Honeywell Sees Strong Orders, Eyes 15% EPS Growth in 2027

Honeywell International is off to a strong start following its portfolio transformation, according to CFO Mike Stepniak. Speaking at a Deutsche Bank conference, he cited favorable July order trends and broad regional demand as contributing factors to this momentum.

Stepniak emphasized that the company has set three-year targets of 4% to 6% revenue growth, double-digit earnings-per-share growth toward $12 in 2029, margin expansion, and free-cash-flow conversion above 90%. He highlighted that order activity has supported the decision to raise guidance, with contingency included for potential demand disruptions, inflation, and pricing variability.

The CFO noted that demand has been broad-based geographically, with North America particularly strong and Europe no longer presenting a headwind as it did in prior years. China remains pressured but is performing adequately, while the Middle East and other Asian markets have been strong.

Honeywell expects second-half revenue growth of 4% to 6%, with Stepniak hoping results will trend toward the upper end of that range. He also mentioned more pronounced margin expansion in the near term as the company works through stranded costs associated with its portfolio changes.