Why Honeywell Stock Is Up Today

Source The Motley Fool

Honeywell International (NASDAQ: HON) reported first-quarter earnings that topped expectations and the company raised its full-year profit forecast. Investors were pleased, sending Honeywell shares up 5% as of 10:30 am ET.

Strong results in a tough market

Honeywell, an industrial conglomerate focused on aerospace, automation, and energy, earned $2.51 per share in the first quarter on revenue of $9.8 billion, topping Wall Street's expectation for $2.21 per share in earnings on sales of $9.6 billion. Earnings were up 7% year over year, while revenue was up 8% including acquisitions.

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The company's backlog grew by 8%, led by strength in its building automation and energy units.

Though Honeywell is feeling the pinch from tariffs and economic uncertainty, the company is growing more optimistic about its full-year performance. Honeywell said it is maintaining its full-year growth guidance, and raising its earnings outlook slightly based on the net impact of tariffs and its efforts to mitigate levies.

"Though we have not yet seen it in our results, we recognize we face an uncertain global demand environment for the remainder of 2025, and our company will work tirelessly, leveraging all tools available to us, to deliver for customers and shareholders," CEO Vimal Kapur said in a statement.

Is Honeywell stock a buy?

In a quarter where many CEOs are backing off guidance due to uncertainty, Honeywell's bullishness on full-year results stands out. The company believes it will face about $500 million in tariff exposure, but hopes to fully offset it via pricing and other means.

Honeywell is operating well, but investors need to be aware that the company is planning to separate into three more streamlined businesses by the end of 2026. If all goes to plan, those buying in now will eventually own shares of stand-alone aerospace, automation, and advanced materials businesses.

If all three units are of interest, this could be a great time to buy.

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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