Honeywell (NASDAQ:HON) Beats Q4 Sales Targets But Full-Year Sales Guidance Misses Expectations

Honeywell International (NASDAQ: HON) reported its fourth-quarter and full-year 2024 results today, exceeding its Q4 sales targets but missing its full-year sales guidance. The industrial conglomerate also announced its outlook for 2025 and the planned separation of its Automation and Aerospace businesses.

Fourth Quarter and Full-Year Results

Honeywell's fourth-quarter sales increased 7% year-over-year to $10.1 billion, with organic sales growth of 2%. Earnings per share (EPS) for the quarter were $1.96, up 3% YoY, while adjusted EPS was $2.47, down 8% YoY but exceeding previous guidance. For the full year, sales increased 5% and 3% organically, with EPS of $8.71, up 3% YoY. Adjusted EPS increased 4% to $9.89, up 9% excluding the $0.45 impact of the Bombardier agreement.



2025 Outlook and Strategic Portfolio Review

Honeywell expects sales of $39.6 billion to $40.6 billion in 2025, with organic sales growth in the range of 2% to 5%. Segment margin is expected to be in the range of 23.2% to 23.6%, with segment margin expansion of 60 to 100 basis points. Adjusted EPS is expected to be in the range of $10.10 to $10.50, up 2% to 6%.

Separately, Honeywell announced that its Board of Directors has decided to pursue a full separation of its Automation and Aerospace businesses. The planned separation, coupled with the previously announced plan to spin off its Advanced Materials business, will result in three industry-leading public companies. The separation is intended to be completed in the second half of 2026.

Key Takeaways

Honeywell's strong fourth-quarter sales performance was driven by double-digit organic sales growth in defense and space, building solutions, and a record backlog growth. However, the company's full-year sales guidance missed expectations due to macroeconomic challenges, the impact of the Bombardier agreement, and the strength of long-cycle businesses outpacing short-cycle recovery.

The company's 2025 outlook and planned separations of Automation and Aerospace businesses indicate a focus on improving capital allocation, operational efficiency, and strategic flexibility. These initiatives are expected to unlock greater long-term growth prospects and shareholder value.

Investors should closely monitor Honeywell's progress in executing its strategic portfolio review and separations, as well as its ability to address macroeconomic challenges and maintain its strong sales growth momentum.