Honeywell 2025 Second Quarter Earnings Preview

Market Expectations   

TradingKey - Honeywell is expected to release its Q2 2025 earnings report before the market opens on Thursday, July 24, 2025. Below are the market expectations for Honeywell's Q2 revenue and earnings per share (EPS):

· Revenue Expectation: Honeywell's total revenue for Q2 2025 is projected to reach $10.02 billion, representing a 4.59% increase compared to $9.58 billion in Q2 2024.

· EPS Expectation: Honeywell's earnings per share (EPS) for Q2 2025 is anticipated to be $2.64, reflecting a 6.02% growth from $2.49 in Q2 2024.

Key Investor Focus Areas

Business Separation Progress: Honeywell announced its plan to split into three independent publicly traded companies in 2024, separating its automation and aerospace technology businesses. Investors should focus on the upcoming earnings report for any updates on the separation timeline, financial impacts, or operational adjustments, as this strategy could significantly influence valuation and future growth.

Key Segment Performance: The Q1 2025 earnings report highlighted strong performance in the Aerospace Technologies and Building Technologies segments, with organic sales growth of 9% and 8%, respectively. Expectations for Q2 remain positive for these segments, and investors should monitor whether this momentum can be sustained.

Risk Management and Global Uncertainty: Honeywell faces challenges from tariff policies and global demand uncertainty. In its Q1 guidance, the company estimated a tariff-related impact of approximately $500 million. To mitigate this, Honeywell plans to implement price adjustments and advance localization strategies. Investors should closely monitor the earnings call for updates on the tariff impact and management’s strategies to address global uncertainties, providing deeper insight into the company’s risk management approach and future outlook.

Backlog and Order Trends: Backlog orders, a key indicator of future revenue, grew by 8% year-over-year in Q1. Investors should pay attention to Q2’s updated backlog figures and new order growth trends to assess whether demand remains robust.

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