Honeywell International Inc. · NASDAQ:HON
Honeywell International — Q4 2025 Earnings Presentation
40 slides from Honeywell International's earnings presentation, Jan 29, 2026
Slide 1: Fourth Quarter 2025 Earnings and 2026 Outlook
FOURTH QUARTER 2025 EARNINGS AND 2026 OUTLOOK JANUARY 29, 2026
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 • Strong finish to 2025, with Q4 adjusted sales and adjusted EPS above expectations with 23% orders growth • Record backlog and improved execution underpin confidence in sustained organic growth and margin expansion • Significant progress on all facets of portfolio transformation • Aero
Slide 4: Portfolio Transformation Update
PORTFOLIO TRANSFORMATION UPDATE • Aerospace separation now expected in 3Q 2026, significant progress on key milestones Separation • Completed formation of automation and aerospace leadership teams Milestones • Focused on right-sizing cost structures and addressing stranded costs • Post separation Ae
Slide 5: Quantinuum Progress
QUANTINUUM PROGRESS Quanta Computer Chevron H2-1 Launch Fundraising Round Customer Acquisition STILL TO COME Market-leading fidelity with ~$840M capital raise at $10B Rapidly growing roster of global Creation of independent industry-best 56 trapped-ion qubits valuation partnerships board of director
Slide 6: Growth Acceleration
GROWTH ACCELERATION LTM AVERAGE ORGANIC GROWTH*1,2 End Market Demand • Aerospace: defense and commercial • Process: LNG, refining, life sciences 5.7% 5.7% • Buildings: data centers, entertainment, and hospitals 4.9% 4.6% Portfolio Repositioning 3.9% • Exiting more cyclical, capital-intensive busines
Slide 7: 4Q 2025 Results
4Q 2025 RESULTS ADJUSTED SEGMENT ADJUSTED SALES* ADJUSTED EPS* FREE CASH FLOW* MARGIN* Up 11% Organic* Up 240 bps Up 17% Up 48% Up 6% ex. BBD1 Down (70) bps ex. BBD1 Down (3%) ex. BBD1 Up 13% ex. BBD1 23.5%1 $2.5B2 $2.671 $2.2B1 22.8% $9.5B1 $2.59 $10.1B $2.22 $1.7B $9.2B 20.4% 4Q24 4Q25 4Q24 4Q25 4
Slide 8: 2026 Outlook
2026 Outlook 2026 Outlook 4Q 2025 Earnings – January 29, 2026 7
Slide 9: FY 2026 Segment Outlook
FY 2026 SEGMENT OUTLOOK ORGANIC GROWTH OUTLOOK BUSINESS DRIVERS ($M) • Increasing commercial demand underpinned by flight hour growth and rising OE production to meet multi-year backlogs HSD • Defense momentum supported by growing global defense budgets in areas of HON strength AT • Sustained supply
Slide 10: Robust Demand Environment for PA&T
ROBUST DEMAND ENVIRONMENT FOR PA&T SECOND HALF 2026 RAMP SUPPORTED BY ORDERS AND BACKLOG STRENGTH ROBUST LONG-CYCLE DEMAND 32% PA&T Backlog ($B)1 7.5 7.3 • 17% orders growth PA&T in 2H 2025 resulting in 16% increase in PA&T Organic Orders Growth1 27% 26% opening backlog PA&T Organic Sales Growth*1 7
Slide 11: FY 2026 Segment Margin Expansion Drivers
FY 2026 SEGMENT MARGIN EXPANSION DRIVERS 2025 ADJUSTED SEGMENT MARGIN 22.5% DRIVERS Price / Cost • Demand for differentiated solutions enabling pricing execution Volume Leverage • Improved volume leverage in Buildings and Aerospace Operational Improvements • Productivity actions and lean operational
Slide 12: FY 2026 Outlook
FY 2026 OUTLOOK FY GUIDANCE COMMENTARY • Organic growth driven by continued strength in Aerospace and Buildings, partially offset by prudent outlook in Process Automation & Technology given project delays; strong 2H setup supported by record backlog SALES SEGMENT MARGIN* $38.8B - $39.8B 22.7% - 23.1
Slide 13: FY 2026 Adjusted Earnings Per Share Bridge
FY 2026 ADJUSTED EARNINGS PER SHARE BRIDGE ~$0.08 $0.52 - $0.76 ($0.03) - $0.03 Up 6% - 9% Adjusted EARNINGS DRIVERS $10.35 - $10.65 Segment Profit + Productivity and commercial excellence, net of inflation + Higher volumes Contribution ± Quantinuum technology investments $9.78 Below the Line + Incr
Slide 14: 1Q 2026 Outlook
1Q 2026 OUTLOOK 1Q GUIDANCE COMMENTARY • Organic growth led by continued momentum AT (ramping OE production rates, flight hour growth, increased defense spending, and supply chain unlock) and BA (robust NPI), partially offset by PA&T (softness in catalysts reloads) and IA (short SALES SEGMENT MARGIN
Slide 15: Summary
