Honeywell International Inc. · NASDAQ:HON
Honeywell International — Q2 2025 Earnings Presentation
27 slides from Honeywell International's earnings presentation, Jul 24, 2025
Slide 1: Second Quarter 2025 Earnings Release
SECOND QUARTER 2025 EARNINGS RELEASE JULY 24, 2025
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS We describe many of the trends and other factors that drive our business and future results in this presentation. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), in
Slide 3: Key Messages
KEY MESSAGES • Sales and adjusted EPS above high end of guide in quarter; strong order growth • Raising 2025 organic growth and earnings guidance, taking into account changing economic landscape • Continuing portfolio transformation to best position three future independent companies for success • S
Slide 4: Three Industry-Leading Public Companies
THREE INDUSTRY-LEADING PUBLIC COMPANIES HONEYWELL HONEYWELL SOLSTICE ADVANCED AUTOMATION AEROSPACE MATERIALS Pure play automation leader Premier technology and systems Sustainability-focused specialty solving the world’s most complex provider for all forms of aircraft; to chemicals and materials pur
Slide 5: Portfolio Transformation
PORTFOLIO TRANSFORMATION 2023 2024 2025 - 2026+ • Strategic alignment • Initiation of comprehensive • Continued strategy execution and preparation to create three around three megatrends internal business and independent public companies Strategy and portfolio review including • Business re-segmenta
Slide 6: 2Q 2025 Results
2Q 2025 RESULTS 2Q 2025 2Q 2025 2Q 2025 HIGHLIGHTS ACTUAL GUIDANCE ADJUSTED • Organic sales growth of 5%, above high end of guidance range, EARNINGS $2.75 $2.60 - $2.70 led by third consecutive quarter of 8% growth in BA PER SHARE* • Segment profit growth of 8%; segment margin expansion in BA, IA OR
Slide 7: 2Q 2025 Segment Results
2Q 2025 SEGMENT RESULTS SEGMENT MARGIN SALES CHANGE (BPS) COMMENTARY ($M) • Sixth consecutive quarter of double-digit organic sales increase in defense and space; strength in commercial aftermarket led by ongoing air transport growth >10% $4,307 25.5% AT • Strong double-digit orders growth, led by d
Slide 8: 3Q and FY 2025 Outlook
3Q AND FY 2025 OUTLOOK 3Q GUIDANCE FY GUIDANCE SALES SEGMENT MARGIN* SALES SEGMENT MARGIN* $10.0B - $10.3B 22.7% - 23.1% $40.8B - $41.3B 23.0% - 23.2% Up 4% - 5% Organically* Up 40 - 60 bps Up 2% - 4% Organically* Down (90) - (50) bps Up 3% - 4% ex. BBD1 Down (30) - (10) bps ex. BBD1 NET BELOW THE A
Slide 9: FY 2025 Segment Guidance
FY 2025 SEGMENT GUIDANCE ORGANIC GROWTH RESULTS AND GUIDANCE 2025 COMMENTARY ($M) 2Q 2025 3Q 2025 FY 2025 • Continued momentum in commercial aftermarket, defense and space • Commercial OE sales pressured by customer order timing; expect 2H growth as sales recouple to 6% MSD - HSD HSD AT OE build sch
Slide 10: 2025 Earnings Per Share Bridge
2025 EARNINGS PER SHARE BRIDGE Guidance Ranges: $0.07 - $0.19 $0.39 - $0.41 ($0.53) - ($0.47) vs. 1Q25 Earnings Walk: +$0.07 +$0.01 +$0.10 +$0.02 +$0.20 ~$0.40 ~($0.50) Midpoint ~($0.06) ~$0.05 Midpoint ~$0.13 ~$0.19 Up 6% - 8% Midpoint $0.45 ~$0.00 Adjusted Up 1% - 3% + Higher - Increased interest
Slide 11: Summary
SUMMARY • Delivered on first half operational performance commitments; new record backlog • Prudently increasing FY adjusted EPS and organic sales growth guidance • Tariff impact well contained so far; prepared for fluid situation, potential demand impacts • Comprehensive portfolio review concluding
Slide 12: Appendix
Appendix 2Q 2025 Earnings – July 24, 2025 11
Slide 13: 2Q 2025 Financial Summary
2Q 2025 FINANCIAL SUMMARY SALES SEGMENT MARGIN* ADJUSTED EPS* FREE CASH FLOW* Up 5% Organic* Down (10) bps Up 10% Down (9%) $2.75 $1.1B $10.4B 23.0% 22.9% $1.0B $9.6B $2.49 2Q24 2Q25 2Q24 2Q25 2Q24 2Q25 2Q24 2Q25 + Double-digit organic growth in + Margin expansion in BA and IA + Segment profit growt
Slide 14: 2Q 2025 Sales Growth
