Is HON (Honeywell International Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, HON is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (25.87% vs ≤33% threshold), interest income ratio (0.99% vs ≤5% threshold), and cash & securities ratio (9.67% vs ≤33% threshold).

Honeywell International Inc. operates as a massive diversified technology and manufacturing conglomerate. Its primary operations lie in its Aerospace segment, where it produces everything from auxiliary power units and integrated avionics to flight safety software and radar systems. For Muslim investors, Honeywell represents a solid Shariah-compliant opportunity in the industrial sector. The stock successfully passes all AAOIFI criteria, meaning its core business activities are permissible and its financial structure does not violate Islamic principles regarding excessive debt or interest generation. From an Islamic finance perspective, Honeywell's balance sheet is quite healthy. The company maintains a permissible debt-to-market cap ratio of 25.9%, staying safely below the strict 33% threshold, while its interest-bearing income is highly restricted at just 0.99% of total revenue. Because Honeywell is a vast conglomerate with defense-related aerospace contracts, investors should periodically review its revenue streams to ensure they remain aligned with Islamic values. However, its current operations and clean financial metrics make it a fundamentally sound holding for a halal portfolio. Honeywell International Inc. operates in the Industrials sector under the Conglomerates industry and is headquartered in Charlotte, NC, US. The company is led by CEO Vimal Kapur and employs approximately 102,000 people.

HON was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. HON passed 4 of these 4 screens.

Although HON passes all shariah screens, it does earn $369.0M in interest income (0.99% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.99 to purify the income.

HON was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.