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Strength in HON's Building Automation Unit Seems Firm: What's Next?
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Key Takeaways
Honeywell's Building Automation revenues rose 11% year over year to $1.88 billion in Q1 2026.
HON delivered 8% organic sales growth, with both building solutions and products up 8%.
HON reported 9% order growth, aided by data center, healthcare and fire product demand.
Honeywell International Inc. (HON - Free Report) continues to benefit from sustained strength in its Building Automation segment, which has become a major growth driver for it. Solid demand for its products and solutions, led by increasing building projects, particularly in North America, is supporting the segment’s revenues. The segment’s revenues totaled $1.88 billion, up 11% year over year in the first quarter of 2026. Its organic sales increased 8% year over year in the same period.
The upside was driven by ongoing strength in both the building solutions and building products businesses. While sales from the building solutions business grew 8%, the same from the building products business also increased 8% in the first quarter.
Increasing order rates and capex investments in data centers and health care projects also bode well for the segment. The Building Automation segment reported strong order growth of 9% in the first quarter, driven by double-digit increases in projects, services and strong demand for fire products.
With healthy order trends, robust demand across key end markets and continued investment in data center and healthcare infrastructure, the Building Automation segment is well-positioned to sustain its growth momentum in the coming quarters.
Segmental Snapshot of HON’s Peers
Among HON’s major peers, 3M Company (MMM - Free Report) is poised to gain from solid momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for 3M’s electrical infrastructure products, like medium voltage cable accessories and insulation tapes, augurs well for the segment in the quarters ahead. Revenues from 3M’s Safety and Industrial segment grew 6.8% year over year in the first quarter of 2026.
Honeywell’s another peer, Carlisle Companies Incorporated’s (CSL - Free Report) Carlisle Construction Materials segment, is plagued by lower commercial new construction activity. Volume declines owing to adverse winter weather conditions are also adversely affecting Carlisle’s segment. Revenues from Carlisle’s unit decreased 5.1% year over year in the first quarter of 2026.
HON's Price Performance, Valuation and Estimates
Shares of Honeywell have gained 13.4% in the past six months against the industry’s decline of 1.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 19.99X, above the industry’s average of 15.23X. Honeywell carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HON’s 2026 earnings has increased 1.1% over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Strength in HON's Building Automation Unit Seems Firm: What's Next?
Key Takeaways
Honeywell International Inc. (HON - Free Report) continues to benefit from sustained strength in its Building Automation segment, which has become a major growth driver for it. Solid demand for its products and solutions, led by increasing building projects, particularly in North America, is supporting the segment’s revenues. The segment’s revenues totaled $1.88 billion, up 11% year over year in the first quarter of 2026. Its organic sales increased 8% year over year in the same period.
The upside was driven by ongoing strength in both the building solutions and building products businesses. While sales from the building solutions business grew 8%, the same from the building products business also increased 8% in the first quarter.
Increasing order rates and capex investments in data centers and health care projects also bode well for the segment. The Building Automation segment reported strong order growth of 9% in the first quarter, driven by double-digit increases in projects, services and strong demand for fire products.
With healthy order trends, robust demand across key end markets and continued investment in data center and healthcare infrastructure, the Building Automation segment is well-positioned to sustain its growth momentum in the coming quarters.
Segmental Snapshot of HON’s Peers
Among HON’s major peers, 3M Company (MMM - Free Report) is poised to gain from solid momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for 3M’s electrical infrastructure products, like medium voltage cable accessories and insulation tapes, augurs well for the segment in the quarters ahead. Revenues from 3M’s Safety and Industrial segment grew 6.8% year over year in the first quarter of 2026.
Honeywell’s another peer, Carlisle Companies Incorporated’s (CSL - Free Report) Carlisle Construction Materials segment, is plagued by lower commercial new construction activity. Volume declines owing to adverse winter weather conditions are also adversely affecting Carlisle’s segment. Revenues from Carlisle’s unit decreased 5.1% year over year in the first quarter of 2026.
HON's Price Performance, Valuation and Estimates
Shares of Honeywell have gained 13.4% in the past six months against the industry’s decline of 1.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 19.99X, above the industry’s average of 15.23X. Honeywell carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HON’s 2026 earnings has increased 1.1% over the past 60 days.
Image Source: Zacks Investment Research
Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.