Honeywell Reports 8% Revenue Growth to $10.35 Billion in Q2 2025

Honeywell International Inc. reported a notable increase in its financial performance for the second quarter of 2025, with net sales reaching $10.35 billion, a 8% increase from $9.58 billion in the same period last year. The company's net income attributable to Honeywell was $1.57 billion, or $2.45 per diluted share, compared to $1.54 billion, or $2.36 per diluted share, in the prior year. This growth was driven by higher sales volumes, increased pricing, and contributions from recent acquisitions, including Sundyne and the anticipated acquisition of Johnson Matthey's Catalyst Technologies business.

In comparison to the previous fiscal period, Honeywell's revenue from product sales rose to $7.12 billion from $6.48 billion, while service sales increased to $3.23 billion from $3.10 billion. The company's gross margin remained stable at 38.9%, reflecting effective cost management despite rising material and labor costs. Research and development expenses also increased, reflecting Honeywell's commitment to innovation, particularly in its Aerospace Technologies segment.

Strategically, Honeywell has been active in reshaping its portfolio. The company completed the divestiture of its personal protective equipment (PPE) business for $1.16 billion and announced plans to spin off its Advanced Materials business into a standalone entity, Solstice Advanced Materials, expected to be completed in late 2025. Additionally, Honeywell is pursuing a separation of its Automation and Aerospace Technologies businesses into independent publicly traded companies, targeted for completion in 2026. These moves are part of Honeywell's strategy to streamline operations and enhance shareholder value.

Operationally, Honeywell's backlog of orders increased by 14% to $36.6 billion as of June 30, 2025, indicating strong demand across its segments. The Aerospace Technologies segment saw a significant rise in sales, driven by increased shipments in defense and space, while the Building Automation segment reported a 16% increase in net sales, attributed to higher demand and contributions from recent acquisitions. The company’s employee headcount remained stable, reflecting ongoing efforts to optimize workforce efficiency amid restructuring initiatives.

Looking ahead, Honeywell's management remains cautious about macroeconomic conditions, including inflationary pressures and geopolitical uncertainties that could impact supply chains. The company is focused on executing its strategic initiatives while maintaining operational flexibility. Honeywell anticipates continued growth in net sales and profitability, supported by its robust backlog and ongoing investments in innovation and technology.