Honeywell's Industrial Automation Weakness Persists: Road Ahead

Industrial Automation Struggles Continue

Honeywell International Inc. HON faces ongoing challenges in its Industrial Automation segment.
In Q2 2025, segment sales dropped 5% year over year.
Organic sales stayed flat, showing no real momentum.
Earlier in Q1, revenue slipped 4% year over year.

Warehouse and Workflow Remain Soft

Warehouse and workflow solutions keep weighing on performance.
Large project timing delayed execution, slowing sales growth.
In Q2, this business unit posted a 4% decline.

Productivity Solutions Decline in Europe

Productivity solutions also faced pressure in Europe.
Weak demand in the region reduced service growth.
Sales in this unit fell 7% year over year.
Lower license and settlement payments added more strain.

2025 Outlook Stays Weak

Honeywell expects Industrial Automation organic sales to fall.
Management forecasts low to mid-single-digit declines for 2025.

Bright Spots in Aerospace and Buildings

Aerospace Technologies showed strong growth in Q2.
Commercial aviation aftermarket boosted sales significantly.
Defense and space activity also fueled momentum.
Building Automation benefited from rising construction projects.
Growth in North America, the Middle East, and India supported demand.

Peers Show Different Paths

3M Company MMM gained momentum in transportation and electronics.
In Q2 2025, its segment organic revenues grew 1%.
Demand for aerospace, electronics, and auto solutions fueled growth.
Meanwhile, GE Aerospace GE soared on engine demand.
Its Commercial Engines & Services business grew 30% in Q2.
Strong air traffic and fleet renewals boosted activity.
GE also secured a record deal with Qatar Airways.
The order included 400 GE9X and GEnx engines.