Jan 29 (Reuters) – Honeywell reported a rise in fourth-quarter revenue and profit on Thursday, buoyed by continued strength in its aerospace unit and related aftermarket services.
A delay in delivery of aircraft is prompting airlines to fly jets longer, boosting demand for parts and maintenance, and turning the high-margin aftermarket services business into a central profitability engine for the aerospace segment.
At Honeywell, the aerospace business has faced pressure from high costs, global trade tensions and tariffs, but it has managed to hold pricing steady across its products and services.
Sales of its aerospace unit rose 13.4% to $4.52 billion during the fourth quarter.
Last week, the company appointed Joshua Jepsen as the finance chief of its aerospace unit. Jepsen is the CFO of farm equipment maker Deere & Co.
Honeywell posted an adjusted profit of $2.59 per share during the quarter, compared with $2.22 a year ago. Analysts, on average, estimated $2.54 per share according to data compiled by LSEG.
The results cap a constructive year for the industrial giant, which announced a breakup of its large conglomerate structure to create three independent companies focused on automation, aerospace and advanced materials.
The company said on Thursday it expects the planned separation of its automation and aerospace businesses to be completed in the third quarter.
Honeywell reiterated that after the completion of a strategic alternatives review in the fourth quarter, two of its businesses that cater to the transportation and logistics industries have been classified as held for sale.
The company has also divested some smaller units as it works to streamline operations to focus on the automation division.
For 2026, Honeywell expects adjusted profit per share to be between $10.35 and $10.65. Analysts expect $10.38 per share.
Overall sales rose 6.4% to $9.76 billion during the quarter ended December 31, but came below the estimate of $9.85 billion.
Honeywell shares were down nearly 1% before the bell. They had fallen 8.3% in 2025.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shilpi Majumdar)
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