7 bn | SEC (XBRL)· 22 Oct 2026verified |
| Current liabilities | 19.2 bn | 19.5 bn | 19.9 bn | 18.5 bn | 21.3 bn | 23.4 bn | SEC (XBRL)· 17 Feb 2026verified |
| Equity | 17.8 bn | 19.2 bn | 17.3 bn | 16.4 bn | 19.2 bn | 15.0 bn | SEC (XBRL)· 17 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 6.2 bn | 6.0 bn | 5.3 bn | 5.3 bn | 6.1 bn | 6.4 bn | SEC (XBRL)· 17 Feb 2026verified |
| Capex | 906.0 m | 895.0 m | 766.0 m | 741.0 m | 871.0 m | 986.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Free cash flow | 5.3 bn ≈ | 5.1 bn ≈ | 4.5 bn ≈ | 4.6 bn ≈ | 5.2 bn ≈ | 5.4 bn ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Investing cash flow | -987.0 m | -1.1 bn | -93.0 m | -1.3 bn | -10.2 bn | -2.7 bn | SEC (XBRL)· 17 Feb 2026verified |
| Financing cash flow | -81.0 m | -8.3 bn | -6.3 bn | -5.8 bn | 6.8 bn | -2.0 bn | SEC (XBRL)· 17 Feb 2026verified |
| Dividends paid | 2.6 bn | 2.6 bn | 2.7 bn | 2.9 bn | 2.9 bn | 3.0 bn | SEC (XBRL)· 17 Feb 2026verified |
| Share repurchases | 3.7 bn | 3.4 bn | 4.2 bn | 3.7 bn | 1.7 bn | 3.8 bn | SEC (XBRL)· 17 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 51 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 72.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation69
- Balance sheet40
- Quality73
- Growth9
- Returns43
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 59.96 – 645.58 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)59.96 – 117.82 (Mid 81.67)WACC 8.5% · starting FCFF 2.2 bn USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDA498.38 – 645.58 (Mid 561.38)4 companies used · median multiple 15.0x · quartiles 13.4x – 17.1xRTX, SARO, SIF, TATT
- Peers: P/E578.07 – 636.28 (Mid 603.42)4 companies used · median multiple 28.7x · quartiles 27.5x – 30.3xRTX, SARO, SIF, TATT
- Dividend discount (DDM)60.19 – 80.94 (Mid 69.04)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 51/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 23.7% | 100 (vs peers) | 10% |
| Net margin · Quality | 21.0% | 100 (vs peers) | 6% |
| FCF conversion · Quality | 13.7% | 0 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 1.8% | 15 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 0.4% | 3 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 0.9x | 20 (vs peers) | 10% |
| Interest coverage · Balance sheet | 7.4x | 90 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.0x | 13 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 10.9x | 100 (vs peers) | 10% |
| EV/EBITDA · Valuation | 6.6x | 80 (vs peers) | 10% |
| FCF yield · Valuation | 1.3% | 17 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 5.1% | 72 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 266.6% | 0 (on a fixed band) | 4% |
Score groups
- Balance sheet40/100 · 3/3 factors with a value
- Growth9/100 · 2/2 factors with a value
- Quality73/100 · 3/3 factors with a value
- Returns43/100 · 2/2 factors with a value
- Valuation69/100 · 3/3 factors with a value
Memo
Honeywell International Inc (HON). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 37.4 bn USD in 2025; YoY growth 7.8%; net margin 21.0%; ROE 36.0%; net debt/EBITDA 0.9x.
