HON

This article first appeared on GuruFocus. - Organic Sales Growth: 7% in Q3 2026, above the high end of Investor Day targets; broad-based across all segments. - Segment Margin: Expanded 370 basis points to 21.3% on pricing, productivity, and stranded cost elimination. - Adjusted EPS: $2.27, up 34% year-over-year. - Free Cash Flow: ~$690 million, up 15%; cash conversion of 95% in the quarter. - Segment Profit: Grew 23% year-over-year. - Short-Cycle Orders: Up 8% excluding divestitures, led by Industrial and Building Automation. - Backlog: Nearly $19 billion, up 7% excluding divestitures; book-to-bill of 1.0. - Process Automation & Technology (PA&T): Organic sales up 8%; project sales up 14%; backlog up double digits (over 10% year-over-year). - Building Automation: Organic sales up 8% (eighth straight quarter of high single-digit growth); products up 11%, solutions up 4%; segment margin 27%, up 30 basis points. - Industrial Automation: Organic sales up 4%, led by double-digit solutions growth; product sales roughly flat; margin expansion of 350 basis points. - Data Center Orders: Up over 100%. - Full-Year 2026 Organic Growth Guidance: Raised to 4%5% (from 3%4%). - Full-Year 2026 Margin Guidance: High end of range at 20.5%; ~22% expected in Q4. - Full-Year 2026 Adjusted EPS Guidance: $8.40$8.45 (up $0.23 at midpoint; ~30% earnings growth). - Full-Year 2026 Free Cash Flow Guidance: Raised $100 million to $2.1 billion. - Leverage: Targeting gross leverage below 3x; gross debt to fall from $18 billion (Q2) to under $13 billion by year-end 2026; year-end cash ~$3 billion, net debt ~$10 billion. - Warning! GuruFocus has detected 11 Warning Signs with JSE:EQU. - Is HON fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Delivered 7% organic sales growth, above the high end of Investor Day targets, with broad-based demand across all segments. - Expanded margins by 370 basis points to over 21%, driven by strategic pricing, productivity actions, and accelerated stranded cost elimination. - Adjusted EPS rose 34% year-over-year to $2.27, with full-year 2026 guidance raised across all metrics. - Free cash flow conversion accelerated to 95% in the quarter, with expectations above 100% in Q4. - Backlog stands at nearly $19 billion, up 7% excluding divestitures, providing strong visibility for future growth. - Process Automation and Technology (PA&T) margins contracted due to mix headwinds from higher project growth and dilution from the Johnson Matthey Catalyst Technologies acquisition. - Industrial Automation product sales were roughly flat, with industry-wide deferrals in utility meter deployments offsetting sensing and measurement demand. - Inflation remains elevated, with price-cost net positive only about 30 basis points in the quarter, and expected to persist into the first half of 2027. - PA&T faces tough prior-year comparisons due to two large $700 million LNG awards in Q3 and Q4 2025, which impact order growth comparisons. - Building Automation growth may decelerate from recent high single-digit levels as comps get tougher, though mid-single-digit growth is expected to continue. Q: Julian Mitchell of JPMorgan asked about the Industrial Automation (IA) segment's rocky history and whether the company is confident in continued margin expansion and order rates given a choppy macro backdrop. A: CEO Vikram Kapur expressed high confidence, noting that fundamentals are improving rapidly. On-time delivery has increased from under 40% to 60%, past dues are down 18%, and new product launches are well-received. He stated the business has turned from negative territory to low single-digit growth and is expected to reach mid-single-digit growth by 2027. He reaffirmed confidence in achieving a 25% margin goal by 2029, calling IA a high-quality business. Q: Amit Mehrotra of UBS asked for color on the 2027 outlook, specifically comparing the "at or above long-term algorithm" comment with the previously floated 15% EPS growth figure. A: CEO Vikram Kapur stated the setup for 2027 is very strong, starting with a higher baseline from the raised 2026 guidance. He expressed confidence in performing at the upper end of the 4% to 6% organic growth guide, maintaining positive price/cost, and benefiting from fixed cost reductions. While he deferred specific 2027 guidance to February, he confirmed the company is on the road to delivering the long-term 2029 EPS target of $12 or better. Q: Joe Ritchie of Goldman Sachs asked about the project side of the Process Automation and Technology (PA&T) business, given high oil prices, and whether customer conversations and the pipeline have materially increased. A: CEO Vikram Kapur explained that investments are driven by energy security, diversity of fuels, and low-carbon initiatives rather than just oil prices. He cited firm projects like the Dangote refinery expansion in Africa and new carbon capture wins. He emphasized that the current upcycle is less linked to oil price and more linked to broader drivers, giving the company conviction in a multiyear growth cycle. Q: Scott Davis of Melius Research asked how Honeywell has accelerated growth in its historically low-growth Fire and Security business. A: CEO Vikram Kapur attributed the success to a higher cadence of new product introductions and a favorable mix shift in end markets. He highlighted the role of the "Forge" platform in creating connected solutions that pull through core products, and noted unique opportunities in data centers and lithium-ion battery fire detection. He also cited the strong performance of the LenelS2 security business and its successful globalization. Q: Andrew Kaplowitz of Citigroup asked for an update on the data center ecosystem and how it might contribute to growth in 2027 and beyond. A: CEO Vikram Kapur noted that data center demand is now spanning across segments, with Process Automation orders up over 100% year-to-date. He sees potential for data centers to become a mid-single-digit percentage of total Honeywell sales. He highlighted new opportunities in liquid cooling, leveraging the company's sensors and Sundyne pumps, and emphasized that the data center strategy is becoming a pan-Honeywell initiative with a global footprint. Q: Nigel Coe of Wolfe Research asked about the confidence in fourth-quarter order growth and what has been seen so far in October. A: CEO Vikram Kapur stated that the first three weeks of October have been trending at or above expectations. He expressed high confidence in the guidance for high single-digit order growth in Q4 (excluding large LNG awards from the prior year), based on statistical performance against the pipeline and win rates. Q: Steve Tusa of Wells Fargo asked about the drivers behind the fourth-quarter margin guidance, specifically if it was related to price/cost timing or conservatism. A: CFO Mike Stepniak clarified that the margin guidance is driven by mix, not price/cost issues. While product performance is strong, the projects business and the Catalyst Technologies (CT) acquisition are growing better than expected and are dilutive to the overall margin mix. He noted the full-year margin is still expected at the high end of the guide (20.5%), representing about 300 basis points of expansion. Q: Andrew Obin of Bank of America asked what it would take for the Industrial Automation products business to inflect to material positive growth. A: CEO Vikram Kapur stated the business is currently in low single-digit growth territory and is expected to reach mid-single-digit growth in 2027. He cited improving customer service, better delivery, and new product penetration as key drivers. CFO Mike Stepniak added that Q3 core orders for Industrial Automation were up 15%, and the business is entering next year with its best backlog in over five years. Q: Joe O'Dea of Vertical Research Partners asked about the biggest self-help opportunities for the company heading into next year. A: CFO Mike Stepniak identified the adoption of shared services, value engineering in the supply chain, and the use of AI to manage operating expense growth as key opportunities. CEO Vikram Kapur added that the integration of the Catalyst Technologies business is yielding higher cost synergies than forecasted and that cross-selling between different Honeywell segments (e.g., in data centers and life sciences) is a significant self-help lever. Q: Nicole DeBlase of Deutsche Bank asked about the deferrals in utility meter deployments within the Industrial Automation segment and the timeline for a recovery. A: CEO Vikram Kapur explained that new gas and water meter technology is being tested by individual utilities, a process that takes six to nine months. He views the current low growth as a temporary headwind that is already factored into 2026 and 2027 guidance, but expects it to become a significant tailwind as utilities begin major rollouts from 2027 onwards. Q: Andrew Kaplowitz of Citigroup asked about the company's M&A priorities now that it is approaching its leverage target. A: CEO Vikram Kapur stated that the highest priority for M&A is adding more content to the Industrial Automation segment, specifically in measurement and sensing. The second priority is adding content in higher-growth verticals. He emphasized that the company's 2029 earnings commitment is entirely organic, so M&A is pure optionality, and they will remain disciplined on debt paydown in the near term. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Honeywell International Inc. HON raised its 2026 outlook after its first quarter as a stand-alone automation company, emphasizing stronger orders, productivity gains and improving cash generation. On the third-quarter earnings call, management highlighted an expanding energy-project backlog and an Industrial Automation recovery while addressing questions about project margins, inflation and growth sustainability. Senior vice president and CFO Mike Stepniak raised 2026 adjusted earnings guidance to $8.40-$8.45 per share from $8.05-$8.35, lifting the midpoint by 23 cents. Expected organic sales growth increased to 4-5% from 3-4%. Honeywell International Inc. price-consensus-eps-surprise-chart | Honeywell International Inc. Quote The company now targets $20.0-$20.1 billion in sales and approximately $2.1 billion in free cash flow. Its segment margin outlook is approximately 20.5%, at the upper end of the previous range. For the fourth quarter, Stepniak projected 5-6% organic growth and adjusted earnings of $2.42-$2.47 per share. Responding to Deutsche Bank, he characterized the growth outlook as conservative rather than evidence of weakening demand. Chairman and CEO Vimal Kapur said short-cycle orders increased 8%, excluding divested businesses, supported by Building Automation products and industrial sensing. Backlog rose 7% to nearly $19 billion on the same basis. Kapur explained that large energy awards distorted year-over-year comparisons. Excluding a major prior-year award, third-quarter organic orders increased 3%. When asked by Wolfe Research about fourth-quarter bookings, Kapur said the first three weeks of October met or exceeded expectations. Management anticipates high-single-digit underlying order growth after adjusting for another large prior-year award. Process Automation and Technology generated 8% organic sales growth, including 14% growth in projects. Kapur highlighted investments in LNG, refining and petrochemicals across several regions. He said the segment's backlog grew double digits, with more than $1 billion in incremental energy orders since the first quarter. Additional catalyst and lifecycle service opportunities could follow initial project installations. JPMorgan questioned margin pressure from project mix and the Johnson Matthey Catalyst Technologies acquisition. Stepniak projected margins near 21.5% in the fourth quarter and similar levels in early 2027, followed by stronger expansion as integration progresses and catalyst mix improves. Industrial Automation posted 4% organic growth and expanded segment margin 350 basis points to 18.4%. Kapur told JPMorgan that improved deliveries and new products underpin management's expectation of mid-single-digit growth in 2027. Utility meter rollout delays remain an issue. Answering Deutsche Bank, Kapur said customer testing could take six to nine months before broader deployments begin. Building Automation delivered its eighth consecutive quarter of high-single-digit organic growth. During questions from Melius Research, Kapur credited fire and security product innovation, connected offerings and data center demand for continued momentum. Stepniak attributed the company's 370-basis-point segment margin expansion to pricing, productivity, volume leverage and stranded-cost removal. He expects all remaining stranded costs to be eliminated by year-end. Wells Fargo pressed management about inflation. Stepniak said pricing averaged 3.5% in the first half and should average 4.5% in the second half, with price-cost remaining slightly positive. Free cash flow reached approximately $690 million, with 95% conversion. Stepniak anticipates conversion above 100% in the fourth quarter, while planned repayments should bring year-end gross debt below $13 billion. Kapur told Melius Research that Forge-related recurring revenues are approaching $1 billion in 2026. The platform supports service contracts, connected products and stand-alone software subscriptions. Answering Citigroup, he described data centers as an opportunity spanning building controls, power systems and industrial sensing, including emerging liquid-cooling applications. Kapur maintained that debt reduction comes before acquisitions. He identified sensing and measurement as the highest-priority area for potential deals beginning in 2027. Management's message focused on converting the existing backlog, sustaining short-cycle demand and delivering further productivity. Kapur expressed confidence that growth will meet or exceed the company's longer-term framework in 2027, though executives reserved detailed annual guidance for February. HON carries a Zacks Rank #3 (Hold), indicating a neutral near-term ranking. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Its Value Score is C, Growth Score is F, and Momentum Score is D, reflecting mixed valuation characteristics and weaker growth and momentum. The combined VGM Score of F reflects unfavorable overall alignment across the three investing styles. These ratings fall short of the preferred combination of a Zacks Rank #1 or #2 with an A or B Style Score. The Zacks Rank can change as analysts revise earnings estimates following the latest results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For questions about this article or underlying research, email [email protected]. GE Aerospace (GE) stock fell 3.7% on October 20, 2026, when the company reported its fiscal Q3 2026 results. The S&P 500 rose 0.3% during the same session. Management raised its 2026 forecast that morning, but by October 22 the shares traded 5.7% below their pre-report close. So how much did GE Aerospace's forecast actually go up? How Much Did GE Aerospace Raise Its 2026 Forecast? Management increased its 2026 operating profit forecast to a range of $10.9 billion to $11 billion, adding $300 million at the midpoint. The adjusted EPS outlook rose to between $8.00 and $8.10, an increase of $0.30 at the midpoint compared with $7.75 in the July release. The company now expects free cash flow of $9.1 billion to $9.4 billion, lifting the projection $200 million above the prior guide of $9.05 billion. Earnings for the quarter also beat expectations. GE Aerospace reported $2.25 a share in fiscal Q3 2026, compared with a consensus of $2.07. Revenue reached $13.3 billion, matching analyst estimates. GE Aerospace's peers held up better during the session. Honeywell rose 1.6%, and Boeing slipped 0.5%. The decline was specific to GE Aerospace, arriving on the same day the company raised its company-wide profit and cash forecasts for the year. GE Aerospace's Growth Has Lasted More Than A Year Revenue in commercial engines and services, the company's largest segment, grew 21% in fiscal Q3 2026. Management said this marked the unit's sixth consecutive quarter of at least 20% growth. Overall company revenue expanded 21.7% over the four quarters ending in June 2026, compared with 13.0% during the previous four quarters. In fiscal Q3 2026 alone, management said total revenue rose 18%. Future demand looks just as firm. Orders in fiscal Q3 2026 rose 49% from a year earlier. Management now expects 2026 revenue growth of 19% to 20%, lifting its projection from the high teens forecast in July. What Did Management Say About GE Aerospace's 2027? Management expects further services growth in 2027, but no expansion in margins. Helped by a backlog of over $170 billion, the company now projects low double-digit services growth in 2027. Adjusted operating margin was 22.5% in fiscal Q3 2026, up 220 basis points from a year earlier, and management expects 2027 margins to remain in line with 2026. Management cited the GE9X engine as one reason, alongside equipment sales growing faster than services. It expects the GE9X to add about $300 million more in losses in 2027 than in 2026 as deliveries ramp up. GE9X engines shipped during fiscal Q3 2026 will only count in financial results after the engine's upgraded mid-seal is certified. Management is working to secure that FAA certification by the end of 2026. Management said it will provide fuller 2027 guidance in January. GE Aerospace's 2027 operating margin forecast, due with the report expected in January 2027, is the figure to watch. Your Advisor Retired? Get A Second Opinion Before You Settle One report just changed how GE Aerospace looks to the people who own it. When the advisor who built your plan moves on, it is a natural moment to ask whether the plan still fits the life you have now. Our partner advisory firm offers a free review of your holdings, fees and income plan. Get A Free Second Opinion Spot an error or want more like this? Tell us in 10 seconds.

