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Mar 31

Honeywell Q1 2025 Earnings Report

Honeywell exceeded guidance across all key metrics in Q1 2025.

Key Takeaways

Honeywell delivered strong results in Q1 2025 with sales and earnings surpassing guidance, supported by robust performance in Building Automation and Energy & Sustainability Solutions.

Sales reached $9.8 billion, growing 8% year-over-year.

Adjusted EPS increased to $2.51, up 7% year-over-year.

Net income was $1.449 billion, nearly flat compared to last year.

Backlog grew 8% excluding acquisitions, led by Building Automation and Energy Solutions.

Total Revenue
$9.82B
Previous year: $9.11B
+7.9%
EPS
$2.51
Previous year: $2.25
+11.6%
Segment Margin
23%
Previous year: 23%
+0.0%
Operating Income Margin
20.1%
Previous year: 20.4%
-1.5%
Organic Sales Growth
4%
Gross Profit
$3.79B
Previous year: $3.58B
+5.8%
Cash and Equivalents
$9.66B
Previous year: $11.8B
-17.9%
Free Cash Flow
$346M
Previous year: $215M
+60.9%
Total Assets
$75.2B
Previous year: $65.6B
+14.6%

Honeywell

Honeywell

Honeywell Revenue by Segment

Forward Guidance

Honeywell raised its adjusted EPS guidance midpoint while maintaining its organic growth and cash flow expectations for full-year 2025.

Positive Outlook

  • Raised adjusted EPS guidance midpoint by 5 cents.
  • Maintained full-year organic growth expectation of 2% to 5%.
  • Segment margin expected to expand 60 to 90 basis points.
  • Free cash flow forecast remains strong at $5.4B to $5.8B.
  • Backlog strength continues across Building and Energy businesses.

Challenges Ahead

  • Global demand uncertainty expected for remainder of 2025.
  • Tariff impacts incorporated into guidance.
  • Expected sale of PPE business could create transitional challenges.
  • Industrial Automation facing demand headwinds in Europe.
  • Segment margin pressure due to acquisitions in Aerospace.

Revenue & Expenses

Visualization of income flow from segment revenue to net income