2026 04 23 Honeywell HON Q1 2026 Earnings Call
Building Automation +8% organic led by data center and healthcare verticals; Aerospace spin-off on track June 29; liquid cooling for AI data centers opening new sensor/controls TAM; adjusted EPS +11%.
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Honeywell Q1 2026: Building Automation grew 8% organically led by data center and healthcare demand for new products. CEO Vimal Kapur flagged liquid cooling as an emerging TAM — AI data centers require more sophisticated controls than traditional air HVAC, opening a sensors/controls revenue line. Adjusted EPS grew 11%. The Aerospace spin-off is on track for June 29, enabling independent capital allocation. Management guides to "accelerating growth in the second half" supported by backlog visibility.
Transcript
Mike Stepniak (CFO): "Sales growth was led by strong demand for new products and momentum across the high-growth data center and healthcare verticals."
Vimal Kapur (CEO): "The leadership team for both Honeywell International Inc. and Honeywell International Inc. Aerospace are in place and already executing for our customers today." [Aerospace spin-off on track June 29.]
Mike Stepniak (CFO): "The team got after that cost quite early" following portfolio simplification, with pricing improvements and new product introductions supporting recovery.
Vimal Kapur (CEO): "We are actively working on liquid cooling in our Sensors business...requires more sophisticated controls compared to traditional HVAC air-based control." [AI data center liquid cooling → incremental sensor and control demand.]
Vimal Kapur (CEO): "We remain confident in our ability to drive accelerating growth in the second half as our backlog supports a pickup in growth."