Honeywell International Inc. reported significant financial performance for the second quarter and first half of 2026, with net sales reaching $9.719 billion for the quarter, a 4% increase from $9.322 billion in the same period of 2025. For the first half of 2026, net sales totaled $18.862 billion, up from $18.247 billion year-over-year. The company’s net income from continuing operations was $5.686 billion for the second quarter, compared to $1.569 billion in the prior year, while net income for the first half was $6.481 billion, up from $3.036 billion. Earnings per share from continuing operations for the second quarter were $17.92, a substantial increase from $4.35 in the same quarter of 2025.
The company experienced notable changes in its financial metrics compared to the previous fiscal period, particularly in its cost structure. The cost of products sold increased to $4.205 billion in the second quarter from $3.947 billion a year earlier, while service costs rose to $1.861 billion from $1.711 billion. Despite these increases, Honeywell's gross margin percentage decreased slightly to 37.6% from 39.3% year-over-year. The company attributed the rise in costs to higher direct and indirect material costs and labor expenses, which were partially offset by increased pricing strategies.
Strategically, Honeywell completed the Aerospace Spin-Off on June 29, 2026, separating its Aerospace Technologies business into an independent publicly traded company. This move is expected to enhance the focus and growth potential of both Honeywell Technologies and Honeywell Aerospace. Following the spin-off, Honeywell Technologies now operates through three reportable segments: Building Automation, Process Automation and Technology, and Industrial Automation. Additionally, the company acquired Johnson Matthey’s Catalyst Technologies business for $1.75 billion, further expanding its capabilities in the Process Automation and Technology segment.
Operationally, Honeywell reported a backlog of orders amounting to $38 billion as of June 30, 2026, reflecting a 12% increase from the previous year. This backlog indicates a strong demand for Honeywell's products and services across its segments. The company also noted a significant equity loss of $265 million related to its investment in Quantinuum following its deconsolidation. The total employee headcount remained stable, with over 50,000 employees contributing to the company's operations.
Looking ahead, Honeywell Technologies expressed cautious optimism regarding its future performance, acknowledging ongoing macroeconomic challenges, including inflation and geopolitical tensions. The company is focused on managing supply chain risks and maintaining operational efficiency while pursuing growth opportunities through strategic acquisitions and divestitures. Honeywell's management remains committed to enhancing shareholder value and adapting to evolving market conditions as it navigates the post-spin-off landscape.
About HONEYWELL INTERNATIONAL INC
Honeywell International Inc. is a diversified technology and manufacturing company focused on automation, aerospace, and energy solutions. Its key offerings include aerospace technologies, industrial automation systems, building management solutions, and energy sustainability products. With a robust market opportunity driven by megatrends, Honeywell targets various industries globally. The company is actively pursuing strategic divestitures and spin-offs to enhance operational focus and drive innovation, including plans to separate its Automation and Aerospace segments.
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