Honeywell Technologies Sees Strong Order Growth and Discounted Valuation

Honeywell Technologies is a company that offers a good buying opportunity due to its strong order growth, margin expansion, and discounted valuation compared to automation peers.

In Q2 2026, orders grew by 16% year-over-year (y/y), outpacing the 4% sales growth. This indicates that revenue acceleration is likely as the backlog converts into sales.

Honeywell's structural cost reductions and portfolio simplification are on track to target segment margins of 22% or more exiting FY26, with further improvement expected in 2027.

The company's software business, driven by Honeywell Forge, is aiming to raise software/services revenue to 45% or more of sales, enhancing resilience and margin profile.