US Top News and Analysis | Honeywell disappoints on quarterly results — but delivers on its breakup plan
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Honeywell reported first‑quarter earnings that missed revenue expectations, with adjusted revenue up 2.4% to $9.1 billion and adjusted EPS rising 10.1% to $2.45, but the results were weighed down by war‑related headwinds in Iran and a supply disruption in its aerospace unit, causing the stock to dip before recovering. The more significant development was the company’s announced breakup strategy: it will sell its Workflow Solutions business to American Industrial Partners in a cash deal expected to close in the back half of 2026, along with the previously announced sale of its Productivity Solutions and Services unit, and it plans to spin off its Aerospace business on June 29, pending board approval. Management believes the divestitures will eliminate the conglomerate discount, creating a pure‑play high‑tech automation company and a separate aerospace and defense entity that could be valued higher. Segment performance showed modest organic growth in Building Automation and Aerospace, while Process Automation declined due to Middle‑East conflict, and Industrial Automation held steady. The outlook for fiscal 2026 remains largely unchanged, with guidance slightly below expectations for the upcoming quarter, but higher pricing and improved productivity are expected to offset inflation pressures. Analysts reiterated a $250 price target and a “Buy” rating, viewing the transformation plan as a value‑creating event for shareholders.
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