Image source: The Motley Fool. Thu, Oct. 22, 2026 - Senior Vice President of Investor Relations - Mark Macaluso - Chairman and Chief Executive Officer - Vimal Kapur - Senior Vice President and Chief Financial Officer - Michal Stepniak Operator: Thank you for standing by. Welcome to Honeywell Technologies Third Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please be advised that today's call is being recorded. I would now like to hand the call over to Mark Macaluso, Senior Vice President of Investor Relations. Please go ahead, sir. Mark Macaluso: Thank you. Good morning, and welcome to Honeywell Technologies third quarter 26 earnings conference call. Joining me today are Honeywell Technologies' Chairman and Chief Executive Officer, Vimal Kapur and senior vice president and chief financial officer, Michal Stepniak. This webcast and the presentation materials, including non GAAP reconciliations, are available on our investor relations website. From time to time, we post new information on the investor relations website that may be of interest or material to our investors. Our discussion today includes forward looking statements that are based on our best view of the world and of our businesses as we see them today. And are subject to certain risks and uncertainties, including those described in our recent SEC filings. This morning, we will review our financial results for the third quarter of 26 and discuss our updated 2026 guidance. As always, we will leave time for your questions at the end. With that, it is my pleasure to turn the call over to Vimal, who will begin on slide 3. Vimal Kapur: Thank you, Mark, and good morning, everyone. Our first quarter as a standalone pure-play automation company was a clear demonstration of the value creation strategy we laid out during Investor Day in June with broad based organic growth strong margin expansion, and higher free cash flow conversion. And I am very pleased with the result our teams delivered. This quarter showed the breadth and quality of new Honeywell Technologies' portfolio with strong results across all segments. We delivered 7% organic sales growth above the high end of the targets we unveiled at Investor Day in June. Demand across the portfolio was broad based, which drove short cycle orders growth of 8% excluding our divestitures. Led by Industrial and Building Automation. Additionally, the growth inflection we expected in Process Automation and Technology is occurring with the business growing 8% organically in third quarter. As I will talk more about shortly, we believe PANT is beginning a multiyear growth inflection fueled by robust project backlog and continued capital investment in energy sector, especially in Africa, Middle East, US. On profitability, we expanded margins by 370 basis points to over 21% strategic pricing, productivity actions, and the continued reduction in the stranded cost. Importantly, with accelerated progress this quarter, we now expect to eliminate all remaining stranded costs by the end of 26. Just 6 months after the aerospace spin off demonstrating our strong execution capabilities. Together, this combination of profitable growth and the fixed cost productivity drove adjusted EPS of $2.27, up 34% year over year. To round out the story, the cash conversion accelerated to 95% for the quarter and we expect to be above 100% conversion in the fourth quarter. As a result of our strong execution this quarter and momentum heading into the fourth quarter, we are raising our full year 2026 guide across all metrics. The growth inflection in P and T and the turnaround in Industrial Automation are well underway compounded by 8 straight quarters of outperformance in Building Automation. Michal will talk more about our stronger outlook for Q4 and the full year in a few minutes. Our transformation into a pure play automation company is complete, and as our third quarter results have demonstrated, we have strong position in growing end markets differentiated offerings, and clear competitive advantage in higher growth verticals like LNG and data centers. We are instrumenting the business to outperform both in 2027 over the long term, with strong short cycle demand, a backlog of nearly $19 billion, and momentum across the portfolio. This gives me and the leadership team great confidence in delivering on our 2029 targets. Let's now turn to slide 4 to talk more about the order trends in the business. The key takeaway is that demand remains strong across most of our portfolio. We saw growth across our short cycle businesses led by Sensing and Measurement in Industrial Automation, and double digit growth in Building Automation product businesses. Orders in data center vertical were up over 100%. In P and T, we saw strong refining catalyst demand, consistent with our expectation for a second half recovery. And On a regional basis, we saw strength in India, The Middle East, and Africa. In Process Automation and Technology, we are navigating tough prior year comparison due to the 2 strategic low carbon energy and LNG awards in third and fourth quarter of 25 which worth over $700 million. From time to time, large awards like this do not always correlate with underlying market demand we are seeing which is why we have elected to present a normalized view of the demand. Excluding the impact of Q3 award last year, total company orders are up 3% organically, Furthermore, book to bill in this quarter was 1.0x which drove ending backlog to nearly 19 billion up 7% excluding our divestitures. In P and T specifically, the backlog was up double digits, driven by these large project awards. We continue to believe that the ongoing transition to LNG and renewables as a priority fueled increasing pipeline activity from refurbishment and rebuilds in Middle East, and the refining build out in Africa, will drive a meaningful energy upcycle over the next several years. Looking ahead to the fourth quarter, we expect orders to grow in the high single digit range, excluding the large LNG awards shown in the chart on Slide 4. This will be driven by demand in Middle East, India, and Asia Pacific in Process Technology, and Building Automation, continued short cycle demand in building automation products and sensing and utilities in Industrial Automation, and momentum in our high growth verticals. Let us now turn to slide 5 to discuss a favorable dynamics we are seeing in the global energy value chain reinforcing our growth outlook for the Process Automation and Technology business. A global basis, we continue to see activity increasing on large energy projects including over $1 billion in process technology orders since quarter 1 of 26. P and T backlog is over 10% 10% higher than a year ago supported by wins across LNG, refining and petrochemicals, and low carbon energy projects. The breadth of these orders is important too. We are seeing investments across North America the Middle East, Africa, and Asia rather than a single region. LNG remains strong in the US and internationally, while refining and petrochemical orders include major projects in Africa, and continued activity across the Middle East and Asia. Low carbon energy remains a small part of the business overall but it is growing at a strong double-digit rate. With wins in areas such as sustainable aviation fuel and carbon capture. And we continue to believe that longer term, this will be a growth driver. These orders expand our installed base and create opportunities beyond the initial project win. As these facilities come online, and operate at high utilization rate, they will drive future demand for catalyst, automation, digital modernization, and life cycle services. Overall, the strength and global diversity of the orders give us confidence in the outlook for continued growth of the PA&T segment as we enter 2027. In conclusion, we are seeing robust backlog growth and commercial momentum across our business, and we expect 2027 organic growth to be at or above our long term growth algorithm. Let me now turn it to Mike to discuss the third quarter results and our 2026 outlook in more detail. Michal Stepniak: Thank you, Vimal, and good morning. In the third quarter, Honeywell Technologies delivered strong results that surpassed our expectations across most metrics. Sales grew 7% organically with strength across all segments. Process Automation and Technology sales grew 8% organically led by double digit growth in projects, and a return to growth in aftermarket Led by refining catalyst demand. Project sales grew 14% year over year led by strong LNG and petrochemical backlog conversion. The momentum in building automation continued with 8% organic growth. Our 8th straight quarter of high-single-digit growth, evidence that we continue to gain share in the market. This was principally driven by 11% organic growth in products, led by both the fire and security businesses while solutions also grew 4% organically driven by strength in services. On a regional basis, we saw double digit growth in both India and Asia Pacific with continued strength in The Americas. Finally, in Industrial Automation, organic sales were up 4% in the third quarter, led by double digit growth in solutions, principally in industrial measurement and utilities. Product sales were roughly flat, with sensing and Industrial Measurement demand offset by industry wide deferrals in meter deployments across the utility segment. On profitability, segment profit grew 23% and segment margin expanded 370 basis points to 21.3% driven by productivity, accelerated stranded cost elimination as well as strategic pricing actions and volume leverage. This more than offset rising inflation, headwinds from the mix of projects versus aftermarket, and the acquisition impact in Process Automation and Technology. By segment, in Industrial Automation, price and productivity actions in the core business drove 350 basis points of margin expansion. with the business firmly on a path to deliver 22% segment margin in the quarter. In building automation, segment margin expanded another 30 basis points to 27% driven by volume leverage and pricing actions that more than offset rising inflation. And in Process Automation and Technology, margin contracted as expected driven by mix headwinds stemming from higher project growth, and dilution related to the acquisition of Johnson Matthey's Catalyst Technologies business. Adjusted earnings per share was up 34% driven primarily by 23% segment profit growth and lower interest expense, which more than offset a higher adjusted tax rate in the quarter. Finally, free cash flow was up 15% to roughly $690 million while our conversion increased to 95% in the quarter. We expect free cash flow conversion to be above 100% in the fourth quarter as we drive working capital improvements including strong receivable collections. Let's now move to slide 7 to discuss the third quarter segment margin and adjusted EPS bridge. Starting with margin, we are delivering stronger incremental margin in our short cycle business driving roughly 70 basis points of volume leverage. We are also continuing to effectively mitigate high inflation with strategic pricing actions. Productivity, a reduction in stranded costs. We expect inflation to remain at these levels at least into the first half of 27. Our strong market positions, installed base driven business model, and the mission critical nature of our offerings give us confidence in our ability to successfully navigate this inflationary environment. On adjusted EPS, earnings growth in the third quarter was primarily driven by a strong operational performance in all 3 segments. Which allowed us to overcome the operating loss from our divestitures. Below segment profit, interest and other expenses declined year over year while our tax rate was slightly higher. We are making good progress against commitments we outlined at the investor Day in June. Our focus on offsetting inflation delivering productivity, and aggressively eliminating stranded cost for transformation is having a meaningful impact. This provides a strong foundation for 2027. Let's turn to slide 8 to provide an update on our leverage commitments. As I discussed at the Investor Day, we are committed to reducing our gross leverage to less than 3x this year by lowering our gross debt balance from $18 billion in the second quarter to under $13 billion at the end of 26. This will be enabled by the acceleration in free cash flow that we expect to continue in the fourth quarter. We expect our year end cash balance to be approximately $3 billion resulting in a net debt of around $10 billion. Importantly, the cash generation and continued reduction in our leverage will increase our capital allocation flexibility including capacity to pursue disciplined M&A. Let's now turn to slide 9. As you can see here, we have made considerable progress reducing fixed costs related to the transformation, and we expect this to continue in 2027. We are implementing a cross functional shared services model across the company with a simplified and more flexible corporate structure. More importantly, during this time, we continue to invest in our businesses to drive future growth. The progress on stranded cost reduction underscores the pace of across the organization and the progress we are making in building a simpler, more focused company. This will position the company for long term profitable growth. Executing stranded cost takeout within 6 months of the aerospace spin demonstrates the strong operational execution capabilities of Honeywell Technologies. Let's turn to slide 10 to discuss our revised full year outlook. Today, we are raising our full year organic growth, adjusted earnings per share, and free cash flow guidance as well as tightening our margin guidance around the previous high end. We now expect full year organic growth of 4% to 5%, up from 3% to 4% previously, driven by our execution in the third quarter and stronger outlook in the fourth quarter. By business, in the fourth quarter, we expect to see continued strength in buildings and across both products and solutions, high single digit growth in Process Automation and Technology led by project backlog conversion and higher catalyst volumes, and continued sensing and Industrial Measurement demand in Industrial Automation. As a result, we expect to deliver 5% to 6% organic growth. With the performance to date, we expect to be at the high end of our full year margin range at 20.5% and at approximately 22% for the fourth quarter. This will continue to be driven by pricing, productivity and volume leverage, overcoming higher inflation and anticipated mix headwinds in Process Automation and Technology driven by higher project activity and dilution from the Catalyst Technologies acquisition. Industrial Automation should be at 22% margin in the fourth quarter, while Building Automation is expected to expand margins 70-90 basis points and Process Automation and Technology will end the fourth quarter around 21.5%. We now expect full year adjusted EPS in the range of $8.40 to $8.45, which represents a 23¢ improvement at the midpoint. Notably, the low end of our guidance range is now above our previous high end. This results in full year earnings growth of approximately 30%. Lastly, our free cash flow guidance is up $100 million to $2.1 billion given the higher income conversion. You can find additional information on our 2026 outlook in the appendix of our presentation includes estimates for corporate and below the line items. Thank you for your time today. Let me now turn the call back to Vimal to wrap up before the Q&A. Vimal Kapur: Thank you, Mike. We are proud of our results in the first quarter as a standalone company. We surpassed our expectations across most metrics and we see encouraging demand signals in many key end markets. We believe P and T is at the beginning of a multiyear growth inflection coinciding with an upcycle in global energy markets. We are also encouraged by the turnaround the team is driving in Industrial Automation, and Building Automation continues to execute on all fronts. We are also launching new offerings on our Forge platform both in Building Automation and Process Automation Technology, creating a robust foundation for future growth. With our performance this quarter and backlog of nearly $19 billion, we are confidently raising our 2026 outlook across all metrics setting up for a strong start to 2027. Thank you for joining us today. And, Mark, let's now take some questions. Mark Macaluso: Vimal, Mike, and I are now available to answer your questions. We kindly ask that you be mindful of others in the queue by asking 1 question and 1 related follow-up. Operator: Operator, please open the line for Q&A. Thank you. Our first question comes from the line of Nigel Coe with Wolfe Research. Please proceed with your question. Nigel Coe: Thanks. Good morning. Thanks for the question guys. Vimal Kapur: Good morning. Morning. Mark Macaluso: Good morning. Nigel Coe: So I am curious, the confidence in 4Q order growth, we are still only 1 month into the quarter. I am assuming December is a pretty important month for bookings. I am just wondering what gives you the confidence that a pipeline converts into orders and maybe just touch on how-- what you have seen in October. Vimal Kapur: Yeah. So far, Nigel, the first 3 weeks of October has been trending on and above expectations. So that is certainly is a good data point. And we look at our statistical performance against pipeline, our win rates, when we forecast it. Also provision for some adequate contingency for things which cannot happen as projected. So overall, our confidence to what we are stating on high single digit orders growth in quarter 4, less of the low carbon energy LNG order, I am sorry, which we booked last year. Which was several hundred million dollars. We remain highly confident on that. Nigel Coe: Okay. Okay. And then, Mike, a quick 1 on stranded costs. Good news that you will be done by the end of this year. I think that is about 6 months earlier than expected. Does that change your perspective on your corporate expense for next year? I think the guide was less than $600 million How does that look right now? Michal Stepniak: Right. So it is a little bit early yet, but. And we will talk about it in February. But for next year, just like we talked about, I think, before, we plan for our corporate cost to be about $400 million. And then we are instrumenting the teams, obviously, to productivity and margin expansion north of 60 bps. Like we talked about. So feel we have a really good setup. Like you said, we are we are ahead, and that has implications as far as us having a really good momentum going to next year, and we will work with that. [Inaudible] Thanks, Mike. Vimal Kapur: Thank you. Operator: Thank you. Our next question comes from the line of Julian Mitchell with JPMorgan. Please proceed with your question. Julian Mitchell: Hi, good morning. Just wanted to start off with a question on the IA segment. it is had a sort of rocky or an uneven time for a few years for various reasons. Looks to be very well set today with a large sequential margin increase guided for the fourth quarter. I suppose maybe when we try and look a little bit further out, how confident are you in continued margin expansion at IA in the coming quarters? And given the macro backdrop is a bit choppy, anything concerning you have seen in the order rates of IA, the shorter cycle pieces? So overall, Julian, for IA, we remain very con-- Vimal Kapur: Confident on continued performance in both top line recovery and margin rate expansion. The reason for that is the basics are improving as we talked about it in Investor Day, very rapidly. Our-- of our own time delivery now is used to be just shy of 40%. it is now 60%. Our past dues are down 18%. Our new product launches are being