Honeywell HON Q2 2025 Earnings Preview Upside Potential on Analyst Forecast Upgrades

Forward-Looking Analysis
Analysts anticipate Honeywell International will post quarterly earnings of $2.64 per share for Q2 2025, marking a 6% year-over-year increase. Honeywell's EPS guidance range for FY 2025 is between $10.20 and $10.50, while revenue projections are between $39.6 billion and $40.5 billion. Despite some forecasts falling short of anticipated targets, Honeywell's recent performance, including surpassing consensus adjusted EPS estimates by 13.6%, suggests positive momentum. Analysts expect adjusted EPS of $10.39 for fiscal 2025, up 5.1%. However, Honeywell's sales forecast of $39.6 billion to $40.6 billion is below current analyst estimates of $41.26 billion, according to FactSet, indicating possible revenue growth challenges.

Historical Performance Review
In the first quarter of 2025, Honeywell reported revenue of $9.82 billion, net income of $1.47 billion, and EPS of $2.24. The gross profit was $3.79 billion. The company achieved an 8% year-over-year revenue growth, with organic growth at 4%. Adjusted EPS of $2.51 surpassed consensus estimates, reflecting a 7% increase year-over-year, showcasing Honeywell's strong financial performance amid challenging market conditions.

Additional News
Honeywell International has set ambitious FY 2025 earnings targets, with an EPS guidance range of $10.20 to $10.50 and projected revenues between $39.6 billion and $40.5 billion. The company's backlog grew 11% to a record $35.3 billion, underscoring robust demand. Honeywell recognized a $15 million increase in valuation allowance in Q1 2025, impacting financial adjustments. Analysts have revised forecasts upwards following Honeywell's impressive earnings beat, indicating increased confidence in the company's growth trajectory. Despite macroeconomic challenges, Honeywell's performance suggests resilience and potential for continued success.

Summary & Outlook
Honeywell's financial health remains robust, with strong revenue and EPS growth contributing to positive momentum. The company's extensive backlog and recent earnings beats bolster its growth outlook. However, forecasted revenue below analyst expectations poses risks. Honeywell's strategic initiatives and demand resilience suggest a bullish future, supported by analyst upgrades. While macroeconomic challenges persist, Honeywell's strong Q1 performance and ambitious FY 2025 targets indicate potential for continued success, making it an attractive investment prospect in the industrial sector.