Honeywell (HON) Stock Forecast & Price Target

Honeywell International's financial performance in 3Q25 showcases impressive organic growth, with orders increasing by 22% year-over-year, particularly in Aerospace and Building Automation sectors, contributing to a robust outlook. The organic sales forecast indicates a projected rise in sales by mid-single to high-single digits, fueled by strong demand in defense and space, alongside enhancements in supply chain efficiencies. Additionally, Building Automation margins have shown strong improvement, with an increase of 80 basis points year-over-year, reflecting effective volume leverage and operational productivity enhancements.

Honeywell International has experienced a decline in segment margins, with a year-over-year decrease of 50 basis points to 23.1%, reflecting challenges in profitability despite being at the high end of its guidance range. Furthermore, the company anticipates a low-single-digit organic decline in sales for its segments in the upcoming third quarter of 2025, indicating potential weakness across its diversified business units. These trends, coupled with a 2% year-over-year decline in organic sales within the Energy and Sustainability Solutions segment, contribute to a negative outlook on the company's financial performance.