The News: Honeywell’s revenue rose to $9.15 billion in the second quarter of fiscal year 2023, up 2% from $9 billion YoY, as the diversified building technologies, performance materials, aerospace, defense, and safety/productivity products vendor released its latest earnings results on July 27 for the period ending June 30, 2023. Honeywell’s net income rose 19% in the quarter to $1.5 billion, up from $1.3 billion YoY. See the full Q2 2023 earnings Press Release on the Honeywell Investor web page.
Honeywell Revenue Hits $9.15 Billion in Q2, Raises FY2023 Guidance
Analyst Take: Honeywell’s revenue of $9.15 billion for Q2 2023 is only a modest rise from one year ago, but the results still show continuing sales progress, especially as challenging pandemic-related global macroeconomic conditions for tech and consumer focused companies are finally beginning to ease up.
Here are Honeywell’s revenue and other earnings results for Q2 2023 by the numbers:
- Q2 2023 revenue of $9.15 billion, up 2% from $9 billion YoY; the Q2 revenue figure just missed analyst consensus estimates of $9.17 billion for the quarter from analysts at Investing.com
- Q2 2023 diluted earnings per share (EPS) of $2.22, up from $1.84 per share YoY. The EPS beat analyst consensus estimates of $2.21 per share from Investing.com
- Q2 2023 net income of $1.5 billion, up 19% from $1.3 billion YoY
- Q2 2023 operating income of $1.9 billion, up 18% from $1.6 billion YoY
- Q2 2023 operating income margin of 20.6%, compared to 17.9% YoY
These numbers show healthy and solid results for Honeywell, which continues to see positive momentum as it has through the 3 years of the Covid-19 pandemic, which has strained the world economy since March 2020. We believe that Honeywell has shown resilience, strength, solid leadership, and positive progress through it all, which graphically shows its stability in a world where uncertainty has been rampant since the pandemic began. This steadiness bodes well for Honeywell, which we continue to see as a diverse and innovative technology tour de force.
Honeywell Revenue by Business Segments
Honeywell’s revenue for Q2, by business unit, breaks down as follows.
Q2 revenue for the aerospace division rose to $3.34 billion, up 15% from $2.9 billion YoY, while the Honeywell Building Technologies unit brought in $1.51 billion in revenue, down 1% from $1.53 billion a year ago. The Performance Materials and Technologies unit saw revenue increase by 6% to $2.86 billion, up from $2.7 billion YoY. The Honeywell Safety and Productivity Solutions unit saw revenue fall by 22% to $1.4 billion, down from $1.8 billion YoY due to reduced demand for productivity products and services. Demand in the segment was also affected by lower demand in warehouse and workflow products, which continues to be impacted by softness in the warehouse automation market, according to Honeywell.
In addition, Honeywell’s order backlog increased 4% YoY to a record $30.5 billion.
Honeywell Guidance for Fiscal Year 2023 Earnings
Honeywell also announced its earnings guidance for the full fiscal year of 2023, including expected total FY2023 revenue of between $36.7 billion to $37.3 billion, up from earlier guidance of $36.5 billion to $37.3 billion. Also expected are adjusted EPS growth of $9.05 to $9.25, which is up from previous guidance of $9.00 to $9.25 per share. The company also said it expects operating cash flow of $4.9 billion to $5.3 billion, unchanged from previous guidance, and free cash flow (FCF) of $3.9 billion to $4.3 billion, also unchanged from previous guidance.
Honeywell Revenue Overview
In our view, one of Honeywell’s ongoing strengths is its continuing commitment to increasing environmental sustainability efforts, including renewable fuels, carbon capture, and sustainable buildings, even while global market conditions remain uncertain. Recently, in partnership with our team at The Futurum Group, Honeywell published the Q3 edition of its Environmental Sustainability Index, a quarterly report designed to track global corporate sustainability priorities, sentiment, and progress toward reaching its sustainability goals. We applaud Honeywell’s measurable and impressive sustainability efforts.
Overall, it was a good Q2 for Honeywell, showing positive results for this growth-focused company that got a new leader on June 1 as Vimal Kapur, the company’s former President and Chief Operating Officer was appointed as President and Chief Executive Officer. Kapur took over for former CEO Darius Adamczyk, who remains as Chairman.
With Kapur at the helm of Honeywell, we believe that Honeywell continues its legacy of having a talented, creative, and forward-looking executive team that will follow a smart business plan to bring ongoing success as the world continues to follow a path out of the pandemic.
We will continue to watch with interest as Honeywell’s innovations and market leadership continue to drive growth throughout the rest of FY2023 and beyond.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
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Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
