Honeywell Gears Up to Post Q4 Earnings: What Lies Ahead for the Stock?

Honeywell International Inc. HON is scheduled to release fourth-quarter 2025 results on Jan. 29, before market open.The Zacks Consensus Estimate for HON’s fourth-quarter revenues is pegged at $10.16 billion, indicating growth of 0.7% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $2.54 per share, which has edged down 1.2% in the past 30 days. The figure indicates an increase of 2.8% from the year-ago quarter's figure.The company delivered better-than-expected results in each of the trailing four quarters, the earnings surprise being 8.7% on average. In the last reported quarter, its bottom line beat the consensus estimate by 10.2%.Let us see how things have shaped up for Honeywell this earnings season.Factors Likely to Have Shaped HON’s Quarterly PerformanceStrong momentum in Honeywell’s commercial aviation aftermarket business, driven by solid demand in the air transport market and supply-chain improvement, is expected to have supplemented the top-line performance of its Aerospace Technologies segment. Strength in the defense and space business, owing to stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, is likely to have been a tailwind as well. For the fourth quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $4.31 billion, indicating a 19% rise from the year-ago reported number.Solid demand for its products and solutions, supported by increasing building projects, particularly in North America, Middle East and India, is expected to augment the Building Automation segment’s results. Increasing order rates in data centers, health care and hospitality projects are likely to have been a tailwind as well. For the fourth quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $1.92 billion, indicating a 6.7% rise from the year-ago reported number.Synergistic gains from the acquisitions made by the company are expected to have boosted its top line. In August 2025, Honeywell acquired three utility platforms from SparkMeter, Inc. The utility platforms acquired are Praxis for data and analytics, GridScan for tracking grid performance and GridFin for managing energy costs and customer rates. The company’s acquisition of Nexceris’ Li-ion Tamer business (in July 2025) enabled it to boost its fire life safety portfolio under the Building Automation business and expand its presence across the energy storage and data centers markets. In June 2025, HON completed the acquisition of Sundyne. The inclusion of Sundyne’s advanced products with Honeywell Forge technology is expected to aid its fourth-quarter results.However, Honeywell’s Industrial Automation Solutions segment is expected to have put up a weak show in the quarter due to softness in the productivity solutions and services business, owing to a decrease in license and settlement payments. Softness in the sensing and safety technologies business, due to a lower demand environment, is also expected to have been a spoilsport. For the fourth quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $2.30 billion, indicating a 10.2% rise from the year-ago reported number.The Energy and Sustainability Solutions segment is expected to have witnessed a year-over-year decrease in revenues, due to weakness in the UOP business attributed to licensing delays and reduced catalyst shipment volumes. For the fourth quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $1.22 billion, indicating a 29.9% decrease from the year-ago reported number.Over time, HON’s performance has been negatively impacted by high costs and expenses. Higher direct and indirect material costs and investments in digital infrastructure and business integration activities are expected to have pushed up the company’s operating expenses, which are likely to have reflected in its margins.Honeywell International Inc. Price and EPS Surprise Honeywell International Inc. price-eps-surprise | Honeywell International Inc. QuoteEarnings WhispersOur proven model does not conclusively predict an earnings beat for HON this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.Earnings ESP: HON has an Earnings ESP of -0.56% as the Most Accurate Estimate is pegged at $2.53 per share, which is lower than the Zacks Consensus Estimate of $2.54. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: HON currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks to ConsiderHere are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.Dover Corporation DOV has an Earnings ESP of +0.70% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2025 results on Jan. 29.Dover’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.9%.Kennametal Inc. KMT has an Earnings ESP of +8.57% and a Zacks Rank of 1 at present. The company is scheduled to release second-quarter fiscal 2026 results on Feb. 4.KMT’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 26.9%.Watts Water Technologies, Inc. WTS has an Earnings ESP of +0.59%    and a Zacks Rank of 2 at present. The company is slated to release fourth-quarter 2025 results on Feb. 11.Watts Water’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.9%.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Watts Water Technologies, Inc. (WTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks