Honeywell International Inc. · NASDAQ:HON
Honeywell International — Q1 2026 Earnings Presentation
29 slides from Honeywell International's earnings presentation, Apr 23, 2026
Slide 1: First Quarter 2026 Earnings Presentation
FIRST QUARTER 2026 EARNINGS PRESENTATION APRIL 23, 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 margin and earnings growth in Q1, overcoming impact from regional conflict and temporary mechanical supply chain disruptions in Aerospace • 7% orders growth with broad-based demand across aerospace and automation • Final stages of portfolio shaping underway, continued progress
Slide 4: Portfolio Transformation Update
PORTFOLIO TRANSFORMATION UPDATE Announced Publicly Filed Aerospace Honeywell Aerospace Honeywell Aerospace Form 10 and Raised $20B Announced Sales of PSS Spin off Management Team Spin Financing and WWS Businesses Start of Q3 2026 Jan 2026 Mar 2026 April 2026 (Expected June 29, 2026) 2026 Announced A
Slide 5: Process Automation & Technology Outlook
PROCESS AUTOMATION & TECHNOLOGY OUTLOOK LARGE PROJECT WINS SINCE 2Q25 DEMAND REMAINS ROBUST • Middle East conflict drove 0.5% impact to HON revenue in 1Q Middle East Middle East U.S. Refining LNG • Expect ~1% impact in 2Q, principally in PA&T Petchem Liquefaction • Guidance assumes business disrupti
Slide 6: Aerospace Growth Trajectory
AEROSPACE GROWTH TRAJECTORY AEROSPACE REVENUE PROFILE COMMENTARY 30% 3-Year Average 1 2025 1 2026E • Demand remains robust - 1.1x 1Q book-to-bill, 28% LTM 28% orders growth, driving ~$19B backlog (20% YoY growth) 26% 24% • Supply chain headwinds in mechanical products impacted 22% January and Februa
Slide 7: 1Q 2026 Financial Summary
1Q 2026 FINANCIAL SUMMARY SALES SEGMENT MARGIN* ADJUSTED EPS* FREE CASH FLOW* Up 2% Organic* Up 90 bps Up 11% 0.3 $2.45 23.3% 0.2 $9.1B $9.1B 0.2 22.4% $0.2B $8.9B 0.1 $8.9B $2.21 0.1 $0.1B 0.0 1Q25 1Q26 1Q25 1Q26 1Q25 1Q26 1Q25 1Q26 + Strong demand in Electronic + Margin expansion across all + High
Slide 8: 2Q 2026 Outlook
2Q 2026 OUTLOOK 2Q GUIDANCE COMMENTARY • Building Automation strength continues led by products (fire) and solutions (services), coupled with demand for new products SALES SEGMENT MARGIN* • Aerospace growth driven by improving mechanical supply chain output, and $9.4B - $9.6B 22.2% - 22.5% strong de
Slide 9: 2Q 2026 Earnings Per Share Bridge
2Q 2026 EARNINGS PER SHARE BRIDGE $0.04 - $0.07 $0.01 ($0.16) $0.03 - $0.10 + Share count 638M vs. 641M + Increased pension income + Higher volumes - Increased $2.43 despite near term repositioning expense - Higher adjusted Middle East impact + Productivity and effective tax rate* (~21% vs. ~16%) $2
Slide 10: FY 2026 Outlook
FY 2026 OUTLOOK FY GUIDANCE WHAT’S CHANGED? + Stronger growth in Building and Industrial Automation offsetting weaker 1H in PA&T SALES SEGMENT MARGIN* ± Temporary mechanical supply chain headwinds in aerospace, improving $38.8B - $39.8B 22.7% - 23.1% sequentially after 1Q Up 3% - 6% Organically* Up
Slide 11: Summary
SUMMARY HONEYWELL AEROSPACE • Strong earnings growth in Q1 despite disruption in Middle East and INVESTOR DAY temporary supply chain constraints in aerospace • Improving order growth positions aerospace and automation for strong second half top line growth JUNE 3, 2026 PHOENIX, AZ • Honeywell Aerosp
Slide 12: Appendix
Appendix 1Q 2026 Earnings – April 23, 2026 11
Slide 13: 1Q 2026 Earnings Per Share Bridge
1Q 2026 EARNINGS PER SHARE BRIDGE $0.06 Up 11% Adjusted $0.03 $0.04 $0.11 + Share count 638M vs. 652M $2.45 + Pension and other - Increased interest + Adj. Effective Tax Rate* expense 21.0% vs. 21.4% + Productivity and pricing, net of $2.21 inflation ± Quantinuum technology investments 1Q25 Adjusted
Slide 14: 1Q 2026 Segment Results
1Q 2026 SEGMENT RESULTS SEGMENT MARGIN* SALES CHANGE (BPS) COMMENTARY ($M) • Orders up 6% year over year with book-to-bill of 1.1x, reflecting continued robust aerospace and defense demand $4,322 26.5% • Growth across all three end markets pressured by temporary constraints in mechanical supply chai
Slide 15: 1Q 2026 Sales Growth
