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Jun 30, 2021

Honeywell Q2 2021 Earnings Report

Honeywell outperformed expectations in the second quarter of 2021, driven by sales and profit growth across all segments.

Key Takeaways

Honeywell reported strong second-quarter results with sales up 18% and organic sales up 15%. The company raised its full-year sales, segment margin, adjusted earnings per share, and cash flow guidance. Adjusted earnings per share increased by 60% year over year, and free cash flow reached $1.5 billion.

Sales growth and margin expansion occurred in all four segments.

Reported sales increased by 18%, with organic sales up by 15%.

Operating margin rose by 450 basis points to 18.1%, and segment margin increased by 190 basis points to 20.4%.

Adjusted earnings per share reached $2.02, a 60% increase year over year.

Total Revenue
$8.81B
Previous year: $7.48B
+17.8%
EPS
$2.02
Previous year: $1.26
+60.3%
Segment Margin
20.4%
Previous year: 18.5%
+10.3%
Operating Income Margin
18.1%
Previous year: 13.6%
+33.1%
Organic Sales Growth
15%
Gross Profit
$2.81B
Previous year: $2.2B
+27.4%
Cash and Equivalents
$11.4B
Previous year: $13.8B
-17.1%
Free Cash Flow
$1.5B
Previous year: $1.25B
+19.7%
Total Assets
$63.9B
Previous year: $63.6B
+0.5%

Honeywell

Honeywell

Honeywell Revenue by Segment

Forward Guidance

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

Positive Outlook

  • Full-year sales are now expected to be in the range of $34.6 billion to $35.2 billion.
  • Organic sales growth is expected to be in the range of 4% to 6%.
  • Segment margin is expected to be in the range of 20.8% - 21.1%.
  • Adjusted earnings per share is expected to be $7.95 to $8.10.
  • Operating cash flow is now expected to be in the range of $5.9 billion to $6.2 billion and free cash flow is now expected to be in the range of $5.3 billion to $5.6 billion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income