Honeywell International Inc. HON is benefiting from strong momentum in its Building Automation segment, which is becoming a major growth driver for it. Solid demand for its products and solutions, led by increasing building projects, particularly in North America, the Middle East and India, is supporting the segment’s revenues. Increasing order rates in data centers, airports and hospitality projects also bode well for it. The segment’s organic sales grew 8% year over year in the second quarter of 2025.
Within the Building Automation segment, organic sales from the building products business rose 9% year over year in the second quarter, driven by strong demand across fire, security and building management systems. In the same period, its building solutions business’ sales also increased 5% on a year-over-year basis, supported by solid growth in the Middle East region.
Honeywell’s Building Automation segment recorded healthy order activity in the quarter, with bookings increasing both sequentially and year over year, led by strong product demand. This marked the segment’s fifth consecutive quarter of year-over-year order growth, reflecting sustained customer demand and robust market conditions.
Looking ahead, Honeywell anticipates continued strength in the Building Automation segment, supported by rising demand for energy-efficient infrastructure and digital building management systems. In 2025, HON projects organic sales of the segment to be up in the mid to high single digits. Also, both building products and building solutions businesses are showing steady momentum, positioning the segment for future growth.
Segmental Snapshot of HON’s Peers
Among HON’s major peers, 3M Company MMM is poised to gain from solid momentum in the Safety and Industrial segment, driven by strength in personal safety, roofing granules, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for 3M’s electrical infrastructure products, like medium voltage cable accessories and insulation tapes, augurs well for the segment in the quarters ahead. Revenues from 3M’s Safety and Industrial segment grew 3.6% year over year in the second quarter of 2025.
Honeywell’s another peer, Carlisle Companies Incorporated’s CSL Carlisle Construction Materials segment is benefiting from robust demand for re-roofing products and healthy construction activity. Also, higher sales in the non-residential construction market in the United States and Europe augur well for Carlisle’s segment. Revenues from Carlisle’s unit increased 0.6% year over year in the second quarter of 2025.
HON's Price Performance, Valuation and Estimates
Shares of Honeywell have gained 0.4% in the past six months compared with the industry’s growth of 2.8%.
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From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 17.94X, above the industry’s average of 11.03X. Honeywell carries a Value Score of D.
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The Zacks Consensus Estimate for HON’s 2025 earnings has increased 0.2% over the past 60 days.
Image Source: Zacks Investment Research
Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
