Honeywell International Inc (HON.O): Solid Order Momentum and Margin Inflection Support Stronger Growth/EPS Visibility

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Honeywell International Inc (HON.O): Solid Order Momentum and Margin Inflection Support Stronger Growth/EPS Visibility

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23 Jul 2026 21:00:29 ET │ 14 pages

Honeywell International Inc (HON.O)

Solid Order Momentum and Margin Inflection Support Stronger

Growth/EPS Visibility

CITI'S TAKE Buy

Price (23 Jul 26 16:00) US$246.27 We view a broad-based demand inflection and improving growth visibility

Target price US$279.00↑ across much of HON portfolio along with the company’s solid execution as

supportive of HON’s raised ’26 guidance. Strong order growth across all from US$260.00

segments (+16% y/y) and a robust backlog point to continued Expected share price return 13.3%

improvement in HON’s shorter-cycle end markets, as well as building Expected dividend yield 1.8%

momentum across its longer-cycle businesses, creating a more favorable Expected total return 15.1%

demand backdrop. With HON’s portfolio changes largely complete, we get Market Cap US$78,053M

the sense that HON’s focus is shifting increasingly toward driving

innovation/NPI, which we think should drive share gains over time and

support stronger topline growth. A combination of ongoing productivity

actions, volume leverage, relatively more effective stranded cost Andrew KaplowitzAC

mitigation, and improving business mix should position HON to drive +1-212-816-0642

continued enhanced profitability, driving solid multi-year EPS growth. andrew.kaplowitz@citi.com

Overall, we view HON’s 2Q results/raised ’26 guidance as a positive early Vladimir Bystricky

indicator of the company’s progress toward its 3-year financial targets. vladimir.bystricky@citi.com

Piyush Avasthy

Additional Thoughts — We think HON’s 2Q results and raised ’26 guidance piyush.avasthy@citi.com