Charlotte, North CarolinaApril 24, 2026 /PRNewswire/ — Honeywell (NASDAQ: HON)yesterday announced its first-quarter 2026 results and an agreement to sell its Warehouse and Workflow Solutions (WWS) business to American Industrial Partners (AIP) in an all-cash transaction. The transaction, along with the previously announced sale of the Productivity Solutions and Services (PSS) business, is expected to close in the second half of 2026. The company also updated the expected completion date for the spin-off of Honeywell’s Aerospace business to June 29, 2026, subject to final approval by Honeywell’s Board of Directors and other customary conditions.
In the first quarter, Honeywell reported sales of $9.1 billion, with both reported and organic sales up 2% year-over-year, driven primarily by pricing actions and new product launches. Orders grew 7% organically, fueled by strong demand in building and industrial automation, pushing the backlog up 2% sequentially to $38.3 billion.
First-quarter operating profit declined 14% year-over-year, while segment profit rose 6% to $2.1 billion, with profit growth across all four business segments. Operating margin contracted 320 basis points year-over-year to 16.1%, impacted by impairment charges related to assets held for sale in the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, as well as higher costs associated with business restructuring and divestitures. Excluding these and other items, segment margin expanded 90 basis points to 23.3%, driven by improved pricing power and the earlier-than-expected elimination of stranded costs related to the planned Aerospace spin-off, offsetting cost inflation pressures.
First-quarter earnings per share were $1.29, down 35% year-over-year, impacted by debt restructuring, impairment of assets held for sale, business restructuring, and other spin-off-related expenses. Excluding these items, adjusted earnings per share rose 11% year-over-year to $2.45, driven by segment profit growth and a lower weighted-average share count.
First-quarter operating cash flow was -$700 million, declining year-over-year, due to increased spending related to business spin-offs and divestitures, as well as settlement payments for the Flexjet-related litigation. Free cash flow was $100 million, down from the prior year, impacted by collection cycles, partly related to the Middle East conflict.
“Honeywell had a strong start to 2026 in a challenging geopolitical environment. Orders grew across all business segments, with total orders up 7%, driving the backlog to over $38 billion, particularly led by building and industrial automation. Through a continued focus on productivity and execution, the company achieved 90 basis points of segment margin expansion. This profit growth, along with the accelerated elimination of stranded costs, drove adjusted earnings per share up 11% year-over-year, offsetting the impact of rising inflation and the situation in the Middle East, demonstrating the resilience of Honeywell’s portfolio,” said Vimal Kapur, Chairman and Chief Executive Officer of Honeywell.
“This quarter, with the announced agreements to sell the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, both expected to close in the second half of 2026, we are nearing the completion of our multi-year portfolio transformation. Additionally, the spin-off of Honeywell’s Aerospace business is expected to be completed on June 29. The acquisitions, divestitures, spin-offs, and simplification actions implemented over the past several years have laid a solid foundation for the Aerospace and Automation businesses to operate as independent public companies. We look forward to sharing more progress at our upcoming Investor Day in June,” said Vimal Kapur.
2026 Outlook
Despite uncertainties from the Middle East conflict, Honeywell is maintaining its full-year 2026 outlook based on strong first-quarter performance. The company expects full-year sales of $38.8 billion to $39.8 billion, with organic sales growth of 3% to 6%. Segment margin is expected to be 22.7% to 23.1%, expanding 20 to 60 basis points year-over-year. Adjusted earnings per share are expected to be $10.35 to $10.65, up 6% to 9% year-over-year. Operating cash flow is expected to be $4.4 billion to $4.7 billion, with free cash flow unchanged at $5.3 billion to $5.6 billion.
Sale of Warehouse and Workflow Solutions Business
Honeywell also announced it has agreed to sell its Warehouse and Workflow Solutions business to American Industrial Partners (AIP). AIP is an operations-focused private equity firm dedicated to investing in quality industrial businesses with strong management teams. The transaction is expected to close in the second half of 2026, subject to customary closing conditions. Specific terms of the transaction were not disclosed.
This concludes Honeywell’s strategic review of the Warehouse and Workflow Solutions business. The business, which operates commercially under the Intelligrated and Transnorm brands, generated approximately $935 million in revenue in 2025. It is a supplier of supply chain and warehouse automation projects, services, and products, including automated sortation systems, palletizers, conveyor equipment, robotics solutions, as well as aftermarket services and software. Going forward, the Warehouse and Workflow Solutions business will combine with AIP’s existing investment in Trew to create a complementary and differentiated platform to better serve customers across a wide range of industries.
As part of the same strategic review, Honeywell previously announced on April 20 that it had agreed to sell its Productivity Solutions and Services business to Brady Corporation.
Please click here to view the detailed results of the company’s first-quarter 2026 performance.
About Honeywell
Honeywell is an integrated operating company, leveraging the Honeywell Accelerator operating system and the Honeywell Connected platform to provide a wide range of technologies and services across multiple industries worldwide. As a trusted partner, Honeywell helps customers solve tough, complex global challenges, delivering actionable solutions and innovative technologies in aerospace, intelligent buildings, smart industry, process automation, and process technologies to make the world smarter, safer, more reliable, and more sustainable. In China, Honeywell implements a “East for East” strategy, driving business development with local innovation. Currently, all of Honeywell’s business groups have established a presence in China. For more information, please visit Honeywell’s China website at www.honeywell.com.cn, or follow Honeywell’s official WeChat and video accounts.