# Honeywell Stock: The 3-Way Breakup Is Done — It Beat and Raised, So Why We Say HOLD

Page: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/honeywell-stock-the-3-way-breakup-is-done-it-beat-and-raised-so-why-we-say-hold
Text version: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/honeywell-stock-the-3-way-breakup-is-done-it-beat-and-raised-so-why-we-say-hold.md
Podcast: [Charged Alpha Stock Encyclopedia](https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792)
Published: 2026-07-26T15:18:17+00:00
Episode link: https://chargedalpha.podbean.com/e/honeywell-stock-the-3-way-breakup-is-done-%e2%80%94-it-beat-and-raised-so-why-we-say-hold/
Audio file: https://mcdn.podbean.com/mf/web/s5dxly00rdgjr0ai/audio_v.mp3
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JSON: https://stenobird.com/v1/public/podcasts/charged-alpha-stock-encyclopedia-7819792/episodes/honeywell-stock-the-3-way-breakup-is-done-it-beat-and-raised-so-why-we-say-hold
Duration seconds: 892

## Resource

Honeywell (HON) Q2 2026 — Honeywell (HON) — now branded Honeywell Technologies and a pure-play automation company after spinning off Aerospace (HONA) on June 29, 2026 and Solstice Advanced Materials (SOLS) in late 2025 — reported a clean Q2 2026: adjusted EPS of $1.95 beat the ~$1.80 estimate (+10% YoY) on sales of $5.19B (+3% reported, +4% organic), segment margin expanded 100 bps to 19.0%, and orders jumped 16% to a ~$20B backlog. Management RAISED full-year 2026 guidance — adjusted EPS to $8.05–$8.35 (up 25–29%) and organic growth to 3–4%. Ignore the $16.65 GAAP EPS — it's a one-time gain from deconsolidating Quantinuum. The catch: at ~30x forward earnings with only mid-single-digit organic growth and ~$20B net debt, even our compounder-leaning owner-earnings DCF lands fair value near $205 — below the ~$243 price. Our call: HOLD, 3/5. We're more cautious than the Street's ~$257 target (Buy). Honeywell just finished one of the most ambitious breakups in industrial history. Over the past year it spun off Advanced Materials as Solstice (SOLS) and then, on June 29, 2026, spun off Honeywell Aerospace as its own public company (HONA) — leaving what still trades as HON a focused, ~$77B pure-play automation company across Building Automation, Industrial Automation, and Process Automation & Technology. Q2 2026, the first quarter on the new standalone basis, was genuinely strong: adjusted EPS of $1.95 beat the ~$1.80 estimate (+10% YoY), sales rose 3% (4% organic) to $5.19B, segment margin expanded 100 bps to 19.0%, and orders jumped 16% to a ~$20B backlog — with Building Automation the crown jewel at a 27% margin and +9% organic. Management RAISED full-year guidance to adjusted EPS of $8.05–$8.35 (up 25–29%). One trap to avoid: the $16.65 GAAP EPS is a mirage from the on…

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