highly accepted by our channel partners and our OE customers. Those foundations have turned the business from negative territory to now more low single-digit. And we do expect that it will continue to progress and find its pathway to more mid-single-digit growth as we lap from 26 to 27. So we remain very convicted The same is true on the margin rate. We expect the year to end at 22%. Primarily, it is a high quality business now. And from this baseline, as we continue to execute our pricing action, productivity action, we remain very confident on the margin expansion and also achieve 25% goal by 2029. So overall, sensing and measurement, building a unique segment in Industrial Automation. that is our pathway, and we remain highly convicted. This is a high quality business. as part of our portfolio. Julian Mitchell: that is helpful. And then a quick follow-up on PAT. Margin pressure, kind of, year on year in the third quarter that is continuing into the fourth. Should not we assume that margins stay under that type of pressure until the Johnson Matthey acquisition anniversaries? Or is there anything in the base business moving around that could help the margins sooner? Michal Stepniak: Yes. So versus where the team finished at the 22.2% I would say next quarter, 21.5%. And then in the first half, I would say probably something similar. But next year, P and T is going to expand margins. And what is happening there is, 1, we have a catalyst mix starting to mix up. That volume is going to grow. that is going to help project volume mix is going to abate. And as you know, we obviously are integrating CT So in the second half, we will be substantially past CT integration. We see a really good margin expansion into the second half of 2027. And I just remind you, like we talked about, this is a multiyear cycle. In 2028, there is a significant margin pickup again. as we are counting on catalyst volume. So we have very good visibility to this cycle. This we have proven it cycle over cycle over multiple decades. And we are extremely confident on the progression of the business in that fashion. Great. Thank you. Vimal Kapur: Thank you. Thank you. Operator: Our next question comes from the line of Steve Tusa with Wells Fargo. Please proceed with your question. Steve Tusa: Hi, good morning. Good morning. Very helpful chart on the segment bridge. Can you just I think, kind of teasing out, core incrementals putting everything else aside on volume roughly 40%. Is that right? And then can you just discuss that inflation number, the 53 basis points? Like what was that in the first and second quarter? And then what do you expect for that in the fourth? Michal Stepniak: Sure. So you are exactly right. I think on core, we are about 40% in incrementals. Price to cost in the third quarter was about 30 bps net positive. So that 350 bps that you see on inflation is a little bit higher versus the first half, but also our prices higher. We are averaging about 3.5% price in the first half We will average about 4.5% in the second half, 4% for the year. that is going to be on a year basis, maybe 10-20 bps of, I would say, margin expansion, from price cost. And we see obviously, inflation elevated. We expect that to continue into year end and then starting to abate in the first half. Everything we get from our teams as far as planning for next year, see inflation coming down a bit. So the price will move with that, but it is still around that 3% to 4%. Steve Tusa: Okay. And then just for the fourth quarter, my follow-up is what the margin went to the low end of the range, I guess, for the fourth quarter. And is that really just the price cost timing stepping up a little bit sequentially? Just curious as to that or just conservatism. Michal Stepniak: No. Not at all. Pricing-cost is as well. We actually. You know, we manage price in the third quarter to account for year-end. it is really just mix. So revenue is coming up. And, like we talked, the products are performing extremely well. We do not see anything changing in products. On the other hand, projects is doing better. And the CT outlook is better, and they are dilutive to our overall mix, and that is what is dragging our margin. To that 400 basis points. Still, I would I would say 20. You know, at the at the high end of our guide, for the year at 20.5%. it is about 300 bps margin expansion for the year. Really good setup for next year. Yep. Thanks a lot. Appreciate it. Thank you. Thank you. Operator: Our next question comes from the line of Scott Davis with Melius Research. Proceed with your question. Scott Davis: Thanks, operator. Good morning, Vimal, Mike and Mark. Appreciate the shorter comments today too to leave more time for Q and A. Guys, you have been seemingly gaining a meaningful amount of share in Fire and Security, it seems for a while now. That was always a pretty low growth business, like, literally like a 1% to 2% type growth business. But you seem to have made it something a little bit bigger. What can you just update us on what your you are doing there and what is kind of changed at the margin? what is driving that growth or at least the sustainability of that growth? Vimal Kapur: I think the fundamental is the ever-higher cycle of new product introduction. Coupled with the mix change of the end markets. So we continue to amplify our new product introduction and maintaining a very high vitality by which we then gain share from our competition. Forge is playing a very important role. Fire business was the first out of the door. To build a connected solution by which you can configure our fire panels remotely. We introduced that almost 3 years back. What it does is, Scott, that while the software content is low, it pulls the core product. And that value proposition is very compelling for our channel partners because they save significant commissioning time, inspection time, and improves their P&L. Also, we have had been benefiting from data center growth. We have some unique products in fire and data center growth. for early detection of fire in a very unique environment. Because you have a lot of electrical cables or a lot of servers. So that is a unique way we detect fire there. We have differentiated product line. We also introduced some unique new products for detecting fire in batteries. As more and more lithium ion batteries are being used. On the security side, we are benefiting from very premium position of LNL S2. They continue to perform in double digit growth rate across the board. And Honeywell, added a lot of value in that business by globalizing it. We had talked about that hypothesis when we acquired the business. We clearly see growth of that business outside the US with lot of synergies we are bringing in. So all in all, I would say, we maintain the momentum in this business, and we see no reason that we will not perform at this level. for in the foreseeable future. Scott Davis: So just to follow-up on that on FORGE, just that answer was complete. But how do you go to market with FORGE then? Is this Is this kind of is it getting wrapped in as a standard offering with every install or is it come in as kind of a sidecar if you will and price separately? And how do you guys go to market with it and get value for it or is it just more of a tool you use to be. Again, to be able to gain share because you have got another kind of Mhmm. Vimal Kapur: So there are. No. Very good questions, Scott. There are 3 sales motions for ports today. So it is you know, our recurring revenue is now, coming close to $1 billion in 2026. Just shy of that. The first sales motion is Forge is sold along with our service contracts. So we make our customers connect to Forge. Change the pricing of our service contract because we are able to provide higher value outcome. So that is sales motion 1. Sales motion 2 is there are unique applications built in to make our existing offering better, like I gave an example of Firepanel. So they are now even though we sell it as a stand alone offering, but it goes hand in hand with our core products. And then the third is a stand alone offering of Forge, which we launched, I would say, 18 to 24 months back, first in buildings, where we can connect stand alone buildings of even competitors apart from Honeywell installed base to get better insight into you know, customers' energy consumption, predictive maintenance, emissions, and we launched a similar offering for Process earlier this year. In that scenario, it is sold as a stand alone SaaS software. So all 3 sales motions are in place, and as we talked about in Investor Day, we expect our ARR to grow Our aspiration is 15%. We wanna have high aspiration. This year, probably, we will be slightly shy of that, more likely 12-13%. We will continue to work our way through to get to closer to 15% every year. Very helpful. Best of luck. I will pass it on. Thank you, guys. Michal Stepniak: Thanks, Scott. Thank you. Thank you. Operator: Our next question comes from the line of Amit Mehrotra with UBS. Please proceed with your question. Amit Mehrotra: Great. Thank you. Good morning, everybody. I-- maybe just starting with process and just understanding sort of the mid to long term growth opportunity as these maybe comps normalize? Obviously, great to see the high single digit growth as you expected. I know there is been sort of a management change recently from building to process. I think Forge for Cognition is maybe part of the growth story. So just talk about sort of beyond the first half of 27 and second half and beyond. what do we think the sort of run rate steady state growth opportunity is for process. Vimal Kapur: So we see, Amit, the growth in Process Automation and Technology both on the project side and on the aftermarket in services and catalyst side. The project side, if you see the chart we added into our prepared remarks, we see continued-- investment in LNG. So our backlog is, you know, very strong for LNG. We also see investments in Africa and Middle East and Asia on traditional refining. Which, is helping us a lot in our backlog. And finally, we also see activity in low carbon energy projects Just as a reminder, we have licensed 100 projects so far in stable aviation fuel. And only about 20% of those have been built so far. So there is a lot of runway people coming back to us with FIDs. Which then turn into a significant revenue stream. So project activity remains very robust and very diverse Then on the aftermarket side, we expect, you know, second half of 26 catalyst growth to be double digit. it is double digit in Q3. it is gonna be actually mid teens growth in Q4. And given the higher margins our customers are making on the finished products, we expect catalyst demand to remain strong in 2027, more normalized year, And on the automation side, we see strength in our services portfolio, cybersecurity, our Forge offering. We call it Plant Cognition. So that offering is also getting strong customer reception. So across the board, as Mike laid out, we see this is a multiyear cycle. In which the project strength will provide us the top line growth and we will maintain our margin with a high mix of Catalyst and services and software. As we progress. Amit Mehrotra: Got it. Okay. that is helpful. And maybe just as a follow-up, I know 2027 guidance is forthcoming, but I think, Vimal, you talked about sort of at or above the long term algorithm. I think, Mike, maybe a couple months ago, you sort of floated this idea of 15% EPS growth. If I just sort of compare the 2, I would say, bottom line EPS growth maybe I would have expected something a little bit higher just given the margin opportunity. Maybe just unpack that a little bit for us. Maybe IA margins headwind in the first half of next year, maybe that is what is driving it. But just to the extent that you can, just sort of fill in the color between what you have already commented on 27 between the mid. You know, algorithm versus the 15% EPS growth? Vimal Kapur: I would say, Amit, the setup for 2077 is very strong. For starters, our midpoint of the guide for 2026 is up by 23¢. So we are starting at a higher baseline. On the top line, we remain very confident on performing at upper end of our 4% to 6% guide. Our backlog is very strong. Our short cycle momentum has sustained itself, and we continue to maintain our share or gain share through new products. So that is gonna continue. On the margin rate, we have done a good job to manage inflation through price cost. it is slightly positive. We expect to maintain that. And we have maintained our fixed cost by elimination of stranded cost ahead of time. So when you see the setup here, across the board, top line, margin expansion, and fixed cost, we expect a strong print in 2027. I cannot tell you specifics because I will be giving you a guide. Which I think we will have to wait for February when we plan to come back there. But final comment I will make is, directionally, we are on a road to deliver our $12 or better Our long term 2029 guide we set up in Investor Day. Great. Thank you very much. Thanks, Amit. Michal Stepniak: Thank you. Thank you. Operator: Our next question comes from the line of Nicole DeBlase with Deutsche Bank. Please proceed with your question. Nicole DeBlase: Good morning. Could we just start with the 4Q outlook I think you are embedding a little bit of a deceleration in organic growth. The backlog is obviously so strong, short cycle order growth is still strong. Can you maybe talk through the expectations by segment, like what is driving the modest deceleration that you have embedded for 4Q? Michal Stepniak: I would say probably this is just more of conservatism than anything else. We. Like we said, I think on the on the short cycle orders, they are they are extremely strong. On product side, both BA and IA booked in third quarter. High single digit, double digit growth. So we feel good about that. And then projects are incrementally better. So I think it is just more mix and like we said, we will do 4 to 5% in the. for the year For the year and 5 to 6 in the fourth quarter. And as we stand today, we are probably on the higher end of the 5%. Versus so it is incrementally we feel. I would say we feel better about the fourth quarter. Vimal Kapur: I think it is fair to say, Nicole, we do not see any change quarter on quarter. I think the revenue mix can be different within a quarter for projects. But other than that, fundamentals of the business remains very strong quarter over quarter. Nicole DeBlase: Okay. Understood. Thank you. And then maybe just on IA, you guys referenced some deferrals in utility meter deployments. Can you just give some more color around what is going on there? And if that is expected to continue into Q4 or into 2027, the time line for that kind of rectifying? Thank you. Vimal Kapur: Yep. I think that is more of an upside opportunity for us. In 2027 we have introduced some very new technology for both gas meters and water meters. Gas meters, unlike electricity meters, have not been upgraded at a large scale by utilities over the last decade. So our technology being new is being tested by multiple utilities and each utility has done their testing by themselves, you know, rather than this being a common testing protocol. Which just adds time. So we are in the process of working with our, you know, testing of our new gas meter with several utilities And once they complete that cycle, which could be 6 to 9 months, we expect them to turn into major rollouts 2027 onwards for several years. So, actually, the low growth in our metering business is actually already factored in 2026 and potentially in 2027. But looking ahead, it is gonna turn into a tailwind when the adoption rates will pick up, in the period ahead. Thanks, Vimal. I will pass it on. Operator: Thank you. Our next question comes from the line of Andrew Obin with Bank of America. Please proceed with your question. Andrew Obin: Yes, thanks so much. Can you hear me? Vimal Kapur: Yes. We can. Mark Macaluso: Yes, Andrew. Andrew Obin: Excellent. Just a question, a little bit on Process Automation Technology on the aftermarket services. I think you highlighted some good tailwinds on catalyst, but if I look at sort of year over year comps, I mean, the comps have gotten quite a bit easier. Versus last quarter. So I would have expected more of a pickup sequential and organic growth What are the headwinds that the business is facing? Because clearly the catalyst business is accelerating. But what are the headwinds? Vimal Kapur: I mean, I will not call it headwinds. When you grow at 8%, and then you grow subsequent quarter probably at 7%, I may not call it headwinds. I would simply call it the cycle of the projects. I cannot control the milestone when they have to be achieved. So they come at a certain timing. So I would say, broadly speaking, the P and T revenue profile on organic growth basis is very similar between Q3 and Q4. Q3 was slightly higher, versus Q4, but not substantially different. You are talking a narrow range here. Catalyst demand is very strong in quarter 4. Sequentially better than quarter 3. We were double digit, and we are gonna go towards mid teens growth in, Catalyst. For example, in Q3, our refining catalyst growth was up 80%. So we expect to maintain high rates there Services growth also remains strong in automation. More like low to mid single digits. So fundamentals are very robust in this business. I think the change you see is just the sequencing of the projects within a quarter. Andrew Obin: Okay. And just maybe another question on industrial automation. On the products, what would it take for the Products to start growing faster? Because I think you guys sort of talked about initiatives to get deliveries on time, delivery improved, so that would sort of lead to a lot of good things happening. What would it take for that growth in that business to inflect materially positive while we are waiting for the new product introduction as you alluded in the prior answer? Thank you. Vimal Kapur: I think directionally speaking, Andrew, if you observe, we have been you know, turning this business from slow growth. Now we are at low single-digit right now. I would also like this to go to mid-single-digit territory. And we expect that to occur in, you know, 2027. Moving forward. I think the drivers are fundamentals are the same. I talked about improving customer service. Better delivery, improved, you know, past due rates, that is certainly already happening. New product launches, and its penetration takes time. I think that is the only variable as some of them gets more penetration. We expect to continue to perform better in this segment. So there is no doubt in my mind, I think it is just the timing as we go from low single digit to mid-single-digit in this portfolio in this business in 2027. Mark Macaluso: And, Andrew, I would just add that the third quarter orders for industrial automation core were up 15%. So this is business that is going into the next year probably with the best backlog it has seen in over 5 years. We are quite confident about finishing And we expect fourth quarter orders to be up high single digits. So there is a lot of momentum here. it is just the cycling of the business going from 1 phase to another phase. Andrew Obin: Great. I appreciate the color. Thanks. Operator: Thank you. Thank you. Our next question comes from the line of Andrew Kaplowitz with Citigroup. Please proceed with your question. Andrew Kaplowitz: Hey, good morning everyone. Vimal Kapur: Hey, Andrew. Mark Macaluso: Good morning. Andrew Kaplowitz: Vimal, I think we know your data center business overall is still relatively small part of Honeywell. But last quarter, I think you mentioned your offerings in power generation were beginning to help your process business and data centers in addition to building automation. So can we