Honeywell's Q2 2025 Report: A Deep Dive into Industrial Automation Trends

Net sales hit $18,492 million. This marks an 8% increase from 2024. Higher pricing fueled this growth. Acquisitions and increased sales volume also contributed. Gross margin reached $7,184 million. This is about a $0.6 billion increase. The gross margin percentage was 38.7%. This is a slight dip from 38.8% in 2024.

Honeywell's net income was $3,019 million. Earnings per share rose. This reflects higher segment profit. A lower effective tax rate helped too. Higher segment profit boosted earnings per share by $0.40. However, higher interest charges reduced this. Divestiture costs also offset gains.

Business Segment Performance

Aerospace Technologies saw an 11% sales jump. Organic sales drove this in Defense and Space. Commercial Aviation Aftermarket also grew. Acquisitions of CAES and Civitanavi Systems added to sales.

Industrial Automation sales dropped 5%. This was mainly due to the PPE business divestiture.

Building Automation sales surged 16%. Strong demand for Products fueled this. The Access Solutions acquisition also contributed.

Energy and Sustainability Solutions sales grew 15%. Higher organic sales in UOP were key. LNG and Sundyne acquisitions added to this segment's growth.

Future Outlook

Honeywell plans a major portfolio transformation. They will spin off Advanced Materials. This new company, Solstice Advanced Materials, launches by Q4 2025. They also plan to separate Automation and Aerospace Technologies. These become independent companies by late 2026.

Honeywell is exploring other strategic options. This includes Productivity Solutions and Services. They are also reviewing Warehouse and Workflow Solutions. These moves will simplify the portfolio. They aim to boost shareholder value.