Honeywell Q1 2026 revenue misses estimates on Middle East disruptions

Honeywell reported first-quarter gross of $9.14 billion, missing expert expectations, arsenic the Middle East struggle disrupted enactment successful its Process Automation and Technology conception and slowed collections. The banal fell astir 7.7% successful premarket trading connected April 23.

The top-line effect was up 2% compared with $8.93 cardinal a twelvemonth agone but fell abbreviated of the $9.28 cardinal consensus, per Yahoo Finance. On the bottommost line, adjusted EPS came successful astatine $2.45, an 11% summation that cleared the $2.32 expert consensus.

Honeywell attributed the shortfall successful portion to its Process Automation and Technology segment, which it said experienced disrupted concern conditions tied straight to the determination conflict, describing the gross interaction arsenic temporary. Organic income successful that conception fell 6% twelvemonth implicit year, dragged by a 10% diminution successful aftermarket gross tied to delays successful refining catalyst shipments and automation work upgrades. Free currency travel of $56 cardinal was besides down twelvemonth implicit year, partially owed to delayed collections stemming from the Middle East conflict, Honeywell said.

"Honeywell delivered a beardown commencement to the twelvemonth portion navigating a challenging geopolitical environment," CEO Vimal Kapur said successful a statement. "Orders were up 7% with maturation successful each segments, pushing backlog to implicit $38 billion, led by buildings and concern automation."

Despite the gross shortfall, Honeywell maintained its full-year income guidance of $38.8 cardinal to $39.8 cardinal and its adjusted EPS guidance of $10.35 to $10.65. The institution lowered its full-year operating currency travel outlook to $4.4 cardinal to $4.7 billion, from a anterior scope of $4.7 cardinal to $5.0 billion, portion keeping its escaped currency travel guidance unchanged astatine $5.3 cardinal to $5.6 billion.

Pricing subject and a faster-than-expected wind-down of stranded costs connected to the pending Aerospace spin-off helped assistance conception borderline by 90 ground points to 23.3%. Backlog reached $38.3 billion, supported by 7% integrated bid growth.

Alongside the net report, Honeywell announced an statement to merchantability its Warehouse and Workflow Solutions concern to American Industrial Partners for an undisclosed sum, expected to adjacent successful the 2nd fractional of 2026. That transaction made it the 2nd plus merchantability Honeywell announced wrong a azygous week, coming days aft it reached a abstracted statement to divest its Productivity Solutions and Services portion to Brady Corporation, per Bloomberg. The Warehouse and Workflow Solutions concern generated astir $935 cardinal successful gross successful 2025, Honeywell said.