Honeywell Net Income Drops 43% to $821M as Q1 Operating Cash Turns Negative
Honeywell International Inc (NYSE: HON), a diversified industrial conglomerate, reported net income of $821 million for Q1 2026, down 43% from $1.45 billion a year earlier, as operating cash flow swung to negative $650 million.
Honeywell International Inc (NYSE: HON), a diversified industrial conglomerate, reported net income of $821 million for the three months ending March 31, 2026, down 43% from $1.45 billion in the same quarter a year earlier. Diluted earnings per share fell to $1.29 from $2.22. Read more earnings reports.
Revenue climbed 2.4% to $9.14 billion from $8.93 billion in Q1 2025. Operating income rose 6.3% to $2.13 billion from $2.00 billion, reflecting improved margins despite the net income decline.
Cash Flow Reversal
Operating cash flow swung sharply negative to $650 million outflow in Q1 2026 compared to a $597 million inflow in Q1 2025. The company deployed $119 million in investing activities, down from $371 million a year earlier. Financing activities generated $267 million, reversing a $1.18 billion outflow in the prior-year period.
Cash and cash equivalents stood at $12.0 billion as of March 31, 2026, down from $12.5 billion at year-end 2025.
Segment Performance
The Aerospace segment generated $5.87 billion in revenue, up 1.0% from $5.81 billion in Q1 2025. Building Automation posted $3.28 billion, rising 5.1% from $3.12 billion. Performance Materials and Technologies delivered $4.32 billion, up 3.6% from $4.17 billion.
Cost of goods sold increased to $5.60 billion from $5.46 billion, while selling, general, and administrative expenses held flat at $1.31 billion. Research and development spending jumped 18% to $492 million from $416 million.
Balance Sheet and Capital Structure
Total assets increased to $74.0 billion as of March 31, 2026, from $73.7 billion at the end of 2025. Long-term debt rose to $32.1 billion from $28.7 billion, an increase of $3.4 billion during the quarter.
Total stockholders' equity declined to $13.6 billion from $13.9 billion at year-end. Treasury stock increased to $43.9 billion from $43.0 billion, reflecting share repurchase activity. Common shares outstanding totaled 634 million, down from 643 million a year earlier.
Current assets rose to $30.6 billion from $30.4 billion, while current liabilities decreased to $22.1 billion from $23.4 billion. Accounts receivable climbed to $8.06 billion from $7.62 billion, and inventory increased to $6.37 billion from $6.16 billion.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Revenue | $9.14 billion | $8.93 billion | +2.4% |
| Operating Income | $2.13 billion | $2.00 billion | +6.3% |
| Net Income | $821 million | $1.45 billion | -43.3% |
| Diluted EPS | $1.29 | $2.22 | -41.9% |
| Operating Cash Flow | ($650 million) | $597 million | N/A |
| Cash & Equivalents | $12.0 billion | $12.5 billion (Dec 2025) | -4.1% |
The weighted average diluted share count decreased to 638 million from 652 million, while the company reported income tax expense of $91 million compared to $369 million in the prior-year quarter.