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Jun 30, 2023

Honeywell Q2 2023 Earnings Report

Honeywell delivered strong results and raised full-year sales, segment margin, and adjusted EPS guidance.

Key Takeaways

Honeywell announced strong second-quarter results, meeting or exceeding guidance. The company reported a 2% increase in sales and a 3% increase in organic sales, driven by double-digit growth in commercial aerospace, process solutions, and UOP. The company raised its full-year organic growth, segment margin, and adjusted EPS guidance ranges.

Sales of $9.1 billion, reported sales up 2%, organic sales up 3%, operating cash flow up 72%, free cash flow up 34%.

Earnings per share of $2.22 and adjusted earnings per share of $2.23.

Aerospace reported sales up 15%, organic sales up 16%, led by over 20% growth in commercial aviation.

Backlog up 4% to a record level of $30.5 billion.

Total Revenue
$9.15B
Previous year: $8.95B
+2.2%
EPS
$2.23
Previous year: $2.1
+6.2%
Segment Margin
22.4%
Previous year: 20.9%
+7.2%
Organic Sales Growth
3%
Gross Profit
$3.52B
Previous year: $3.29B
+6.9%
Cash and Equivalents
$8.63B
Previous year: $8.25B
+4.6%
Free Cash Flow
$1.13B
Previous year: $631M
+78.6%
Total Assets
$62.3B
Previous year: $62.3B
+0.1%

Honeywell

Honeywell

Honeywell Revenue by Segment

Forward Guidance

Honeywell raised its full-year sales, segment margin, and adjusted earnings per share guidance. Full-year sales are now expected to be $36.7 billion to $37.3 billion with organic sales growth in the range of 4% to 6%. Segment margin is now expected to be in the range of 22.4% to 22.6%, with segment margin expansion of 70 to 90 basis points. Adjusted earnings per share is now expected to be in the range of $9.05 to $9.25.

Positive Outlook

  • Full-year sales are now expected to be $36.7B - $37.3B
  • Organic sales growth in the range of 4% - 6%
  • Segment Margin to be in the range of 22.4% - 22.6%
  • Segment Margin expansion of 70 - 90 bps
  • Adjusted Earnings Per Share to be in the range of $9.05 - $9.25

Revenue & Expenses

Visualization of income flow from segment revenue to net income