March 17 (Reuters) - Honeywell said on Tuesday the disruption in shipping goods into the Middle East could push some revenue the company would have recognized in the first quarter later into the year, even if demand stayed intact.
"There's definitely a disruption there, so that can cause some revenue moving from one month, just merely a matter of fact ... if something was due in March, shows up in April or May," CEO Vimal Kapur said at BofA Securities' Global Industrials Conference on Tuesday.
"I don't
want to change our guide for the year or for that matter, next year. So, fundamentally I see this, situation more like not impacting 2026, but can impact Q1 as things happen on a transitory basis."
Shares of the company fell 1.7% on Tuesday, and have slipped about 3.7% since the conflict began more than two weeks ago.
Honeywell is a diversified industrial and aerospace manufacturer and a long‑standing supplier to the U.S. Department of Defense.
Honeywell is the first large company outside the airline and energy industry to flag how the Iran war was impacting corporate earnings, though Kapur stressed that the industrial giant remained confident in its 2026 forecast, viewing the disruptions as a "tactical issue."
He added that the company had a "large amount of people on site" in the Middle East contracted out to clients and 5% of those sites were impacted, partially closed or closed. The region accounted for "a high single-digit of our revenue," Kapur said.
The U.S.-Israeli war with Iran is rattling businesses worldwide, driving up energy prices - in turn pushing up costs and threatening margins - while squeezing supplies of critical raw materials and raising questions about the reliability of trade routes critical to the flow of goods from food to car parts.
Honeywell expects 2026 sales of between $38.8 billion and $39.8 billion and a full-year adjusted profit per share of $10.35 to $10.65.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Anil D'Silva and Maju Samuel)
