The sales increase was attributed to double-digit organic sales growth in commercial aviation, defense and space, and process solutions.

Adjusted EPS was $2.27, beating the consensus of $2.23.

Sales by Segments: Aerospace $3.49 billion (+18% Y/Y), Honeywell Building Technologies $1.53 billion (flat Y/Y), Performance Materials and Technologies $2.87 billion (+5% Y/Y) and Safety and Productivity Solutions $1.31 billion (-24% Y/Y).

Operating margin expanded by 140 bps to 20.9%, and segment margin expanded by 80 bps to 22.6%, attributed to expansion in Honeywell Building Technologies.

Net cash provided by operating activities for the quarter was $1.81 billion (-13.2% Y/Y), and Free cash flow was $1.56 billion (-17.9% Y/Y).

The backlog increased to $31.4 billion, up 8% Y/Y, and orders increased 10% Y/Y, driven by strength in Aerospace and long-cycle businesses.

HON held cash and equivalents of over $7.77 billion as of Sept. 30, 2023.

The company reports a significant increase in order volumes in Q3, leading to a historically high backlog. It asserts that it is well-positioned for growth in fiscal year 2024.

4Q23 Outlook: Honeywell expects sales of $9.6 billion-$9.9 billion versus the consensus of $9.69 billion; Sees Adjusted EPS of $2.53-$2.63 versus the consensus of $2.63; and Segment margin of 22.9%-23.2%.

For FY23, HON raises the midpoint of the segment margin guide while narrowing sales and adj. EPS ranges.

FY23 Outlook, updated: Honeywell now expects sales of $36.8 billion - $37.1 billion (prior $36.7 billion - $37.3 billion) versus the consensus of $36.93 billion.

The company sees adjusted EPS of $ $9.10-$9.20 (prior 9.05 - $9.25) versus the consensus of $9.16.

HON reaffirms guidance for Operating cash flows at $4.9 billion-$5.3 billion and Free Cash Flow at $3.9 billion-$4.3 billion.

Price Action: HON shares are trading higher by 0.53% at $179.04 on the last check Thursday.