Honeywell's Industrial Automation Unit Faces Weak Sales but Shows Signs of Recovery

Industrial Automation Sales Slowdown

Honeywell faces continued weakness in its Industrial Automation segment.
Revenues fell 5% year over year in the second quarter of 2025.
Demand softened in productivity solutions and services due to project delays.
The segment struggles as large project execution shifted to later quarters.

Warehouse and Productivity Businesses Strain

Warehouse and workflow solutions sales slipped 4% year over year.
Delays in major project execution dragged results down.
Productivity solutions sales declined 7% as European demand weakened.
Honeywell continues to battle uncertainty in the manufacturing sector.

Products vs. Services Performance

The products group reported a 7.4% sales decline in the quarter.
The services group remained stable and avoided steep contraction.
Industrial demand slowed as manufacturing activity weakened worldwide.
Honeywell expects low- to mid-single digit sales declines in 2025.

Bright Spots in Other Segments

Honeywell gains strength from its aerospace and building automation units.
Commercial aviation activity continues to boost aerospace performance.
Defense contracts and higher flight hours drive aerospace growth.
Building automation momentum helps offset industrial automation weakness.

Peers Show Mixed Momentum

GE Aerospace sees robust demand for LEAP, GEnx, and GE9X engines.
Commercial engine sales surged 30% year over year in Q2 2025.
Qatar Airways ordered over 400 GE engines, strengthening GE’s backlog.
3M reported solid growth in safety and industrial solutions this year.
Its safety gear, adhesives, and electrical products keep steady demand.

Stock Performance and Outlook

Honeywell shares gained 2.3% in the last six months.
Industry growth trailed at 0.6% in the same period.
Investors weigh industrial weakness against aerospace and building strength.
The recovery outlook depends on project execution and global demand trends.