Honeywell Aerospace Inc · NASDAQ:HONA
Honeywell Aerospace — Q2 2026 Earnings Presentation
36 slides from Honeywell Aerospace's earnings presentation, Aug 5, 2026
Slide 1: Honeywell Aerospace 2Q 2026 Earnings Presentation
Honeywell Aerospace 2Q 2026 Earnings Presentation August 5, 2026 1
Slide 2: Forward looking statements
Forward looking statements This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities The above list of factors is not exhaustive or necessarily in order of importance. These forward-looking Exchange Act of 1934, as amended (the “Exchange Act”), relat
Slide 3: Key messages
Key messages Investing to capitalize on robust customer demand and meet 2030 financial targets following successful spin-off from HON on June 29 Demand remained strong across end markets ▪ Backlog +9% y/y, led by growing global defense spending on new equipment and aftermarket Continued focus on unl
Slide 4: Executing against our strategic priorities
Executing against our strategic priorities Creating substantial value with consistent innovation-led growth strategy Expand leadership in Invest in differentiated Strengthen operational attractive end markets technology platforms capabilities to unlock further growth Capitalizing on global defense A
Slide 5: Transforming supply chain to unlock output growth
Transforming supply chain to unlock output growth HONA Operating System (OS) driving the shift from tactical recovery to scalable increases in output Strategic priorities Actions underway 2027 increased output drivers • Extending supplier forecast visibility and reducing rescheduling cycles to ramp
Slide 6: Recent business highlights
Recent business highlights Significant momentum across platforms and end markets with ~$15 billion lifetime value of new wins year to date IndiGo selects HONA avionics Aeromexico selects SURF-A Expanding EU-built navigation and APUs for 810 new Airbus runway safety technology across European defense
Slide 7: 2Q 2026 financial summary
2Q 2026 financial summary Supply constrained top line growth and shifted mix towards less profitable markets Sales Drivers ▪ Backlog of $18.2B, +9% y/y; TTM order growth of +8% y/y and book- $4.5B +5% organic y/y 1 to-bill of 1.1x Pro forma standalone adjusted EBIT1 ▪ Output rose modestly from 1Q; s
Slide 8: 2Q 2026 end market results
2Q 2026 end market results Sales growth Key highlights ▪ Airframer production rate increases driving higher Commercial shipset demand +6% y/y OE ▪ Recoupling of shipments to commercial air transport build schedules Commercial ▪ No material impact from Middle East conflicts +8% y/y Aftermarket ▪ Busi
Slide 9: 2026 outlook
2026 outlook End market organic growth expectations Organic growth1 4–5% Commercial OE Pro forma standalone $4.35B–$4.45B MSD% adjusted EBIT1 Flat–up 3% y/y Commercial Aftermarket Pro forma standalone $7.60–$7.90 LSD-MSD% adjusted EPS1 Defense & Space 2H26 Free $1.0–$1.5B MSD% cash flow1 Honeywell A
Slide 10: Summary
Summary Set up for 2027 growth acceleration Positioned to thrive as a Supply chain 2026 guidance reset to standalone company transformation reflect prioritization of with enhanced strategic progressing to convert achieving 2030 growth focus and financial robust demand into initiatives over short-ter
Slide 11: Premier provider of mission-critical aerospace systems
Premier provider of mission-critical aerospace systems Global supplier of high-value systems across Delivering growth by investing in supply Aerospace and Defense end markets positioned base and innovation to drive further fleet for profitable long-term growth electrification, autonomy and safety “D
Slide 12: Appendix
Appendix a Honeywell “= Aerospace
Slide 13: 2Q 2026 segment results
2Q 2026 segment results Electronic Solutions, experiencing less supply constraint, led sales growth; Engines & Power Systems pressured by mix Pro forma standalone Sales adjusted EBIT 1 Electronic $1.8B $0.5B Solutions +8% organic1 y/y +1% y/y Engines & $1.4B $0.2B Power Systems +1% organic1 y/y (24)
