MORRISTOWN (dpa-AFX) - Honeywell Technologies (HON), a pure-play automation company, reported Thursday a sharp drop in net profit in its third quarter mainly on the absence of a prior year gain, while operating income climbed from last year. Further, the firm raised fiscal 2026 outlook.
In the pre-market activity on Nasdaq, Honeywell shares were losing around 0.34 percent, trading at $214.00.
Chairman and Chief Executive Officer Vimal Kapur, stated, 'Honeywell Technologies delivered strong results across the business in our first quarter as a standalone company. Continued momentum across all three segments, together with our improving position in high-growth verticals, translated to 7 percent organic sales growth, above the three-year target set at our June Investor Day.'
In the third quarter, net income attributable to the company plunged to $664 million or $2.08 per share from last year's $1.825 billion or $5.71 per share.
Net income from continuing operations was $779 million or $2.40 per share, down from $954 million or $2.99 per share a year ago.
The prior year result included a one-time gain from the Resideo termination agreement.
Adjusted earnings per share were $2.27, compared to $1.70 last year, driven by organic sales growth, higher segment profit, and lower net interest expense.
Operating income increased 79 percent, and segment profit increased 23 percent driven by productivity. Operating margin of 14.8 percent increased 640 basis points.
The company reported third-quarter sales of $4.99 billion, up 1 percent from $4.93 billion a year ago. Organic sales growth was 7 percent.
Looking ahead, for fiscal 2026, Honeywell Technologies now expects adjusted earnings per share in the range of $8.40 - $8.45, up 30 percent - 31 percent from last year, representing a $0.23 increase from the midpoint of its previous guidance range.
The company previously expected adjusted earnings per share of $8.05 to $8.35, up 25 percent to 29 percent from last year.
The company now expects full-year sales of $20.0 billion to $20.1 billion with organic sales growth of 4 percent to 5 percent, and 5 percent to 6 percent organic growth in the fourth quarter.
Honeywell previously expected sales of $19.8 billion to $20.0 billion for the full year with organic sales growth of 3 percent to 4 percent
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