Honeywell International Inc. reported financial results for the third quarter of 2026, announcing a sales figure of $5.0 billion. This represents a 1% increase in reported sales and a 7% increase in organic sales growth compared to the prior year. The company stated that this growth was driven by broad-based strength across all three segments, pricing actions, and continued demand in key end markets.
Operating income for the quarter increased by 79% to $740 million, resulting in an operating margin of 14.8%, which is up 640 basis points. Segment profit rose by 23% to $1.062 billion, with a segment margin of 21.3%, an expansion of 370 basis points. Earnings per share (EPS) for continuing operations were reported at $2.40, a decrease of 20% compared to the prior year, primarily due to a one-time gain recorded in the previous year. Adjusted EPS, which excludes one-time items, increased by 34% year over year to $2.27.
The company reported operating cash flow of $607 million and free cash flow of $688 million. Free cash flow conversion was reported at 95%. Backlog increased by 7% year over year to nearly $19 billion, excluding the Warehouse and Workflow Solutions and Productivity Solutions and Services divestitures.
Regarding segment performance, Building Automation sales grew 8% organically to $2.020 billion, with a segment margin of 27.0%. Process Automation and Technology sales increased 8% organically to $1.859 billion, while Industrial Automation sales grew 4% organically to $1.115 billion.
Guidance for the full year 2026 has been raised. The company now expects full-year sales of $20.0 billion to $20.1 billion, representing organic sales growth of 4% to 5%. The company expects segment margin to be approximately 20.5%, at the upper end of its previous guidance range. Adjusted EPS is expected to be $8.40 to $8.45, and free cash flow is expected to be approximately $2.1 billion.
