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Mar 31, 2021

Honeywell Q1 2021 Earnings Report

Honeywell overdelivered on all guided metrics, raised full-year sales and adjusted EPS guidance.

Key Takeaways

Honeywell's Q1 2021 results exceeded expectations with sales of $8.5 billion, flat year-over-year, and adjusted EPS of $1.92, surpassing the high end of guidance. The company raised its full-year sales guidance and the midpoint of its adjusted EPS and cash flow guidance, driven by strong performance in Warehouse and Workflow Solutions and personal protective equipment businesses.

Delivered Double-Digit Sales Growth in Safety and Productivity Solutions; Returned to Sales Growth in Honeywell Building Technologies

Expanded Segment Margin in Aerospace, Honeywell Building Technologies, and Safety and Productivity Solutions

Delivered Earnings Per Share of $2.03, Adjusted EPS of $1.92, Exceeding High End of Guidance Range by 9 Cents

Deployed $3.0 Billion in Capital to Acquisitions, Share Repurchases, Dividends, and Capital Expenditures

Total Revenue
$8.45B
Previous year: $8.46B
-0.1%
EPS
$1.92
Previous year: $2.21
-13.1%
Segment Margin
21%
Previous year: 21.8%
-3.7%
Operating Income Margin
17.8%
Previous year: 20%
-11.0%
Organic Sales Growth
-2%
Gross Profit
$2.75B
Previous year: $2.93B
-6.3%
Cash and Equivalents
$11.7B
Previous year: $7.72B
+51.8%
Free Cash Flow
$757M
Previous year: $800M
-5.4%
Total Assets
$63.6B
Previous year: $57.4B
+10.7%

Honeywell

Honeywell

Forward Guidance

Honeywell raised its full-year sales guidance and the midpoint of its adjusted earnings per share and cash flow guidance.

Positive Outlook

  • Full-year organic sales growth is now expected to be in the range of 3% to 5%.
  • Adjusted earnings per share is expected to be $7.75 to $8.00, up 15 cents from the low end of the prior guidance range.
  • Operating cash flow is now expected to be in the range of $5.8 billion to $6.1 billion
  • Free cash flow is now expected to be in the range of $5.2 billion to $5.5 billion.
  • The company is well positioned for the recovery to come.