think about that data center, call it, ecosystem, and how it might help you in 2027 and beyond? Vimal Kapur: Well, certainly, you know, we always talked about data center as mid single digit business for BA. Building automation. We are not turning to a point with the change in demand of the customer, we continue to see this can become, actually, at some point, mid single digits of Honeywell. So we. Because now we see the demand in process automation. We saw year to date orders growth of more than 100%. Based upon the pipeline visibility we have, we expect very high growth in 2027 also. It will be mixing up not only the building automation, but even some process automation orders for power island, for controls, for energy storage. That solution is being mixed up. 1 interesting thing which is occurring in addition to this for the last I would say, 6 months is liquid cooling. As liquid cooling will take more penetration, we expect our, you know, spend-- share of spend to further go up. Because we are working with customers for sensing for liquid cooling from our sensors business. And our Sundyne pumps are a premium solution to circulate those liquid cooling. Those will be. as we can imagine, those are going to scale in future. Probably, it is more a post-2027 But what I can see is something we started with a very modest content in building automation Now we added process automation now we are adding even our content from process technology and industrial automation. it is truly becoming a pan-Honeywell strategy, and we continue to improve our content. Last comment I will make is as we grow as data center growth is happening outside the US, in Europe, and in Asia, particularly in Korea and India, we expect to continue to do well because of our global presence and global capabilities. Andrew Kaplowitz: Helpful. And then, Vimal, I think you and Mike mentioned that you will get net leverage down under 2.25x by the end of the year. And so, and I think you also mentioned, at that point you could pursue, I think you said disciplined M&A. So how do you characterize the environment right now Obviously, it is the new company, or the new Honeywell Technologies. So any sort of re priorities that you have as you move forward here Toward the end of the year? Vimal Kapur: I mean, our highest priority is for us is to get our leverage ratio of 3.0x or below and continue to work its way down as we get into 2027 and generate more cash. We want our leverage to further improve. From an M&A perspective, it is an optionality. As you know, our 2029 $12 commitment is all organic. So we have no compulsion. We have no need to wake up and think about an M&A. to do or meet our organic earnings commitment. Having said that, we are looking at options 3 ways. Highest priority being industrial automation, how we look at adding more content in measurement and sensing, that is our highest priority. Second area we are looking at it is higher growth verticals How can we add more content? To further top grade our portfolio, And finally, we never overlook some of the frontier technologies. You know, there are always tuck ins which can change the profile of our businesses. And we look at these midsized small businesses in addition to that. But all said, I think near term, you will see us staying very disciplined. On our debt pay down. And we will work our pipeline for M&A for 2027 onwards. Appreciate all the color. Thank you. Operator: Thank you. Our next question comes from the line of Joe O'Dea with Vertical Research Partners. Please proceed with your question. Analyst: Can you talk a little bit about the self help opportunities moving forward? What you are most excited about? Heading into next year? I am not sure if you have perhaps touched on this with Johnson Matthey and Catalyst Technologies, but just on the heels of the speed with which you did the stranded cost takeout, kind of, thinking about other parts of the organization where you see the biggest self help opportunities? Michal Stepniak: I would say, just quickly, maybe 2 or 3 which stand out the most, and that is obviously a focus for us as a company. 1 is we are moving more into lighter headquarters and more of an adoption of shared services across the company, which obviously will help us continue to focus on productivity, which value engineering, component engineering, more from a supply chain standpoint and how we think about NPI. that is a significant opportunity for us. And finally, we are obviously working through adoption of AI. All of our teams are either already trained or being trained on and has access to the models we are using from the company, and that is a really opportunity for us in terms of managing OEM. And it is not as far as reduction OES, but managing the OEF growth or staying flat on OEF while we obviously grow mid to high single digits. Business operation. Vimal Kapur: 2 points I will add to what Mike said, you know, on the self help self help side. First is on the Catalyst Technology business. As we integrate the business, we are seeing higher cost synergies. Than we had forecasted. So that should certainly help us in our 2027 planning. We are also working on sales synergies, building pipeline, but that, you can imagine, that takes time to convert into a real revenue. So we do expect CT business to overdrive from cost synergy standpoint A final point I would say is cross-sell between different parts of Honeywell. I gave an example of data center just in my remarks couple of minutes before on how something which was centered around just 1 segment, we are doing it cross segment. We are doing that in other verticals too. For example, in life sciences, how we cross sell between Building and Process Automation. Or in semiconductor, where we have a very strong position in gas detection, how we also accelerate our participation in fire detection, which comes from Building Automation. So that is also a self help. it is leveraging our sales channels to the fullest potential. And, certainly, we are maximizing our efforts on that. And then on building automation, and demand visibility, clearly, strengthen the data center side of things, but maybe talking about end markets ex data center, obviously, the growth rates over the past couple of years are tougher comps. But what the product innovation pipeline looks like, what that means in terms of the growth visibility you have heading into next year in the non data center parts of Building Automation? I think the building automation business, the content of higher growth verticals And in high growth verticals, we count 3 data centers, health care, and hospitality is 20%. 80 percent of the business comes from the core or base business. And that is growing at mid single digit. And that is on the strength of, you know, great customer service and new products. We are pushing on new products. We have several big launches coming up. Ahead. Really, right now, we have a new version of our security system launched which is cloud based. that is gonna play in the midsegment. Lot of our new offerings are actually going into the midsegment. as a broader theme. A new version of our fire system going into a midsegment, We are also looking at similar offering in building management. We are refreshing our EBI platform with the newer versions. Across the board, learned it that as we continue to accelerate our vitality and innovate, we will perform at this level of mid single digit plus. And the pipeline is very full. And I am extremely confident on performance of, you know, results by this by this business. Thank you. Operator: Thank you. Our next question comes from the line of Joe Ritchie with Goldman Sachs. Please proceed with your question. Joe Ritchie: Thank you. Good morning, guys. Vimal Kapur: Hey, Good morning. I think I am going to focus on both of my questions on PA and T. So I guess on the project side of the business with Brent now sitting above $110, typically that stimulates investments from your customers I do not know if you can maybe just give us a little bit of background on like what your customer conversations are like today. Whether the pipeline has like materially increased over the past year. I thought that Slide number 5 was very helpful. But just any color you can give us on that would be great. So we. As we said in the chart, Joe, the VC investment certainly in diversity of fuels and energy security. What I mean by that is Africa was not seen as a destination of investments. by refining petrochemicals. Dangote refinery, if you recall during Investor Day, he was up there talking about a partnership with Honeywell. They are not only expanding their existing refinery by 100%, which is the largest refinery in the world. They are doubling it. They are also putting additional refinery in Kenya. These are all firm projects. If you look at their cash flow, it is billions of dollars in a quarter. So these are certain-- high-certainty projects. There are additional investments happening on the African petrochemical side too, so we clearly see that as a trend. 1 thing we highlighted is also low carbon energy projects are finally taking shape. You know, on a. From a low base. We had 2 big wins on carbon capture. Related projects in quarter 3, and we have some robust pipeline for quarter 4 ahead for us. So there are some investments happening, and the driver for that is European Union continues to hold its mandate for SAF adoption. And to fulfill that demand, there is more capacity which is required. And finally, we do see capacity addition for petrochemicals. Our licensing activity and automation business in petrochemicals continues to remain strong. So when you add it all together, it is less linked to the oil price. it is more linked to the drivers, which are more broader in energy security, resiliency, low carbon fuels, or the broader demand of petrochemicals. And that is why we believe it is a multiyear cycle. it is less linked to the price. it is more linked to other drivers. that is why it gives us more conviction. Joe Ritchie: Yeah. Super helpful, Vimal. And I guess maybe just to ask Andrew's question slightly differently from before. On the refining side of the business, are you seeing any deferrals just given where crack spreads are, refiners may be running out hotter a little bit, given profitability looks really, really good right now. So are you seeing like any of that like business maybe pushing out into next year? Or has that remained very healthy for you? Vimal Kapur: I would say, what we all read, deferrals are uptime by US refiners is factually correct. Which essentially means that some of the activity which requires a shutdown cannot be performed. You know, we look at our services business aftermarket business in 2 buckets. Lot of it can be done online. So a lot of our automation offerings do not require a plant shutdown. If you want to harden your control system for cybersecurity, or you wanna migrate to the current version, can be done online. So those businesses get protected even though customers are running at a higher rate. But there are things which you need to replace, like a Sundyne has to be replaced. You need a shutdown. Or if you want to re refurbish a catalyst, So to me, there is some demand moving right, but it is not a lost demand. it is moving. it is kind of pent up demand, which will eventually show up. But when you look at the global view, the overall services and catalyst demand is very stable As I mentioned before, we see the catalyst demand to be in the teens-- high teens in quarter 4, Next year, we see overall catalyst to be very stable. Mid single digit growth. Services growth remains very stable. Yeah. Absolutely. This is a trend. Of high utilization and no shutdowns. But it does not change the overall dynamics of the business for us at the-- in the near term. Thank you. Very helpful. Michal Stepniak: Thanks, Joe. Operator: Thank you. Our next question comes from the line of Varun Gurumoorthy with Bernstein. Please proceed with your question. Analyst: Good morning, everyone. Thanks for the question. Vimal Kapur: Sure. Mark Macaluso: Good morning. Analyst: So question on PAT. When you are looking at projects and their delivery times, have they been in line with historical norms? there is been a concern that a short labor in North America, and that might lead to some of this just getting stretched. Are you seeing any of that in, you know, in your numbers, or is that not really a concern? Right now? Vimal Kapur: Not a concern because large part of our backlog is actually not in North America. LNG backlog is in North America. Everything else is in rest of the world. And in case of LNG, we build our own equipment in our own factory. And we have enough capacity to fulfill all the backlog, so we do not have any concern on that. On a broader basis, the other the construction labor or labor shortages is a is a trend. But that is not driving any impact on our revenue execution. On a on a visible basis. Analyst: Got it. Appreciate it. Thank you. And then just as a side note, so on industrial automation, big sequential jump from 18.4% to 22%. How much of that is coming from the spins of WWS and PSS, and how much of that is more productivity. Feels at this point, you know, everyone's very confident about the number, but just any color on that split. Michal Stepniak: Yes. I would I would say that organically, if you will, the business is probably expanding, you know, 150-plus bps just by operation getting better. Rest of it is related to the TW separation. Okay. Analyst: Perfect. Thank you so much. Vimal Kapur: Thank you. Mark Macaluso: Thanks, Varun. Operator: Thank you. Our final question this morning comes from the line of Dan Dolev with BMO Capital Markets. Analyst: Great. Thank you for fitting me in here. On the inflation topic, 4.5% price in H2. Just what businesses are you having to push the hardest on price? And then and is there anywhere in the portfolio where this might be proving to be a little bit more challenging? Thank you. Vimal Kapur: I mean, the pricing is. I would say, I will not say there is a large deviation within the segment. You know, pricing is a factor of inflation in a segment. And inflation drivers vary from semiconductor to electronics to metals like copper and brass. I would say that our overall pricing is a narrow range. it is. It does not vary from 1 business from 1% and some businesses 10%. it is not in that wide range. You can have a range from 3.5% to 4.5%. So it is a very narrow range for us And the pricing attainment does not require only the action of pricing, but it requires good customer service. Good customer communication, a good pipeline of new product, And I think that comprehensive 360 degree view is what we have really adopted to attain the price and keep the price cost positive. Great. Thank you. Operator: Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I will turn the floor back to Mr. Kapoor for final comments. Vimal Kapur: Thank you. I would like to thank our shareowners, our customers, and all Honeywell Technologies Future Shapers around the world for the strong third quarter results you delivered today, marks another important milestone in our journey as the new Honeywell Technologies. Our first quarter as a stand alone pure play automation company demonstrated progress on all 3 elements for our investment case: broad-based organic growth, strong margin expansion, and a higher free cash flow conversion. P and T is converting its backlog into organic growth. IA is driving a meaningful turnaround, and BA continues to deliver. With nearly $19 billion in our backlog and a strong 2026 outlook, we entered the fourth quarter with strong momentum. And increased confidence in our ability to deliver the commitments we outlined at Investor Day. Thank you all for joining us today, and we hope you have a great rest of your day. Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Honeywell Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Honeywell Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,363,905!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 22, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Honeywell Technologies. The Motley Fool has a disclosure policy. Honeywell (HON) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Delivered 7% organic sales growth in the first quarter as a standalone pure-play automation company, exceeding Investor Day targets through broad-based demand. - Process Automation and Technology (P&T) entered a multiyear growth inflection, driven by an 8% organic increase and robust project backlog in global energy markets. - Industrial Automation (IA) is undergoing a strategic turnaround, with operational improvements like a 20 percentage point increase in on-time delivery, which improved from approximately 40% to 60% and 18% reduction in past dues. - Building Automation (BA) achieved its eighth consecutive quarter of high-single-digit growth, gaining market share through a high cycle of new product introductions. - Expanded segment margins by 370 basis points to over 21%, supported by strategic pricing, productivity actions, and the aggressive elimination of stranded costs. - Leveraged the 'Forge' software platform to drive recurring revenue and pull through core hardware sales, particularly in the Fire and Security segments. - Capitalized on high-growth verticals like data centers, where orders grew over 100% due to unique sensing and liquid cooling solutions. - Raised 2026 full-year guidance across all metrics, assuming 4% to 5% organic growth and adjusted EPS of $8.40 to $8.45. - Expects to eliminate all remaining stranded costs by the end of 2026, six months ahead of the original post-aerospace spin-off timeline. - Anticipates 2027 organic growth to be at or above the long-term algorithm, supported by a $19 billion backlog and continued energy sector investment. - Assumes inflation will remain elevated through the first half of 2027, with management planning to maintain positive price-cost through strategic pricing. - Targeting a reduction in gross debt to under $13 billion by year-end 2026 to increase capital allocation flexibility for disciplined M&A. - The acquisition of Johnson Matthey's Catalyst Technologies business is currently dilutive to P&T margins but is expected to provide significant cost synergies in 2027. - Reported a 1.0x book-to-bill ratio, which includes a normalized view of demand to account for $700 million in large, non-recurring LNG awards from the prior year. - Identified industry-wide deferrals in utility meter deployments as a temporary headwind in Industrial Automation, expected to turn into a tailwind by 2027. - Transitioned to a cross-functional shared services model to simplify corporate structure and reduce fixed costs following the aerospace divestiture. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management noted that the first three weeks of October trended at or above expectations. - The forecast includes adequate contingency for project timing while relying on high win rates against a robust pipeline. - Margins are currently impacted by a higher mix of projects versus aftermarket and the integration of the Catalyst Technologies acquisition. - A significant margin pickup is expected in 2028 as high-margin catalyst volumes grow and acquisition integration is completed. - Highest priority is debt paydown to reach a leverage ratio of 3.0x or below by year-end. - M&A is viewed as an optionality rather than a necessity to meet 2029 targets, with a focus on adding content to Industrial Automation and high-growth verticals. - While high utilization in the US has deferred some shutdown-related maintenance, much of Honeywell's automation and cybersecurity work is performed online. - Deferred maintenance is characterized as 'pent-up demand' that will eventually materialize rather than lost business.

