Common-Size Income Statement
Quarterly Data
Honeywell International Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The financial trajectory of the organization over the analyzed period is characterized by a strategic shift in revenue composition and significant volatility resulting from non-recurring accounting events. There is a clear trend toward a more balanced revenue mix, with a reduction in reliance on product sales in favor of service-based income.
- Revenue Composition
- A long-term shift in the revenue model is evident. Product sales, which constituted 75.81% of net sales in March 2021, experienced a general decline to approximately 64-65% by the end of 2025. Conversely, service sales grew from 24.19% to a peak of 35.83% in December 2025. This indicates a transition toward recurring service revenue, although a partial reversal occurred in September 2026, where product sales rose back to 72.65%.
- Gross Profitability and Cost Structure
- Gross profit margins showed a general expansionary trend, moving from 32.47% in early 2021 to peaks exceeding 38% between 2022 and 2024. This improvement was primarily driven by a reduction in the cost of products sold, which fell from -53.83% to approximately -42% of net sales. However, the cost of services sold increased from -13.70% to peaks near -22.06%, reflecting the higher costs associated with the increased volume of service delivery.
- Operating Expense Analysis
- Research and development (R&D) expenses increased as a percentage of net sales, rising from approximately 4% to over 5% by 2026, suggesting a heightened investment in innovation. Selling, general, and administrative (SG&A) expenses remained relatively stable between 13% and 15% for most of the period, with a notable exception in September 2026, where expenses spiked to -20.80%.
- Operating Income and Non-Recurring Impacts
- Operating income remained relatively consistent, generally fluctuating between 15% and 21% of net sales. A significant anomaly occurred in December 2025, where operating income plummeted to 5.38%. This decline is directly attributable to substantial non-cash charges, specifically an impairment of goodwill amounting to -7.42% and an impairment of assets held for sale at -2.61% of net sales.
- Net Income and Extraordinary Items
- Net income percentages were typically stable between 11% and 17%, but the latter part of the period was marked by extreme volatility. A net loss of -1.26% was recorded in December 2025 due to the aforementioned impairments. This was followed by a massive spike in June 2026, where net income reached 58.50% of net sales, driven by a one-time gain on the deconsolidation of a subsidiary totaling 68.21%.
- Financial Charges and Tax Trends
- Interest and other financial charges exhibited a steady upward trend, increasing from -1.06% in March 2021 to peaks near -3.89% in early 2026, indicating rising financing costs relative to revenue. Tax expenses remained volatile, with a significant spike to -16.24% in June 2026, likely coinciding with the tax implications of the subsidiary deconsolidation.
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