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Honeywell Technologies Revises 2026 Guidance Post Reverse Stock Split

Honeywell Technologies HON recently provided investors with an updated financial outlook for 2026 after executing the one-for-two reverse stock split.Following the reverse stock split, which became effective on June 29, 2026, Honeywell's outstanding common shares were reduced to approximately 317 m…

Honeywell Technologies HON recently provided investors with an updated financial outlook for 2026 after executing the one-for-two reverse stock split.

Following the reverse stock split, which became effective on June 29, 2026, Honeywell's outstanding common shares were reduced to approximately 317 million from 634 million. The updated guidance considers a revised weighted average diluted share count, which decreased to 319 million from 639 million for both the second half and full-year 2026.

Considering the effect of reverse stock split, Honeywell Technologies revised its earnings per share (EPS) guidance, while it reaffirmed sales outlook for both the second half and full-year 2026. The company continues to expect second-half 2026 sales of $10.1-$10.3 billion, with organic sales growth of 3-5%. For 2026, sales are still projected at $19.9-$20.2 billion, with organic sales rising in the range of 2-3%.

Honeywell Technologies currently expects adjusted EPS for the second half of 2026 to be in the range of $4.40-$4.70 compared with $2.20-$2.35 expected earlier. For 2026, adjusted EPS is projected at $7.90-$8.30, up from the previous guidance of $3.95-$4.15. It maintained the adjusted earnings growth guidance at 22-31% for the second half and 22-28% for full-year.

Also, for the second half 2026, HON projects segment margin to be 20.9-21.6% with margin expansion of 310-380 basis points and free cash flow of approximately $1.5 billion. However, the second-half operating cash flow outlook was revised to approximately $1.7 billion from around $2.3 billion. For full-year 2026, Honeywell Technologies expects a segment margin of 19.8-20.3% with margin expansion of 220-270 basis points, operating cash flow of approximately $2.1 billion and free cash flow of roughly $2.0 billion.

It is worth noting that on June 29, Honeywell Technologies became a standalone public company following the spin-off of the Aerospace Technologies business from Honeywell International. The separation completed the company's multi-year portfolio restructuring, creating three independent publicly traded companies. With a sharper focus on industrial automation, Honeywell Technologies expects to benefit from improved operational focus, disciplined capital allocation and greater financial flexibility.

HON’s Zacks Rank

Solid demand for its products and solutions, led by increasing building projects, particularly in North America, will likely be beneficial for HON’s Building Automation segment. Increasing order rates and capex investments in data centers and health care projects also bode well. However, HON has been dealing with increasing operating costs, which might hurt its margins and profitability.

The company currently carries a Zacks Rank #3 (Hold). Following the spin-off of the Aerospace Technologies business, Honeywell’s shares have lost 3.3% compared with the Zacks Diversified Operations industry’s 2.6% decline.

Stocks to Consider

Better-ranked companies are discussed below.

GPGI, Inc. GPGI currently carries a Zacks Rank #2 (Buy). GPGI delivered a trailing four-quarter average earnings surprise of 25.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has increased 20.3%.

Griffon Corporation GFF presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 3.3%.

The Zacks Consensus Estimate for GFF’s 2026 earnings has increased 1.4% in the past 60 days.

Public Policy Holding Company, Inc. PPHC presently carries a Zacks Rank of 2. PPHC delivered a trailing two-quarter average earnings surprise of 2.1%.

In the past 60 days, the consensus estimate for Public Policy Holding’s 2026 earnings has remained steady.

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