- Interested in Honeywell International Inc.? Here are five stocks we like better. - Honeywell reported strong third-quarter results, with 7% organic sales growth, adjusted EPS up 34% to $2.27, a 370-basis-point increase in segment margins, and free cash flow up 15% to approximately $690 million. - Demand remained broad-based, supported by industrial and building automation, LNG and energy projects, and data centers. Backlog reached nearly $19 billion, while data-center orders more than doubled and PA&T backlog grew over 10% year over year. - Management raised its 2026 outlook, now targeting 4%–5% organic sales growth, adjusted EPS of $8.40–$8.45, and $2.1 billion in free cash flow. Honeywell also plans to reduce gross debt below $13 billion by year-end and eliminate remaining stranded costs by the end of 2026. - MarketBeat Week in Review – 08/24 - 08/28 Honeywell International (NASDAQ:HON) reported third-quarter 2026 results marked by 7% organic sales growth, margin expansion and improved cash conversion as the company operated as a standalone pure-play automation business. Chairman and Chief Executive Officer Vimal Kapur said demand was broad-based across Honeywell Technologies' portfolio, with short-cycle orders rising 8% excluding divestitures. The company reported particular strength in industrial and building automation, while Process Automation & Technology, or PA&T, returned to stronger growth. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - HONA: The Spin-Off Story the Market Is Reading Wrong "Our transformation into a pure-play automation company is complete," Kapur said, citing the company's positions in end markets including liquefied natural gas, data centers and automation. Organic sales rose 7% in the third quarter, exceeding the high end of the company's targets presented at its June investor day, according to Kapur. PA&T organic sales grew 8%, supported by double-digit project growth and a return to growth in aftermarket demand, including refining catalysts. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - Vertical Aerospace: Pre-Flight Checks Point to a Breakout Building Automation posted 8% organic growth, its eighth consecutive quarter of high-single-digit growth. Product sales increased 11%, led by the fire and security businesses, while solutions sales rose 4% on services demand. The segment recorded double-digit growth in India and Asia-Pacific and continued strength in the Americas. Industrial Automation organic sales rose 4%, led by double-digit solutions growth in industrial measurement and utilities. Product sales were roughly flat, as sensing and industrial measurement demand offset utility-industry deferrals in meter deployments. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price Segment profit increased 23%, while segment margin expanded 370 basis points to 21.3%. Chief Financial Officer Michal Stepniak attributed the improvement to productivity, strategic pricing, volume leverage and accelerated removal of stranded costs related to the portfolio transformation. Adjusted earnings per share increased 34% year over year to $2.27. Free cash flow rose 15% to about $690 million, and free-cash-flow conversion reached 95% in the quarter. Stepniak said the company expects conversion above 100% in the fourth quarter, aided by working-capital improvements and receivables collections. Honeywell Technologies ended the quarter with nearly $19 billion of backlog, up 7% excluding divestitures. Book-to-bill was 1.0. Excluding the effect of a large LNG award received in the prior-year period, total company orders were up 3% organically. PA&T backlog rose more than 10% from a year earlier, supported by wins in LNG, refining and petrochemicals, and low-carbon energy projects. Kapur said the company received more than $1 billion in process technology orders since the first quarter of 2026, with activity spanning North America, the Middle East, Africa and Asia. The company expects continued investment in LNG projects, refining and petrochemical activity in Africa and the Middle East, and growth in low-carbon energy applications such as sustainable aviation fuel and carbon capture. Kapur said Honeywell has licensed 100 sustainable aviation fuel projects, of which about 20% have been built. Orders tied to data centers increased more than 100%, according to Kapur. He said Honeywell is expanding its data-center offerings beyond Building Automation into process automation, power controls, energy storage, liquid-cooling sensing and pumps. - PA&T project sales increased 14%, supported by LNG and petrochemical backlog conversion. - Industrial Automation core orders increased 15% in the third quarter, according to Stepniak. - The company expects fourth-quarter orders to grow at a high-single-digit rate, excluding a large prior-year LNG award. Industrial Automation margin expanded 350 basis points in the third quarter, and management expects the segment to reach a 22% margin in the fourth quarter. Building Automation margin rose 30 basis points to 27%. PA&T margin declined as expected because of a higher mix of projects and dilution from the acquisition of Johnson Matthey's Catalyst Technologies business. Stepniak said PA&T margin is expected to be around 21.5% in the fourth quarter before expanding in 2027, particularly in the second half, as catalyst volumes grow and integration progresses. The company now expects to eliminate all remaining stranded costs by the end of 2026, six months after the aerospace spin-off. Stepniak said Honeywell is implementing shared services and a lighter corporate structure while pursuing productivity initiatives and broader use of artificial intelligence. Honeywell also reiterated plans to reduce gross debt from $18 billion in the second quarter to less than $13 billion by year-end, targeting gross leverage below 3 times. It expects to finish 2026 with roughly $3 billion in cash and about $10 billion in net debt. Kapur said debt reduction remains the near-term priority, while disciplined acquisition opportunities could be considered from 2027 onward. Management raised its full-year outlook for organic growth, adjusted earnings per share and free cash flow. Honeywell now expects: - Organic sales growth of 4% to 5%, compared with prior guidance of 3% to 4%. - Fourth-quarter organic growth of 5% to 6%. - Full-year segment margin at the high end of its prior range, or about 20.5%, with fourth-quarter margin of approximately 22%. - Adjusted EPS of $8.40 to $8.45, representing about 30% earnings growth for the year. - Free cash flow of $2.1 billion, up $100 million from prior guidance. Kapur said the company expects 2027 organic growth to be at or above its long-term growth algorithm, supported by backlog, short-cycle demand and continued product introductions. He added that Honeywell's long-term 2029 earnings target of $12 or more remains based entirely on organic performance. Honeywell International Inc is a diversified industrial technology company that develops products and systems for the aerospace, building automation, energy and industrial sectors. Its offerings include aircraft engines and avionics, industrial automation and control systems, building management technologies, fire and security products, personal protective equipment, and specialty materials and chemicals. The company serves commercial aerospace, defense, airlines, building owners, manufacturers, energy producers and other industrial customers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Honeywell International (HON) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Honeywell International Inc. (HON) came out with quarterly earnings of $2.27 per share, beating the Zacks Consensus Estimate of $2.17 per share. This compares to earnings of $5.64 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.61%. A quarter ago, it was expected that this company would post earnings of $1.8 per share when it actually produced earnings of $1.95, delivering a surprise of +8.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Honeywell International, which belongs to the Zacks Diversified Operations industry, posted revenues of $4.99 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.42%. This compares to year-ago revenues of $10.41 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Honeywell International shares have lost about 45% since the beginning of the year versus the S&P 500's gain of 13.3%. While Honeywell International has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Honeywell International was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.41 on $5.28 billion in revenues for the coming quarter and $8.27 on $20.19 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Diversified Operations is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, ITT (ITT), is yet to report results for the quarter ended September 2026. The results are expected to be released on November 4. This supplier of parts and services to a wide variety of industries is expected to post quarterly earnings of $2.07 per share in its upcoming report, which represents a year-over-year change of +16.3%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. ITT's revenues are expected to be $1.41 billion, up 40.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON) : Free Stock Analysis Report ITT Inc. (ITT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Honeywell Technologies HON reported third-quarter 2026 adjusted earnings of $2.27 per share, which surpassed the Zacks Consensus Estimate of $2.17. The bottom line increased 34% year over year on an adjusted basis. On a reported basis, the company's earnings were $2.40 per share compared with $2.99 in the year-ago quarter, reflecting the impact of a one-time gain related to the Resideo termination agreement in the prior-year period. Total revenues of $4.99 billion missed the Zacks Consensus Estimate of $5.01 billion by 0.4%. The top line increased 1% from the year-ago quarter, driven by strength across all three business segments. Organic sales increased 7% year over year. Short-cycle orders increased 8%, while backlog rose 7% to approximately $19 billion, excluding the Warehouse and Workflow Solutions and Productivity Solutions and Services businesses divested during the quarter. Following the separation of Honeywell Aerospace on June 29, 2026, the company operates as a pure-play automation business under the segments discussed below. Industrial Automation segment's revenues declined 23% year over year to $1.12 billion. However, organic sales grew 4% year over year. Organic sales growth was driven by strength in industrial measurement and utilities businesses. While organic sales from the solutions business increased 16%, the same from the products business remained flat, as double-digit growth in sensing was offset by industry-wide meter deployment deferrals in utilities. Building Automation segment's revenues totaled $2.02 billion, up 8% year over year. Organic sales increased 8% year over year. The upside was driven by continued strength in both the building products and building solutions businesses. While organic sales from the building products business grew 11%, driven by strength in fire and security, the same from the building solutions business increased 4%, supported by services. Process Automation and Technology segment's revenues increased 16% to $1.86 billion. Organic sales grew 8% year over year. The results were driven by continued strength in LNG and petrochemical projects, along with higher aftermarket refining demand. While organic sales from the projects business increased 14%, driven by strong backlog conversion, the same from the aftermarket business grew 4%, supported by refining demand. Honeywell Technologies price-consensus-eps-surprise-chart | Honeywell Technologies Quote The company's total cost of sales, comprising the cost of products and services sold, was about $2.98 billion, down 5.7% year over year. Selling, general and administrative expenses were $1.04 billion, down 4.9% year over year. Interest expenses and other financial charges were $143 million, reflecting a decline of 45.6% year over year. Operating income was $740 million, up 79.2% year over year. The operating income margin was 14.8% compared with 8.4% in the year-ago period. Segment profit was $1.06 billion, up 22.6% year over year. The segment profit margin was 21.3% compared with 17.6% in the year-ago period, reflecting an expansion of 370 basis points. HON had cash and cash equivalents of $5.69 billion at the end of September 2026 compared with $12.27 billion at the end of December 2025. Long-term debt was $10.39 billion, lower than $27.14 billion at 2025-end. Honeywell Technologies generated $932 million in cash from continuing operating activities in the first nine months of 2026 compared with $2.61 billion in the prior-year period. Capital expenditures totaled $369 million compared with $375 million in the prior-year period. For the fourth quarter of 2026, Honeywell Technologies expects sales to be in the range of $5-$5.1 billion. Organic sales are expected to increase 5-6%. HON expects a segment margin of approximately 22%. The metric indicates an increase of approximately 400 basis points year over year. Adjusted earnings per share are expected to be between $2.42 and $2.47. The metric indicates an increase of 32-35% on a year-over-year basis. The adjusted effective tax rate is expected to be approximately 16%. For 2026, Honeywell Technologies raised its organic sales growth, adjusted earnings and free cash flow outlook. The company expects sales to be in the range of $20-$20.1 billion compared with the previous projection of $19.8-$20 billion. The higher sales forecast reflects continued strength across all three business segments, supported by strong demand in building products, industrial measurement and process automation projects. Organic sales are expected to increase 4-5%, up from the prior projection of 3-4%. HON expects a segment margin of approximately 20.5%, at the higher end of the previous projection of 20.1-20.5%. The metric indicates an increase of approximately 290 basis points year over year. Adjusted earnings per share are expected to be between $8.40 and $8.45, up from the previous projection of $8.05-$8.35. The metric indicates an increase of 30-31% on a year-over-year basis. Free cash flow is expected to be approximately $2.1 billion, up from the previous projection of $2 billion. Operating cash flow is expected to be approximately $2.1 billion. The company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. TTM Technologies, Inc. TTMI came out with quarterly earnings of $1.46 per share in the third quarter of 2026, beating the Zacks Consensus Estimate of $1.25 per share. This compares with earnings of 67 cents per share a year ago. TTMI posted revenues of $1.2 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 6.6%. This compares with year-ago revenues of $752.74 million. Badger Meter, Inc. BMI came out with quarterly earnings of $1.24 per share in the third quarter of 2026, beating the Zacks Consensus Estimate of $1.21 per share. This compares with earnings of $1.19 per share a year ago. Badger Meter posted revenues of $235.94 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 1.95%. This compares with year-ago revenues of $235.65 million. International Business Machines Corporation IBM reported strong third-quarter 2026 results, with adjusted earnings rising 11% year over year to $2.95 per share. The figure beat the Zacks Consensus Estimate of $2.88 by 2.4%. Revenues increased 4.7% to $17.10 billion, surpassing the consensus mark of $16.87 billion by 1.