Honeywell (HON) Stock Forecast & Price Target

Honeywell International has demonstrated strong financial performance, with organic orders growing by 22% year-over-year in the third quarter of 2025, indicating broad-based strength across all segments, particularly in Aerospace and Building Automation. Organic sales are anticipated to rise in the mid-single digits to high-single digits percentage range, bolstered by robust demand in defense and space sectors, along with improvements in supply chain efficiency. Additionally, Building Automation margins have shown significant improvement, expanding by 80 basis points year-over-year in 3Q25, driven by increased volume leverage and operational productivity enhancements.

Honeywell's recent financial performance reflects a concerning trend, as segment margins across its various business lines have declined, with a notable decrease of -50 basis points year-over-year, settling at 23.1%. Additionally, the company anticipates a low-single-digit organic decline in segment sales for the third quarter of 2025, further underscoring potential headwinds in revenue generation. The industrial automation segment is particularly troubling, with expected declines between low-single-digit to mid-single-digit percentages, indicating challenges in maintaining growth momentum within this critical area of its operations.