2Q 2025 SALES GROWTH 2Q Reported 2Q Organic AEROSPACE TECHNOLOGIES 11% 6% Commercial Aviation Original Equipment (12%) (12%) Commercial Aviation Aftermarket 7% 7% Defense and Space 27% 13% INDUSTRIAL AUTOMATION (5%) Flat Process Solutions 2% 1% Productivity Solutions and Services (7%) (7%) Sensing a
Slide 15: 2Q25 Earnings Per Share Bridge
2Q25 EARNINGS PER SHARE BRIDGE $0.05 ($0.16) $0.13 ~$0.00 ($0.01) ($0.13) $0.14 Up 10% YoY $0.08 + 641M vs. ($0.10) 654M $2.75 ($0.04) ‒ Higher + 16.8% vs. interest 21.1% expense ‒ Lower pension $2.49 income $2.45 2Q24 Adjusted Segment Segment Profit Foreign PPE Below the Line Adjusted Share 2Q25 Ad
Slide 16: Additional 2025 Inputs
ADDITIONAL 2025 INPUTS 2Q25 3Q25E 2025E COMMENTARY Pension / $89M ~$150M ~$550M • Full year pension income pressured by one-time item in 2Q OPEB Repositioning ($10M) ($20M - $50M) ($50M - $125M) • Reduced repo expectations for the year Other Below the • Greater year-over-year headwind from interest
Slide 17: 2025 Guidance Progression
2025 GUIDANCE PROGRESSION ORIGINAL GUIDE PREVIOUS GUIDE CURRENT GUIDE (From 4Q24 Earnings Call) (From 1Q25 Earnings Call) (From 2Q25 Earnings Call) SALES $39.6B - $40.6B $39.6B - $40.5B $40.8B - $41.3B PPE Sale Timing Organic Growth* Up 2% - 5% Up 2% - 5% Up 4% - 5% Up 1% - 4% ex. BBD1 Up 1% - 4% ex
Slide 18: 2025 Free Cash Flow Bridge
2025 FREE CASH FLOW BRIDGE ~$0.2B ~($0.1B) Up 10% - 18% $0.5B ~Flat Down (2%) - ($0.2B) - Flat range Up 5% ($0.1B) - $0.1B range $0.1B - $0.3B range ex. BBD1 $5.5B $5.4B - $4.9B $5.8B FY24 Exclusion of FY24 Ex. BBD1 Net Income Working Capital Capital 2025 Guidance BBD Agreement Growth / Other Spendi
Slide 19: 2025 Sales Bridge
2025 SALES BRIDGE vs. 1Q25 Earnings Walk: +$0.4B +$0.3B +$0.2B +$0.1B ~$1.3B ~($0.6B) Up 4% - 5% Organic ~$1.4B ~$0.1B Up 3% - 4% ex. BBD1 ~$0.4B $40.8B - $41.3B $38.9B $38.5B FY24 Exclusion of FY24 Sales Organic Foreign Acquisitions PPE May Exit 2025 Guidance Sales BBD Agreement Ex. BBD1 Growth Exc
Slide 20: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this presentation to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with
Slide 21: Reconciliation of Operating Income to Segment Profit and Margins
RECONCILIATION OF OPERATING INCOME TO SEGMENT PROFIT AND CALCULATION OF OPERATING INCOME AND SEGMENT PROFIT MARGINS ($M) 2Q24 3Q24 2Q25 2024 Operating income $ 1,978 $ 1,858 $ 2,114 $ 7,441 Stock compensation expense1 55 45 57 194 Repositioning, Other2,3 58 69 54 292 Pension and other postretirement
Slide 22: Reconciliation of Organic Sales Percent Change
RECONCILIATION OF ORGANIC SALES PERCENT CHANGE 2Q25 Honeywell Reported sales percent change 8% Less: Foreign currency translation —% Less: Acquisitions, divestitures and other, net 3% Organic sales percent change 5% Aerospace Technologies Reported sales percent change 11% Less: Foreign currency tran
Slide 23: Reconciliation of EPS to Adjusted EPS
RECONCILIATION OF EPS TO ADJUSTED EPS 2Q24 3Q24 2Q25 FY2024 3Q25E 2025E Earnings per share of common stock - diluted1 $ 2.36 $ 2.16 $ 2.45 $ 8.71 $2.30 - $2.40 $9.62 - $9.82 Pension mark-to-market expense2 — — — 0.14 No Forecast No Forecast Amortization of acquisition-related intangibles3 0.10 0.14
Slide 24: Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate
RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE ($M) 2Q24 2Q25 Income before taxes $ 1,974 $ 1,871 Amortization of acquisition-related intangibles 85 133 Acquisition-related costs 29 (2) Divestiture-related costs — 81 Loss on sale of business — 30 Adjusted income before taxes $ 2
Slide 25: Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW ($M) 2Q24 2Q25 2024 Cash provided by operating activities $ 1,371 $ 1,319 $ 6,097 Capital expenditures (259) (303) (1,164) Free cash flow $ 1,112 $ 1,016 $ 4,933 We define free cash flow as cash provided by operating activitie
Slide 26: Reconciliation of Expected Operating Cash Flow to Expected Free Cash Flow
RECONCILIATION OF EXPECTED CASH PROVIDED BY OPERATING ACTIVITIES TO EXPECTED FREE CASH FLOW 2025E($B) 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 exp
Slide 27: 2Q 2025 Earnings – July 24, 2025
2Q 2025 Earnings – July 24, 2025 26
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