What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Honeywell Aerospace Inc. Common Stock When Issued (HONAV) revenue becomes net income?

For FY 2025, Honeywell Aerospace Inc. Common Stock When Issued turned $17.40B of revenue into $1.78B of net income — a net margin of 10.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Honeywell Aerospace Inc. Common Stock When Issued (HONAV) gross, operating, and net margins?

For FY 2025, Honeywell Aerospace Inc. Common Stock When Issued reported a gross margin of 34.8%, an operating margin of 18.7%, and a net margin of 10.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Honeywell Aerospace Inc. Common Stock When Issued (HONAV) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Honeywell Aerospace Inc. Common Stock When Issued (HONAV) Income Statement Waterfall

Revenue

$17.40B

Gross Margin

+34.8%

Operating Margin

+18.7%

Net Margin

+10.2%

Income statement waterfall for Honeywell Aerospace Inc. Common Stock When Issued (HONAV) — FY 2025

Net income: $1.78B

Margin breakdown for Honeywell Aerospace Inc. Common Stock When Issued (HONAV) — FY 2025

Line item	Amount	Running total
Revenue	$17.40B	$17.40B
Cost of Revenue	−$11.34B	$6.06B
Gross Profit	$6.06B	$6.06B
Operating Expenses	−$2.81B	$3.26B
Operating Income	$3.26B	$3.26B
Other Income / Expense	−$901.00M	$2.36B
Pre-tax Income	$2.36B	$2.36B
Income Tax	−$541.00M	$1.81B
Other Items	−$35.00M	$1.78B
Net Income	$1.78B	$1.78B

Revenue$17.40B
Cost of Revenue−$11.34B
Gross Profit$6.06B
Operating Expenses−$2.81B
Operating Income$3.26B
Other Income / Expense−$901.00M
Pre-tax Income$2.36B
Income Tax−$541.00M
Other Items−$35.00M
Net Income$1.78B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Honeywell Aerospace Inc. Common Stock When Issued (HONAV) Key Financials

Charts, filings, and peer comparison for every metric

Income Statement

Balance Sheet

Profitability

Cash Flow

Capital Return

Forecast & Valuation

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

HONAV Overview