Latest news with #VimalKapur
CNBC
27-07-2025
- Business
- CNBC
Why a great company's beat and raise was sold, and what I plan to do with the stock
When is a beat and raise not a beat and raise? That's a question that has frustrated us this earnings season. Case in point: How about Honeywell 's beat and raise last week? Here's a conglomerate splitting into three different companies, which also has a quantum computing business that's probably more advanced than any of the publicly traded quantum entities. Honeywell has an amazing aerospace business that handles the cockpit for most commercial airlines and a host of other accoutrements, including propulsion. It will very much participate in the aerospace boom and is only being held back by how many planes Boeing is allowed to make each month. That number will be going up soon. The automation business is about, among other things, industrial cybersecurity, smart grid, and regulated energy. There are underperforming divisions that if they are not fixed will be sold. The chemicals and materials businesses, including sustainable refrigerants, chemicals needed to make semiconductors and materials for carbon capture. Boring stuff but stuff that tends to be No. 1 in its category. The advanced materials business seems to be the legacy of Allied Chemical, which became Allied Signal, before merging with Honeywell. On last week's earnings call , management updated the timing on the breakup, saying the spinoff of advanced materials will happen in the fourth quarter. The other two are slated for the second half of 2026. At no point will these divisions be static. When there is something that can be done to make each better, it will be done, like the acquisition of Carrier 's global security business for $4.9 billion last year, a great price because Carrier needed to get to investment grade and did so by selling the division to Honeywell. Vimal Kapur, who became Honeywell's CEO in June 2023, takes after Dave Cote, the CEO before Darius Adamczyk. Cote is a legendary figure when it comes to creating value. I give you that history because Honeywell's stock, as of Friday's close, was down 0.7% year to date versus the S & P 500 's gain of 8.6% in 2025. Shares of Honeywell are trading nowhere near where they will trade as the split comes to fruition. Oddly, if it weren't breaking up, I think, at this point, it would trade higher than it does right now after that astonishing collapse last week based on, well, nothing. There was a margin issue in one division that will be fixed. There were two underperforming segments that will most likely go. There will be three companies that will either stand on their own or be bought by private equity, although the scarcity in aerospace company coupled with a pro-merger Federal Trade Commission will probably make that company a takeover target almost immediately. HON 1M mountain Honeywell 1-month performance While I have no idea why Honeywell's stock really collapsed, I can take the conspiratorial view, that some of the hedge funds who were short Kohl's decided to blow me up using a complex method of call buying and shorting. I know it seems phantasmagorical. But, when I started my Charitable Trust, whose holdings make up the CNBC Investing Club portfolio, I played open-handed and took fire quite often — even dealing with some who hinted that's exactly what they were doing. That's a dangerous game. I know what I am doing. I make mistakes, but a company like Honeywell — and Dover and DuPont , for that matter — are not among them. The Club owns all three. Another possible reason: Honeywell's structure could be too hard to understand. There are a huge number of divisions within divisions. You could ChatGPT these all day long and not figure out how they come together. But that's OK. That's what is being rectified by the planned split. But all of them are part of the reshoring and the reindustrialization of America. When you hear President Donald Trump getting $550 billion from the Japanese, Honeywell will get its share, whether it is from plane orders, or industrial buildings, or the myriad chemicals it takes to make things safely. Honeywell's split could be too far off. We call it spin purgatory , a period where nothing happens other than the back off separation of the divisions. Like with Honeywell, we're seeing that happen in DuPont, too, which trades like death. So, did Kenvue , when Johnson & Johnson spun it off. There's all of this red tape about new boards and new procedures that aren't everyday occurrences. No one can explain the length of time it takes. But it takes time and people aren't patient. They really want to wait until they see the whites of their separation eyes. It could also be the lack of real data center exposure. The only industrials that are working are the ones with data center exposure. While building automation within Honeywell has some, it is obviously not enough. What's my conviction based on then? How can I believe in Honeywell's stock, which does a beat and raise and it gets clobbered anyway; or that it has had a previous ones that were also poorly received, too? I give you a few reasons. First, discouragement is not a good quality to base an investment decision on. That's what I did with Emerson . It had two shortfalls, and I decided that its reorganization based around electrification wasn't going to work. I bolted after the second one. My total bad. They got it together even after a hostile bid that they won, and this very difficult to understand ugly duckling became a swan. I felt the same way with Oracle . The company had made a somewhat dispiriting acquisition of medical records company Cerner, and I had no idea what the hell that was about. Then it decided to get into data centers. Not once, but twice, they disappointed in their data center goal. I was livid. So, I kicked it out. It then ran higher. I had isolated two fantastic stock ideas. And, just when they got hammered a second time, I fled, right before they were