NASDAQ Shariah screener · October 2026

Is Honeywell International Inc. (HON) Halal?

FAIL

Honeywell International Inc. · NASDAQ: HON · Industrials

The short answer

No - Honeywell International (HON) fails this Shariah stock screen on the debt gate. Honeywell, headquartered in Charlotte, North Carolina, is now a pure-play automation company: after spinning off Honeywell Aerospace (NASDAQ: HONA) on June 29, 2026, its three segments are Building Automation, Process Automation and Technology, and Industrial Automation (fire, building systems, LNG and process technology, sensing and industrial measurement) - none involve alcohol, tobacco, gambling, weapons, adult entertainment, pork, or conventional finance. The problem is leverage: total interest-bearing debt of $33,988M is about 50.70% of its ~$67.04B market cap ($213.80/share, October 1, 2026), above the ~33% ceiling. Interest income of $369M is about 0.99% of FY2025 revenue ($37,442M), below the 5% ceiling. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.

Gate 1 — Business activity: PASS

Honeywell International Inc. (NASDAQ: HON), headquartered in Charlotte, North Carolina (CEO Vimal Kapur; 50,000+ employees), is now a pure-play automation company. On June 29, 2026, it spun off its Aerospace Technologies business as Honeywell Aerospace (NASDAQ: HONA) and completed a 1-for-2 reverse stock split; the remaining company reports three segments: Building Automation ($2,002M of Q2 2026 segment sales, ~39% - fire, building products and solutions), Process Automation and Technology ($1,679M, ~32% - LNG, process technology, catalysts), and Industrial Automation ($1,501M, ~29% - sensing, industrial measurement, solutions). Business-screen implication (factual): the current segments sell automation products and services - none involve alcohol, tobacco, gambling, weapons, adult entertainment, pork, or conventional finance. Historical note: the former Aerospace Technologies segment (~47% of FY2025 sales) was an aerospace and defense supplier with Defense and Space sales; that exposure left the company with the spin-off. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: FAIL

Per Honeywell's Q2 2026 condensed consolidated balance sheet (July 23, 2026 8-K Exhibit 99.1, the same statements as the Form 10-Q filed that day; SEC CIK 773840), total interest-bearing debt at June 30, 2026 was $33,988M - commercial paper and other short-term borrowings $2,478M + current maturities of long-term debt $5,282M + long-term debt $26,228M. Against a market cap of about $67.04B ($213.80/share, October 1, 2026, per Finnhub), debt divided by market cap is about 50.70% - above the ~33% ceiling. Cash and cash equivalents of $8,751M plus short-term investments of $445M is about 13.72% of market cap. Gate 2 fails. Facts only.

Gate 3 — Non-compliant income: PASS

Honeywell's FY2025 Form 10-K (filed via SEC EDGAR February 17, 2026; CIK 773840) reports interest income of $369M against FY2025 net sales of $37,442M - about 0.99% of revenue, below the 5% non-compliant income ceiling. Line used: the Consolidated Statement of Operations 'Interest income' line (Zoya's HON page independently cites the same $369M / $37,442M = 0.99% figures). Gate 3 passes. Facts only.

Key figures used

Business: now a pure-play automation company after the June 29, 2026 aerospace spin-off; three segments - Building Automation ($2,002M Q2 2026, ~39%), Process Automation and Technology ($1,679M, ~32%), Industrial Automation ($1,501M, ~29%); FY2026 sales guidance $19.8B-$20.0B
Defense history: former Aerospace Technologies segment (~47% of FY2025 sales) was an aerospace and defense supplier with Defense and Space sales; spun off as Honeywell Aerospace (NASDAQ: HONA) on June 29, 2026 with a 1-for-2 reverse split - no aerospace or defense operations remain in HON
Debt: $33,988M at Jun 30, 2026 (commercial paper and short-term borrowings $2,478M + current maturities $5,282M + long-term debt $26,228M) - debt divided by market cap is about 50.70% of ~$67.04B ($213.80/share, Oct 1, 2026, Finnhub), above the ~33% ceiling
Cash: $8,751M cash and cash equivalents + $445M short-term investments is about 13.72% of market cap
Interest income: $369M ('Interest income' line, FY2025 10-K) vs net sales $37,442M - about 0.99% of revenue, under the 5% ceiling
Zoya: HON page flags it not Shariah-compliant (cites $369M interest income / $37,442M revenue = 0.99%); Musaffa: no HON page found; ShariaPortfolio: no HON entry found

Frequently asked questions

What does Honeywell do?

Honeywell International Inc. (NASDAQ: HON), headquartered in Charlotte, North Carolina, is now a pure-play automation company (CEO Vimal Kapur; 50,000+ employees). On June 29, 2026 it spun off Honeywell Aerospace (NASDAQ: HONA) and completed a 1-for-2 reverse stock split. The remaining company reports three segments: Building Automation (~39% of Q2 2026 segment sales - fire, building products and solutions), Process Automation and Technology (~32% - LNG, process technology, catalysts), and Industrial Automation (~29% - sensing, industrial measurement, utilities and warehouse solutions). Prior divestitures include Solstice Advanced Materials (Oct 2025), personal protective equipment (May 2025), and the Warehouse and Workflow Solutions and Productivity Solutions and Services businesses (mid-2026).

Why does Honeywell fail this Shariah stock screen?

Honeywell fails at gate 2 (debt). Total interest-bearing debt of $33,988M at June 30, 2026 is about 50.70% of its ~$67.04B market cap ($213.80/share, October 1, 2026, per Finnhub), above the ~33% ceiling. Gate 1 (business activity) passes: the current three automation segments have no alcohol, tobacco, gambling, weapons, adult entertainment, pork, or conventional finance, and the defense-exposed aerospace business was spun off as HONA on June 29, 2026. Gate 3 passes: interest income of $369M is about 0.99% of FY2025 revenue ($37,442M), below the 5% ceiling. Result: FAIL. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.

What is Honeywell's interest-bearing debt ratio?

Per Honeywell's Q2 2026 condensed consolidated balance sheet (July 23, 2026 8-K Exhibit 99.1, the same statements as the Form 10-Q filed that day; SEC CIK 773840), total interest-bearing debt at June 30, 2026 was $33,988M: commercial paper and other short-term borrowings $2,478M + current maturities of long-term debt $5,282M + long-term debt $26,228M. Against a market cap of about $67.04B ($213.80/share, October 1, 2026, per Finnhub), debt divided by market cap is about 50.70% - above the ~33% ceiling, so the debt gate fails. Cash and cash equivalents of $8,751M plus short-term investments of $445M is about 13.72% of market cap. Facts only.

What is Honeywell's non-compliant income ratio?

Honeywell's FY2025 Form 10-K (filed via SEC EDGAR February 17, 2026; CIK 773840) reports interest income of $369M against FY2025 net sales of $37,442M - about 0.99% of revenue, below the 5% non-compliant income ceiling. Line used: the Consolidated Statement of Operations 'Interest income' line. Zoya's HON page independently cites the same $369M / $37,442M = 0.99% figures. Facts only.

Do Zoya, Musaffa, or ShariaPortfolio cover Honeywell?

Zoya covers Honeywell at zoya.finance/stocks/hon and flags HON as not Shariah-compliant (its public page also cites interest income of $369M on revenue of $37,442M = 0.99%, matching the 10-K). Musaffa: no HON page surfaced in search. ShariaPortfolio: no HON entry found. All honestly reported as absent where not found, not invented. This page applies the screen directly from Honeywell's own SEC filings.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).