1Q 2026 SALES GROWTH 1Q Reported 1Q Organic* AEROSPACE TECHNOLOGIES 4% 3% Commercial Aviation Original Equipment 3% 3% Commercial Aviation Aftermarket 3% 3% Defense and Space 4% 4% BUILDING AUTOMATION 11% 8% Products 11% 8% Solutions 11% 8% PROCESS AUTOMATION & TECHNOLOGY 5% (6%) Aftermarket (2%) (1
Slide 16: Additional 2026 Inputs
ADDITIONAL 2026 INPUTS 2025 2026E 1Q26 2Q26E Corporate and ($545M) (~$650M) ($111M) (~$150M) Quantinuum Pension / $560M ~$660M $166M ~$165M OPEB Repositioning and ($172M) ($150M - $200M) ($34M) ($10M - $40M) Other1,2 Other Below the Line3 ($1,115M) ($1,250M - $1,300M) ($307M) ($330M - $340M) Total B
Slide 17: Revised Historical Sales Growth
REVISED HISTORICAL SALES GROWTH FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 4Q25 FY25 Building Automation Sales ($M) $6,031 $1,426 $1,571 $1,745 $1,798 $6,540 $1,692 $1,826 $1,878 $1,971 $7,367 Organic Growth (%)* - (3%) 1% 3% 8% 2% 8% 8% 7% 8% 8% Products Sales $3,358 $755 $826 $937 $958 $3,475 $9
Slide 18: 1Q 2026 Earnings – April 23, 2026
1Q 2026 Earnings – April 23, 2026 17
Slide 19: Appendix 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 20: Reconciliation of Organic Sales Percent Change
Reconciliation of Organic Sales Percent Change 1Q26 1Q26 Honeywell Process Automation and Technology Reported sales percent change 2% Reported sales percent change 5% Less: Impact of divestitures to the prior period (3)% Less: Impact of divestitures to the prior period —% Reported sales percent chan
Slide 21: Reconciliation of Recast Historical Organic Sales Percent Change
Reconciliation of Recast Historical Organic Sales Percent Change 1Q24 2Q24 3Q24 4Q24 2024 1Q25 2Q25 3Q25 4Q25 2025 Building Automation Reported sales percent change (4)% 4% 14% 20% 8% 19% 16% 8% 10% 13% Less: Impact of divestitures to the prior period —% —% —% —% —% —% —% —% —% —% Reported sales per
Slide 22: 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 23: 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) 1Q25 2Q25 1Q26 2025 Operating income $ 1,721 $ 1,843 $ 1,474 $ 5,573 Stock compensation expense1 59 55 57 196 Repositioning, Oth
Slide 24: Reconciliation of Operating Income to Segment Profit
Reconciliation of Operating Income to Segment Profit and Calculation of Operating Income and Segment Profit Margins We define operating income as net sales less total cost of products and services sold, research and development expenses, selling, general and administrative expenses, impairment of go
Slide 25: Reconciliation of EPS to Adjusted EPS
Reconciliation of EPS to Adjusted EPS 1Q25 2Q25 1Q26 FY2025 2Q26E 2026E Earnings per share of common stock from continuing operations - diluted1 $ 1.97 $ 2.16 $ 1.29 $ 6.94 $2.13 - $2.23 $8.88 - $9.18 Pension mark-to-market expense2 0.02 — — 0.19 No Forecast No Forecast Amortization of acquisition-r
Slide 26: Reconciliation of EPS to Adjusted EPS
Reconciliation of EPS to Adjusted EPS 1 For the three months ended March 31, 2026 and 2025, adjusted earnings per share utilizes weighted average shares of approximately 638.4 million and 651.7 million, respectively. For the three months ended June 30, 2025, adjusted earnings per share utilizes weig
Slide 27: Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate
Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate ($M) 1Q25 2Q25 1Q26 Income before taxes $ 1,665 $ 1,627 $ 886 Pension mark-to-market expense 14 — — Amortization of acquisition-related intangibles 135 132 153 Acquisition-related costs 8 (2) 3 Divestiture-related costs 11 58 353 In
Slide 28: Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow ($M) 1Q25 1Q26 2025 Cash provided by operating activities from continuing operations $ 378 $ (650) $ 6,075 Capital expenditures (190) (223) (986) Spin-off and separation-related cost payments 3 552 116 Resideo indemnification
Slide 29: 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 from continuing operations ~$4.4 - $4.7 Capital expenditures ~(1.3) Spin-off and separation-related cost payments ~1.8 Settlement of Flexjet -related litigation
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