Common-Size Income Statement
Quarterly Data
Honeywell International Inc., common-size consolidated income statement (quarterly data)
Based on: 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).
A strategic shift in revenue composition is evident over the analyzed period, characterized by a steady transition from product-centric sales to a higher proportion of service-based revenue. Product sales declined from 75.81% of net sales in March 2021 to 64.17% by March 2026. Conversely, service sales grew from 24.19% to 35.83% during the same timeframe, reaching a peak of 41.95% in December 2025. This structural evolution indicates a deliberate move toward recurring revenue streams.
- Gross Profitability and Cost Structure
- Gross profit margins exhibited an upward trend, rising from 32.47% in early 2021 to a peak of 38.86% by June 2022, remaining generally stable between 34% and 39% thereafter. This improvement was primarily driven by a reduction in the cost of products sold, which dropped from 53.83% to 42.25%. However, the cost of services sold increased from 13.70% to 19.04%, reflecting the increased volume of service activity.
- Operating Expense Trends
- Research and development expenses remained relatively consistent, fluctuating between 3.81% and 4.78% for most of the period before increasing to 5.38% in early 2026. Selling, general and administrative expenses generally stayed within the 13% to 15% range, although a significant spike to 18.25% occurred in December 2025, coinciding with other one-time financial pressures.
- Operating Income and Non-Recurring Impairments
- Operating income showed resilience, typically ranging between 15% and 21% of net sales. A severe anomaly occurred in December 2025, where operating income collapsed to -0.21%. This decline was the result of substantial non-recurring charges, specifically a 9.33% impairment of goodwill and a 3.29% impairment of assets held for sale. Operating income recovered to 16.12% by March 2026, suggesting the downturn was event-driven rather than structural.
- Financial Charges and Other Income
- Interest and other financial charges demonstrated a consistent upward trajectory, increasing from 1.06% in March 2021 to 3.89% by March 2026. This indicates an increasing cost of debt relative to net sales. Additionally, a loss on debt extinguishment of 2.61% was recorded in March 2026, which moderated the recovery of the bottom line.
- Net Income Performance
- Net income attributable to the company remained stable in the 12% to 17% range for the majority of the period. The extreme volatility observed in late 2025 resulted in a net loss of 1.48% for the quarter ending December 31, 2025. By March 31, 2026, net income returned to a positive 8.98%, although this was lower than historical averages due to the aforementioned debt extinguishment costs and higher interest expenses.
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