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HON's defense and space sales rose 10%, with high-single-digit 2026 outlook.
Industrial Automation sales fell 8% as long-term debt climbed to $27.1B.
Honeywell International Inc. (HON - Free Report) is witnessing solid momentum in its commercial aviation aftermarket business, driven by solid demand in the air transport market and supply-chain improvements. Organic sales from its commercial aviation aftermarket business increased 13% year over year in fourth-quarter 2025.
Strength in its defense and space business, owing to stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, has also been proving beneficial. In the fourth quarter, organic sales from its defense and space business surged 10% on a year-over-year basis.
For 2026, HON expects organic sales in the Aerospace Technologies segment to be up in the high-single-digit range, driven by continued momentum in both commercial aviation and defense and space businesses.
The company intends to strengthen and expand its businesses through acquisitions. In August 2025, Honeywell acquired three utility platforms from SparkMeter, Inc. The utility platforms acquired are Praxis for data and analytics, GridScan for tracking grid performance and GridFin for managing energy costs and customer rates. The integration of SparkMeter’s grid intelligence technologies with Honeywell Forge Performance+ for utilities will strengthen its smart energy product portfolio.
Also, HON’s acquisition of Nexceris’ Li-ion Tamer business in July 2025 enhanced its fire life safety portfolio under the Building Automation business and expanded its presence across the energy storage and data centers markets. Acquisitions had a contribution of 4% to the company’s sales in 2025.
HON remains focused on rewarding its shareholders through dividend payouts and share repurchases. In 2025, it paid out dividends of $2.98 billion and repurchased shares worth $3.8 billion.
HON’s Price Performance
Image Source: Zacks Investment Research
In the past year, this Zacks Rank #3 (Hold) company’s shares have gained 14.9% compared with the industry’s 12.2% growth.
Despite signs of recovery, Honeywell has been dealing with the adverse impacts of the high cost of sales and operating expenses. In 2025, the company’s cost of sales was up 10.5% year over year. Selling, general and administrative expenses increased 4.1% year over year. Escalating expenses, if not controlled, are likely to hurt the company’s bottom line in the quarters ahead.
High debt levels have also been a concern for HON. It exited 2025 with a long-term debt of about $27.1 billion, higher than $25.4 billion at 2024-end. The increase in its debt level was primarily attributable to the funds raised for acquisitions. Considering its high debt level, its cash and cash equivalents of $12.5 billion do not look impressive.
Nordson delivered a trailing four-quarter average earnings surprise of 2.5%. In the past 60 days, the Zacks Consensus Estimate for NDSN’s fiscal 2026 earnings has increased 1.4%.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank of 2. Parker-Hannifin delivered a trailing four-quarter average earnings surprise of 6.8%. In the past 60 days, the consensus estimate for PH’s 2026 earnings has increased 2.3%.
RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 5.3%. In the past 60 days, the consensus estimate for RBC’s fiscal 2026 earnings has increased 4.6%.
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Here's Why You Should Retain Honeywell Stock in Your Portfolio
Key Takeaways
Honeywell International Inc. (HON - Free Report) is witnessing solid momentum in its commercial aviation aftermarket business, driven by solid demand in the air transport market and supply-chain improvements. Organic sales from its commercial aviation aftermarket business increased 13% year over year in fourth-quarter 2025.
Strength in its defense and space business, owing to stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, has also been proving beneficial. In the fourth quarter, organic sales from its defense and space business surged 10% on a year-over-year basis.
For 2026, HON expects organic sales in the Aerospace Technologies segment to be up in the high-single-digit range, driven by continued momentum in both commercial aviation and defense and space businesses.
The company intends to strengthen and expand its businesses through acquisitions. In August 2025, Honeywell acquired three utility platforms from SparkMeter, Inc. The utility platforms acquired are Praxis for data and analytics, GridScan for tracking grid performance and GridFin for managing energy costs and customer rates. The integration of SparkMeter’s grid intelligence technologies with Honeywell Forge Performance+ for utilities will strengthen its smart energy product portfolio.
Also, HON’s acquisition of Nexceris’ Li-ion Tamer business in July 2025 enhanced its fire life safety portfolio under the Building Automation business and expanded its presence across the energy storage and data centers markets. Acquisitions had a contribution of 4% to the company’s sales in 2025.
HON remains focused on rewarding its shareholders through dividend payouts and share repurchases. In 2025, it paid out dividends of $2.98 billion and repurchased shares worth $3.8 billion.
HON’s Price Performance
Image Source: Zacks Investment Research
In the past year, this Zacks Rank #3 (Hold) company’s shares have gained 14.9% compared with the industry’s 12.2% growth.
Despite signs of recovery, Honeywell has been dealing with the adverse impacts of the high cost of sales and operating expenses. In 2025, the company’s cost of sales was up 10.5% year over year. Selling, general and administrative expenses increased 4.1% year over year. Escalating expenses, if not controlled, are likely to hurt the company’s bottom line in the quarters ahead.
High debt levels have also been a concern for HON. It exited 2025 with a long-term debt of about $27.1 billion, higher than $25.4 billion at 2024-end. The increase in its debt level was primarily attributable to the funds raised for acquisitions. Considering its high debt level, its cash and cash equivalents of $12.5 billion do not look impressive.
Key Picks
Some better-ranked stocks are discussed below:
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nordson delivered a trailing four-quarter average earnings surprise of 2.5%. In the past 60 days, the Zacks Consensus Estimate for NDSN’s fiscal 2026 earnings has increased 1.4%.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank of 2. Parker-Hannifin delivered a trailing four-quarter average earnings surprise of 6.8%. In the past 60 days, the consensus estimate for PH’s 2026 earnings has increased 2.3%.
RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 5.3%. In the past 60 days, the consensus estimate for RBC’s fiscal 2026 earnings has increased 4.6%.