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report TTM Technologies, Inc. (TTMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Sales of $5.0 billion, up 1% reported (7% organic1) driven by broad-based growth across all segments - Operating margin of 14.8%, up 640 basis points; segment margin1 of 21.3%, up 370 basis points - Earnings per share (EPS) of $2.40, down 20% due to one-time gain in prior year; adjusted EPS1 of $2.27, up 34% - Operating cash of $0.6 billion; free cash flow1 of $0.7 billion, with conversion1 of 95% - Raising full-year organic revenue, adjusted EPS and free cash flow guidance; expect segment margin to be at previous high end of guidance CHARLOTTE, N.C., October 22, 2026--(BUSINESS WIRE)--Honeywell Technologies (NASDAQ: HON) today announced financial results for the third quarter of 2026. The company reported third-quarter sales of $5.0 billion, up 1% reported and 7% organic1, driven by broad-based strength across all three segments, pricing actions, and continued demand across key end markets. Backlog increased 7% year over year to nearly $19 billion, excluding Warehouse and Workflow Solutions (WWS) and Productivity Solutions and Services (PSS) divestitures in 3Q 2026. Operating income increased 79% and segment profit1 increased 23% driven by productivity, including elimination of stranded costs related to prior spin-offs and divestitures, pricing actions that more than offset inflation, and volume leverage. Operating margin of 14.8% increased 640 basis points and segment margin1 of 21.3% expanded 370 basis points, led by Industrial Automation and Building Automation. Reported EPS decreased 20% primarily due to a one-time gain from the Resideo termination agreement in prior year. Excluding the impact of this and other items, adjusted earnings per share1 increased 34% year over year to $2.27 driven by organic sales growth, higher segment profit, and lower net interest expense. Finally, operating cash flow of $607 million decreased 74% primarily due to the one-time settlement from the Resideo termination agreement in prior year, while free cash flow1 of $688 million increased 15%, with free cash flow conversion1 of 95%, driven by higher operating income and lower capital expenditures. Management Commentary "Honeywell Technologies delivered strong results across the business in our first quarter as a standalone company. Continued momentum across all three segments, together with our improving position in high-growth verticals, translated to 7% organic sales growth, above the three-year target set at our June Investor Day. This performance, coupled with continued progress reducing fixed cost, enabled adjusted operating income to increase at more than three times the rate of sales, while adjusted EPS rose 34%, well ahead of our expectations for the quarter. As a result of this strong performance, we are raising our full-year 2026 outlook, which gives me great confidence in our long-term strategy and our ability to deliver on our 2029 targets," said Chairman and Chief Executive Officer Vimal Kapur. Table 1: Summary of Financial Results(Dollars in millions, except per share amounts) | | | | | | | | 3Q 2026 | | 3Q 2025 | | Change Sales | | $4,994 | | $4,929 | | 1% Organic1 Growth | | | | | | 7% Operating Income | | $740 | | $413 | | 79% Operating Income Margin | | 14.8% | | 8.4% | | 640 bps Segment Profit1 | | $1,062 | | $866 | | 23% Segment Margin1 | | 21.3% | | 17.6% | | 370 bps Earnings Per Share - Continuing Operations | | $2.40 | | $2.99 | | (20%) Adjusted Earnings Per Share1 | | $2.27 | | $1.70 | | 34% Cash Flow from Operations - Continuing Operations | | $607 | | $2,306 | | (74%) Free Cash Flow1,4 | | $688 | | $599 | | 15% Table 2: Summary of Segment Financial Results(Dollars in millions) | | | | | | BUILDING AUTOMATION | | 3Q 2026 | | 3Q 2025 | | Change Sales | | $2,020 | | $1,878 | | 8% Organic1 Growth | | | | | | 8% Segment Profit | | $546 | | $502 | | 9% Segment Margin | | 27.0% | | 26.7% | | 30 bps PROCESS AUTOMATION AND TECHNOLOGY | | | | | | Sales | | $1,859 | | $1,598 | | 16% Organic1 Growth | | | | | | 8% Segment Profit | | $412 | | $389 | | 6% Segment Margin | | 22.2% | | 24.3% | | (210) bps INDUSTRIAL AUTOMATION | | | | | | Sales | | $1,115 | | $1,450 | | (23%) Organic1 Growth | | | | | | 4% Segment Profit | | $205 | | $216 | | (5%) Segment Margin | | 18.4% | | 14.9% | | 350 bps Building Automation sales grew 8% organically1 year over year. Building products grew 11%, fueled by the fire and security businesses, while building solutions grew 4% on continued strength in services. Segment margin expanded 30 basis points to 27.0%, benefiting from volume leverage and pricing actions that offset inflation. Process Automation and Technology sales increased 8% organically1 year over year. Project sales grew 14% led by continued growth in LNG and petrochemical projects, while aftermarket grew 4% driven primarily by refining demand. Margins contracted 210 basis points as expected driven by project mix and dilution from the acquisition of Johnson Matthey's Catalyst Technologies business. Industrial Automation sales grew 4% organically1 year over year led by 16% growth in solutions, driven primarily by industrial measurement and utilities. Products were flat year over year with double-digit growth in sensing largely offset by industry-wide meter deployment deferrals in utilities. Segment margin expanded 350 basis points year over year to 18.4%, driven primarily by price and productivity actions, partially offset by inflation. Table 3: Full-Year 2026 Guidance1 | | | Previous Guidance | Current Guidance Sales | $19.8B - $20.0B | $20.0B - $20.1B Organic Growth | 3% - 4% | 4% - 5% Segment Margin2 | 20.1% - 20.5% | ~20.5% Expansion | Up 250 - 290 bps | Up ~290 bps Adjusted Earnings Per Share2,3 | $8.05 - $8.35 | $8.40 - $8.45 Adjusted Earnings Growth3 | 25% - 29% | 30% - 31% Operating Cash Flow | ~$2.1B | ~$2.1B Free Cash Flow4 | ~$2.0B | ~$2.1B 1 | | See additional information at the end of this release regarding non-GAAP financial measures. 2 | | Segment 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 and adjusted EPS. We therefore, do not present a guidance range, or a reconciliation to, the nearest GAAP financial measures of operating margin or EPS. 3 | | Adjusted 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. 4 | | With respect to historical periods, free cash flow adjusts for capital expenditures, separation-related cost payments, Resideo indemnification and reimbursement agreement termination payment, cash payment for settlement of the divestiture of asbestos liabilities, and cash flows attributable to Quantinuum. With respect to the company's outlook for 2026, free cash flow adjusts for capital expenditures, separation-related cost payments, and cash flows attributable to Quantinuum. Revised 2026 Guidance Honeywell Technologies is raising its full-year outlook for organic revenue, adjusted EPS and free cash flow, and also now expects segment margin to be at the previous high end of guidance, following strong third quarter performance and continued momentum across the portfolio. The company now expects full-year sales of $20.0 billion to $20.1 billion with organic1 sales growth of 4% to 5%, and 5% to 6% organic1 growth in the fourth quarter; segment margin1 of approximately 20.5%, at the upper end of its previous guidance range, representing segment margin1 expansion of approximately 290 basis points; and adjusted earnings per share1 of $8.40 to $8.45, up 30% to 31%, representing a $0.23 increase from the midpoint of its previous guidance range. Finally, operating cash flow and free cash flow are now expected to be ~$2.1 billion each. Conference Call Details Honeywell Technologies will discuss its third-quarter results and full-year 2026 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 (www.honeywell.com/investor). A replay of the webcast will be available for 30 days following the presentation. About Honeywell Technologies Honeywell Technologies is a global, pure-play automation company with a legacy of innovating to help solve the world's most mission-critical challenges, enhancing the quality of life for people and communities around the world. We serve the building, industrial, and process sectors with a broad portfolio of services, solutions, and products, underpinned by our Honeywell Technologies Accelerator operating system and Honeywell Technologies Forge intelligence layer. By combining the deep domain expertise of our more than 50,000 employees with decades of data from our global installed base, we are uniquely positioned to lead the industrial sector's transition from automation to autonomy. For more news and information on Honeywell Technologies, please visit Honeywell Technologies Newsroom. Additional Information Honeywell Technologies uses our Investor Relations website, investor.honeywell.com, 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. Forward Looking Statements 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). 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. 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. 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, including ongoing conflicts in the Middle East, that 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 Technologies' non-GAAP financial measures used in this release are as follows: - Segment profit, on an overall Honeywell Technologies basis; - Segment profit margin, on an overall Honeywell Technologies basis; - Organic sales growth; - Free cash flow; - Free cash flow conversion; 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. Source: Honeywell Technologies Earnings (HON-ER) Honeywell International Inc.Consolidated Statement of Operations (Unaudited)(Dollars in millions, except per share amounts) | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Product sales | $ | 3,628 | | | $ | 3,573 | | | $ | 10,856 | | | $ | 10,724 | Service sales | | 1,366 | | | | 1,356 | | | | 4,148 | | | | 3,979 | Net sales | | 4,994 | | | | 4,929 | | | | 15,004 | | | | 14,703 | Costs, expenses and other | | | | | | | Cost of products sold | | 2,127 | | | | 2,041 | | | | 6,421 | | | | 6,179 | Cost of services sold | | 849 | | | | 1,114 | | | | 2,593 | | | | 2,749 | Total Cost of products and services sold | | 2,976 | | | | 3,155 | | | | 9,014 | | | | 8,928 | Research and development expenses | | 239 | | | | 268 | | | | 825 | | | | 774 | Selling, general and administrative expenses | | 1,039 | | | | 1,093 | | | | 3,078 | | | | 3,372 | Impairment of assets held for sale | | — | | | | — | | | | 311 | | | | 15 | Loss on debt extinguishment | | — | | | | — | | | | 241 | | | | — | Gain on deconsolidation of subsidiary | | — | | | | — | | | | (6,629 | ) | | | — | Other (income) expense | | (389 | ) | | | (957 | ) | | | (301 | ) | | | (1,124 | ) Interest and other financial charges | | 143 | | | | 263 | | | | 579 | | | | 715 | Total costs, expenses and other | | 4,008 | | | | 3,822 | | | | 7,118 | | | | 12,680 | Income from continuing operations before taxes and equity losses | | 986 | | | | 1,107 | | | | 7,886 | | | | 2,023 | Tax expense | | 60 | | | | 153 | | | | 1,378 | | | | 427 | Equity loss | | 147 | | | | — | | | | 412 | | | | — | Net income from continuing operations | | 779 | | | | 954 | | | | 6,096 | | | | 1,596 | Net (loss) income from discontinued operations | | (103 | ) | | | 905 | | | | 1,061 | | | | 3,299 | Net income | | 676 | | | | 1,859 | | | | 7,157 | | | | 4,895 | Less: Net (loss) income attributable to noncontrolling interest | | 12 | | | | 34 | | | | (10 | ) | | | 51 | Net income attributable to Honeywell Technologies | $ | 664 | | | $ | 1,825 | | | $ | 7,167 | | | $ | 4,844 | Earnings per share of common stock—basic: | | | | | | | Earnings per share of common stock from continuing operations—basic | $ | 2.42 | | | $ | 3.01 | | | $ | 19.30 | | | $ | 5.02 | Earnings per share of common stock from discontinued operations—basic | | (0.33 | ) | | | 2.73 | | | | 3.29 | | | | 10.11 | Total earnings per share of common stock—basic | $ | 2.09 | | | $ | 5.74 | | | $ | 22.59 | | | $ | 15.13 | Earnings per share of common stock—assuming dilution: | | | | | | | Earnings per share of common stock from continuing operations—assuming dilution | $ | 2.40 | | | $ | 2.99 | | | $ | 19.19 | | | $ | 4.99 | Earnings per share of common stock from discontinued operations—assuming dilution | | (0.32 | ) | | | 2.72 | | | | 3.27 | | | | 10.05 | Total earnings per share of common stock—assuming dilution | $ | 2.08 | | | $ | 5.71 | | | $ | 22.46 | | | $ | 15.04 | Weighted average number of shares outstanding - basic | | 317.5 | | | | 317.7 | | | | 317.3 | | | | 320.2 | Weighted average number of shares outstanding - assuming dilution | | 319.2 | | | | 319.4 | | | | 319.1 | | | | 322.0 | Honeywell International Inc.Segment Data (Unaudited)(Dollars in millions) | | | | Three Months Ended September 30, | | Nine Months Ended September 30, Net sales | | 2026 | | | 2025 | | | 2026 | | | 2025 Building Automation | $ | 2,020 | | $ | 1,878 | | $ | 5,904 | | $ | 5,396 Process Automation and Technology | | 1,859 | | | 1,598 | | | 5,051 | | | 4,656 Industrial Automation | | 1,115 | | | 1,450 | | | 4,039 | | | 4,627 Total Segment sales | | 4,994 | | | 4,926 | | | 14,994 | | | 14,679 Quantinuum | | — | | | 3 | | | 10 | | | 24 Total Net sales | $ | 4,994 | | $ | 4,929 | | $ | 15,004 | | $ | 14,703 Reconciliation of Segment Profit to Income Before Taxes | | | | Three Months Ended September 30, | | Nine Months Ended September 30, Segment profit | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Building Automation | $ | 546 | | | $ | 502 | | | $ | 1,584 | | | $ | 1,421 | Process Automation and Technology | | 412 | | | | 389 | | | | 1,142 | | | | 1,088 | Industrial Automation | | 205 | | | | 216 | | | | 703 | | | | 704 | Corporate and All Other | | (101 | ) | | | (241 | ) | | | (438 | ) | | | (650 | ) Total Segment profit | | 1,062 | | | | 866 | | | | 2,991 | | | | 2,563 | Interest and other financial charges | | (143 | ) | | | (263 | ) | | | (579 | ) | | | (715 | ) Interest income1 | | 50 | | | | 85 | | | | 207 | | | | 247 | Amortization of acquisition-related intangibles2 | | (131 | ) | | | (135 | ) | | | (352 | ) | | | (364 | ) Impairment of assets held for sale | | — | | | | — | | | | (311 | ) | | | (15 | ) Stock compensation expense3 | | (104 | ) | | | (22 | ) | | | (182 | ) | | | (115 | ) Pension ongoing income4 | | 90 | | | | 75 | | | | 263 | | | | 151 | Other postretirement income4 | | 2 | | | | 3 | | | | 6 | | | | 11 | Repositioning and other gains (charges)5 | | (17 | ) | | | 581 | | | | (133 | ) | | | 516 | Loss on debt extinguishment | | — | | | | — | | | | (241 | ) | | | — | Divestiture-related costs6 | | (94 | ) | | | (25 | ) | | | (489 | ) | | | (70 | ) Gain on deconsolidation of subsidiary | | — | | | | — | | | | 6,629 | | | | — | Equity loss | | (147 | ) | | | — | | | | (412 | ) | | | — | Gain (loss) on sale of non-strategic businesses and assets1 | | 339 | | | | — | | | | 345 | | | | (30 | ) Other expense7 | | (68 | ) | | | (18 | ) | | | (128 | ) | | | (36 | ) Quantinuum Loss8 | | — | | | | (40 | ) | | | (140 | ) | | | (120 | ) Income before taxes | $ | 839 | | | $ | 1,107 | | | $ | 7,474 | | | $ | 2,023 | 1 | | Amounts included in Other (income) expense. 