HON · Earnings call · 2026Q3T · Full report

Acquisition / Partnership / Divestiture

HONEYWELL INTERNATIONAL INC · 2026-10-22 · Importance 34 · Surprise 42

P&T margin was pressured by dilution from the acquisition of Johnson Matthey's Catalyst Technologies business, alongside higher project activity. Management said the integration was expected to be substantially past the integration phase in the second half of 2027, with catalyst volume growth and reduced project-mix pressure supporting margin expansion. Honeywell reported higher cost synergies than forecast and expected the Catalyst Technologies business to overdeliver on cost synergies; sales synergies were still being developed and would take time to convert into revenue.

Key facts

• Honeywell expects Catalyst Technologies cost synergies to exceed its prior forecast and help 2027 planning; sales synergies are being developed but will take time to convert to revenue.
• Honeywell plans to remain disciplined on debt paydown in the near term and work its M&A pipeline for 2027 onward.
• Honeywell's highest M&A priority is adding content in Industrial Automation measurement and sensing; other areas include higher-growth verticals and small or midsized frontier-technology tuck-ins.
• Honeywell discussed a partnership with Dangote Refinery at Investor Day.