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Mar 31, 2023
Honeywell Q1 2023 Earnings Report
Honeywell's first quarter results surpassed guidance across all metrics, with raised full-year sales, segment margin, and adjusted EPS guidance.
Key Takeaways
Honeywell reported strong first-quarter results, exceeding guidance on all metrics. Sales reached $8.9 billion, up 6% reported and 8% organically. The company raised its full-year sales, segment margin, and adjusted EPS guidance. Backlog increased to a record $30.3 billion, and the acquisition of Compressor Controls Corporation was announced.
Sales reached $8.9 billion, with a reported increase of 6% and an organic increase of 8%.
Operating margin increased by 390 basis points to 19.1%, while segment margin increased by 90 basis points to 22.0%.
Earnings per share and adjusted earnings per share both reached $2.07, exceeding the high end of guidance by 11 cents.
Backlog increased to a record $30.3 billion, up 6% year over year.
Honeywell
Honeywell
Honeywell Revenue by Segment
Revenue by Segment
Aerospace Revenue
CapyFin.com Forward Guidance
Honeywell raised the midpoint of its full-year sales, segment margin, and adjusted earnings per share guidance.
Positive Outlook
- Full-year sales are now expected to be $36.5B - $37.3B
- Organic sales growth in the range of 3% - 6%
- Segment margin is now expected to be in the range of 22.3% - 22.6%
- Segment margin expansion of 60 - 90 bps
- Adjusted earnings per share is now expected to be in the range of $9.00 - $9.25
Challenges Ahead
- Operating cash flow is still expected to be in the range of $4.9B - $5.3B
- Free cash flow is still expected to be in the range of $3.9B - $4.3B
- Free cash flow excluding the net impact of settlements is still expected to be in the range of $5.1B - $5.5B
- Uncertain macroeconomic environment
- Pension headwind