2 | | Amounts included in Cost of products and services sold. 3 | | Amounts included in Selling, general and administrative expenses. 4 | | Amounts 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). 5 | | Amounts included in Cost of products and services sold, Selling, general and administrative expenses, and Other (income) expense. 6 | | Amounts included in Selling, general and administrative expenses, Research and development expenses, and Other (income) expense. 7 | | Amounts include the other components of Selling, general and administrative expenses and Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies from strategically aligned investments and trademark licensing income are included in segment profit. 8 | | Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company's investment in Quantinuum, which does not meet the definition of an operating segment. Included in Net sales, Cost of products and services sold, Research and development expenses, Selling, general and administrative expenses, and Other (income) expense. Honeywell International Inc.Consolidated Balance Sheet (Unaudited)(Dollars in millions) | | | | September 30, 2026 | | December 31, 2025 Assets | | | Current assets | | | Cash and cash equivalents | $ | 5,694 | | $ | 12,273 Short-term investments | | 492 | | | 443 Accounts receivable, less allowances of $155 and $167, respectively | | 5,086 | | | 4,429 Inventories | | 2,056 | | | 1,677 Assets held for sale | | — | | | 2,492 Other current assets | | 988 | | | 841 Current assets of discontinued operations | | — | | | 8,232 Total current assets | | 14,316 | | | 30,387 Equity method investments | | 7,273 | | | 195 Long-term receivables and other investments | | 1,114 | | | 1,113 Property, plant and equipment—net | | 2,706 | | | 2,466 Goodwill | | 17,561 | | | 18,054 Other intangible assets—net | | 5,442 | | | 5,161 Deferred income taxes | | 199 | | | 156 Other assets | | 4,487 | | | 4,537 Assets of discontinued operations | | — | | | 11,612 Total assets | $ | 53,098 | | $ | 73,681 Liabilities | | | Current liabilities | | | Accounts payable | $ | 3,592 | | $ | 3,434 Commercial paper and other short-term borrowings | | 2,424 | | | 5,893 Current maturities of long-term debt | | 3,783 | | | 1,541 Accrued liabilities | | 5,112 | | | 5,063 Liabilities held for sale | | — | | | 1,198 Current liabilities of discontinued operations | | — | | | 6,285 Total current liabilities | | 14,911 | | | 23,414 Long-term debt | | 10,386 | | | 27,137 Deferred income taxes | | 1,561 | | | 815 Postretirement benefit obligations other than pensions | | 80 | | | 111 Other liabilities | | 3,506 | | | 3,986 Liabilities of discontinued operations | | — | | | 3,188 Shareowners' equity | | 22,654 | | | 15,030 Total liabilities and shareowners' equity | $ | 53,098 | | $ | 73,681 Honeywell International Inc.Consolidated Statement of Cash Flows (Unaudited)(Dollars in millions) | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Cash flows from operating activities | | | | | | | Net income | $ | 676 | | | $ | 1,859 | | | $ | 7,157 | | | $ | 4,895 | Less: Net income from discontinued operations | | (103 | ) | | | 905 | | | | 1,061 | | | | 3,299 | Net income from continuing operations | | 779 | | | | 954 | | | | 6,096 | | | | 1,596 | Adjustments to reconcile net income from continuing operations to net cash provided by operating activities | | | | | | | Depreciation | | 70 | | | | 72 | | | | 215 | | | | 206 | Amortization | | 186 | | | | 176 | | | | 483 | | | | 510 | Gain on deconsolidation of subsidiary | | — | | | | — | | | | (6,629 | ) | | | — | Equity loss (income) of affiliated companies | | 157 | | | | (2 | ) | | | 397 | | | | (14 | ) (Gain) loss on sale of non-strategic businesses and assets | | (346 | ) | | | — | | | | (351 | ) | | | 29 | Impairment of assets held for sale | | — | | | | — | | | | 311 | | | | 15 | Loss on debt extinguishment | | — | | | | — | | | | 241 | | | | — | Repositioning and other charges | | 13 | | | | (583 | ) | | | 133 | | | | (516 | ) Net payments for repositioning and other charges | | (21 | ) | | | (93 | ) | | | (119 | ) | | | (307 | ) Resideo indemnification and reimbursement agreement termination payment | | — | | | | 1,590 | | | | — | | | | 1,590 | Pension and other postretirement income | | (91 | ) | | | (80 | ) | | | (268 | ) | | | (164 | ) Pension and other postretirement benefit payments | | 3 | | | | (3 | ) | | | (6 | ) | | | (13 | ) Stock compensation expense | | 104 | | | | 23 | | | | 182 | | | | 115 | Deferred income taxes | | (533 | ) | | | (142 | ) | | | 687 | | | | (248 | ) Other | | (322 | ) | | | (56 | ) | | | (2 | ) | | | (362 | ) Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | | | | | | | Accounts receivable | | (217 | ) | | | 93 | | | | (546 | ) | | | (344 | ) Inventories | | (18 | ) | | | (23 | ) | | | (50 | ) | | | (297 | ) Other current assets | | 126 | | | | 4 | | | | (206 | ) | | | (168 | ) Accounts payable | | (178 | ) | | | 196 | | | | 44 | | | | 376 | Accrued liabilities | | 1,019 | | | | (112 | ) | | | 567 | | | | 510 | Income taxes | | (124 | ) | | | 292 | | | | (247 | ) | | | 96 | Net cash provided by operating activities from continuing operations | | 607 | | | | 2,306 | | | | 932 | | | | 2,610 | Net cash (used for) provided by operating activities - discontinued operations | | (488 | ) | | | 982 | | | | (189 | ) | | | 2,594 | Net cash provided by operating activities | | 119 | | | | 3,288 | | | | 743 | | | | 5,204 | Cash flows from investing activities | | | | | | | Capital expenditures | | (77 | ) | | | (150 | ) | | | (369 | ) | | | (375 | ) Increase in investments | | (266 | ) | | | (384 | ) | | | (771 | ) | | | (1,064 | ) Decrease in investments | | 215 | | | | 295 | | | | 728 | | | | 1,047 | Receipts (payments) from settlements of derivative contracts | | (2 | ) | | | 12 | | | | 123 | | | | (403 | ) Cash paid for acquisitions, net of cash acquired | | (1,743 | ) | | | (38 | ) | | | (1,763 | ) | | | (2,201 | ) Deconsolidation of subsidiary cash | | — | | | | — | | | | (623 | ) | | | — | Proceeds from sale of business, net of cash transferred | | 1,448 | | | | — | | | | 1,454 | | | | 1,157 | Net cash used for investing activities from continuing operations | | (425 | ) | | | (265 | ) | | | (1,221 | ) | | | (1,839 | ) Net cash used for investing activities from discontinued operations | | — | | | | (223 | ) | | | (252 | ) | | | (529 | ) Net cash used for investing activities | | (425 | ) | | | (488 | ) | | | (1,473 | ) | | | (2,368 | ) Cash flows from financing activities | | | | | | | Proceeds from issuance of commercial paper and other short-term borrowings | | 4,502 | | | | 7,308 | | | | 12,413 | | | | 19,171 | Payments of commercial paper and other short-term borrowings | | (4,558 | ) | | | (6,721 | ) | | | (15,882 | ) | | | (16,711 | ) Proceeds from issuance of common stock | | 47 | | | | 42 | | | | 246 | | | | 140 | Proceeds from issuance of long-term debt | | — | | | | — | | | | — | | | | 4,035 | Payments of long-term debt | | (1,501 | ) | | | (246 | ) | | | (14,688 | ) | | | (1,555 | ) Repurchases of common stock | | — | | | | (100 | ) | | | (1,000 | ) | | | (3,704 | ) Cash dividends paid | | (240 | ) | | | (735 | ) | | | (1,816 | ) | | | (2,214 | ) Pre-separation funding | | — | | | | — | | | | 15,835 | | | | — | Spin-off cash | | (1,000 | ) | | | — | | | | (1,000 | ) | | | — | Other | | (21 | ) | | | 233 | | | | (125 | ) | | | 198 | Net cash used for financing activities | | (2,771 | ) | | | (219 | ) | | | (6,017 | ) | | | (640 | ) Effect of foreign exchange rate changes on cash and cash equivalents | | 22 | | | | — | | | | (46 | ) | | | 167 | Net (decrease) increase in cash and cash equivalents | | (3,057 | ) | | | 2,581 | | | | (6,793 | ) | | | 2,363 | Cash and cash equivalents at beginning of period | | 8,751 | | | | 10,349 | | | | 12,487 | | | | 10,567 | Cash and cash equivalents at end of period | $ | 5,694 | | | $ | 12,930 | | | $ | 5,694 | | | $ | 12,930 | 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 reconciliations are 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 Technologies' businesses. As indicated herein, certain forward-looking non-GAAP financial measures are not reconciled because management cannot reliably predict or estimate certain items for the reasons specified herein with respect to each non-GAAP financial measure. Honeywell International Inc.Reconciliation of Organic Sales Percent Change(Unaudited) | | Three Months Ended September 30, 2026 Honeywell Technologies | Reported sales percent change | 1% Less: Impact of divestitures to the prior period | (8)% Reported sales percent change, adjusted for impact of divestitures | 9% Less: Foreign currency translation | —% Less: Acquisitions | 2% Less: Other | —% Organic sales percent change | 7% | Building Automation | Reported sales percent change | 8% Less: Impact of divestitures to the prior period | —% Reported sales percent change, adjusted for impact of divestitures | 8% Less: Foreign currency translation | —% Less: Acquisitions | —% Less: Other | —% Organic sales percent change | 8% | Process Automation and Technology | Reported sales percent change | 16% Less: Impact of divestitures to the prior period | —% Reported sales percent change, adjusted for impact of divestitures | 16% Less: Foreign currency translation | —% Less: Acquisitions | 8% Less: Other | —% Organic sales percent change | 8% | Industrial Automation | Reported sales percent change | (23)% Less: Impact of divestitures to the prior period | (27)% Reported sales percent change, adjusted for impact of divestitures | 4% Less: Foreign currency translation | —% Less: Acquisitions | —% Less: Other | —% Organic sales percent change | 4% We define organic sales percentage as the year-over-year change in reported sales relative to the comparable period, adjusted for the impact of divestitures to the prior period, and excluding the impact on sales from foreign currency translation, acquisitions for the first 12 months following the transaction date, and certain other items that are unusual or non-recurring in nature. 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 September 30, | | Twelve Months Ended December 31, | | 2026 | | | | 2025 | | | | 2025 | Operating income | $ | 740 | | | $ | 413 | | | $ | 1,171 | Stock compensation expense1 | | 104 | | | | 22 | | | | 153 | Repositioning, other2,3 | | 20 | | | | 223 | | | | 390 | Pension and other postretirement service costs4 | | 13 | | | | 14 | | | | 57 | Amortization of acquisition-related intangibles5 | | 131 | | | | 135 | | | | 509 | Acquisition-related costs6 | | 7 | | | | 9 | | | | 2 | Divestiture-related costs7 | | 2 | | | | — | | | | — | ERP implementation costs1 | | 9 | | | | — | | | | — | Indefinite-lived intangible asset impairment1 | | — | | | | — | | | | 44 | Impairment of goodwill | | — | | | | — | | | | 724 | Impairment of assets held for sale | | — | | | | — | | | | 270 | Loss on Quantinuum8 | | — | | | | 50 | | | | 187 | Trademark licensing income9 | | 36 | | | | — | | | | — | Segment profit | $ | 1,062 | | | $ | 866 | | | $ | 3,507 | | | | | | Operating income | $ | 740 | | | $ | 413 | | | $ | 1,171 | ÷ Segment sales | | 4,994 | | | | 4,929 | | | | 19,915 | Operating income margin % | | 14.8 | % | | | 8.4 | % | | | 5.9 | % Segment profit | $ | 1,062 | | | $ | 866 | | | $ | 3,507 | ÷ Segment sales | | 4,994 | | | | 4,929 | | | | 19,915 | Segment profit margin % | | 21.3 | % | | | 17.6 | % | | | 17.6 | % 1 | | Included in Selling, general and administrative expenses. 2 | | Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. 3 | | Included in Cost of products and services sold and Selling, general and administrative expenses. 4 | | Included in Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. 5 | | Included in Cost of products and services sold. 6 | | Included in Cost of products and services sold. Includes acquisition-related fair value adjustments to inventory. 7 | | Included in Selling, general and administrative expenses. 8 | | Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company's investment in Quantinuum, which does not meet the definition of an operating segment. Included in Net sales, Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. 9 | | Included in segment profit and recorded within Other (income) expense. We define operating income as segment sales less total cost of products and services sold, research and development expenses, selling, general and administrative expenses, impairment of goodwill, and impairment of assets held for sale. We define segment profit, on an overall Honeywell Technologies 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, repositioning and other charges, trademark licensing income, and the results of Quantinuum. We define segment profit margin, on an overall Honeywell Technologies 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 company 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. 