Honeywell
Now an automation pure-play — the aerospace business was spun off on June 29, 2026 (one HONA share per two parent shares, with a 1-for-2 reverse split of the parent the same day), Solstice Advanced Materials left in October 2025, and the WWS and PSS units were sold in July and August 2026. Q2 2026 (reported July 23) for the continuing business — sales $5.2B (+4% organic), orders +16%, backlog about $20B, segment margin 19.0%, adjusted EPS $1.95 (+10%). Building Automation grew 9% organically with orders +13% led by data centers; Process Automation orders rose 24% on LNG. 2026 guidance is sales of $19.8-20.0B, organic growth 3-4% and adjusted EPS $8.05-8.35 (raised). Management pitches the Forge platform as an AI-powered intelligence layer for a move from automation to autonomy, but discloses no AI revenue or adoption metric.
Scenarios
With aerospace gone, the listed company is a cleaner bet on building, process and industrial automation, where data-center construction and LNG are lifting orders (Q2 orders +16%, backlog about $20B). A large installed base of plant control systems and building controls is the natural place to deploy AI-driven autonomy through Forge, and segment-margin guidance was raised to 20.1-20.5% — if autonomy software scales on that base, the shares can re-rate toward software-heavy automation peers.
Organic growth guidance of 3-4% is modest for a business pitching AI-led autonomy, Process Automation sales fell 1% organically with aftermarket down 6%, and full-year sales guidance was trimmed to $19.8-20.0B as divestitures shrink the base. AI monetization is undisclosed, while Rockwell, Siemens, ABB, Emerson and Schneider compete for the same data-center and plant-autonomy budgets.
Key Factors to Watch
- ●Aerospace spun off June 29, 2026 as HONA (one share per two held); the parent kept its ticker after a 1-for-2 reverse split and now reports automation only
- ●Q2 2026 (Jul 23) continuing ops — sales $5.2B (+4% organic), orders +16%, backlog about $20B, segment margin 19.0%, adjusted EPS $1.95
- ●Building Automation orders +13% led by data centers; Process Automation orders +24% led by LNG
- ●2026 guide — sales $19.8-20.0B (lowered), organic 3-4%, adjusted EPS $8.05-8.35 (raised); Johnson Matthey Catalyst Technologies deal closed July 17
- ●Q2 GAAP EPS of $16.65 is inflated by a one-time Quantinuum deconsolidation gain — not an operating signal
- ●No AI revenue or adoption metric disclosed; Forge positioned as the AI intelligence layer for autonomy
Score History
| Date | Score | Direction | Note |
|---|---|---|---|
| 2026-10-10 | 7.3 | Positive | W41 text refresh — corrected stale pre-spin text. Aerospace spun June 29, 2026 (HONA) and the ticker now covers automation only after a 1-for-2 reverse split. Rebased to Q2 2026 (Jul 23) continuing-ops results; removed the $40.3B revenue, $38.8-39.8B guide and 100K-employee GPT claims. Dims held at 7.3 pending a deliberate post-spin re-baseline. |
| 2026-05-16 | 7.3 | Positive | W20 refresh — score holds 7.3. Q1 2026 EPS $2.45 (+11% YoY) beat, revenue $9.14B slight miss; Aerospace spin still scheduled June 29, 2026. Data-center cooling and HVAC controls cited as AI-adjacent demand drivers. |
| 2026-04-10 | 7.3 | Positive | Score 7.2→7.3 (rounding drift correction — dimensions unchanged, formula recomputed to match stored value) |
| 2026-03-08 | 7.2 | Positive | Score 7.4→7.2 (formula reweight: sb 0.25→0.15, are 0.20→0.25, md 0.20→0.25, dr 0.20→0.25, aam 0.15→0.10) |
| 2026-03-08 | 7.4 | Positive | Score 7.2→7.4 (are 7→6, md 7→8, dr 4→3). External research cross-ref: Forge IoT platform creates deep lock-in (md↑), century of domain expertise (dr↓), AI revenue not separately reported (are↓) |
| 2026-03-08 | 7.2 | Positive | Initial assessment from batch 5 research |
Manufacturing Peers
Last researched: 2026-10-10
This is research and analysis, not financial advice. Scores reflect AI impact potential, not investment recommendations.