Honeywell International reported higher quarterly revenue and profit for the fourth quarter of 2025, driven largely by sustained demand in its aerospace unit and related aftermarket services, the company announced.
Overall sales for the quarter rose to approximately $10.1 billion, up about 10% year over year and above analyst estimates, according to company filings. Adjusted earnings per share came in at $2.59, beating an expected $2.54.
Honeywell’s industrial conglomerate has faced cost and global trade pressures, but its aerospace segment continued to perform strongly, with sales increasing about 13.4% to $4.52 billion in the fourth quarter. Airlines and operators have kept aircraft in service longer amid delivery delays, boosting demand for parts, maintenance, and repair services and reinforcing the aerospace unit’s high-margin aftermarket business.
The results capped a constructive year for Honeywell as the company continued advancing a major restructuring plan to separate into three independent businesses focused on automation, aerospace, and advanced materials. The separation of the automation and aerospace units is now expected to be completed by the third quarter of 2026, earlier than previously indicated.
Once separated, Honeywell Aerospace will emerge as a standalone company centered on avionics, propulsion, aircraft systems, and services. The business includes flight decks and avionics systems, navigation and communication equipment, weather radar, auxiliary power units, small turbofan and turboprop engines, environmental control systems, wheels and brakes, and a large global aftermarket operation that provides parts, maintenance, and software upgrades. Much of the aerospace unit’s leadership and operations are already based in Phoenix, Arizona, which is expected to serve as the company’s headquarters following the spin-off.
Honeywell’s broader 2025 results also reflected solid demand across building technologies and services, helping offset softer performance in some industrial areas. Orders grew sharply, with the company reporting backlog above $37 billion and organic order growth of roughly 23% year over year.
Looking ahead, Honeywell forecast 2026 revenue of $38.8 billion to $39.8 billion and adjusted earnings per share between $10.35 and $10.65, roughly in line with or slightly above consensus expectations. The outlook assumes continued momentum in aerospace and automation demand, along with free cash flow growth of $5.3 billion to $5.6 billion.
The company also reiterated plans to pursue the sale of certain transportation and logistics businesses in the first half of 2026 as part of its continued shift toward higher-growth, higher-margin operations.
