HON Gross Margin Analysis

Gross margin is the share of revenue a company keeps after paying the direct costs of producing its products, so 37.6% means HON retains $0.376 of every sales dollar before other expenses.

That level sits below the sector median of 44.9%, placing HON in the 37th percentile among its sector peers. The trend is limited: year-over-year change is not available, but quarter-over-quarter the margin fell 2.8 percentage points from 38.7% to 37.6%. A below-median margin combined with a recent decline suggests HON is losing pricing power or facing higher input costs relative to peers. This combination points to compressed profitability ahead, raising the risk of weaker earnings unless the trend reverses. The metric directly supports the overall CAUTIOUS verdict, as it shows HON operating with a thinner and deteriorating profit cushion than most of its sector.

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