Honeywell (HON) Stock Forecast & Price Target

Honeywell International reported a substantial 22% year-over-year growth in organic orders during the third quarter of 2025, signaling strong demand across all its business segments, especially in Aerospace and Building Automation. The company's organic sales are projected to rise in the mid-single digits to high-single digits percentage range, bolstered by favorable trends in defense, space sectors, and an improving supply chain. Additionally, the Building Automation segment exhibited significant operational efficiency, with margins expanding by 80 basis points year-over-year, underscoring Honeywell's commitment to productivity enhancements and solidifying its positive financial trajectory.

Honeywell's segment margin has shown a decline, with a year-over-year decrease of 50 basis points to 23.1%, reflecting challenges in maintaining profitability, despite being at the high end of its guidance range. For the third quarter of 2025, the company anticipates a low single-digit percentage organic decline in segment performance, further indicating potential revenue setbacks. Additionally, a 2% year-over-year decline in organic sales within the Energy and Sustainability Solutions segment underscores the challenges Honeywell faces in its efforts to stabilize and grow its market position amidst evolving industry dynamics.