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HON's Building Automation Unit's Growth Picks Up: More Upside Ahead?
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Key Takeaways
Honeywell Technologies grew Building Automation revenues 11% year over year to $1.88 billion in Q1 2026.
HON posted 8% organic sales growth, led by building solutions and building products demand.
Building Automation orders rose 9%, driven by projects, services and strong fire products demand.
Honeywell Technologies (HON - Free Report) is gaining from continued momentum in its Building Automation segment. Rising demand for its products and solutions, driven by increased building activity, particularly in North America, is fueling the segment’s growth. In the first quarter of 2026, the segment’s revenues rose 11% year over year to $1.88 billion, while organic sales increased 8%.
The segment’s strong performance was driven by sustained momentum across both its building solutions and building products businesses. In the first quarter of 2026, sales from the building solutions business increased 8% year over year, supported by healthy demand for energy-efficient and smart building technologies. Sales from the building products business also rose 8%, reflecting solid demand across residential and commercial construction markets.
Rising 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.
The Building Automation segment is poised for sustained growth, supported by healthy order trends, solid demand across its key end markets and ongoing investments in data center and healthcare infrastructure.
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
From a valuation standpoint, HON is trading at a trailing price-to-earnings ratio of 20.90X. Honeywell carries a Value Score of B.
View the Zacks #1 Rank List
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HON's Building Automation Unit's Growth Picks Up: More Upside Ahead?
Key Takeaways
Honeywell Technologies (HON - Free Report) is gaining from continued momentum in its Building Automation segment. Rising demand for its products and solutions, driven by increased building activity, particularly in North America, is fueling the segment’s growth. In the first quarter of 2026, the segment’s revenues rose 11% year over year to $1.88 billion, while organic sales increased 8%.
The segment’s strong performance was driven by sustained momentum across both its building solutions and building products businesses. In the first quarter of 2026, sales from the building solutions business increased 8% year over year, supported by healthy demand for energy-efficient and smart building technologies. Sales from the building products business also rose 8%, reflecting solid demand across residential and commercial construction markets.
Rising 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.
The Building Automation segment is poised for sustained growth, supported by healthy order trends, solid demand across its key end markets and ongoing investments in data center and healthcare infrastructure.
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
From a valuation standpoint, HON is trading at a trailing price-to-earnings ratio of 20.90X. Honeywell carries a Value Score of B.
Honeywell Technologies PE Ratio (TTM)
Honeywell Technologies pe-ratio-ttm | Honeywell Technologies Quote
The Zacks Consensus Estimate for HON’s 2026 earnings has increased a penny 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.