As it prepares to eventually split into three standalone companies later this year, industrial manufacturing conglomerate Honeywell reported its second quarter 2025 financial results on July 25, showing an increase in total sales as well as organic sales year-over-year.

Charlotte, NC-based Honeywell reported that 2Q total sales of $10.4 billion increased 8.0% year-over-year, with organic sales likewise up 5.0%. Sequentially, sales increased from $9.8 billion in 1Q.

Net income for the quarter was $1.57 billion, virtually identical a a year earlier and up from 1Q25’s $1.4 billion. Operating profit increased 7% year-over-year and operating margin fell 30 basis points to 20.4%.

MDM’s 2Q25 MarketPulse Report (store link) 

Performance by business segment:

• Aerospace Technologies reported total sales of $4.3 billion increased 11% year-over-year, with organic up 6.0%. Segment margin declined 170 bps to 25.5%.
• Industrial Automation reported total sales of $2.3 billion, down 5% year-over-year. Segment margin of 19.2% increased 20 bps.
• Building Automation posted total sales of $1.8 billion, up 16.0% year-over-year, while organic growth increased 8.0%. Segment margin increased 90 bps to 26.2%
• Energy and Sustainability Solutions sales of $1.8 billion increased 15% year-over-year, while organic growth increased 6.0%. Segment margin of 24.1% declined 110 bps.

2025 Outlook

In updating its 2025 full-year outlook, Honeywell raised its total sales expectations from $39.6 billion to $40.5 billion, up from its previous guidance to $40.8 billion to $41.3 billion.

The company also expects organic growth between 4.0% to 5.0% and segment margin between 23.0% and 23.2%.

Honeywell Planned Separation Update

On Feb. 6, Honeywell announced it will split into three independent publicly traded companies, separating from its automation and aerospace businesses by the second half of 2026.

Honeywell’s 2Q report said the decision followed a comprehensive portfolio review by its board, and dedicated separation management offices were formed to oversee the transition while maintaining focus on day-to-day operations.

The planned breakup, along with the previously announced spinoff of its advanced materials segment — now expected in the fourth quarter of 2025 — will result in three standalone industry-focused companies.

MDM Case Study: MSC Industrial Supply (Premium access here) 

In the 2Q, the company repurchased $1.7 billion of its shares and completed the $1.3 billion sale of its PPE business unit to Protective Industrial Products, while also launching a review of strategic options for its productivity and warehouse solutions units.

Honeywell acquired Johnson Matthey’s Catalyst Technologies business for $2.1 billion (USD) in May, closed the $2.2 billion acquisition of Sundyne in June and completed the acquisition of Li-ion Tamer in July.