Honeywell International, Inc. (NASDAQ:HON) outlined new financial targets and portfolio actions at its Investor Day, ahead of the planned June 29 spin-off of Honeywell Aerospace.

Honeywell Sets Three-Year Financial Targets

Honeywell outlined a three-year financial framework targeting 4% to 6% organic growth, more than 10% annual adjusted EPS growth, and more than 90% free cash flow conversion.

The company expects segment margins of approximately 24%, adjusted EPS of about $6.00, and free cash flow of more than $3 billion by 2029.

Read Also: Honeywell Stock Drops As Oil Prices Surge Amid Trump's Threats

For full-year 2026, Honeywell guided adjusted EPS of $3.95 to $4.15 and free cash flow of approximately $2 billion.

Automation Business And Software Growth

Honeywell positioned itself as a pure-play global automation business following its planned Aerospace separation.

The company reported approximately $17 billion in 2025 sales and about $4 billion in segment profit across Building Automation, Industrial Automation, and Process Automation & Technology.

The company targets approximately 15% annual recurring software revenue growth and plans to increase services and software to more than 45% of its mix within about five years.

Honeywell also highlighted its $1 billion investment in Honeywell Forge, which expanded from fewer than 10,000 connected sites in 2020 to more than 324,000 in 2026.

Portfolio Actions And Capital Plans

Honeywell plans to prioritize near-term debt repayment to keep gross leverage below 3.0x. It also targets a 35% dividend payout ratio, a 1% annual reduction in share count, and bolt-on acquisitions in the $2 billion to $4 billion range.

Chairman and CEO Vimal Kapur described Honeywell's strategy as a move "from automation to autonomy," supported by a roughly 30% aftermarket installed base, an $18 billion backlog, and 13% orders growth over the last three years.

HON Technical Analysis: Momentum And Key Chart Levels

The stock is currently trading at $207.50, which is approximately 6.3% below its 20-day simple moving average (SMA) of $222.33.

The moving average convergence divergence (MACD) is below its signal line, indicating that upside momentum is fading unless it can reclaim that baseline.

  • Key Resistance: $221.00 — a nearby level where rebounds can stall.
  • Key Support: $208.00 — a nearby level where buyers previously stepped in.

Analyst Consensus & Recent Actions

The stock carries a Buy rating with an average price target of $254.00. Recent analyst moves include:

  • Bernstein: Initiated with Market Perform (Target $233.00) (June 10)
  • Barclays: Overweight (Lowers Target to $239.00) (June 10)
  • RBC Capital: Outperform (Raises Target to $275.00) (June 5)

HON Price Action: Honeywell Intl shares were up 2.48% at $210.98 at the time of publication on Thursday, according to Benzinga Pro data.

Photo by josefkubes via Shutterstock