Honeywell Q4 2022 Earnings Report
Key Takeaways
Honeywell announced Q4 2022 results with a 6% increase in sales and a 10% organic sales growth. The company reported EPS of $1.51 and adjusted EPS of $2.52. Honeywell's backlog reached $29.6 billion, up 7% year over year.
Fourth Quarter Sales of $9.2 Billion, Reported Sales Up 6%, Organic Sales Up 10%
Fourth Quarter Earnings Per Share of $1.51 and Adjusted Earnings Per Share of $2.52, Above Midpoint of Previous Guidance
Full Year Operating Cash Flow of $5.3 Billion and Free Cash Flow of $4.9 Billion, at Midpoint of Previous Guidance
Deployed $7.9 Billion of Capital to Share Repurchases, Dividends, Capital Expenditures, and M&A in 2022, Exceeded Commitment of $4.0 Billion in Share Repurchases
Honeywell
Honeywell
Honeywell Revenue by Segment
Forward Guidance
The company expects sales of $36.0 billion to $37.0 billion, representing year-over-year organic growth of 2% to 5%; segment margin expansion of 50 to 90 basis points; adjusted earnings per share of $8.80 to $9.20, flat to up 5% despite an approximately $0.55 non-cash pension headwind; operating cash flow of $4.9 billion to $5.3 billion, and free cash flow of $3.9 billion to $4.3 billion, or $5.1 billion to $5.5 billion excluding the net impact of settlements signed in the fourth quarter of 2022.
Positive Outlook
- Sales of $36.0B - $37.0B
- Organic Growth 2% - 5%
- Segment Margin 22.2% - 22.6%
- Expansion Up 50 - 90 bps
- Adjusted Earnings Per Share $8.80 - $9.20
Challenges Ahead
- Adjusted Earnings Growth 0% - 5%
- Adjusted Earnings Per Share Excluding Pension Headwind $9.35 - $9.75
- Adjusted Earnings Growth Excluding Pension Headwind 7% - 11%
- Operating Cash Flow $4.9B - $5.3B
- Free Cash Flow $3.9B - $4.3B
Revenue & Expenses
Visualization of income flow from segment revenue to net income