recognized as great situations by everyone. I can't let that happen again. Curiously, the pain was the greatest after that second miss, when people were truly fed up. This one is the worst and, yet, I would argue it wasn't as bad a miss, if it were a miss at all. Second, people don't believe that Kapur can actually improve each of the three companies that are developing. They fear lost focus. They fear economic cycles. They fear that he is in the "wrong" industries even as private equity firms are routinely in the wrong industries, yet they are fine. Kapur knows how to multitask. Three, there is tremendous fright here in the way Honeywell stock trades, The moves are particularly vicious. They are from peak to trough, tremendously ugly, devoid of any support whatsoever. I wish I had an answer to this one. All I can say is that the decline has to be bought because the overreaction is ridiculous. I know when a stock is down nearly 14 points on a given day, as it was after Thursday's earnings print, it is typically not done going down. The selling from the previous day tends not to be finished. Too many sellers. And, that's what happened. Friday's opening hours were hideous as the sellers from Thursday finished. The stock market typically gives you clues about what a stock will do. When I find a stock breaking down as much as Honeywell, I know the queue to get out is a deep one and the process, if heavy institutional selling, means that a broker usually buys stock to work it by finding clients. If they can't be found you get what you got Thursday and Friday, the brokers just throw out what's left. Hence the Day 2 ugliness. Barring some craziness from the president, Honeywell is recharged and ready to go because, you see, it was a beat and raise. It was real — as will the next move. Bottom line So, what am I doing? Standing pat initially, waiting for my restrictions to run out. Remember, when I mention a stock on television, the Club must wait three days to trade it. Then, I am going to buy some because I am being given a chance to do so, like I did with Oracle and Emerson, and I didn't take them. Were they unique? Who knows? I do know this. I had done the work. I had conviction. Out of pique and frustration, I gave up. I am doing the opposite this time. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
CNBC
24-07-2025
- Business
- CNBC
Honeywell's post-earnings drop was disrespectful. Here's where we stand on the stock
An unwarranted post-earnings decline in Honeywell shares on Thursday presented a buying opportunity for new investors ahead of the conglomerate's breakup into three publicly traded companies. Revenue in the second quarter ended June 30 rose 8.1% year over year to $10.35 billion, topping expectations of $10.07 billion, according to market data service LSEG. Organic sales advanced 5% versus the year-ago period, more than double the 2.4% increase the Street was looking for, according to FactSet. Adjusted earnings per share (EPS) rose 10.4% from last year to $2.75, exceeding estimates of $2.66, LSEG data showed. Bottom line As Jeff Marks put it during Thursday's Morning Meeting, the 5% drop in Honeywell stock in the face of these results was nothing short of "disrespectful." Q2 was a strong showing from Honeywell as revenue, organic sales growth, and adjusted EPS not only outpaced Wall Street estimates but the company's expectations as well. Management also raised its full-year outlook for all three of these metrics. We're reiterating our buy-equivalent 1 rating and $255-per-share price target. HON YTD mountain Honeywell YTD It wasn't all perfect. Segment margin was disappointing both for the quarter and in the company's forward guidance. That was partly due to an increase in research and development (R & D) costs, including about $200 million in the aerospace division. While we don't like to see profit metrics miss the mark, we think it's more important that management continues to push ahead with growth investments. Committing to R & D, even ahead of Honeywell's aerospace, automation, and advanced materials split, will help foster post-separation success. Speaking of separation, we know Honeywell's advanced materials business will be spun off first. On the call, management updated the targeted timeframe for completion, narrowing it to the fourth quarter. The aerospace separation will be next, with the team continuing to target the back half of 2026. The remaining businesses will become a pure-play automation company. "We are not waiting for the separation to reshape our portfolio for future growth. We continue to selectively deploy capital towards acquisitions, announcing two new deals in the past couple of months," Honeywell CEO Vimal Kapur said, adding the team is also still looking at alternative options for businesses that don't fit into the company's future vision. Kapur will be a guest on "Mad Money with Jim Cramer" on Thursday evening. Quarterly commentary Second-quarter sales in Honeywell's aerospace technologies segment, the company's largest and most crucial unit, missed estimates but still grew 10.7% to $4.31 billion. On the call, management said aerospace was negatively impacted by destocking efforts at one of its original equipment manufacturing (OEM) customers. Destocking refers to when a customer is trying to sell excess inventory and slows or pauses orders from its supplier. The team believes that this issue will be a transitory headwind that should abate in the back half of the year. An aerospace margin decline of 175 basis points, or 1.75 percentage points, was mostly due to the ongoing CAES Systems integration. Management, however, expects margins to improve in the back half of 2025 and start to normalize next year. Management also highlighted that CAES has thus far been growing revenue at a high double-digit rate, which has been ahead of their expectations. Given the headwinds impacting the aerospace segment do indeed appear to be transitory, it's our view that anyone selling