Honeywell Technologies, a global automation and technology company, raised its full-year 2026 guidance following a strong third quarter, executives said on an earnings call Thursday.
“We surpassed our expectations across most metrics and we see encouraging demand signals in many key end markets,” CEO Vimal Kapur said on the call.
The company’s year-over-year sales growth was driven by 8% growth in Building Automation and 16% growth in Process Automation and Technology, but partially offset by a sales decline in Industrial Automation.
Honeywell Technologies spun off its aerospace operations in late June to focus solely on becoming an industrial automation solutions provider in the era of physical artificial intelligence. It also divested Solstice Advanced Materials, a maker of specialty chemicals, refrigerants and other materials, in October 2025.
“We delivered 7% organic sales growth above the high end of the targets we unveiled at Investor Day in June,” Kapur said. The company reported a mix of standard and adjusted Q3 numbers to account for the impact of the spinoffs relative to last year, often referring to adjusted as organic.
“Demand across the portfolio was broad-based, which drove short-cycle orders growth of 8% excluding our divestures, led by industrial and building automation,” he added.
He also added that growth is happening in Process Automation and Technology, with the business posting an 8% increase in organic sales over last year. Honeywell Technologies believes that this segment is on a “multi-year” growth trajectory fueled by a robust project backlog and continued global energy investments, Kapur said.
Honeywell Technologies posted operating income of $740 million, up 79% from the same quarter last year. It also saw segment profit of $1.1 billion, up 23% from a year ago. Net income was down from last year due partially to discontinued operations.
Demand
Following its split from Honeywell Aerospace, the company has repositioned itself to better provide automation technologies for growing end markets, such as liquefied natural gas and data centers.
“The key takeaway is that demand remains strong across most of our portfolio,” Kapur said. “We saw growth across our short-cycle business, led by sensing and measurement in industrial automation, and double-digit growth in building automation product businesses. Orders in [the] data center vertical were up over 100%.”
Kapur noted that he continues to see large energy projects across North America, the Middle East, Africa and Asia, which have translated to over $1 billion in process technology orders for Honeywell Technologies since Q1 2026.
“As these facilities come online and operate at [a] high utilization rate, they will drive future demand for catalyst, automation, digital modernization, and lifecycle services,” he said.
Outlook
Honeywell Technologies increased its full-year sales guidance to between $20 billion and $20.1 billion, up from a previous estimate of $19.8 billion to $20 billion.
The company also raised its guidance for adjusted earnings per share, organic growth and free cash flow, as well as tightened its margin guidance around the previous high end, CFO Mike Stepniak said on the earnings call.
Honeywell Technologies plans to lower its gross debt balance from $18 billion in Q2 to under $13 billion by the end of this year, Stepniak said. The company also has an order backlog of $19 billion that it aims to work through in the coming quarters.
