By Aatreyee Dasgupta 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, sending the industrial giant’s shares up 4.5%. A delay in aircraft delivery is prompting airlines to fly jets longer, boosting demand for parts and maintenance, […]
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Honeywell’s revenue, profit rise as aerospace aftermarket demand stays strong
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By Aatreyee Dasgupta
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, sending the industrial giant’s shares up 4.5%.
A delay in aircraft delivery 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.
Honeywell’s aerospace business has faced pressure from high costs, global trade tensions, 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.
Honeywell posted an adjusted per-share profit of $2.59 during the quarter, compared with $2.22 a year ago. Analysts estimated $2.54 per share, according to data compiled by LSEG.
The results cap a constructive year for Honeywell, which announced a breakup of its large conglomerate structure to create three independent companies focused on automation, aerospace and advanced materials.
The company expects to complete the separation of its automation and aerospace businesses in the third quarter.
Honeywell also concluded a strategic review of two of its businesses that cater to transportation and logistics, and intends to pursue their sale in the first half of 2026.
It expects adjusted per-share profit for 2026 to be between $10.35 and $10.65, while analysts expect $10.38.
Overall quarterly sales rose 6.4% to $9.76 billion, but came below the estimate of $9.85 billion.
DATA CENTERS ARE KEY CATALYST
Several industrial companies, including Dover, Caterpillar and GE Vernova, have pointed to surging demand from AI-powered data centers as a growth driver in recent earnings.
“Data-center position of Honeywell in building automation (segment) is becoming slowly material. We are inching towards that becoming greater than 5% of our revenue,” CEO Vimal Kapur said on post-earnings call.
Honeywell provides fire safety, cooling and building controls, and security systems to data centers.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shilpi Majumdar)