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HONEYWELL REPORTS SECOND QUARTER RESULTS; UPDATES 2025 GUIDANCE
Sales of $10.4 Billion, Reported Sales Up 8%, Organic1 Sales Up 5%, Exceeding High End of Previous Guidance Earnings Per Share of $2.45 and Adjusted Earnings Per Share1 of $2.75, Exceeding High End of Previous Guidance Company Raises Full-Year Organic Growth and Adjusted Earnings Per Share Guidance Closed $2.2 Billion Acquisition of Sundyne, Announced £1.8 Billion Acquisition of Johnson Matthey's Catalyst Technologies Business, and Completed $1.3 Billion Sale of PPE Business Announced Evaluation of Strategic Alternatives for Productivity Solutions and Services and Warehouse and Workflow Solutions Businesses, Concluding Comprehensive Portfolio Review Initiated in Early 2024 by Chairman and CEO Vimal Kapur Separations Progressing Successfully with Solstice Advanced Materials Spin Date Targeted for Fourth Quarter of 2025 CHARLOTTE, N.C., July 24, 2025 /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced results for the second quarter that met or exceeded the company's guidance. The company also raised its full-year organic growth and adjusted earnings per share guidance ranges and reiterated its free cash flow guidance range. The company reported second-quarter year-over-year sales growth of 8% and organic1 sales growth of 5%, led by double-digit organic sales growth in defense and space and UOP. Operating income increased 7% and segment profit1 increased 8% to $2.4 billion led by growth in Building Automation. Operating margin contracted 30 basis points to 20.4% and segment margin contracted 10 basis points to 22.9%, meeting previous guidance. Earnings per share for the second quarter was $2.45, up 4% year over year, and adjusted earnings per share1 was $2.75, up 10% year over year. Operating cash flow was $1.3 billion, down 4% year over year, and free cash flow1 was $1.0 billion, down 9% year over year. "Honeywell delivered outstanding results in the second quarter with both organic growth and adjusted earnings per share exceeding guidance despite the unpredictable macroeconomic backdrop," said Vimal Kapur, chairman and chief executive officer of Honeywell. "With Building Automation leading the way, three out of four segments grew sales at better than 5% in the quarter, demonstrating the power of our Accelerator operating system to adapt quickly and drive growth even as business conditions change. During the quarter, we also saw promising results from our increased focus on new product innovation, which further supported the growth of our record backlog. In parallel, we continued to take a balanced approach to capital deployment, including selectively pursuing attractive M&A opportunities, such as the bolt-on acquisition of Johnson Matthey's Catalyst Technologies business and the strategic tuck-in of Li-ion Tamer." Kapur added, "With the announcement of our review of strategic alternatives for our Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, this month also marked the conclusion of the in-depth portfolio review that I initiated early in my tenure as CEO to simplify and optimize Honeywell's businesses. As we prepare to separate into three industry-leading public companies, we are confident that our efforts to shape our portfolio have positioned Honeywell to deliver significant value for customers, employees, and shareholders." As a result of the company's second-quarter performance and management's outlook for the remainder of the year, Honeywell updated its full-year sales, segment margin2, and adjusted earnings per share2,3 guidance. Full-year sales are now expected to be $40.8 billion to $41.3 billion with organic1 sales growth in the range of 4% to 5%. Segment margin2 is expected to be in the range of 23.0% to 23.2%, with segment margin2 expansion of 40 to 60 basis points year over year. Adjusted earnings per share2,3 is now expected to be in the range of $10.45 to $10.65, up 20 cents at the midpoint from the prior guidance range. Operating cash flow is still expected to be in the range of $6.7 billion to $7.1 billion, with free cash flow1 in the range of $5.4 billion to $5.8 billion. Excluding the impact of the Bombardier agreement signed in the fourth quarter of 2024, the company expects organic sales growth of 3% to 4%, segment margin down 30 to 10 basis points year over year, and adjusted earnings per share up 1% to 3% year over year. Guidance now includes the impact of the Sundyne acquisition, which closed in June, and the sale of the company's Personal Protective Equipment business, which closed in May. A summary of the company's full-year guidance changes can be found in Table 1. Portfolio Transformation In February, Honeywell announced that its Board of Directors concluded its comprehensive portfolio review and decided to pursue a separation of its Automation and Aerospace businesses. The planned separation, coupled with the previously announced plan to spin advanced materials (now expected in the fourth quarter of 2025), will result in three publicly-listed industry leaders and is intended to be fully completed in the second half of 2026. To oversee the transformation processes, Honeywell formed dedicated separation management offices to ensure that its business leaders remain focused on managing day-to-day operations. During the second quarter, Honeywell continued to optimize its portfolio and judiciously deploy shareholder capital ahead of the planned separation, including repurchasing $1.7 billion of its shares. In May, the company closed the sale of its personal protective equipment business for $1.3 billion, and in July it announced a review of strategic alternatives for its productivity solutions and services and warehouse and workflow solutions businesses. In addition, Honeywell announced the acquisition of Johnson Matthey's Catalyst Technologies business in May for £1.8 billion, closed the acquisition of Sundyne in June for $2.2 billion, and completed the strategic tuck-in acquisition of Li-ion Tamer in July. With these latest transactions, Honeywell has now announced $13.5 billion of acquisitions since December 2023 and exceeded its commitment, unveiled at its 2023 Investor Day, to deploy at least $25 billion toward high-return capital expenditures, dividends, opportunistic share repurchases, and accretive acquisitions through 2025. Second-Quarter Performance Honeywell sales for the second quarter were up 8% year over year on a reported basis and 5% on an organic1 basis year over year. The second-quarter financial results can be found in Tables 2 and 3. Aerospace Technologies sales for the second quarter increased 6% organically1 from the prior year, driven by continued strength in both defense and space and commercial aftermarket. Defense and space grew 13% year over year, aided by an elevated global demand environment. Commercial aftermarket sales increased 7%, led by growth in air transport and ongoing supply chain unlock. Backlog grew 16% from the previous year, supported by strong double-digit growth in orders. Segment margin contracted 170 basis points to 25.5% as