Aureus
BGood

Honeywell International Inc.(HON)

B

Financial data as of Dec 31, 2025Declining · Industrials

FCF Margin14.0%Free Cash Flow / Revenue
Cash Conversion135.5%Operating CF / Net Income
Free Cash Flow$5.4B
Revenue$37.4B
Net Cash-$23.1BNet debt position
Debt / FCF6.8xElevated debt burden
Current Ratio1.30Adequate short-term liquidity
YoY FCF Growth-200.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-0.5Elevated debt-to-FCF ratio (6.8x; 5.4x sector-adjusted)
→
+0.5Healthy FCF margin with manageable debt (14.0%, 6.8x; 5.4x sector-adjusted)
→
-1Significant YoY FCF decline (-200.0%)
→
-0.5Highly volatile FCF (consistency: 1.43)
→
FinalB

Analysis Summary

Strengths

  • Healthy FCF margin (14.0%)
  • Excellent cash conversion (136%)

Concerns

  • Heavy debt position ($23.1B net debt, 6.8x FCF)
  • High debt-to-FCF ratio (6.8x)
  • Significant YoY FCF decline (-200.0%)
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin14.0%
Net Margin12.6%
Operating CF Margin17.1%
CapEx Ratio2.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$23.1BNet debt position
Debt / FCF6.8xElevated debt burden
Current Ratio1.30Adequate liquidity
Debt / Equity2.56High leverage

Quarterly FCF Trend

-200.0% YoYDeclining (-200.0%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameHoneywell International Inc.
SectorIndustrials
Free Cash Flow$5.4B
Revenue$37.4B
Net Income$4.7B
Operating Cash Flow$6.4B
Capital Expenditure$986.0M
FCF Margin14.0%
Cash Conversion Rate135.5%
Net Margin12.6%
Total Debt$35.6B
Total Cash$12.5B
Net Cash-$23.1B
Current Ratio1.30
Debt / Equity2.56
Debt / FCF6.8x
YoY FCF Growth-200.0%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeB
Data SourceYahoo Finance

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