Honeywell (HON) Stock Forecast & Price Target

Honeywell International has demonstrated strong financial performance, with organic orders increasing by 22% year-over-year in the third quarter of 2025, reflecting significant growth across all business segments, particularly in Aerospace and Building Automation. The company's organic sales in this quarter are projected to rise by a range of mid-single to high-single digits, driven by robust demand in the defense and space sectors alongside enhanced supply chain efficiencies. Additionally, Building Automation margins showcased a notable expansion of 80 basis points year-over-year, highlighting the effectiveness of volume leverage and operational productivity enhancements.

Honeywell International has reported a decline in segment margins, with a year-over-year drop of 50 basis points to 23.1%, which, despite being slightly above estimates, signals potential challenges in profitability. The company anticipates a low-single-digit percentage organic decline in its segments for 3Q25, suggesting ongoing struggles in revenue generation across key areas such as industrial automation and energy solutions. Furthermore, organic sales within the energy and sustainability solutions segment declined by 2% year-over-year, reflecting alignment with management’s expectations but underscoring concerns over future growth prospects.