commercial excellence and productivity actions were more than offset by cost inflation and the impact of acquisitions. Industrial Automation sales for the second quarter were flat on an organic1 basis. Process solutions increased 1% year over year, led by a return to growth in smart energy. Sensing and safety technologies sales increased 4% year over year, driven by a third consecutive quarter of growth in sensing on sustained demand for healthcare sensors. Sales in warehouse and workflow solutions declined 4% year over year due to timing of large project execution. Productivity solutions and services sales decreased 7% year over year, largely as a result of challenging demand in Europe. Segment margin expanded 20 basis points year over year to 19.2% as productivity actions and commercial excellence more than offset cost pressures. Building Automation sales for the second quarter increased 8% organically year over year. Building products grew 9% with strength across fire, security, and building management systems. Building solutions improved 5% led by growth in the Middle East. Orders grew both year over year and sequentially, led by strength in products. Segment margin expanded 90 basis points from the prior year to 26.2%, driven by volume leverage and benefit from the access solutions acquisition. Energy and Sustainability Solutions sales for the second quarter increased 6% organically year over year. UOP grew 16%, driven by strong petrochemical catalyst shipments, higher licensing sales volumes in gas processing, and strong backlog conversion in sustainability projects. Advanced materials sales increased 1% in the quarter, as strength in specialty chemicals and materials more than offset the continuation of challenging prior year comparisons in fluorine products in the first half of the year. Segment margin contracted 110 basis points to 24.1% as pressure from a customer settlement and cost inflation were partially offset by volume leverage and the margin-accretive LNG acquisition. Conference Call Details Honeywell will discuss its second-quarter results and full-year 2025 guidance during an investor conference call starting at 8:30 a.m. Eastern Daylight Time today. A live webcast of the investor call as well as related presentation materials will be available through the Investor Relations section of the company's website ( A replay of the webcast will be available for 30 days following the presentation. TABLE 1: FULL-YEAR 2025 GUIDANCE2Previous GuidanceCurrent Guidance Sales$39.6B - $40.5B$40.8B - $41.3B Organic1 Growth2% - 5%4% - 5% Segment Margin23.2% - 23.5%23.0% - 23.2% ExpansionUp 60 - 90 bpsUp 40 - 60 bps Adjusted Earnings Per Share3$10.20 - $10.50$10.45 - $10.65 Adjusted Earnings Growth33% - 6%6% - 8% Operating Cash Flow$6.7B - $7.1B$6.7B - $7.1B Free Cash Flow1$5.4B - $5.8B$5.4B - $5.8B TABLE 2: SUMMARY OF HONEYWELL FINANCIAL RESULTS(Dollars in millions, except per share amounts)2Q 20252Q 2024Change Sales$10,352$9,5778 % Organic1 Growth5 % Operating Income$2,114$1,9787 % Operating Income Margin20.4 %20.7 %-30 bps Segment Profit1$2,366$2,1998 % Segment Margin122.9 %23.0 %-10 bps Earnings Per Share$2.45$2.364 % Adjusted Earnings Per Share1$2.75$2.4910 % Operating Cash Flow$1,319$1,371(4 %) Free Cash Flow1$1,016$1,112(9 %) TABLE 3: SUMMARY OF SEGMENT FINANCIAL RESULTS(Dollars in millions)AEROSPACE TECHNOLOGIES2Q 20252Q 2024Change Sales$4,307$3,89111 % Organic1 Growth6 % Segment Profit$1,098$1,0604 % Segment Margin25.5 %27.2 %-170 bps INDUSTRIAL AUTOMATION Sales$2,380$2,506(5 %) Organic1 Growth— % Segment Profit$456$477(4 %) Segment Margin19.2 %19.0 %20 bps BUILDING AUTOMATION Sales$1,826$1,57116 % Organic1 Growth8 % Segment Profit$479$39721 % Segment Margin26.2 %25.3 %90 bps ENERGY AND SUSTAINABILITY SOLUTIONS Sales$1,837$1,60415 % Organic1 Growth6 % Segment Profit$443$4059 % Segment Margin24.1 %25.2 %-110 bps1See additional information at the end of this release regarding non-GAAP financial measures. 2Segment margin and adjusted EPS are non-GAAP financial measures. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment margin or adjusted EPS. We therefore, do not present a guidance range, or a reconciliation to, the nearest GAAP financial measures of operating margin or EPS. 3Adjusted EPS and adjusted EPS V% guidance excludes items identified in the non-GAAP reconciliation of adjusted EPS at the end of this release, and any potential future one-time items that we cannot reliably predict or estimate such as pension mark-to-market. About HoneywellHoneywell is an integrated operating company serving a broad range of industries and geographies around the world. Our business is aligned with three powerful megatrends - automation, the future of aviation, and energy transition - underpinned by our Honeywell Accelerator operating system and Honeywell Connected Enterprise integrated software platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations that help make the world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit Honeywell uses our Investor Relations website, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including statements related to the proposed spin-off of the Company's Advanced Materials business into Solstice Advanced Materials, a standalone, publicly traded company, the proposed separation of Automation and Aerospace Technologies, and the evaluation of strategic alternatives for the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. Forward-looking statements are those that address activities, events, or developments that we or our management intend, expect, project, believe, or anticipate will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control, including Honeywell's current expectations, estimates, and projections regarding the proposed spin-off of the Company's Advanced Materials business into Solstice Advanced Materials, a standalone, publicly traded company, the proposed separation of Automation and Aerospace Technologies, and the evaluation of strategic alternatives for the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements, including the consummation of the spin-off of the Advanced Materials business into Solstice Advanced Materials, the proposed separation of Automation and Aerospace Technologies, and the evaluation of strategic alternatives for the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and the anticipated benefits of each. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as changes in or application of trade and tax laws and policies, including the impacts of tariffs and other trade barriers and restrictions, lower GDP growth or recession in the U.S. or globally, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, which can affect our performance in both the near and long term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K, and our other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time. This release contains financial measures presented on a non-GAAP basis. Honeywell's non-GAAP financial measures used in this release are as follows: Segment profit, on an overall Honeywell basis; Segment profit margin, on an overall Honeywell basis; Organic sales growth; Free cash flow; and Adjusted earnings per share. