Honeywell Drops 3.04% Despite Strong Q2 Sales

On July 24, 2025, Honeywell's stock dropped 3.04% in pre-market trading, following the release of its Q2 financial results.

Honeywell reported strong Q2 2025 results, with sales of $10.4 billion, up 8% year-over-year. The company achieved earnings per share of $2.45 and adjusted EPS of $2.75, exceeding guidance. Key highlights include the company raising its full-year 2025 guidance, now expecting sales of $40.8-41.3 billion and adjusted EPS of $10.45-10.65. Significant portfolio changes include the $2.2 billion Sundyne acquisition, announced £1.8 billion acquisition of Johnson Matthey's Catalyst Technologies, and completed $1.3 billion sale of PPE business.

Honeywell is progressing with its transformation plans, including the separation into three public companies through the spin-off of its Advanced Materials business and the separation of Automation and Aerospace businesses. The company delivered strong Q2 results exceeding guidance, raised outlook amid strategic portfolio transformation with pending separations.

Honeywell's stock slipped due to slimmer Q2 margins and flat industrial automation results. Despite this, the company's robust backlog growth in Aerospace, coupled with continued innovation focus and strategic acquisitions, positions Honeywell well despite some segment-specific challenges. The company has maintained its operating cash flow guidance and free cash flow target, demonstrating confidence in its ability to generate strong cash returns while executing its transformation strategy.