Honeywell generated $9.14 billion in Q1 sales, up 2% year-over-year, driven by pricing actions and new product introductions. Orders increased 7% organically, pushing backlog to $38.3 billion. Reported EPS of $1.29 declined 35% due to separation charges, while adjusted EPS rose 11% to $2.45. Operating margin contracted to 16.1% from 19.3%, and operating cash flow was negative $650 million, leading to free cash flow of $56 million.

Aerospace Technologies sales grew 4% to $4.32 billion, with a 26.5% margin. Building Automation posted 11% sales growth to $1.88 billion and a 26.4% margin. Process Automation and Technology reached $1.51 billion in sales, up 5%, with a 23.7% margin, while Industrial Automation sales fell 11% to $1.42 billion but margin expanded to 17.0%.

The sale of Warehouse and Workflow Solutions to American Industrial Partners and the previously announced Productivity Solutions and Services divestiture are expected to close in the second half of 2026. These all-cash transactions conclude Honeywell’s multi-year portfolio transformation and are intended to streamline operations ahead of the Aerospace separation.

Honeywell plans to complete the Aerospace spin-off on June 29, 2026, subject to final board approval and customary closing conditions. The separation is designed to create an independent aerospace leader, accelerating cost takeout and positioning both the new aerospace and automation businesses for focused growth.