Honeywell shares on the miss is being shortsighted. Industrial automation sales dropped 5% to $2.38 billion, but still managed to outpace expectations. The segment saw growth in process solutions, as well as sensing and safety. However, weakness did continue in warehouse and workflow solutions, as well as productivity solutions. Earlier this month, the company said it was evaluating strategic alternatives for those two lagging businesses. Building automation sales and energy and sustainability solutions sales were both up year over year and beat expectations. Sales of advanced materials — the planned spinoff, which falls under the latter unit — were up year over year. Why we own it Honeywell is a provider of industrial technology to firms in various industries. The company's planned three-part breakup should be a value-creating event for shareholders. Competitors: Emerson Electric , RTX , 3M Weight in portfolio: 1.84% Most recent buy: March 5, 2025 Initiated: July 5, 2020 Guidance As for full-year guidance, as we mentioned above, management raised its outlook for sales, organic growth, and adjusted earnings per share. Operating and free cash flow projections were left unchanged. The segment margin outlook, however, was revised lower. Here's where Honeywell's full-year guidance now stands on some key metrics. Sales in a range of $40.8 billion to $41.3 billion (up from a prior range of $39.6 billion to $40.5 billion). That's a beat versus the $40.37 billion consensus estimate, according to LSEG Organic sales growth between 4% and 5% (up from a prior range of 2% to 5%), which is a beat versus the 3.7% organic growth expected, according to FactSet. Adjusted earnings per share between $10.45 and $10.65 per share (up from $10.20 to $10.50 previously). That's better than the $10.42 per share expected, according to LSEG. Segment margin between 23% and 23.2% (down from 23.2% to 23.5% previously), which is below the 23.4% rate the Street was looking for, according to FactSet. For the ongoing third quarter, Honeywell's guidance was ahead of expectations for sales, organic growth, and adjusted EPS. However, as with the full-year outlook, segment margin in the range of 22.7% to 23.1% was below the 23.6% consensus on FactSet. (Jim Cramer's Charitable Trust is long HON. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
24-07-2025
- Business
- Yahoo
Honeywell lifts full-year outlook after better-than-anticipated Q2 results
-- Honeywell (NASDAQ:HON) shares climbed over 2% Thursday as the company lifted its full-year outlook after delivering better-than-expected second-quarter results. The company reported earnings per share (EPS) of $2.75 for the quarter, surpassing analyst expectations of $2.66. Revenue rose 8% year-over-year to $10.4 billion, topping the $10.05 billion consensus estimate. Organic sales grew 5%, surpassing the upper end of Honeywell's prior guidance. "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 CEO of Honeywell. Following the strong quarter, the company lifted its 2025 EPS forecast to a range of $10.45 to $10.65, up from its earlier estimate of $10.20 to $10.50. That compares with the current consensus of $10.40. Revenue guidance was also raised. Honeywell now expects full-year sales between $40.8 billion and $41.3 billion, an increase from its previous range of $39.6 billion to $40.5 billion. Analysts had projected $40.3 billion. The company now anticipates organic sales growth of 4% to 5% for the year, narrowing and raising the lower end of its previous 2% to 5% outlook. Related articles Honeywell lifts full-year outlook after better-than-anticipated Q2 results After soaring 149%, this stock is back in our AI's favor - & already +25% in July If Powell goes, does Fed trust go with him? 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
24-07-2025
- Business
- Yahoo
Honeywell raises 2025 forecasts on sustained demand for aerospace parts, services
By Utkarsh Shetti (Reuters) -Honeywell raised its annual forecasts after posting a rise in second-quarter profit and revenue on Thursday, buoyed by strong demand for its aerospace parts and maintenance services despite an uncertain economic backdrop surrounding tariffs. The company, which supplies avionics and flight control systems to Boeing and Airbus, has benefited from rising demand as planemakers ramp production after long delays due to supply chain issues. Honeywell has also capitalized on a shortage of new jets, providing aircraft maintenance and repair services as airlines continue to fly an older, cost-intensive fleet. The company's aerospace division, its biggest revenue generator, posted a 10.7% jump in sales to $4.31 billion in the second quarter. Honeywell now sees 2025 adjusted profit per share between $10.45 and $10.65, up from its previous forecast of $10.20 to $10.50. The company also raised its revenue outlook and now expects between $40.8 billion and $41.3 billion for the year, up from the $39.6 billion and $40.5 billion it had previously forecast. The engines-to-switches conglomerate has been in the process of streamlining its portfolio under CEO Vimal Kapur, making acquisitions as well as shedding assets weighing on its business. After pressure from activist investor Elliott Management, Honeywell in February announced plans to spin off its aerospace business, and retain the automation business, which would be led by Kapur. Honeywell is reviewing alternatives for some of its businesses, including the productivity solutions and services unit and the warehouse and workflow solutions division, which have been a drag on the company's earnings in the past few quarters. The industrial automation unit, which houses the businesses, reported a 5% fall in sales in the second quarter. Total sales, meanwhile, rose 8.1% to $10.35 billion from $9.58 billion a year earlier. Honeywell reported an adjusted profit of $2.75 per share, compared with $2.49 a year earlier.
Yahoo
24-07-2025
- Business
- Yahoo
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
