Honeywell reported a modest rise in first-quarter revenue as higher prices, new product rollouts and strong demand in its Building and Industrial Automation operations helped offset cost pressures.
For the quarter ended March 31, total sales rose 2% from the prior year to $9.14 billion. Adjusted earnings increased 11%, reaching $2.45 per share. Company executives cited higher pricing and the accelerated removal of stranded costs tied to the planned spin-off of Honeywell Aerospace as more than offsetting inflationary headwinds.
The company is advancing a multi-part split of its broad conglomerate into three independent businesses focused on automation, aerospace and advanced materials. As part of that transition, Honeywell has carried out multiple divestitures to trim its business footprint ahead of the three-way separation.
On Thursday, Honeywell announced the sale of its Warehouse and Workflow Solutions business in an all-cash transaction to American Industrial Partners. The company also completed an all-cash agreement last week to sell its productivity solutions and services unit to industrial equipment maker Brady for $1.4 billion.
Management now expects the spin-off of Honeywell Aerospace to be completed on June 29, 2026.
While some segments showed strength, others faced disruption. The Process Automation and Technology segment posted a 6% decline in sales from a year earlier. Honeywell said that war-related disruptions in the Middle East hurt that business through aftermarket declines tied to shipment and upgrade delays, flat project activity where liquefied natural gas strength was offset by automation delays, and an overall slowdown in regional activity.
The Aerospace Technologies segment, Honeywell’s largest, recorded growth in quarterly sales and a 6% increase in orders versus the prior year.
Honeywell noted the broader backdrop for U.S. manufacturers remains inflationary, with higher raw material and energy costs exacerbated by the ongoing Middle East conflict. The company had warned last month that shipment disruptions into the region could push some revenue it expected to recognize in the first quarter later into the year, even if end-customer demand itself remained intact.
Overall, Honeywell described its first-quarter results as a mix of pricing benefits, product momentum and targeted cost reductions that, together with portfolio moves, supported performance amid persistent inflationary and geopolitical pressures.