Stock Analysis on Net
Stock Analysis on Net

Honeywell International Inc. (NASDAQ:HON)

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Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Honeywell International Inc., consolidated income statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Product sales
Service sales
Net sales
Cost of products sold
Cost of services sold
Cost of products and services sold
Gross profit
Research and development expenses
Selling, general and administrative expenses
Impairment of goodwill
Impairment of assets held for sale
Operating income
Interest income
Pension ongoing income, non-service
Other postretirement income, non-service
Equity income of affiliated companies
Gain on Resideo indemnification and reimbursement agreement termination
Gain (loss) on sale of non-strategic businesses and assets
Foreign exchange income (loss)
Divestiture-related costs
Acquisition-related costs
Expense related to UOP Matters
(Expense) benefit related to Russia-Ukraine conflict
Net expense related to the NARCO Buyout and HWI Sale
Other, net
Other income (expense)
Interest and other financial charges
Income from continuing operations before taxes
Tax expense
Net income from continuing operations
Net income from discontinued operations
Net income
Net income attributable to the noncontrolling interest
Net income attributable to Honeywell

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Honeywell International Inc. demonstrates a complex revenue and profitability pattern over the five-year period. While net sales generally increased from 2021 to 2024, 2025 saw a slight decline. A notable shift occurred in the composition of sales, with service sales exhibiting consistent and robust growth, increasingly contributing to overall revenue, while product sales experienced fluctuations, including a decrease in the final year.

Gross profit increased steadily from 2021 to 2024, mirroring the trend in net sales, but experienced a moderate decrease in 2025. Cost of products and services sold increased consistently throughout the period, impacting gross profit margins. Operating income followed a similar trajectory to gross profit, peaking in 2024 before declining in 2025. Several non-recurring items significantly influenced net income, particularly in 2025.

Revenue Composition
Product sales remained the larger component of net sales, but its relative contribution diminished as service sales grew at a faster rate. Service sales increased from US$8.749 billion in 2021 to US$12.927 billion in 2025, representing a 47.7% increase. Product sales, conversely, decreased from US$25.643 billion to US$24.515 billion, a 4.4% decrease over the same period.
Profitability Analysis
Gross profit margin remained relatively stable, fluctuating between 35.7% and 37.6% throughout the period. Operating margin also showed relative stability, ranging from 18.0% to 19.4% before decreasing to 14.4% in 2025. This decrease in 2025 is attributable to the combined effect of lower net sales and increased impairment charges.
Expense Management
Research and development expenses increased consistently, indicating a continued investment in innovation. Selling, general, and administrative expenses also increased, though at a slower pace. The most significant expense fluctuations were related to non-recurring items, including impairments and acquisition/divestiture costs. Impairment of goodwill and assets held for sale were negligible until 2025, where they totaled US$994 million, significantly impacting operating income.
Non-Operating Items
Other income (expense) contributed significantly to overall profitability, with substantial gains observed in 2021 and 2025. However, interest and other financial charges increased steadily, offsetting some of these gains. The impact of foreign exchange fluctuations was relatively minor, with both gains and losses recorded. Several specific items, such as the Resideo indemnification agreement and divestiture-related costs, had notable, but often offsetting, effects on net income.
Net Income Trends
Net income attributable to Honeywell followed a similar pattern to operating income, peaking in 2024 and declining in 2025. The decline in 2025 was more pronounced, driven by the impairments, divestiture costs, and a decrease in operating income. Net income from discontinued operations was only present in 2025, adding US$304 million to the total.

Overall, the period demonstrates a generally positive trend in revenue and profitability, but 2025 presents a notable deviation due to significant non-recurring charges and a slight decline in net sales. The increasing contribution of service sales is a key observation, suggesting a potential shift in the company’s business model.