The News: Honeywell’s revenue rose by six percent in the fourth quarter of 2022 to $9.2 billion, up from $8.7 billion one year ago, as the diversified building technologies, performance materials, aerospace, defense, and safety/productivity products vendor released its latest earnings figures on February 2. For the full fiscal year 2022 (FY2022) ending December 31, 2022, Honeywell revenue hit $35.5 billion, up three percent from $34.4 billion one year ago. Read the full Press Release from Honeywell here.
Honeywell Revenue Hits $9.2B in Q4, up 6% from Q4 2021
Analyst Take: Honeywell’s revenue of $9.2 billion for Q4 2022 is laudable, especially as other tech and consumer vendors continue to experience their share of earnings misses in the overall market. Honeywell is again bucking that trend, showing its business acumen and good fortunes in a still challenging and recovering global marketplace.
Here are Honeywell’s revenue and other earnings results for Q4 2022 and FY2022 by the numbers:
- Q4 2022 revenue of $9.2 billion, up six percent from $8.7 billion one year ago. The Q4 revenue figure was just under consensus estimates of $9.25 billion for the quarter from analysts at Investing.com.
- Q4 2022 adjusted earnings per share (EPS) of $2.52, up 21 percent from $2.09 per share one year ago. The EPS beat analyst consensus estimates of $2.51 per share from Investing.com.
- Q4 2022 net income of $1.02 billion, down 29 percent from $1.44 billion one year ago.
- Q4 2022 operating income of $1.8 billion, up 19 percent from $1.5 billion one year ago.
- Q4 2022 operating income margin of 19.7 percent, compared to 17.5 percent one year ago.
- Q4 2022 operating cash flow of $5.3 billion, which is down 3.7 percent from $2.7 billion one year ago.
- Q4 2022 operating cash flow margin of 25.8 percent, down from 30.8 percent one year ago.
- Full FY2022 revenue of $35.5 billion, up three percent from $35.4 billion one year ago.
- Full FY2022 adjusted earnings per share (EPS) of $8.76, up nine percent from $8.06 per share one year ago.
- Full FY2022 net income of $5 billion, down 11 percent from $5.6 billion one year ago.
- Full FY2022 operating income of $6.4 billion, up four percent from $6.2 billion one year ago.
- Full FY2022 operating income margin of 18.1 percent, compared to 18 percent one year ago.
- Full FY2022 operating cash flow of $5.3 billion, which is down 12.7 percent from $6.04 billion one year ago.
- Full FY2022 operating cash flow margin of 14.9 percent, down from 17.6 percent one year ago.
These are generally solid results for Honeywell, with Q4 revenue just off its target and a beat on its Q4 share price, providing positive news during tough macroeconomic conditions being seen by many companies.
Honeywell Revenue by Business Segments
By business units, Honeywell’s revenue for Q4 and for the full FY2022 was positive overall.
Q4 revenue for the aerospace division rose to $3.2 billion, up 10 percent from $2.9 billion one year ago, while the Honeywell Building Technologies unit brought in $1.5 billion in revenue, up seven percent from $1.4 billion a year ago. The Performance Materials and Technologies unit saw revenue increase by 7.7 percent to $2.8 billion, up from $2.6 billion one year ago. The Honeywell Safety and Productivity Solutions unit saw revenue fall by six percent to $1.6 billion, down from $1.7 billion one year ago, drawn down by reduced sales of productivity products and warehouse and workflow products.
Full FY2022 revenue for the aerospace unit totaled $11.8 billion, up seven percent from $11 billion one year ago, while the Honeywell Building Technologies unit brought in $6 billion, which was up eight percent from $5.5 billion one year ago. The Performance Materials and Technologies unit saw FY2022 revenue increase by seven percent to $10.7 billion, up from $10 billion one year ago. For FY2022, the Honeywell Safety and Productivity Solutions unit saw revenue fall by 12 percent to $6.9 billion, down from $7.8 billion one year ago.
In addition, Honeywell’s order backlog again stands at a record level, ending 2022 at $29.6 billion, according to the company.
Honeywell admirably also continues to remain focused on increasing its environmental sustainability efforts, including renewable fuels, carbon capture, and sustainable buildings, even while global market conditions remain uncertain. It’s worth noting here that Honeywell, in partnership with our team at Futurum Research, just published the second edition of its Environmental Sustainability Index, a quarterly report designed to track global corporate sustainability priorities, sentiment, and progress toward reaching their sustainability goals. You can find that report here: Honeywell Environmental Sustainability Report, Q1 2023.
We believe these results for Q4 and for FY2022 are particularly impressive for Honeywell, which continues to hold a leadership position around the globe with its broad and important product portfolio that delivers value to consumers and industry.
Honeywell Guidance for Full Year 2023 Earnings
Honeywell also announced its earnings guidance for 2023, including total FY2023 revenue of between $36.0 billion to $37.0 billion, which would represent two percent growth YoY, and adjusted earnings per share of $8.80 to $9.20 per share. The company also said it expects operating cash flow of $4.9 billion to $5.3 billion, and free cash flow of $3.9 billion to $4.3 billion.
Honeywell Revenue Overview
It was a good year for Honeywell in 2022. This is a growth-focused company that is led by a creative and forward-looking executive team which follows a detailed, well-executed market playbook aimed at successfully serving customers and the market. That is a great combination and business plan, regardless of the condition of the marketplace.
We will continue to track Honeywell’s innovations and market leadership with interest through FY2023 and beyond as the company makes its way through existing macroeconomic pressures and conditions. As we have maintained previously, this is a company with a mission, with deep expertise, and with solid products and services that can make things happen.
Disclosure: Futurum Research 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 Futurum Research as a whole.
Other insights from Futurum Research:
Image Credit: Stock Analysis
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.