SUMMARY HONEYWELL AEROSPACE • Strong finish to 2025 with adjusted sales and adjusted earnings per share INVESTOR DAY exceeding guidance ranges • Initiated 2026 guidance supported by strong orders growth and backlog JUNE 2-3, 2026 PHOENIX, AZ • Separation milestones tracking ahead of plan HONEYWELL I
Slide 16: Appendix
Appendix 4Q 2025 Earnings – January 29, 2026 15
Slide 17: Additional 2026 Inputs
ADDITIONAL 2026 INPUTS 2025 2026E 1Q26E COMMENTARY Corporate and ($545M) (~$650M) (~$130M) • FY26 largely driven by increases in Quantinuum investments Quantinuum Pension / $560M ~$660M ~$165M • Year over year tailwind OPEB Repositioning and ($172M) ($150M - $200M) ($20M - $60M) Other1,2 Other Below
Slide 18: 4Q and FY 2025 Sales Growth
4Q AND FY 2025 SALES GROWTH 4Q Reported 4Q Organic FY Reported FY Organic AEROSPACE TECHNOLOGIES 13% 21% 13% 12% AEROSPACE TECHNOLOGIES (EX. BBD1) 4% 11% 11% 10% Commercial Aviation Original Equipment 153% 153% 13% 13% Commercial Aviation Original Equipment (ex. BBD1) 5% 5% (3%) (3%) Commercial Avia
Slide 19: 4Q and FY 2025 Sales Growth (2026 Reporting Structure)
4Q AND FY 2025 SALES GROWTH (2026 REPORTING STRUCTURE) 4Q Reported 4Q Organic FY Reported FY Organic AEROSPACE TECHNOLOGIES 13% 21% 13% 12% AEROSPACE TECHNOLOGIES (EX. BBD1) 4% 11% 11% 10% Commercial Aviation Original Equipment 153% 153% 13% 13% Commercial Aviation Original Equipment (ex. BBD1) 5% 5
Slide 20: FY 2025 Segment Results
FY 2025 SEGMENT RESULTS ADJ. SEGMENT MARGIN* ADJUSTED SALES* ADJ. SEGMENT MARGIN* ADJUSTED SALES* CHANGE (BPS) ($M) Up 7% Organic* Up 40 bps Up 6% ex. BBD1 Down (40) bps ex. BBD1 $17,822 26.1% 22.9%1 AT Up 12% Organic Up 30 bps $35.1B1 $37.7B Up 10% ex. BBD1 Down (140) bps ex. BBD1 22.5% $34.7B 22.1
Slide 21: 4Q 2025 Earnings Per Share Bridge
4Q 2025 EARNINGS PER SHARE BRIDGE $0.12 $0.01 ($0.03) ($0.01) ($0.24) $0.45 $2.86 ‒ Higher interest expense $0.07 Up 17% Adjusted* $2.67 Down (3%) ex. BBD1 ‒ 22.5% vs. + Lower share 15.2% count (639M vs. 655M) $2.59 $2.22 4Q24 Adjusted Exclusion of 4Q24 Adjusted Segment Profit Foreign PPE Sale Below
Slide 22: FY 2025 Earnings Per Share Bridge
FY 2025 EARNINGS PER SHARE BRIDGE $0.63 ~$0.00 ($0.06) $0.19 ($0.23) Up 12% Adjusted* $0.07 Up 7% ex. BBD1 + 643M vs. ‒ Higher interest expense due + 19.0% vs. 19.6% 655M $9.78 $0.45 to accelerated share repurchases and M&A $9.18 $8.73 FY24 Adjusted Exclusion of FY24 Adjusted Segment Profit Foreign
Slide 23: FY 2025 Free Cash Flow Bridge
FY 2025 FREE CASH FLOW BRIDGE ~$0.3B ~$0.1B ~($0.1B) Up 20% $0.5B Up 7% ex. BBD1 $5.1B $4.8B $4.2B FY25 Free Cash Flow * 2 FY24 Free Cash Flow *2 Exclusion of FY24 Ex. BBD Net Income Working Capital Capital BBD Agreement Free Cash Flow *2 Growth / Other Spending *Non-GAAP financial measure 1. 4Q24 f
Slide 24: Honeywell Portfolio Realignment
HONEYWELL PORTFOLIO REALIGNMENT Current Honeywell Structure New Structure as of 1Q26 Aerospace Aerospace (No Change) Building Automation Building Automation Building Products Products Building Solutions Solutions Energy and Sustainability Solutions1 UOP Process Automation and Technology Industrial A
Slide 25: 4Q 2025 Earnings – January 29, 2026
4Q 2025 Earnings – January 29, 2026 24
Slide 26: Non-GAAP Financial Measures
Appendix 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 accord
Slide 27: Reconciliation of Net Sales to Adjusted Net Sales
Reconciliation of Net Sales to Adjusted Net Sales 4Q25 2025 Honeywell Net sales 9,758 37,442 Flexjet-related litigation matters1 312 312 Adjusted net sales $ 10,070 $ 37,754 Aerospace Technologies Net Sales 4,520 17,510 Flexjet-related litigation matters1 312 312 Adjusted net sales $ 4,832 $ 17,822
Slide 28: Reconciliation of Operating Income to Segment Profit and Adjusted Segment Profit
Reconciliation of Operating Income to Segment Profit and Adjusted Segment Profit, Calculation of Operating Income, Segment Profit, and Adjusted Segment Profit Margins ($M) 4Q24 4Q25 1Q25 2024 2025 Operating income $ 1,521 $ 996 $ 1,721 $ 6,449 $ 6,044 Stock compensation expense1 39 50 59 189 196 Rep
Slide 29: Reconciliation of Organic Sales Percent Change
Reconciliation of Organic Sales Percent Change 4Q25 2025 Honeywell Reported sales percent change 6% 8% Less: Impact of divestitures to the prior period (3)% (2)% Reported sales percent change, adjusted for impact of divestitures 9% 10% Less: Foreign currency translation 1% —% Less: Acquisitions 1% 4
