Honeywell (HON) Stock Forecast & Price Target

Honeywell International has demonstrated notable financial strength with a 22% year-over-year growth in organic orders for third quarter 2025, driven particularly by advancements in Aerospace and Building Automation. The company is projected to see organic sales rise between mid-single-digit and high-single-digit percentages, supported by robust demand in the defense and space sectors alongside enhancements in supply chain efficiencies. Furthermore, Building Automation margins have shown significant improvement, with an 80 basis point year-over-year expansion, highlighting effective operational productivity and volume leverage.

Honeywell International has reported a decline in segment margins, with a 50 basis points decrease year-over-year to 23.1%, which is at the high end of its 3Q25 guidance range but indicates potential operational challenges. The firm anticipates a low-single-digit percentage organic decline in key segments, suggesting sluggish growth prospects and potential pressure on revenue generation. Additionally, within the Energy and Sustainability Solutions segment, organic sales fell by 2% year-over-year, highlighting a stagnation in demand and raising concerns about Honeywell's ability to revive growth in its identified focus areas.