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Sep 30, 2023

Honeywell Q3 2023 Earnings Report

Delivered strong results and beat earnings guidance.

Key Takeaways

Honeywell reported a 3% year-over-year sales increase and a 2% organic sales growth, driven by double-digit growth in commercial aviation, defense and space, and process solutions. The company's operating margin expanded by 140 basis points to 20.9%, with segment margin up 80 basis points to 22.6%. Earnings per share was $2.27, and orders increased by 10%, boosting backlog to a record $31.4 billion.

Sales of $9.2 billion, reported sales up 3%, organic sales up 2%.

Orders up 10%, backlog up 8% year-over-year to a record level of $31.4 billion.

Aerospace sales up 18%, with double-digit growth in both commercial aviation and defense and space.

Operating margin up 140 basis points to 20.9%; segment margin up 80 basis points to 22.6%.

Total Revenue
$9.21B
Previous year: $8.95B
+2.9%
EPS
$2.27
Previous year: $2.25
+0.9%
Segment Margin
22.6%
Previous year: 21.8%
+3.7%
Gross Profit
$3.54B
Previous year: $2.97B
+19.3%
Cash and Equivalents
$7.77B
Previous year: $7.45B
+4.3%
Free Cash Flow
$1.56B
Previous year: $1.9B
-17.9%
Total Assets
$61.3B
Previous year: $60.3B
+1.7%

Honeywell

Honeywell

Honeywell Revenue by Segment

Forward Guidance

Honeywell updated its full-year sales, segment margin, and adjusted earnings per share guidance. Full-year sales are now expected to be $36.8 billion to $37.1 billion with organic sales growth in the range of 4% to 5%. Segment margin is now expected to be in the range of 22.5% to 22.6%, with segment margin expansion of 80 to 90 basis points. Adjusted earnings per share is now expected to be in the range of $9.10 to $9.20.

Positive Outlook

  • Full-year sales are now expected to be $36.8B - $37.1B.
  • Organic sales growth in the range of 4% - 5%.
  • Segment margin is now expected to be in the range of 22.5% - 22.6%.
  • Segment margin expansion of 80 - 90 bps.
  • Adjusted earnings per share is now expected to be in the range of $9.10 - $9.20.

Revenue & Expenses

Visualization of income flow from segment revenue to net income