Honeywell Technologies (NASDAQ:HON) used to be one giant company that made everything from thermostats to jet engines. Not anymore. Over the past year, it split into three separate public companies: Solstice Advanced Materials, spun off last October; Honeywell Aerospace, spun off just last month; and Honeywell Technologies, the automation business that's left, which is what CEO Vimal Kapur now runs. This week's earnings report was the first one for Honeywell Technologies as its own standalone firm, and the stock jumped more than 5% on the news.
Since the aerospace spinoff only finished right at the end of the quarter, this report still includes some of Honeywell Aerospace's results mixed in, which makes straight comparisons tricky. Total revenue, including that leftover aerospace piece, came in at $9.72 billion, up 4% from a year ago and beating the roughly $9.5 billion **** ysts expected. Strip aerospace back out, and revenue for just the automation business was $5.19 billion, up 3%, beating the $5.02 billion Wall Street had modeled specifically for the smaller, standalone company.
On profit, adjusted earnings per share, including the leftover aerospace results came in at $4.52, actually down 4% from $4.72 a year earlier. On a standalone basis without aerospace, adjusted earnings were $1.95 a share, up 10% from $1.77 a year ago and beating the $1.82 **** ysts expected for the new, smaller Honeywell Technologies. There was also a one-time boost: net profit under standard accounting rules hit $5.68 billion, largely because of a $6.63 billion one-time accounting gain tied to deconsolidating Quantinuum, Honeywell's quantum computing venture, a separate transaction from the aerospace spin-off, not from the actual operating business doing better.
That raises a real question. Is this a genuinely strong first quarter as a standalone firm, or does the messy, one-time nature of a spinoff quarter make it hard to tell what Honeywell Technologies (NASDAQ:HON) actually looks like going forward?
All three of Honeywell's remaining automation segments grew organically, and orders for the standalone business overall grew 16%, with backlog reaching about $20 billion. Building Automation was the standout, with organic sales up 9% and orders up 13%, driven by strong demand from data centers and hotels. Industrial Automation grew sales 4% organically on strong demand for sensing and measurement equipment. Process Automation, the one segment with sales down slightly this quarter, actually saw orders surge 24%, with Middle East orders alone up more than 50% on refurbishment projects, and management expects a "sharp inflection" in that segment's growth starting in the third quarter. Kapur said the results reflect a "year-plus long process to simplify our business," and that the benefits are already showing up.
#automation #technologies #year #business
Since the aerospace spinoff only finished right at the end of the quarter, this report still includes some of Honeywell Aerospace's results mixed in, which makes straight comparisons tricky. Total revenue, including that leftover aerospace piece, came in at $9.72 billion, up 4% from a year ago and beating the roughly $9.5 billion **** ysts expected. Strip aerospace back out, and revenue for just the automation business was $5.19 billion, up 3%, beating the $5.02 billion Wall Street had modeled specifically for the smaller, standalone company.
On profit, adjusted earnings per share, including the leftover aerospace results came in at $4.52, actually down 4% from $4.72 a year earlier. On a standalone basis without aerospace, adjusted earnings were $1.95 a share, up 10% from $1.77 a year ago and beating the $1.82 **** ysts expected for the new, smaller Honeywell Technologies. There was also a one-time boost: net profit under standard accounting rules hit $5.68 billion, largely because of a $6.63 billion one-time accounting gain tied to deconsolidating Quantinuum, Honeywell's quantum computing venture, a separate transaction from the aerospace spin-off, not from the actual operating business doing better.
That raises a real question. Is this a genuinely strong first quarter as a standalone firm, or does the messy, one-time nature of a spinoff quarter make it hard to tell what Honeywell Technologies (NASDAQ:HON) actually looks like going forward?
All three of Honeywell's remaining automation segments grew organically, and orders for the standalone business overall grew 16%, with backlog reaching about $20 billion. Building Automation was the standout, with organic sales up 9% and orders up 13%, driven by strong demand from data centers and hotels. Industrial Automation grew sales 4% organically on strong demand for sensing and measurement equipment. Process Automation, the one segment with sales down slightly this quarter, actually saw orders surge 24%, with Middle East orders alone up more than 50% on refurbishment projects, and management expects a "sharp inflection" in that segment's growth starting in the third quarter. Kapur said the results reflect a "year-plus long process to simplify our business," and that the benefits are already showing up.
#automation #technologies #year #business
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