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures. Honeywell International Inc. Consolidated Statement of Operations (Unaudited) (Dollars in millions, except per share amounts) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Product sales $ 7,119$ 6,477$ 13,764$ 12,740 Service sales 3,2333,1006,4105,942 Net sales 10,3529,57720,17418,682 Costs, expenses and otherCost of products sold 4,5484,2478,7998,282 Cost of services sold 1,7811,6093,5673,157 Total Cost of products and services sold 6,3295,85612,36611,439 Research and development expenses 481382920742 Selling, general and administrative expenses 1,4281,3612,7892,663 Impairment of assets held for sale ——15— Other (income) expense (87)(246)(287)(477) Interest and other financial charges 330250616470 Total costs, expenses and other 8,4817,60316,41914,837 Income before taxes 1,8711,9743,7553,845 Tax expense 302414719810 Net income 1,5691,5603,0363,035 Less: Net income attributable to noncontrolling interest (1)161728 Net income attributable to Honeywell $ 1,570$ 1,544$ 3,019$ 3,007 Earnings per share of common stock - basic $ 2.46$ 2.37$ 4.70$ 4.62 Earnings per share of common stock - assuming dilution $ 2.45$ 2.36$ 4.67$ 4.59 Weighted average number of shares outstanding - basic 637.5650.2642.8651.3 Weighted average number of shares outstanding - assuming dilution 640.9654.2646.3655.5 Honeywell International Inc. Segment Data (Unaudited) (Dollars in millions) Three Months Ended June 30,Six Months Ended June 30, Net sales 2025202420252024 Aerospace Technologies $ 4,307$ 3,891$ 8,479$ 7,560 Industrial Automation 2,3802,5064,7584,984 Building Automation 1,8261,5713,5182,997 Energy and Sustainability Solutions 1,8371,6043,3983,129 Corporate and All Other 252112 Total Net sales $ 10,352$ 9,577$ 20,174$ 18,682 Reconciliation of Segment Profit to Income Before Taxes Three Months Ended June 30,Six Months Ended June 30, Segment profit 2025202420252024 Aerospace Technologies $ 1,098$ 1,060$ 2,197$ 2,095 Industrial Automation 456477880951 Building Automation 479397919747 Energy and Sustainability Solutions 443405789708 Corporate and All Other (110)(140)(161)(208) Total Segment profit 2,3662,1994,6244,293 Interest and other financial charges (330)(250)(616)(470) Interest income1 79110169215 Amortization of acquisition-related intangibles2 (133)(85)(269)(155) Impairment of assets held for sale ——(15)— Stock compensation expense3 (57)(55)(118)(108) Pension ongoing income4 85140240285 Pension mark-to-market expense ——(14)— Other postretirement income4 44810 Repositioning and other charges5,6 (39)(44)(84)(137) Other expense7 (104)(45)(170)(88) Income before taxes $ 1,871$ 1,974$ 3,755$ 3,8451Amounts included in Other (income) expense. 2Amounts included in Cost of products and services sold. 3Amounts included in Selling, general and administrative expenses. 4Amounts included in Cost of products and services sold (service cost component), Selling, general and administrative expenses (service cost component), Research and development expenses (service cost component), and Other (income) expense (non-service cost component). 5Amounts included in Cost of products and services sold, Selling, general and administrative expenses, and Other (income) expense. 6Includes repositioning, asbestos, and environmental expenses. 7Amounts include the other components of Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies is included in segment profit. Honeywell International Inc. Consolidated Balance Sheet (Unaudited) (Dollars in millions) June 30, 2025December 31, 2024 ASSETSCurrent assetsCash and cash equivalents $ 10,349$ 10,567 Short-term investments 328386 Accounts receivable, less allowances of $331 and $314, respectively 8,8237,819 Inventories 7,0136,442 Assets held for sale —1,365 Other current assets 1,4541,329 Total current assets 27,96727,908 Investments and long-term receivables 1,4271,394 Property, plant and equipment—net 6,4056,194 Goodwill 23,80421,825 Other intangible assets—net 7,3566,656 Insurance recoveries for asbestos-related liabilities 166171 Deferred income taxes 229238 Other assets 11,06510,810 Total assets $ 78,419$ 75,196 LIABILITIESCurrent liabilitiesAccounts payable $ 7,111$ 6,880 Commercial paper and other short-term borrowings 6,2714,273 Current maturities of long-term debt 741,347 Accrued liabilities 8,1638,348 Liabilities held for sale —408 Total current liabilities 21,61921,256 Long-term debt 30,16725,479 Deferred income taxes 1,8941,787 Postretirement benefit obligations other than pensions 109112 Asbestos-related liabilities 1,2431,325 Other liabilities 6,7336,076 Redeemable noncontrolling interest 77 Shareowners' equity 16,64719,154 Total liabilities, redeemable noncontrolling interest and shareowners' equity $ 78,419$ 75,196 Honeywell International Inc. Consolidated Statement of Cash Flows (Unaudited) (Dollars in millions) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Cash flows from operating activitiesNet income $ 1,569$ 1,560$ 3,036$ 3,035 Less: Net income attributable to noncontrolling interest (1)161728 Net income attributable to Honeywell 1,5701,5443,0193,007 Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activitiesDepreciation 198163372329 Amortization 206146406271 Loss on sale of non-strategic businesses and assets 30—14— Impairment of assets held for sale ——15— Repositioning and other charges 394484137 Net payments for repositioning and other charges (91)(87)(195)(211) Pension and other postretirement income (89)(144)(234)(295) Pension and other postretirement benefit payments (7)(7)(12)(15) Stock compensation expense 5755118108 Deferred income taxes (12)(39)(31)(36) Other (113)(28)(309)(186) Changes in assets and liabilities, net of the effects of acquisitions and divestituresAccounts receivable (494)(202)(918)(149) Inventories (323)63(504)(77) Other current assets (185)(113)(150)(50) Accounts payable 353(42)204(423) Accrued liabilities 553227430(338) Income taxes (373)(209)(393)(253) Net cash provided by operating activities 1,3191,3711,9161,819 Cash flows from investing activitiesCapital expenditures (303)(259)(554)(492) Proceeds from disposals of property, plant and equipment ——23— Increase in investments (330)(230)(681)(468) Decrease in investments 415237753392 (Payments) receipts from settlements of derivative contracts (290)33(415)76 Cash paid for acquisitions, net of cash acquired (2,158)(4,913)(2,163)(4,913) Proceeds from sale of business, net of cash transferred 1,157—1,157— Net cash used for investing activities (1,509)(5,132)(1,880)(5,405) Cash flows from financing activitiesProceeds from issuance of commercial paper and other short-term borrowings 7,0084,77011,8636,993 Payments of commercial paper and other short-term borrowings (6,577)(2,019)(9,990)(4,489) Proceeds from issuance of common stock 5616598309 Proceeds from issuance of long-term debt 3,989—4,0355,710 Payments of long-term debt (1,265)(32)(1,309)(605) Repurchases of common stock (1,702)(529)(3,604)(1,200) Cash dividends paid (747)(743)(1,479)(1,446) Other (3)(10)(35)26 