Honeywell Reports Strong Q4 and $38.5 Billion Annual Revenue with Major Business Split Planned

Honeywell has released its financial results for the fourth quarter and the full year of 2024, achieving metrics that either met or exceeded the company's updated annual guidance. The company also provided its outlook for 2025 and announced the completion of a comprehensive business portfolio review initiated a year ago by Chairman and CEO Vimal Kapur, which will lead to a complete split of its automation and aerospace businesses.

In the fourth quarter, Honeywell reported sales of $10.1 billion, reflecting a 7% year-over-year increase. Organic sales grew by 2%, and excluding the impact of the Bombardier agreement, organic sales rose by 6%, with building solutions experiencing double-digit growth. Despite ongoing macroeconomic challenges, Honeywell's backlog increased by 11% to a record $35.3 billion. The company’s earnings per share (EPS) for the fourth quarter were $1.96, a 3% increase year-over-year. Adjusted EPS was $2.47, down 8%, but exceeded previous expectations; when excluding the Bombardier impact, EPS grew by 9%. Operating income rose by 10%, with operating margin increasing by 50 basis points to 17.3%. However, segment profit fell by 8% to $2.1 billion, with a segment margin decrease of 350 basis points to 20.9%.

For the full year, Honeywell achieved sales of $38.498 billion, a 5% year-over-year increase, with organic sales rising by 3% (4% when excluding Bombardier). Operating income also grew by 5%, while segment profit increased by 1%. The company reported an annual EPS of $8.71, up 3%, with adjusted EPS rising 4% to $9.89.

Vimal Kapur stated, “We closed a successful year in a changing operational environment, exceeding guidance for both sales and adjusted EPS in Q4. In 2024, we made significant progress in optimizing Honeywell's portfolio, announcing strategic acquisitions and completing $9 billion in capital deployment. We are positioned to create more value for our shareholders, customers, and employees through the establishment of three independent companies, each pursuing its growth strategy.”

In 2025, Honeywell expects sales between $39.6 billion and $40.6 billion, with organic sales growth projected between 2% and 5%. Segment margins are anticipated to rise by 60 to 100 basis points, with adjusted EPS expected to be between $10.10 and $10.50. Operating cash flow is projected to be between $6.7 billion and $7.1 billion, while free cash flow is expected to be between $5.4 billion and $5.8 billion.

Additionally, Honeywell confirmed the completion of its comprehensive portfolio review, deciding to separate its automation and aerospace businesses. This move, alongside the previously announced split of its high-performance materials segment, will result in three publicly traded companies with distinct strategies and growth drivers, expected to be completed in the second half of 2026 in a tax-free manner for Honeywell shareholders.