HON's Process Automation Weakness Persists Despite Some Bright Spots

Honeywell Technologies (HON) has been experiencing persistent weakness in its Process Automation and Technology segment. In the second quarter of 2026, this segment saw organic revenues decline by 1% year over year, following a 6% drop in the first quarter.

The decrease was largely due to a 6% fall in organic sales in the aftermarket business, attributed to lower refining catalyst shipments and project delays. As a result, the segment's margin declined by 180 basis points to 22.1%, owing to low catalyst volumes and an unfavorable product mix.

However, there are some positive signs for the segment. Strong demand for process technology liquefied natural gas (LNG) and an increase in automation projects have boosted orders in the Process Technology segment by 24% year over year. Additionally, project sales grew 5% on an organic basis.