Net cash (used for) provided by financing activities 7591,602(421)5,298 Effect of foreign exchange rate changes on cash and cash equivalents 123(21)167(61) Net (decrease) increase in cash and cash equivalents 692(2,180)(218)1,651 Cash and cash equivalents at beginning of period 9,65711,75610,5677,925 Cash and cash equivalents at end of period $ 10,349$ 9,576$ 10,349$ 9,576 Appendix Non-GAAP Financial Measures The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Honeywell's business. Honeywell International Inc. Reconciliation of Organic Sales Percent Change (Unaudited) Three Months Ended June 30, 2025 HoneywellReported sales percent change 8 % Less: Foreign currency translation — % Less: Acquisitions, divestitures and other, net 3 % Organic sales percent change 5 % Aerospace TechnologiesReported sales percent change 11 % Less: Foreign currency translation — % Less: Acquisitions, divestitures and other, net 5 % Organic sales percent change 6 % Industrial AutomationReported sales percent change (5) % Less: Foreign currency translation 1 % Less: Acquisitions, divestitures and other, net (6) % Organic sales percent change — % Building AutomationReported sales percent change 16 % Less: Foreign currency translation — % Less: Acquisitions, divestitures and other, net 8 % Organic sales percent change 8 % Energy and Sustainability SolutionsReported sales percent change 15 % Less: Foreign currency translation 2 % Less: Acquisitions, divestitures and other, net 7 % Organic sales percent change 6 % We define organic sales percentage as the year-over-year change in reported sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. A quantitative reconciliation of reported sales percent change to organic sales percent change has not been provided for the forward-looking measure of organic sales percent change because management cannot reliably predict or estimate, without unreasonable effort, the fluctuations in global currency markets that impact foreign currency translation, nor is it reasonable for management to predict the timing, occurrence and impact of acquisition and divestiture transactions, all of which could significantly impact our reported sales percent change. Honeywell International Inc. Reconciliation of Operating Income to Segment Profit, Calculation of Operating Income and Segment Profit Margins (Unaudited) (Dollars in millions) Three Months Ended June 30,Twelve Months Ended December 31,202520242024 Operating income $ 2,114$ 1,978$ 7,441 Stock compensation expense1 5755194 Repositioning, Other2,3 5458292 Pension and other postretirement service costs4 151665 Amortization of acquisition-related intangibles5 13385415 Acquisition-related costs6 (7)725 Indefinite-lived intangible asset impairment1 ——48 Impairment of assets held for sale ——219 Segment profit $ 2,366$ 2,199$ 8,699 Operating income $ 2,114$ 1,978$ 7,441 ÷ Net sales $ 10,352$ 9,577$ 38,498 Operating income margin % 20.4 %20.7 %19.3 % Segment profit $ 2,366$ 2,199$ 8,699 ÷ Net sales $ 10,352$ 9,577$ 38,498 Segment profit margin % 22.9 %23.0 %22.6 %1Included in Selling, general and administrative expenses. 2Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. 3Included in Cost of products and services sold and Selling, general and administrative expenses. 4Included in Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. 5Included in Cost of products and services sold. 6Included in Other (income) expense. Includes acquisition-related fair value adjustments to inventory and third-party transaction and integration costs. We define operating income as net sales less total cost of products and services sold, research and development expenses, impairment of assets held for sale, and selling, general and administrative expenses. We define segment profit, on an overall Honeywell basis, as operating income, excluding stock compensation expense, pension and other postretirement service costs, amortization of acquisition-related intangibles, certain acquisition- and divestiture-related costs and impairments, and repositioning and other charges. We define segment profit margin, on an overall Honeywell basis, as segment profit divided by net sales. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. A quantitative reconciliation of operating income to segment profit, on an overall Honeywell basis, has not been provided for all forward-looking measures of segment profit and segment profit margin included herein. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment profit, particularly pension mark-to-market expense as it is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results. To the extent quantitative information becomes available without unreasonable effort in the future, and closer to the period to which the forward-looking measures pertain, a reconciliation of operating income to segment profit will be included within future filings. Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies. Honeywell International Inc. Reconciliation of Earnings per Share to Adjusted Earnings per Share (Unaudited) Three Months Ended June 30,Twelve Months Ended December 31,2025202420242025(E) Earnings per share of common stock - diluted1 $ 2.45$ 2.36$ 8.71$9.62 - $9.82 Pension mark-to-market expense2 ——0.14No Forecast Amortization of acquisition-related intangibles3 0.160.100.490.75 Acquisition-related costs4 —0.030.090.02 Divestiture-related costs5 0.10—0.04No Forecast Russian-related charges6 ——0.03— Indefinite-lived intangible asset impairment7 ——0.06— Impairment of assets held for sale8 ——0.330.02 Loss on sale of business9 0.04——0.04 Adjusted earnings per share of common stock - diluted $ 2.75$ 2.49$ 9.89$10.45 - $10.651For the three months ended June 30, 2025, and 2024, adjusted earnings per share utilizes weighted average shares of approximately 640.9 million and 654.2 million, respectively. For the twelve months ended December 31, 2024, adjusted earnings per share utilizes weighted average shares of approximately 655.3 million. For the twelve months ended December 31, 2025, expected earnings per share utilizes weighted average shares of approximately 643 million. 2For the twelve months ended December 31, 2024, pension mark-to-market expense was $95 million, net of tax benefit of $31 million. 3For the three months ended June 30, 2025, and 2024, acquisition-related intangibles amortization includes approximately $101 million and $66 million, net of tax benefit of approximately $32 million and $19 million, respectively. For the twelve months ended December 31, 2024, acquisition-related intangibles amortization includes $324 million, net of tax benefit of approximately $91 million. For the twelve months ended December 31, 2025, expected acquisition-related intangibles amortization includes approximately $480 million, net of tax benefit of approximately $120 million. 