Honeywell (NASDAQ: HON) Recently announced the results for the first quarter of 2023, and various indicators exceeded the company's guidance range. The company also raised the midpoint of its guidance range for full-year organic growth, segment margins and adjusted EPS.
The company's sales in the first quarter increased by 6% year-on-year, and organic sales increased by 8% year-on-year. Among them, the organic sales of Honeywell Performance Materials and Technology Group and Aerospace Group achieved double-digit growth again. Operating margin increased 390 basis points to 19.1% and segment margin increased 90 basis points to 22.0%, driven by continued strong growth in Safety & Productivity Solutions and Building Technologies. Honeywell's first-quarter earnings per share were $2.07, up 26% year-over-year or 8% on an adjusted basis. Operating cash flow was -$800 million and free cash flow was -$1 billion.
"Honeywell is off to a good start in 2023, with all indicators exceeding expectations in the first quarter." Darius Darius, Chairman and CEO of Honeywell Adamczyk said, "Double-digit growth in commercial aviation, UOP, process control, smart buildings and performance materials businesses drove organic sales growth. Backlog was $30.3 billion, up 6% year-over-year. The strength of the Aerospace Group, in particular, gives us confidence in our full-year outlook. Our continued focus on operational excellence and productivity allowed us to weather inflation in a comfortable manner and beat segment margins and earnings per share. Strong performance The balance sheet allowed us to deploy $1.6 billion in share repurchases, dividends and capital expenditures during the quarter. Honeywell also announced that it will acquire American Compressor Controls Inc., a provider of turbomachinery control and automation solutions A leader, combined with our process solutions installed base and connected factory platform strength, will help customers accelerate the energy transition."
Du Ruizhe also said: "Looking forward to the full year, despite the uncertainties in the macroeconomic environment, we will continue to achieve excellent results with strengths. Our business is well-positioned for continued growth, and our backlog supports business expectations , The differentiated technology solution portfolio enables us to solve the most difficult challenges in the field of automation, digitalization and sustainable development on a global scale. These advantages strongly support our upward revision of the full-year forecast. I firmly believe that Honeywell will be in Kewei Mao ( Vimal Kapur's leadership continued. I am honored to have the opportunity to lead Honeywell, and our future looks bright. "
Based on the company's first-quarter results and management's outlook for the remaining three quarters of the year, Honeywell raised the midpoint of its guidance range for full-year sales, segment margins and adjusted earnings per share. Currently, annual sales are expected to be between US$36.5 billion and US$37.3 billion, with organic growth of 3% to 6%. Segment margins are expected to be 22.3% to 22.6%, with margin expansion of 60 to 90 basis points. Adjusted earnings per share are expected to be $9.00 to $9.25, with a 20-cent increase in the lower end of the guidance range and a 5-cent increase in the upper end. Operating cash flow is expected to be in the range of $4.9 billion to $5.3 billion. Free cash flow is expected to be between $3.9 billion and $4.3 billion.
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