International Companies
Honeywell shares fall on weaker-than-expected second quarter
By Josh White
Date: Thursday 23 Apr 2026
(Sharecast News) - Honeywell flagged second-quarter sales and earnings below market expectations on Thursday, saying disruptions linked to the conflict in the Middle East were weighing on demand and delaying projects, particularly in its process automation business serving energy customers.
The American industrial group said it expected second-quarter sales of $9.4bn to $9.6bn, below analysts' forecasts, and adjusted earnings per share of $2.35 to $2.45, also short of consensus.
Honeywell said the conflict had a roughly 0.5% impact on first-quarter growth, adding that it expected about a 1% hit to sales in the current quarter, chiefly in its process automation unit, where catalyst reloads, automation projects and some delivery timelines have been delayed.
"Honeywell delivered a strong start to the year while navigating a challenging geopolitical environment," said chief executive Vimal Kapur.
First-quarter sales rose 2% to $9.14bn but missed expectations, while adjusted earnings per share increased 11% to $2.45, ahead of forecasts.
Honeywell said pricing gains and faster removal of stranded costs tied to the planned spin-off of its aerospace business helped offset inflationary pressures.
On a reported basis, quarterly profit fell 35% to $1.29 per share, while free cash flow dropped 71% to $56m, reflecting higher spin-off-related costs and Flexjet litigation expenses.
Despite the weaker second-quarter outlook, Honeywell maintained its full-year guidance, continuing to expect sales of $38.8bn to $39.8bn, organic sales growth of 3% to 6%, and adjusted earnings per share of $10.35 to $10.65.
The company lowered its operating cash flow forecast to $4.4bn to $4.7bn, while leaving its free cash flow outlook unchanged at $5.3bn to $5.6bn.
Honeywell was also reportedly pressing ahead with its breakup plans, with the sale of its Warehouse and Workflow Solutions business to American Industrial Partners in an all-cash deal for an undisclosed sum nearing agreement, according to a report from Bloomberg.
The unit generates nearly $1bn in annual revenue and operates under the Intelligrated and Transnorm brands.
It would follow the $1.4bn sale of Honeywell's productivity solutions and services business to Brady earlier this week, with both transactions expected to close in the second half.
The company said the spin-off of Honeywell Aerospace was now scheduled for 29 June, as it moved toward separating into independent aerospace, automation and advanced materials businesses.
Kapur said that after several transactions in recent years, Honeywell was well positioned in both aerospace and automation as standalone companies.
At 0842 EDT (1342 BST), shares in Honeywell International were down 5.26% in premarket trading in New York at $208.39.
Reporting by Josh White for Sharecast.com.
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