4For the three months ended June 30, 2025, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, was approximately a $1 million benefit, net of tax expense of approximately $1 million. For the three months ended June 30, 2024, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, was approximately $22 million, net of tax benefit of approximately $7 million. For the twelve months ended December 31, 2024, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, was approximately $59 million, net of tax benefit of approximately $16 million. For the twelve months ended December 31, 2025, the expected adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, is approximately $10 million, net of tax benefit of approximately $5 million. 5For the three months ended June 30, 2025, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction and separation costs, was approximately $62 million, net of tax benefit of approximately $19 million. For the twelve months ended December 31, 2024, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction costs, was approximately $23 million, net of tax benefit of approximately $6 million. 6For the twelve months ended December 31, 2024, the adjustment for Russian-related charges was a $17 million expense, without tax benefit, due to the settlement of a contractual dispute with a Russian entity associated with the Company's suspension and wind down activities in Russia. 7For the twelve months ended December 31, 2024, the impairment charge of indefinite-lived intangible assets associated with the personal protective equipment business was $37 million, net of tax benefit of $11 million. 8For the twelve months ended December 31, 2024, the impairment charge of assets held for sale was $219 million, without tax benefit. For the twelve months ended December 31, 2025, the expected impairment charge of assets held for sale is $15 million, without tax benefit. 9For the three months ended June 30, 2025, the adjustment for loss on sale of the personal protective equipment business was $28 million, net of tax benefit of $2 million, due to the loss on sale of the personal protective equipment business. For the twelve months ended December 31, 2025, the expected adjustment for loss on sale of the personal protective equipment business is $28 million, net of tax benefit of $2 million, due to the loss on sale of the personal protective equipment business. We define adjusted earnings per share as diluted earnings per share adjusted to exclude various charges as listed above. We believe adjusted earnings per share is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. For forward-looking information, management cannot reliably predict or estimate, without unreasonable effort, the pension mark-to-market expense or the divestiture-related costs. The pension mark-to-market expense is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. The divestiture-related costs are subject to detailed development and execution of separation restructuring plans for the announced separation of Automation and Aerospace Technologies. We therefore do not include an estimate for the pension mark-to-market expense or divestiture-related costs. Based on economic and industry conditions, future developments, and other relevant factors, these assumptions are subject to change. Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies. Honeywell International Inc. Reconciliation of Cash Provided by Operating Activities to Free Cash Flow (Unaudited) (Dollars in millions) Three Months Ended June 30, 2025Three Months Ended June 30, 2024 Cash provided by operating activities $ 1,319$ 1,371 Capital expenditures (303)(259) Free cash flow $ 1,016$ 1,112 We define free cash flow as cash provided by operating activities less cash for capital expenditures. We believe that free cash flow is a non-GAAP measure that is useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity. Honeywell International Inc. Reconciliation of Expected Cash Provided by Operating Activities to Expected Free Cash Flow (Unaudited) (Dollars in billions) Twelve Months Ended December 31, 2025(E) Cash provided by operating activities ~$6.7 - $7.1 Capital expenditures ~(1.3) Free cash flow ~$5.4 - $5.8 We define free cash flow as cash provided by operating activities less cash for capital expenditures. We believe that free cash flow is a non-GAAP measure that is useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity. Contacts:Media Investor Relations Stacey Jones Sean Meakim (980) 378-6258 (704) 627-6200 View original content to download multimedia: SOURCE Honeywell Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
6 days ago
- Business
- Reuters
Reckitt's quarterly sales beat expectations on emerging market boost
July 24 (Reuters) - Consumer goods company Reckitt (RKT.L), opens new tab topped second-quarter like-for-like net sales growth expectations on Thursday, helped by strength in emerging markets. The maker of Durex condoms and Lysol cleaning products reported the total group's like-for-like net revenue growth of 1.9% for the quarter, compared with 1.7% expected in a company-compiled consensus. Reckitt raised its 2025 like-for-like net revenue growth forecast for its core business to above 4%, from between 3% and 4% expected earlier. Reckitt posted operating profit of 1.71 billion pounds ($2.32 billion) for the six months ended June 30, above analysts' average expectations of 1.66 billion pounds. "We delivered excellent growth in Emerging Markets and navigated a challenging consumer environment in our Developed Markets," CEO Kris Licht said in a statement. ($1 = 0.7368 pounds)
Yahoo
6 days ago
- Business
- Yahoo
Refrigerated goods, beverages lead private brand growth, report finds
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. Dive Brief: Private label sales increased 4.4% in all outlets during the six months ending June 15 compared to the same period last year, according to Circana data cited in a report the Private Label Manufacturers Association released on Tuesday. National brands, in comparison, only saw 1.1% growth. Store brands hit all-time highs for market share in units and dollars, at 23.2% and 21.2%, respectively, the association noted. Refrigerated products, followed by beverages, frozen items and general food, recorded the highest sales growth among the nine store brand sections tracked, the report noted. Dive Insight: Private brands not only outpaced national ones in sales growth, but also in volume. Store brands saw a modest 0.4% uptick in unit sales during the first half of the year, while national brands slipped 0.6%, according to PLMA's findings. 'It's exciting to see store brands continue on a strong trajectory this year,' PLMA President Peggy Davies said in an announcement. 'Shoppers are clearly recognizing the unbeatable combination of quality, value, and innovation that store brands bring to the table.' Dollar and unit growth for nine sections for the 52 weeks ending June 15. Store brand food categories recorded year-over-year increases in unit and dollar sales for the 52 weeks ending in mid-June, the report noted. Meanwhile, general merchandise store brands have struggled, with year-over-year declines in unit and dollar sales. PLMA forecasts store brand sales for 2025 will approach $277 billion, up approximately 2% from the $271 billion recorded last year. Recommended Reading Is the tide shifting for grocery private brands?
