Why Honeywell Tech's Earnings Beat Is Weighing on Aerospace Shares -- Barrons.com

By Al Root

The newly independent Honeywell Technologies reported solid quarterly earnings. With the separation of Honeywell Aerospace now complete, investors can zero in on each company's fundamentals.

Thursday morning, the automation technology provider reported adjusted second-quarter earnings per share of $1.95, excluding the aerospace business, from sales of $5.2 billion, up 4% year over year on a comparable basis. Wall Street was looking for earnings per share of $1.82 from sales of $5 billion.

Building automation sales grew 9% on a comparable basis. Industrial automation sales grew 4%. Process automation sales dropped 1%.

Orders rose 16%, faster than sales.

Looking ahead, the company expects to report earnings per share of about $8.20 from sales of about $19.9 billion. Earnings per share guidance was raised by a dime.

Wall Street currently projects earnings per share of $8.28 from sales of $20.2 billion. Wall Street estimates, however, have been adjusting for the separation of Honeywell Aerospace, which was completed on June 29.

Honeywell Technologies stock jumped 5.7%, closing at $246.27, while the S&P 500 lost 1.2%.

What's good for Honeywell Technologies might not be so good for Honeywell Aerospace. Since the two companies were together for most of the quarter, Technologies' earnings release essentially includes results for both companies. Excluding the automation business. Honeywell Aerospace generated sales of about $4.5 billion and operating profit of $1.1 billion.

Aerospace will report earnings on August 5. Numbers could be a little different. They look OK, though. Wall Street projects second-quarter sales of $4.6 billion and operating profit of $1.1 billion.

Honeywell Aerospace stock dropped 5.7%, closing at $195.87.

Sales might be light, but investors might want to hear about any small changes or hiccups associated with the spin.

Through Thursday trading, Honeywell Aerospace stock was down about $24, from $220, since the spinoff. Technologies shares, on an adjusted basis, were up about $19.

The moves mean that investors who held the old Honeywell before the spin are down about 5%.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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July 23, 2026 16:28 ET (20:28 GMT)