The estimated value range is 279.28–377.05 USD per share (median of 4 methods, agreement: low); assumptions are illustrative. Against the central value of 321.53 USD, the price of 228.47 USD leaves a potential of 40.7% (value / price − 1) and a margin of safety of 28.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 51/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 23.7%
- Net margin: 21.0%
- Interest coverage: 7.4x
- P/E (TTM): 10.9x
- EV/EBITDA: 6.6x
- Shareholder yield (distributions): 5.1%
- The price is below the estimated value range
What contradicts it
- FCF conversion: 13.7%
- Revenue CAGR 3Y: 1.8%
- EPS CAGR 3Y: 0.4%
- Net debt / EBITDA: 0.9x
- Current ratio: 1.0x
- FCF yield: 1.3%
- Payout ratio (FCF): 266.6%
- The valuation methods diverge
Versus the vertical median
Aircraft Engines & Engine Parts (SIC 3724) · same industry (4-digit SIC) · compared with 5 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| RTXRtx Corporation | 267.8 bn | 32.2 | 12.6% | 8.8% | +9.7% | +13% / +144% |
| HONHoneywell International Inc | 72.5 bn | 10.9 | 36.0% | 21.0% | +7.8% | +11% / +22% |
| HEIHeico Corporation | 9.1 bn | 56.1 | 18.7% | 16.4% | +16.3% | +7% / +97% |
| SAROStandardAero, Inc. | 8.5 bn | 26.6 | 12.3% | 5.1% | +15.8% | −2% / unavailable |
| TATTTat Technologies Ltd | 494.3 m | 27.8 | 11.7% | 9.4% | +17.0% | −1% / +293% |
| SIFSIFCO Industries, Inc. | 118.5 m | 29.6 | 10.3% | 4.0% | +6.5% | +201% / +452% |
1- and 3-year price returns: for HON from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 138.92 Total return -37% · Per year -37% | 245.93 Total return 10% · Per year 10% | 370.88 Total return 65% · Per year 65% |
| 3 years | 127.67 Total return -39% · Per year -15% | 254.98 Total return 19% · Per year 6% | 423.22 Total return 95% · Per year 25% |
| 5 years | 117.33 Total return -40% · Per year -10% | 264.36 Total return 29% · Per year 5% | 482.95 Total return 129% · Per year 18% |
- Exit P/E± 63.74
- Net margin± 44.62
- Annual revenue growth± 37.59
- Annual dilution± 3.75
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Honeywell Technologies (formerly Honeywell International, traded on NASDAQ as HON) reported third-quarter 2026 sales of $5.0 billion, up 7% organically 2. The company raised its 2026 outlook, now expecting sales of $20.0 billion to $20.1 billion and organic growth of 4% to 5% 2. Following the Aerospace spin-off and the Catalyst Technologies acquisition from Johnson Matthey, its profile has changed considerably 1.
SWOT
Strengths
- The company has a diversified automation portfolio whose segments complement each other, backed by a broad global installed base 2.
- Operating profitability improved markedly in the third quarter of 2026, driven by productivity and the removal of inherited fixed costs 2.
- The order backlog grew, giving a base of visibility for future sales 2.
Weaknesses
- Results are strongly affected by acquisition and divestiture effects, which makes period-to-period comparisons harder 1.
- Margin in the Process Automation and Technology segment contracted, partly due to project mix and the recent acquisition 2.
- Operating cash flow fell in the third quarter of 2026 compared with the prior year, after a one-time settlement in that prior year 2.
Opportunities
- LNG and petrochemical projects and service demand could continue to support growth in the process segment 2.
- Integrating Catalyst Technologies could open new opportunities in process technology if the expected synergies materialise 1.
- If separation from aerospace allows more focused investment, the company could accelerate innovation in automation 2.
Risks
- Geopolitical and trade volatilityhigh
The Middle East conflict, trade policies and tariffs can affect energy, transport and material costs, with potential impact on consolidated results 1.
- Inflationary pressuresmedium
Persistent inflation can raise material and labour costs, and pricing may not fully offset them 1.
- Integration risksmedium
The Catalyst Technologies acquisition and recent divestitures may create integration difficulties and dilute margins in the short term 12.
- Concentration in large projectsmedium
Project mix in the process segment can produce volatility in margins and revenue timing 2.
- Delays in utility demandlow
Deferred meter deployments in utilities can slow growth in Industrial Automation products 2.
Investment thesis
What would need to be true (bull case)
- Organic growth accelerated in the third quarter and the company raised its 2026 outlook, which could point to solid operating momentum 2.