Yahoo
7 days ago
- Business
- Yahoo
Lockheed Martin Corp (LMT) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue: $18.2 billion for the second quarter, comparable year-over-year and up sequentially from the first quarter. Sales Growth: Excluding charges, sales increased in the mid-single-digit range. Segment Operating Profit: $570 million, impacted by $1.6 billion in charges related to Skunk Works and Sikorsky. Net Losses: $1.8 billion in total charges across several legacy programs. Earnings Per Share (EPS): $1.46, reduced by $5.83 due to program losses and tax items. Free Cash Flow: Usage of $150 million in the second quarter. Shareholder Returns: $1.3 billion returned through dividends and share repurchases. F-35 Deliveries: 50 aircraft delivered in the quarter, with a total of 97 so far this year. Guidance: 2025 sales guidance reaffirmed at $73.75 billion to $74.75 billion. Backlog: $167 billion, with significant awards expected in the second half of the year. Warning! GuruFocus has detected 2 Warning Signs with LMT. Release Date: July 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Lockheed Martin Corp (NYSE:LMT) reported $18 billion in sales for the second quarter, demonstrating strong revenue generation. The company invested $800 million in infrastructure and innovation, indicating a commitment to future growth. Lockheed Martin Corp (NYSE:LMT) returned $1.3 billion to shareholders, showcasing a strong commitment to shareholder value. The F-35 program remains on track with 97 deliveries so far this year, highlighting operational efficiency. Lockheed Martin Corp (NYSE:LMT) demonstrated the effectiveness of its systems in recent combat operations, reinforcing its role in national security. Negative Points Lockheed Martin Corp (NYSE:LMT) recognized $1.8 billion in losses across several legacy programs, impacting financial performance. The company faced significant charges related to the Aeronautics Classified Program and other legacy programs, indicating ongoing challenges. US government sanctions affected the Turkish Utility Helicopter Program, resulting in a $95 million loss. The Canadian Maritime Helicopter Program incurred a $570 million loss due to revised cost and sales estimates. The IRS asserts that Lockheed Martin Corp (NYSE:LMT) owes $4.6 billion in additional income tax, creating potential financial uncertainty. Q & A Highlights Q: Why should investors feel comfortable that Lockheed Martin has derisked the problem programs, particularly the Aero Classified one? What changes have been made? A: James Taiclet, CEO, explained that with Evan Scott's succession as CFO, a new program review team was formed with wider expertise and higher-level management scrutiny. This team reassessed cost trends and reevaluated program assumptions, leading to additional charges. The programs will continue to be monitored with robust oversight, and there is a policy in place to avoid must-win programs, ensuring no outsized future risks. Q: Why did it take a billion dollars of charges to change the way you're reviewing the Aero Classified program? How does the $1.8 billion in charges affect cash flow? A: James Taiclet noted that the charges were due to new discoveries of cost risks and anomalies in the development phase. Evan Scott added that $500 million of cash usage is expected this year, stepping down to $400 million next year, with a line of sight to when it turns positive. Q: Can you explain the reduction in the F-35 units in the administration's FY26 request and how easy it is to swap out relinquished DoD slots with export customers? A: James Taiclet stated that the House Appropriations Committee increased the number of F-35s from 47 to 69, and the Senate marked it up to 57. Historically, appropriations committees have the final say, and there is hope for greater demand by the end of the budget process. Evan Scott added that the backlog remains strong, allowing flexibility in production planning. Q: What is the $4.6 billion tax liability related to, and how will it impact free cash flow? A: Evan Scott explained that the IRS's position on a tax accounting method change is being contested, with Lockheed Martin standing by its approach. A $100 million P&L charge was taken for interest. For 2026, a $1 billion pension contribution is assumed, with various factors impacting cash flow, including reach-forward charges and tax benefits. Q: Can you discuss the F-35's role in modern warfare and its priority for the DoD today? A: James Taiclet emphasized the F-35's critical role in modern warfare, citing its orchestration capabilities and combat-proven status. Despite budget cuts, the F-35 remains essential, and Lockheed Martin is focused on bridging capabilities to the next generation while maintaining strong international demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Alstom S.A: Alstom's first quarter 2025/26: Commercial momentum off to a good start, outlook confirmed
Order intake at €4.1 billion. Rolling Stock book-to-bill ratio back at 1.0x Sales at €4.5 billion, up 2.8% vs. last year, of which 7.2% organic Fiscal year 2025/26 outlook and medium-term ambitions confirmed23 July 2025 – Over the first quarter of 2025/26 (from 1 April to 30 June 2025), Alstom booked €4.1 billion of orders. The Group's sales reached €4.5 billion in the quarter, up 2.8% vs. last year. Foreign exchange represented a 2.7% headwind on sales, owing to the appreciation of the euro against major currencies compared to the same period last year. Scope was a 1.5% headwind thanks to the sale of the North American conventional signalling business last year. Therefore, the Group's organic sales increased by 7.2% vs. last year. The backlog, as of 30 June 2025, settled at €92.3 billion, providing strong visibility on future sales. Key figures Reported figures(in € million) 2024/25Q1 2025/26Q1 % ChangeReported % ChangeOrganic Orders received1 3,645 4,075 +11.8% +13.6% Sales 4,389 4,514 +2.8% +7.2% Geographic and product breakdowns of reported orders and sales are provided in Appendix 1. 'Alstom's commercial performance is off to a good start. First-quarter orders have surpassed the €4 billion mark, with a strong view on the pipeline for the second quarter, bolstered by momentum in North America. All product lines have contributed to organic sales growth, particularly with projects in Germany beginning to ramp up. We confirm guidance for this fiscal year and Alstom's medium-term ambitions. Stability and visibility underscore the resilience of our business and our teams,' said Henri Poupart-Lafarge, Chief Executive Officer of Alstom *** Detailed review During the first quarter of 2025/26 (from 1 April to 30 June 2025), Alstom recorded €4,075 million in orders, compared to €3,645 million over the same period last fiscal year. Over three months, orders for Services, Signalling and Systems reached 42% of the total order intake. On a regional level, Europe accounted for 85% of the Group total order intake. In France, Alstom received an order from SNCF Voyageurs for 96 additional RER NG trainsets for the RER D line, under the framework agreement signed in 2017. Financed by Île-de-France