Slide 30: Reconciliation of Organic Sales Percent Change (continued)
Reconciliation of Organic Sales Percent Change (continued) 1 Includes Flexjet-related litigation matters of $312 million, which are considered to be unusual and not indicative of the Company's ongoing performance. We define organic sales percentage as the year-over-year change in reported sales rela
Slide 31: Reconciliation of Organic Sales Percent Change - New Segment Alignment
Reconciliation of Organic Sales Percent Change - New Segment Alignment 4Q25 2025 Honeywell Reported sales percent change 6% 8% Less: Impact of divestitures to the prior period (3)% (2)% Reported sales percent change, adjusted for impact of divestitures 9% 10% Less: Foreign currency translation 1% —%
Slide 32: Reconciliation of Organic Sales Percent Change - New Segment Alignment (continued)
Reconciliation of Organic Sales Percent Change - New Segment Alignment (continued) 1 Includes Flexjet-related litigation matters of $312 million, which are considered to be unusual and not indicative of the Company's ongoing performance. We define organic sales percentage as the year-over-year chang
Slide 33: Reconciliation of Process Automation & Technology Organic Sales Percent Change
Reconciliation of Process Automation & Technology Organic Sales Percent Change 1Q25 2Q25 3Q25 4Q25 Process Automation & Technology Reported sales percent change 7% 15% 8% 6% Less: Impact of divestitures to the prior period —% —% —% —% Reported sales percent change, adjusted for impact of divestiture
Slide 34: Reconciliation of Organic Sales Percent Change and LTM Average Organic Growth
Reconciliation of Organic Sales Percent Change and Calculation of LTM Average Organic Growth 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Honeywell Reported sales percent change 2% 4% 2% 2% 5% 6% 8% 9% 9% 7% 6% Less: Impact of divestitures to the prior period —% —% —% —% —% —% —% —% (1)% (
Slide 35: Reconciliation of EPS to Adjusted EPS
Reconciliation of EPS to Adjusted EPS 4Q24 4Q25 1Q25 2024 2025 1Q26E 2026E Earnings per share of common stock from continuing operations - diluted1 $ 1.74 $ 0.49 $ 1.97 $ 7.58 $ 7.57 $2.05 - $2.15 $9.59 - $9.89 Pension mark-to-market expense2 0.15 0.18 0.02 0.14 0.19 No Forecast No Forecast Amortiza
Slide 36: Reconciliation of EPS to Adjusted EPS (continued)
Reconciliation of EPS to Adjusted EPS (continued) 1 For the three months ended December 31, 2025, and 2024, adjusted earnings per share utilizes weighted average shares of approximately 638.6 million and 654.8 million, respectively. For the three months ended March 31, 2025, adjusted earnings per sh
Slide 37: Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate
Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate ($M) 4Q24 4Q25 2024 2025 Income before taxes $ 1,336 $ 620 $ 6,244 $ 5,947 Pension mark-to-market expense 126 149 126 163 Amortization of acquisition-related intangibles 139 163 411 570 Acquisition-related costs 26 17 83 45 Divestit
Slide 38: Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate
Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate We define adjusted income before taxes as income before taxes adjusted for items presented above. We define adjusted income tax expense as income tax expense adjusted for items presented above. We define adjusted effective tax rate
Slide 39: Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow ($M) 4Q24 4Q25 2024 2025 Cash provided by operating activities from continuing operations $ 1,998 $ 1,241 $ 5,112 $ 6,075 Capital expenditures (301) (306) (871) (986) Spin-off and separation-related cost payments — 90 — 116 Re
Slide 40: Reconciliation of Expected Cash Provided by Operating Activities to Expected Free Cash Flow
Reconciliation of Expected Cash Provided by Operating Activities to Expected Free Cash Flow 2026E($B) Cash provided by operating activities ~$4.7 - $5.0 Capital expenditures ~(1.3) Spin-off and separation-related cost payments ~1.5 Settlement of Flexjet-related litigation matters ~0.4 Free cash flow
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