Slide 14: 2026 pro forma standalone adjusted EPS bridge
2026 pro forma standalone adjusted EPS bridge $0.29 $(0.13) $(0.14) $7.73 $7.60-$7.90 2025¹ Core adjusted EBIT growth Inventory obsolescence Below-the-line expenses 2026 outlook¹ charges and other² Honeywell Aerospace 2Q 2026 Earnings Results 1. Pro forma standalone using post-spin share count. Non-
Slide 15: Additional 2026 guidance
Additional 2026 guidance Pro forma below-the-line expenses Interest expense ~$0.8B Honeywell trademark license fee ~$0.2B Additional below-the-line items1 ~$0.3–$0.4B Other items Capital expenditures ~$0.65B Includes ~$0.1B related to transaction Weighted average diluted shares ~317M Adjusted effect
Slide 16: Reconciliation of Honeywell Aerospace Technologies to Honeywell Aerospace
Reconciliation of Honeywell Aerospace Technologies to Honeywell Aerospace sales, segment profit, adjusted EBIT, and pro forma standalone adjusted EBIT ($ in millions) 2Q26 Honeywell Aerospace Technologies Net Sales $ 4,532 Carve-out adjustments(1) (10) Honeywell Aerospace Net Sales $ 4,522 Honeywell
Slide 17: Supplemental quarterly financials – net sales
Supplemental quarterly financials – net sales ($ in millions) 2025 2026 1Q 2Q 3Q 4Q FY 1Q 2Q Net Sales by Reportable Segment Electronic Solutions 1,550 1,645 1,708 1,913 6,816 1,741 1,774 % Organic1 -1% 6% 8% 7% 5% 12% 8% Engines and Power Systems 1,274 1,390 1,478 1,269 5,411 1,420 1,406 Engines an
Slide 18: Supplemental quarterly financials – adjusted EBIT
Supplemental quarterly financials – adjusted EBIT ($ in millions) 2025 2026 1Q 2Q 3Q 4Q FY 1Q 2Q Adjusted EBIT1 by Reportable Segment Electronic Solutions1 410 475 510 593 1,988 510 459 % Margin1 26.5% 28.9% 29.9% 31.0% 29.2% 29.3% 25.9% Engines and Power Systems1 193 256 299 316 1,064 281 174 % Mar
Slide 19: Supplemental quarterly financials – pro forma standalone adjusted EPS
Supplemental quarterly financials – pro forma standalone adjusted EPS ($ in millions) 2025 2026 1Q 2Q 3Q 4Q FY 1Q 2Q Pro Forma Standalone Adjusted EBIT1 1,008 1,034 1,117 1,179 4,338 1,061 1,016 Interest expense (202) (205) (205) (203) (815) (200) (190) Honeywell trademark license fee (56) (56) (56)
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following information provides definitions and reconciliations of certain non-GAAP financial measures Management does not consider these non-GAAP measures in isolation or as an alternative to financial presented in this presentation to which this reconciliation is att
Slide 21: Organic Sales Percent Change for Total Honeywell Aerospace and by Segment
Reconciliation of Organic Sales Percent Change for Total Honeywell Aerospace and by Segment 1Q 2025 vs. 2Q 2025 vs. 3Q 2025 vs. 4Q 2025 vs. FY 2025 vs. 1Q 2026 vs. 2Q 2026 vs. 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 1Q 2025 2Q 2025 Honeywell Aerospace Reported sales percent change 10% 12% 17% 12% 13
Slide 22: Organic Sales Percent Change by End Market
Reconciliation of Organic Sales Percent Change by End Market 1Q 2025 vs. 2Q 2025 vs. 3Q 2025 vs. 4Q 2025 vs. FY 2025 vs. 1Q 2026 vs. 2Q 2026 vs. 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 1Q 2025 2Q 2025 Commercial Original Equipment Reported sales percent change (6)% 8% 3% 154% 20% 4% 6% Less: Foreign
Slide 23: Honeywell Aerospace and Engines & Power Systems Adjusted Net Sales
Reconciliation of Honeywell Aerospace and Engines & Power Systems Adjusted Net Sales ($M) 4Q 2025 FY 2025 Total Honeywell Aerospace Net sales $ 4,508 $ 17,404 Flexjet-related litigation matters(1) 312 312 Adjusted net sales $ 4,820 $ 17,716 Engines & Power Systems Segment Net Sales $ 1,269 $ 5,411 F
Slide 24: Net Income to Segment Profit, Adjusted EBIT
Reconciliation of Net Income to Segment Profit, Adjusted EBIT and Pro Forma Standalone Adjusted EBIT and Calculation of Net Income Margin, Adjusted EBIT Margin and Pro Forma Standalone Adjusted EBIT Margin ($M) 1Q 2025 2Q 2025 3Q 2025 4Q 2025 FY 2025 1Q 2026 2Q 2026 Net Income $ 786 $ 852 $ 654 $ 43