Mobilités, the order is worth approximately €1.7 billion. The contract brings the total number of RER NG trainsets ordered to 262. In Bulgaria, Alstom, leading the BULEMU consortium, signed a contract with the Ministry of Transport and Communications for the supply of 35 Coradia Stream interregional electric trains and 15 years of maintenance services. The contract is valued at €720 million, with Alstom's share amounting to €600 million. Sales were €4,514 million in Q1 2025/26 (from 1 April to 30 June 2025) versus €4,389 million in Q1 2024/25 (up 2.8% on a reported basis and 7.2% on an organic basis). Rolling Stock sales reached €2,416 million, representing an increase of 3% on a reported basis and 5% on an organic basis, driven by the ramp-up of projects in Germany, alongside continued strong execution in France, the US, and Italy. Services reported €1,070 million of sales, stable on a reported basis and up 2% on an organic basis, supported by a ramp-up of projects in Germany, Italy and South Africa and continuous execution in North America. Signalling sales stood at €603 million, down 5% on a reported basis, impacted by the sale of the North American conventional signalling business last year. Sales were up 9% on an organic basis, marked by execution progress across all regions, particularly in France, Italy, and Germany. For Systems, Alstom reported €425 million sales, up 25% on a reported basis and 36% on an organic basis, benefiting from a strong ramp-up of turnkey projects in Brazil and the Philippines, as well as sustained activity in Mexico and France. The book-to-bill ratio is 0.9x over the quarter. *** Key project deliveries During the first quarter of 2025/26, Alstom's teams delivered key milestones across all regions. In France, the first metro train for Grand Paris Express Line 18 was delivered, and Omneo trains entered service on the Marseille–Toulon–Nice line. In the UK, a new Aventra fleet – belonging to the Adessia product family – began operations for London Northwestern Railway, and, in Sweden, Alstom executed the first commercial deployment of ERTMS. In India, metro services commenced in Kanpur and Indore, enhancing urban mobility. In the U.S., Alstom delivered the first Innovia automated people mover to Hartsfield-Jackson Atlanta International Airport. *** Assumptions for FY 2025/26 The outlook for FY 2025/26 is based on following main assumptions: Supportive market demand Number of cars produced stable vs FY 2024/25 Mitigating US tariffs impact Outlook for FY 2025/26 Group and Rolling Stock book-to-bill ratio above 1.0x Sales organic growth between 3% to 5% aEBIT margin around 7% Free Cash Flow generation to be within the €200 to €400 million range Seasonality driving consumption FCF of up to €(1)bn in H1 2025/26 Over the three years from FY 2024/25 to FY 2026/27, the Group expects to deliver at least €1.5 billion in free cash-flow, despite Contract Working Capital being a headwind over that period. *** Medium-term ambitions are confirmed as per the May 14, 2025, full year announcement. *** Financial calendar 13 November 2025 2025/26 Half-Year Results *** Conference Call Alstom is pleased to invite the analysts to a conference call presenting its first quarter orders and sales for the fiscal year 2025/26 on Wednesday 23 July at 8:30 am (Paris time), hosted by Bernard Delpit, EVP and CFO. A live audiocast will also be available on Alstom's website: Alstom's first quarter orders and sales for FY 2025/26. To participate in the Q&A session (audio only), please use the dial-in numbers below: France: +33 (0) 1 7037 7166 UK: +44 (0) 33 0551 0200 USA: +1 786 697 3501 Canada: 1 866 378 3566 (toll free) Quote ALSTOM to the operator to be transferred to the appropriate conference. *** ALSTOM™, Adessia™, Aventra™, Coradia Stream™, Innovia™ and Omneo™ are protected trademarks of the Alstom Group About Alstom Alstom commits to contribute to a low carbon future by developing and promoting innovative and sustainable transportation solutions that people enjoy riding. From high-speed trains, metros, monorails, trams, to turnkey systems, services, infrastructure, signalling and digital mobility, Alstom offers its diverse customers the broadest portfolio in the industry. With its presence in 63 countries and a talent base of over 86,000 people from 184 nationalities, the company focuses its design, innovation, and project management skills to where mobility solutions are needed most. Listed in France, Alstom generated sales of €18.5 billion for the fiscal year ending on 31 March 2025. For more information, please visit Press:Philippe MOLITOR - Tel.: +33 (0)7 76 00 97 79 Thomas ANTOINE - Tel.: +33 (0) 6 11 47 28 Investor relations:Cyril GUERIN - Tel.: +33 (0)6 07 89 36 Guillaume GAUVILLE - Tel: +44 (0)7 588 022 Estelle MATURELL ANDINO - Tel: +33 (0)6 71 37 47 56 Jalal DAHMANE - Tel: +33 (0)6 98 19 96 This press release contains forward-looking statements which are based on current plans and forecasts of Alstom's management. Such forward-looking statements are relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty factors (such as those described in the documents filed by Alstom with the French AMF) that could cause reported results to differ from the plans, objectives and expectations expressed in such forward-looking statements. These such forward-looking statements speak only as of the date on which they are made, and Alstom undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise. This press release does not constitute or form part of a prospectus or any offer or invitation for the sale or issue of, or any offer or inducement to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for any shares or other securities in the Company in France, the United Kingdom, the United States or any other jurisdiction. Any offer of the Company's securities may only be made in France pursuant to a prospectus having received the approval from the AMF or, outside France, pursuant to an offering document prepared for such purpose. The information does not constitute any form of commitment on the part of the Company or any other person. Neither the information nor any other written or oral information made available to any recipient, or its advisers will form the basis of any contract or commitment whatsoever. In particular, in furnishing the information, the Company, the Joint Global Coordinators, their affiliates, shareholders, and their respective directors, officers, advisers, employees or representatives undertake no obligation to provide the recipient with access to any additional information. APPENDIX 1A – GEOGRAPHIC BREAKDOWN Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Europe 2,570 70% 3,472 86% Americas 318 9% 258 6% Asia / Pacific 237 7% 330 8% Middle East / Africa 520 14% 15 0% Orders by destination 3,645 100% 4,075 100%Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Europe 2,494 57% 2,672 60% Americas 894 20% 833 18% Asia / Pacific 624 14% 652 14% Middle East / Africa 377 9% 357 8% Sales by destination 4,389 100% 4,514 100% APPENDIX 1B – PRODUCT BREAKDOWN Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Rolling stock 1,410 39% 2,365 59% Services 