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 September 30, | | Twelve Months Ended December 31, | | 2026 | | | | 2025 | | | | 2025 | | | 2026(E) Earnings per share of common stock from continuing operations - diluted1 | $ | 2.40 | | | $ | 2.99 | | | $ | 3.24 | | | $21.88 - $21.93 Pension income2 | | (0.21 | ) | | | (0.18 | ) | | | (0.13 | ) | | No Forecast Amortization of acquisition-related intangibles3 | | 0.32 | | | | 0.32 | | | | 1.20 | | | 1.20 Acquisition-related costs4 | | 0.10 | | | | 0.05 | | | | 0.11 | | | 0.12 Divestiture-related costs5 | | (0.04 | ) | | | 0.57 | | | | 0.81 | | | No Forecast Debt restructuring costs6 | | — | | | | — | | | | — | | | 0.71 ERP implementation costs7 | | 0.02 | | | | — | | | | — | | | 0.08 Impairment of assets held for sale8 | | — | | | | — | | | | 0.65 | | | 0.74 Indefinite-lived intangible asset impairment9 | | — | | | | — | | | | 0.14 | | | — Impairment of goodwill10 | | — | | | | — | | | | 2.25 | | | — (Gain) loss on sale of business11 | | (0.67 | ) | | | — | | | | 0.09 | | | (0.69) Gain related to Resideo indemnification and reimbursement agreement termination12 | | — | | | | (2.51 | ) | | | (2.50 | ) | | — Adjustment to estimated future environmental liabilities13 | | — | | | | 0.07 | | | | 0.07 | | | — Loss on settlement of divestiture of asbestos liabilities14 | | — | | | | 0.35 | | | | 0.35 | | | — Impact of Russia-Ukraine conflict15 | | — | | | | — | | | | — | | | 0.02 Gain on deconsolidation of Quantinuum16 | | — | | | | — | | | | — | | | (15.83) Equity loss of Quantinuum17 | | 0.35 | | | | — | | | | — | | | No Forecast Loss on Quantinuum18 | | — | | | | 0.04 | | | | 0.18 | | | 0.17 Adjusted earnings per share of common stock from continuing operations - diluted | $ | 2.27 | | | $ | 1.70 | | | $ | 6.46 | | | $8.40 - 8.45 1 | | For the three months ended September 30, 2026 and 2025, adjusted earnings per share utilizes weighted average shares of 319.2 million and 319.4 million, respectively. For the twelve months ended December 31, 2025, adjusted earnings per share utilizes weighted average shares of 321.4 million. For the twelve months ended December 31, 2026, expected earnings per share utilizes weighted average shares of approximately 319.4 million. 2 | | For the three months ended September 30, 2026 and 2025, pension income was $67 million and $58 million, net of tax expense of $22 million and $18 million, respectively. For the twelve months ended December 31, 2025, pension income was $40 million, net of tax expense of $25 million. 3 | | For the three months ended September 30, 2026 and 2025, acquisition-related intangibles amortization includes $102 million and $102 million, net of tax benefit of $29 million and $33 million, respectively. For the twelve months ended December 31, 2025, acquisition-related intangibles amortization includes $386 million, net of tax benefit of $123 million. For the twelve months ended December 31, 2026, the expected adjustment for acquisition-related intangibles amortization includes approximately $382 million, net of tax benefit of approximately $90 million. 4 | | For the three months ended September 30, 2026 and 2025, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs was $31 million and $17 million, net of tax benefit of $9 million and $5 million, respectively. For the twelve months ended December 31, 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 $35 million, net of tax benefit of $10 million. For the twelve months ended December 31, 2026, the expected adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs, is approximately $39 million, net of tax benefit of approximately $12 million. 5 | | For the three months ended September 30, 2026 and 2025, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction, separation and simplification costs, was $12 million and $180 million, net of tax benefit of $182 million and tax expense of $122 million, respectively. For the twelve months ended December 31, 2025, the adjustment for divestiture-related costs was $262 million, net of tax expense of $31 million. 6 | | For the twelve months ended December 31, 2026, the expected adjustment for debt restructuring costs excluding spin-off impact is $228 million, net of tax benefit of $70 million. 7 | | For the three months ended September 30, 2026, the adjustment for ERP implementation costs was $7 million, net of tax benefit of $2 million. For the twelve months ended December 31, 2026, the expected adjustment for ERP implementation costs is approximately $26 million, net of tax benefit of approximately $6 million. 8 | | For the twelve months ended December 31, 2025, the impairment charge of assets held for sale was $209 million, net of tax benefit of $61 million. For the twelve months ended December 31, 2026, the expected impairment charge of assets held for sale is $236 million, net of tax benefit of $75 million. 9 | | For the twelve months ended December 31, 2025, the impairment charge of indefinite-lived intangible assets associated with the Industrial Automation reportable segment was $44 million, without tax benefit. 10 | | For the twelve months ended December 31, 2025, the impairment charge of goodwill associated with the Industrial Automation reportable segment was $724 million, without tax benefit. 11 | | For the three months ended September 30, 2026, the (gain) loss on sale of personal protection equipment business was $216 million, net of tax expense of $123 million. For the twelve months ended December 31, 2025, the adjustment for loss on sale of the personal protective equipment business was $28 million, net of tax benefit of $2 million. For the twelve months ended December 31, 2026, the expected gain on sale of personal protection equipment business is $221 million, net of tax expense of $124 million. 12 | | For the three months ended September 30, 2025, the gain related to the Resideo indemnification and reimbursement agreement termination was $802 million, without tax impact. For the twelve months ended December 31, 2025, the gain related to the Resideo indemnification and reimbursement agreement termination was $802 million, without tax impact. 13 | | For the three months ended September 30, 2025, the adjustment to increase environmental liabilities was $22 million, net of tax benefit of $7 million. For the twelve months ended December 31, 2025, the adjustment to increase environmental liabilities was $22 million, net of tax benefit of $7 million. 14 | | For the three months ended September 30, 2025, the adjustment for loss on settlement of divestiture of asbestos liabilities was $112 million, net oftax benefit of $36 million. For the twelve months ended December 31, 2025, the adjustment for loss on settlement of divestiture of asbestos liabilities was $112 million, net of tax benefit of $36 million. 15 | | For the twelve months ended December 31, 2026, the expected adjustment for the impact of the Russia-Ukraine conflict is approximately $6 million, net of tax benefit of approximately $2 million. 16 | | Includes the gain from the deconsolidation of Quantinuum of $5,057 million, net of tax expense of $1,572 million. 17 | | For the three months ended September 30, 2026, the adjustment for equity losses on Quantinuum is $112 million, net of tax benefit of $35 million. The equity losses of Quantinuum are based on our proportionate share of Quantinuum's earnings or losses, which are outside of the Company's control. We therefore do not include an estimate for these amounts. 18 | | Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company's investment in Quantinuum, which does not meet the definition of an operating segment. For the three months ended September 30, 2025, the net income adjustment for Quantinuum was $35 million, net of tax benefit of $11 million. The net adjustment also reflects an adjustment to NCI of $16 million for the three months ended September 30, 2025. For the twelve months ended December 31, 2025, the net income adjustment for Quantinuum was $135 million, net of tax benefit of $43 million. The net adjustment also reflects an adjustment to NCI of $78 million for the twelve months ended December 31, 2025. For the twelve months ended December 31, 2026, the expected net income adjustment for Quantinuum is approximately $107 million, net of tax benefit of approximately $33 million. The net adjustment also reflects an adjustment to NCI of approximately $55 million for the twelve months ended December 31, 2026. We define adjusted earnings per share as diluted earnings per share from continuing operations 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, pension income or the divestiture-related costs. The pension income 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 and simplification plans for the recently completed separation of Honeywell Technologies and Honeywell Aerospace. The equity losses of Quantinuum are based on our proportionate share of Quantinuum's earnings or losses, which are outside of the Company's control. We therefore do not include an estimate for these amounts. 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 September 30, 2026 | | Three Months Ended September 30, 2025 | | Twelve Months Ended December 31, 2026(E) Cash provided by operating activities from continuing operations | $ | 607 | | | $ | 2,306 | | | $ | 2.1 Capital expenditures | | (77 | ) | | | (150 | ) | | ~(0.6) Separation-related cost payments | | 158 | | | | 2 | | | ~0.5 Quantinuum | | — | | | | 31 | | | ~0.1 Resideo indemnification and reimbursement agreement termination payment | | — | | | | (1,590 | ) | | | — Free cash flow | $ | 688 | | | $ | 599 | | | ~$2.1 We define free cash flow as cash provided by operating activities from continuing operations less cash for capital expenditures and excluding spin-off and separation-related cost payments, the Resideo indemnification and reimbursement agreement termination payment, the cash payment for settlement of divestiture of asbestos liabilities, and cash flows attributable to Quantinuum. 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 Cash Provided by Operating Activities to Free Cash Flow, Reconciliation of Net Income Attributable to Honeywell Technologies to Adjusted Net Income Attributable to Honeywell Technologies, and Calculation of Adjusted Free Cash Flow Conversion (Unaudited)(Dollars in millions) | | Three Months Ended September 30, 2026 Cash provided by operating activities from continuing operations | $ | 607 | Capital expenditures | | (77 | ) Separation-related cost payments | | 158 | Free cash flow | $ | 688 | Net income attributable to Honeywell Technologies from continuing operations | $ | 767 | Pension income1 | | (67 | ) Amortization of acquisition-related intangibles2 | | 102 | Acquisition-related costs3 | | 31 | Divestiture-related costs4 | | (12 | ) ERP implementation costs5 | | 7 | Gain on sale of business6 | | (216 | ) Equity loss of Quantinuum7 | | 112 | Adjusted net income attributable to Honeywell Technologies | $ | 724 | Cash provided by operating activities from continuing operations | $ | 607 | ÷ Net income attributable to Honeywell Technologies from continuing operations | $ | 767 | Operating cash flow conversion % | | 79 | % Free cash flow | $ | 688 | ÷ Adjusted net income attributable to Honeywell Technologies | $ | 724 | Adjusted free cash flow conversion % | | 95 | % 1 | | For the three months ended September 30, 2026, pension income was $67 million, net of tax expense of $22 million. 2 | | For the three months ended September 30, 2026, acquisition-related intangibles amortization includes $102 million net of tax benefit of $29 million. 3 | | For the three months ended September 30, 2026, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs was $31 million, net of tax benefit of $9 million. 4 | | For the three months ended September 30, 2026, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction, separation and simplification costs, was $12 million, net of tax benefit of $182 million. 5 | | For the three months ended September 30, 2026, the adjustment for ERP implementation costs was $7 million, net of tax benefit of $2 million. 6 | | For the three months ended September 30, 2026, the gain on sale of personal protection equipment business was $216 million, net of tax expense of $123 million. 7 | | For the three months ended September 30, 2026, the adjustment for equity losses on Quantinuum is $112 million, net of tax benefit of $35 million. We define free cash flow as cash provided by operating activities from continuing operations less cash for capital expenditures and excluding separation-related cost payments, the Resideo indemnification and reimbursement agreement termination payment, the cash payment for settlement of divestiture of asbestos liabilities, and cash flows attributable to Quantinuum. We define adjusted net income attributable to Honeywell Technologies as net income attributable to Honeywell Technologies from continuing operations adjusted to exclude various items as listed above. We define adjusted free cash flow conversion as free cash flow divided by adjusted net income attributable to Honeywell Technologies. We believe that free cash flow and adjusted free cash flow conversion are non-GAAP measures that are 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. These measures 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20261021281133/en/ Contacts Media Stacey Jones (980) 378-6258 [email protected] Investor Relations Mark Macaluso (704) 627-6118 [email protected]

For the quarter ended September 2026, Honeywell International Inc. (HON) reported revenue of $4.99 billion, down 52% over the same period last year. EPS came in at $2.27, compared to $5.64 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $5.01 billion, representing a surprise of -0.42%. The company delivered an EPS surprise of +4.61%, with the consensus EPS estimate being $2.17. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Honeywell International performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Net Sales- Building Automation: $2.02 billion versus $2.01 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +7.6% change. - Net sales- Process Automation and Technology: $1.86 billion compared to the $1.86 billion average estimate based on two analysts. - Net Sales- Industrial Automation: $1.12 billion versus $1.19 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -51% change. - Segment Profit- Building Automation: $546 million versus the two-analyst average estimate of $546.35 million. - Segment Profit- Process Automation and Technology: $412 million compared to the $410.49 million average estimate based on two analysts. - Segment Profit- Industrial Automation: $205 million versus the two-analyst average estimate of $199.21 million. View all Key Company Metrics for Honeywell International here>>> Shares of Honeywell International have returned +1% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research