- Removal of inherited fixed costs and pricing discipline could continue to support margins and cash conversion 2.
- The order backlog grew, and demand for services and energy projects could provide visibility into future periods 2.
What would break the thesis
- Results are sensitive to geopolitical tensions and inflation, and a harsher environment could weigh on profitability 1.
- Process segment margin contracted, and integrating a large acquisition could prolong that pressure 2.
- Period comparisons are distorted by spin-offs and divestitures, making the underlying trend hard to assess 1.
What to watch
- Delivery of the raised 2026 organic growth and segment margin guidanceQ4 2026
- Integration of Catalyst Technologies and its effect on Process Automation and Technology margin2027
- Order trends and demand for LNG and petrochemical projectsQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
On the portfolio side, the company completed in July 2026 the acquisition of Johnson Matthey's Catalyst Technologies business for total consideration of $1,743 million, net of cash acquired 1. The WWS and PSS businesses were divested in late July and early August 2026 1. It retained a 48% noncontrolling stake in Quantinuum after that company's IPO in June 2026, accounted for as an equity method investment 1.
Market context
The company operates in a difficult macroeconomic environment shaped by the Middle East conflict, inflationary pressures and capital markets volatility 1. Global growth has moderated, while demand for LNG and petrochemical projects and for fire and security products supported third-quarter 2026 sales 12.
Pricing offset inflation across the segments and volumes contributed to sales growth 12. Deferred meter deployments in utilities limited growth in Industrial Automation products 2.
Trends
- Portfolio reshapingmixed
The Aerospace spin-off, the Catalyst Technologies acquisition and the WWS and PSS divestitures change the company's structure and can alter year-over-year comparability 1. If integration proceeds as planned, removal of inherited fixed costs could support margins over the medium term 2.
- Pricing and inflation offsetmixed
Price increases helped offset inflation and supported margins across segments 12. If inflationary pressures persist, material and labour costs could erode the benefit of pricing 1.
- Demand for energy and process infrastructuretailwind
LNG and petrochemical projects grew strongly in the third quarter of 2026 2. Continued demand could support the Process Automation and Technology segment, although project mix can influence margins 2.
- Geopolitical tensions and supply chainsheadwind
The Middle East conflict, shifting trade policies and tariffs can affect shipping flows and the cost of critical materials 12. If these tensions intensify, consolidated results could be adversely affected 1.
Competitive position
The company competes in building, process and industrial automation with other global suppliers of equipment, software and services. Its position rests on a broad portfolio, its installed base and its ability to offer integrated solutions 2.
Competitive pressure comes from process technology and catalyst providers as well as firms active in building security and industrial measurement. Such pressure can affect pricing and margins, particularly in large projects 12.
- Industrial and process automation suppliers
Active competitors in the process and industrial segments, offering comparable measurement, control and process technology.
- Building systems and security providers
Firms offering security, fire and building automation solutions that compete with the Building Automation segment.
- Catalyst and chemical process technology providers
Specialised players in catalysts and process licensing, relevant to the acquired Catalyst Technologies business.
- Utility metering and measurement solution providers
Competitors in metering and measurement systems, where deployments were deferred in the third quarter of 2026.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report22 Oct 2026
- Current report22 Oct 2026Results of operations · Financial statements and exhibits
- Current report19 Aug 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report (amendment)24 Jul 2026
- Quarterly report23 Jul 2026
- Current report23 Jul 2026Results of operations · Financial statements and exhibits
- Current report29 Jun 2026Material agreement · Acquisition or disposition of assets · Results of operations · Item 3.03 · Departure or appointment of officers · Amendments to articles or bylaws · Regulation FD disclosure · Financial statements and exhibits
- Current report15 Jun 2026Departure or appointment of officers · Regulation FD disclosure · Other events
- Current report05 Jun 2026Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report02 Jun 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-Q, quarter ended 2026-09-30 · SEC / Honeywell Technologies · 22 Oct 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Honeywell Technologies · 22 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.