Slide 25: Reconciliation of Net Income to Segment Profit, Adjusted EBIT and Pro Forma
Reconciliation of Net Income to Segment Profit, Adjusted EBIT and Pro Forma Standalone Adjusted EBIT and Calculation of Net Income Margin, Adjusted EBIT Margin and Pro Forma Standalone Adjusted EBIT Margin 1 Amounts included in Cost of products and services sold and Selling, general and administrati
Slide 26: Reconciliation of Segment Profit to Segment Adjusted EBIT
Reconciliation of Segment Profit to Segment Adjusted EBIT and Pro Forma Standalone Adjusted EBIT and Calculation of Segment Adjusted EBIT Margin and Pro Forma Standalone Segment Adjusted EBIT Margin 1Q 2025 3Q 2025 Engines & Engines & Electronic Power Control Electronic Power Control ($M) Solutions
Slide 27: Reconciliation of Segment Profit to Pro Forma Standalone Segment Adjusted EBIT
Reconciliation of Segment Profit and Pro Forma Standalone Segment Adjusted EBIT and Calculation of Segment Profit Margin and Pro Forma Standalone Segment Adjusted EBIT Margin 1Q 2026 Electronic Engines & Control ($M) Solutions Power Systems Systems Corporate Segment profit/Segment Adjusted EBIT $ 51
Slide 28: Reconciliation of Segment Profit to Pro Forma Standalone Segment Adjusted EBIT
Reconciliation of Segment Profit to Segment Adjusted EBIT and Pro Forma Standalone Segment Adjusted EBIT and Calculation of Segment Adjusted EBIT Margin and Pro Forma Standalone Segment Adjusted EBIT Margin FY 2025 Electronic Engines & Control ($M) Solutions Power Systems Systems Corporate Segment p
Slide 29: Income Before Taxes to Adjusted Income Before Taxes
Reconciliation of Income Before Taxes to Pro Forma Standalone Income Before Taxes and Pro Forma Standalone Adjusted Income Before Taxes ($M) 1Q 2025 2Q 2025 3Q 2025 4Q 2025 FY 2025 1Q 2026 2Q 2026 Income before taxes $ 933 $ 1,000 $ 741 $ 675 $ 3,349 $ 800 $ 378 Interest and other financial charges(
Slide 30: Income Tax Expense to Adjusted Income Tax Expense
Reconciliation of Income Tax Expense to Pro Forma Standalone Income Tax Expense and Pro Forma Standalone Adjusted Income Tax Expense ($M) 1Q 2025 2Q 2025 3Q 2025 4Q 2025 FY 2025 1Q 2026 2Q 2026 Income Tax Expense $ 147 $ 148 $ 87 $ 245 $ 627 $ 158 $ 122 Tax impact of interest and other financial cha
Slide 31: Net Income to Pro Forma Standalone Net Income and EPS
Reconciliation of Net Income to Pro Forma Standalone Net Income and Pro Forma Standalone Net Income Attributable to HONA and Calculation of Pro Forma Standalone EPS 1Q 2025 2Q 2025 3Q 2025 4Q 2025 FY 2025 Earnings Per Earnings Per Earnings Per Earnings Per Earnings Per ($M), except per share amounts
Slide 32: EPS to Adjusted EPS
Reconciliation of Pro Forma Standalone EPS to Pro Forma Standalone Adjusted EPS 1Q 2025 2Q 2025 3Q 2025 4Q 2025 FY 2025 Earnings Per Earnings Per Earnings Per Earnings Per Earnings Per ($M, except per share amounts) $ Amount Share 1 $ Amount Share 1 $ Amount Share 1 $ Amount Share 1 $ Amount Share 1
Slide 33: Net Income to Pro Forma Standalone Net Income
Reconciliation of Net Income to Pro Forma Standalone Net Income and Pro Forma Standalone Net Income Attributable to HONA and Calculation of Pro Forma Standalone EPS 1Q 2026 2Q 2026 Earnings Per Earnings Per ($M, except per share amounts) $ Amount Share 7 $ Amount Share 7 Net Income $ 642 $ 2.03 $ 25
Slide 34: EPS to Adjusted EPS
Reconciliation of Pro Forma Standalone EPS to Pro Forma Standalone Adjusted EPS 1Q 2026 2Q 2026 Earnings Per Earnings Per ($M, except per share amounts) $ Amount Share 1 $ Amount Share 1 Pro Forma Standalone Net Income $ 491 $ 1.55 $ 294 $ 0.93 Amortization of acquisition-related intangibles2 17 0.0
Slide 35: Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow and Pro Forma Standalone Free Cash Flow ($B) 2025 Cash provided by operating activities $ 3.7 Capital expenditures (0.5) Flexjet-related litigation settlement(1) 0.1 Free cash flow $ 3.3 Pro forma adjustments(2) (1.2) Transact
Slide 36: Thank you
Thank you 36