Honeywell today announced results for the first quarter that exceeded the company's guidance across all metrics. The company also raised the midpoint of its full-year organic1 growth, segment margin3, and adjusted EPS3 guidance ranges.
The company reported first-quarter year-over-year sales growth of 6% and organic sales growth of 8%, with another quarter of double-digit organic sales growth in Performance Materials and Technologies and Aerospace. Operating margin expanded 390 basis points to 19.1% and segment margin expanded by 90 basis points to 22.0%, led by continued robust expansion in Safety and Productivity Solutions and Honeywell Building Technologies. Honeywell first-quarter earnings per share was $2.07, up 26% year over year, or up 8% adjusted year over year. Operating cash flow was negative $0.8 billion and free cash flow was negative $1.0 billion. Excluding the net impact of settlements signed in the fourth quarter of 2022, the company generated $0.3 billion of free cash flow in the first quarter, $250 million better than the first quarter of 2022.
Honeywell raised the midpoint of its full-year sales, segment margin, and adjusted earnings per share guidance. Full-year sales are now expected to be $36.5 billion to $37.3 billion with organic sales growth in the range of 3% to 6%. Segment margin is now expected to be in the range of 22.3% to 22.6%, with segment margin expansion of 60 to 90 basis points. Adjusted earnings per share is now expected to be in the range of $9.00 to $9.25, up 20 cents on the low end and 5 cents on the high end from the prior guidance range. Operating cash flow is still expected to be in the range of $4.9 billion to $5.3 billion. Free cash flow1 is still expected to be in the range of $3.9 billion to $4.3 billion, or $5.1 billion to $5.5 billion excluding the net impact of settlements signed in the fourth quarter of 2022.
