Honeywell Flags Q1 Revenue Pressure, Backs 2026 Outlook

Key Moments

Short-Term Headwinds From Middle East Conflict

March 17 (Reuters) – Honeywell International CEO Vimal Kapur told attendees at BofA Securities’ Global Industrials Conference on Tuesday that the ongoing conflict in the Middle East could weigh on the company’s first-quarter revenue. He said the impact could reach the high-single-digit percentage range for the period.

Kapur characterized the disruption as stemming from near-term operational and logistical challenges, rather than any weakening in underlying demand. He described the situation as a “tactical issue” and not one that alters the company’s broader trajectory.

Full-Year and 2026 Guidance Unchanged

Despite the anticipated first-quarter pressure, Honeywell is not revising its guidance for this year or its longer-range outlook. Kapur emphasized that delays in deliveries would primarily shift revenue into later periods instead of eliminating it.

“If something due in March shows up in April or May, it still won’t change our guide for the year or for that matter, the next year,” Kapur said.

For 2026, Honeywell continues to project sales in a range of $38.8 billion to $39.8 billion. The company is also reiterating its expectation for full-year adjusted earnings per share of $10.35 to $10.65 in that year.

Market Reaction

Honeywell’s share price has fallen about 3.7% since the conflict began more than two weeks ago, reflecting investor concerns over the near-term financial impact of the regional instability.