1,199 33% 751 18% Systems 119 3% 128 3% Signalling 917 25% 831 20% Orders by product line 3,645 100% 4,075 100%Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Rolling stock 2,338 53% 2,416 54% Services 1,073 24% 1,070 24% Systems 341 8% 425 9% Signalling 637 15% 603 13% Sales by product line 4,389 100% 4,514 100% APPENDIX 2 - NON-GAAP FINANCIAL INDICATORS DEFINITIONSThis section presents financial indicators used by the Group that are not defined by IFRS or other generally accepted accounting principles.1.1. Orders receivedA new order is recognised as an order received only when the contract creates enforceable obligations between the Group and its customer. When this condition is met, the order is recognised at the contract value. If the contract is denominated in a currency other than the functional currency of the reporting unit, the Group requires the immediate elimination of currency exposure using forward currency sales. Orders are then measured using the spot rate at inception of hedging instruments. Book-to-Bill The book-to-bill ratio is the ratio of orders received to the amount of sales traded for a specific period. Gross margin % in backlogGross Margin % in backlog is a KPI that presents the expected performance level of firm contracts in backlog. It represents the difference between the sales not yet recognized and the cost of sales not yet incurred from the contracts in backlog. This % is an average of the portfolio of contracts in backlog and is meaningful to project mid- and long-term profitability. Adjusted Gross Margin before PPAAdjusted Gross Margin before PPA is a KPI that presents the level of recurring operational performance. It represents the sales minus the cost of sales, adjusted to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination as well as significant, non-recurring 'one off' items that are not expected to occur again in subsequent years. EBIT before PPAFollowing the Bombardier Transportation acquisition and with effect from the fiscal year 2021/22 condensed consolidated financial statements, Alstom decided to introduce the 'EBIT before PPA' KPI aimed at restating its Earnings Before Interest and Taxes ('EBIT') to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination. This KPI is also aligned with market practice. Adjusted EBITAdjusted EBIT ('aEBIT') is a KPI that presents the level of recurring operational performance. This KPI is also aligned with market practice and comparable to the Group's direct competitors. Since September 2019, Alstom has opted for the inclusion of the share in net income of the equity-accounted investments into the aEBIT even though this component is part of the operating activities of the Group (because there are significant operational flows and/or common project execution associated with these entities). This mainly includes Chinese joint ventures, namely CASCO joint venture for Alstom as well as, following the integration of Bombardier Transportation, Alstom Sifang (Qingdao) Transportation Ltd., Jiangsu Alstom NUG Propulsion System Co. corresponds to Earning Before Interests and Tax adjusted for the following elements: net restructuring expenses (including rationalisation costs) tangibles and intangibles impairment capital gains or loss/revaluation on investments disposals or controls changes of an entity any other non-recurring items, such as some costs incurred to realise business combinations and amortisation of an asset exclusively valued in the context of business combination, as well as litigation costs that have arisen outside the ordinary course of business and including the share in net income of the operational equity-accounted investments. A non-recurring item is a significant, 'one-off' exceptional item that is not expected to occur again in subsequent EBIT margin corresponds to Adjusted EBIT expressed as a percentage of sales. EBITDA + JV dividendsEBITDA before PPA plus dividends from joint ventures is the EBIT before PPA, before depreciation and amortisation, with the addition of the dividends received from joint ventures. Adjusted net profitThe 'Adjusted Net Profit' KPI restates Alstom's net profit from continued operations (Group share) to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination, net of the corresponding tax effect. This indicator is also aligned with market practice. Free cash flow Free Cash Flow is defined as net cash provided by operating activities less capital expenditures including capitalised development costs, net of proceeds from disposals of tangible and intangible assets. Free Cash Flow does not include any proceeds from disposals of most directly comparable financial measure to Free Cash Flow calculated and presented in accordance with IFRS is net cash provided by operating activities. Free Cash Flow conversion rateFree Cash Flow Conversion ratio is computed as Free Cash Flow of the period divided by the adjusted net profit of the same period. Alstom uses the Free Cash Flow conversion ratio to measure its ability to convert adjusted net profit into Free Cash Flow in a defined period. Funds from OperationsFunds from Operations 'FFO' in the EBIT before PPA to Free Cash Flow statement refers to the Free Cash Flow generated by Operations, before Working Capital variations. Contract and Trade Working CapitalContract Working Capital is the sum of: Contract Assets & Liabilities, which includes the Customer Down-Payments Current provisions, which includes Risks on contracts and Warranties Trade Working Capital is the Working Capital that is not strictly contractual, hence not included in Project Working Capital. It includes: Inventories Trade Receivables Trade Payables Other elements of Working Capital defined as the sum of Other Assets/Liabilities and Non-Current provisions Net cash/(debt)The net cash/(debt) is defined as cash and cash equivalents, marketable securities and other current financial asset, less borrowings. Pay-out ratio The pay-out ratio is calculated by dividing the amount of the overall dividend with the 'Adjusted Net profit from continuing operations attributable to equity holders of the parent, Group share' as presented in the management report in the consolidated financial statements. Organic basis This press release includes performance indicators presented on a reported basis and on an organic basis. Figures given on an organic basis eliminate the impact of changes in scope of consolidation and changes resulting from the translation of the accounts into Euro following the variation of foreign currencies against the Group uses figures prepared on an organic basis both for internal analysis and for external communication, as it believes they provide means to analyse and explain variations from one period to another. However, these figures are not measurements of performance under IFRS.Q1 2024/25Q1 2025/26 (in € million) Reported figures Exchange rate and scope impact Comparable FiguresReportedfigures % Var Rep. % Var Org. Orders 3,645 58 3,5874,075 11.8% 13.6% Sales 4,389 178 4,2114,514 2.8% 7.2%1 Non - GAAP. See definition in the appendix. Attachment PR Alstom Q1 2025-26 Results- EN - VFinalSign in to access your portfolio
