Stacey Jones Mark Macaluso
Contacts: Media Investor Relations Stacey Jones Mark Macaluso (980) 378-6258 (704) 627-6118 stacey.jones@honeywell.com mark.macaluso@honeywell.com
HONEYWELL TECHNOLOGIES REPORTS THIRD QUARTER RESULTS, RAISES FULL-YEAR 2026 OUTLOOK • Sales of $5.0 billion, up 1% reported (7% organic 1 ) driven by broad-based growth across all segments
• Operating margin of 14.8%, up 640 basis points; segment margin 1 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 EPS 1 of $2.27, up 34%
• Operating cash of $0.6 billion; free cash flow 1 of $0.7 billion, with conversion 1 of 95%
CHARLOTTE, N.C., October 22, 2026 -- 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% organic 1 , 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 profit 1 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 margin 1 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 share 1 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 flow 1 of $688 million increased 15%, with free cash flow conversion 1 of 95%, driven by higher operating income and lower capital expenditures. - MORE - Honeywell Technologies Q3’26 Results - 2
“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.
3Q 2026 3Q 2025 Change Sales $4,994 $4,929 1% Organic1Growth 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 $2.40 $2.99 -20% Operations Adjusted Earnings Per Share1 $2.27 $1.70 34% Cash Flow from Operations - Continuing $607 $2,306 -74% Operations Free Cash Flow1,4 $688 $599 15%
BUILDING AUTOMATION 3Q 2026 3Q 2025 Change Sales $2,020 $1,878 8% Organic1Growth 8% Segment Profit $546 $502 9% Segment Margin 27.0% 26.7% 30 bps PROCESS AUTOMATION AND TECHNOLOGY Sales $1,859 $1,598 16% Organic1Growth 8% Segment Profit $412 $389 6% Segment Margin 22.2% 24.3% (210) bps INDUSTRIAL AUTOMATION Sales $1,115 $1,450 -23% Organic1Growth 4% Segment Profit $205 $216 -5% Segment Margin 18.4% 14.9% 350 bps
sales grew 8% organically 1 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.
sales increased 8% organically 1 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.
sales grew 4% organically 1 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.
1 See additional information at the end of this release regarding non-GAAP financial measures. Segment margin and adjusted EPS are non-GAAP financial measures. Management cannot reliably predict or estimate, without unreasonable 2 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. Adjusted EPS and adjusted EPS V% guidance excludes items identified in 3 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. 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 4 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.
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 organic 1 sales growth of 4% to 5%, and 5% to 6% organic 1 growth in the fourth quarter; segment margin 1 of approximately 20.5%, at the upper end of its previous guidance range, representing segment margin 1 expansion of approximately 290 basis points; and adjusted earnings per share 1 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. - MORE - Honeywell Technologies Q3’26 Results - 4
Honeywell Technologies will discuss its third-quarter results and full-year 2026 guidance for 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.
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.
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.
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:
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. - MORE - Honeywell Technologies Q3’26 Results - 5 Honeywell International Inc.
Three Nine Months Months Ended Ended September Septemb… 2026 30, 2025 2026 30, 2025 ────────────────────────────────────────────────────────────────────────────── Product $ 3,628 $ 3,573 $ 10,856 $ 10,724 sales Service 1,366 1,356 4,148 3,979 sales Net 4,994 4,929 15,004 14,703 sales Costs, expenses and other Cost of products 2,127 2,041 6,421 6,179 sold Cost of services 849 1,114 2,593 2,749 sold Total Cost of products 2,976 3,155 9,014 8,928 and services sold Research and 239 268 825 774 develop… expenses Selling, general and 1,039 1,093 3,078 3,372 adminis… expenses Impairm… of assets — — 311 15 held for sale Loss on debt — — 241 — extingu… Gain on deconso… — — -6,629 — of subsidi… Other (income) -389 -957 -301 -1,124 expense Interest and other 143 263 579 715 financi… charges Total costs, expenses 4,008 3,822 7,118 12,680 and other Income from continu… operati… before 986 1,107 7,886 2,023 taxes and equity losses Tax 60 153 1,378 427 expense Equity 147 — 412 — loss Net income from 779 954 6,096 1,596 continu… operati… Net (loss) income -103 905 1,061 3,299 from discont… operati… Net 676 1,859 7,157 4,895 income Less: Net (loss) income 12 34 -10 51 attribu… to noncont… interest Net income attribu… $ 664 $ 1,825 $ 7,167 $ 4,844 to Honeywe… Technol… Earnings per share of common stock—b… Earnings per share of common $ 2.42 $ 3.01 $ 19.30 $ 5.02 stock from continu… operati… Earnings per share of common -0.33 2.73 3.29 10.11 stock from discont… operati… Total earnings per $ 2.09 $ 5.74 $ 22.59 $ 15.13 share of common stock—b… Earnings per share of common stock—a… dilutio… Earnings per share of common stock $ 2.40 $ 2.99 $ 19.19 $ 4.99 from continu… operati… dilution Earnings per share of common stock -0.32 2.72 3.27 10.05 from discont… operati… dilution Total earnings per share of $ 2.08 $ 5.71 $ 22.46 $ 15.04 common stock—a… dilution Weighted average number of 317.5 317.7 317.3 320.2 shares outstan… - basic Weighted average number of shares 319.2 319.4 319.1 322.0 outstan… - assuming dilution
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. Amounts included in Cost of products and services sold (service cost 4 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. Amounts include the other components of Selling, general and administrative expenses and Other (income) expense not included within 7 other categories in this reconciliation. Equity income of affiliated companies from strategically aligned investments and trademark licensing income are included in segment profit. Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company’s investment in Quantinuum, which does not meet the 8 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.
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 5,086 4,429 $155 and $167, respectively Inventories 2,056 1,677 Assets held for sale — 2,492 Other current assets 988 841 Current assets of discontinued — 8,232 operations Total current assets 14,316 30,387 Equity method investments 7,273 195 Long-term receivables and other 1,114 1,113 investments Property, plant and 2,706 2,466 equipment—net 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 — 11,612 operations Total assets $ 53,098 $ 73,681 Liabilities Current liabilities Accounts payable $ 3,592 $ 3,434 Commercial paper and other short-term 2,424 5,893 borrowings Current maturities of 3,783 1,541 long-term debt Accrued liabilities 5,112 5,063 Liabilities held for sale — 1,198 Current liabilities of discontinued — 6,285 operations Total current liabilities 14,911 23,414 Long-term debt 10,386 27,137 Deferred income taxes 1,561 815 Postretirement benefit obligations other 80 111 than pensions Other liabilities 3,506 3,986 Liabilities of discontinued — 3,188 operations Shareowners' equity 22,654 15,030 Total liabilities and shareowners’ $ 53,098 $ 73,681 equity
Cash flows from financing activities Proceeds from issuance of commercial 4,502 7,308 12,413 19,171 paper and other short-term borrowings Payments of commercial paper and other -4,558 -6,721 -15,882 -16,711 short-term borrowings Proceeds from issuance 47 42 246 140 of common stock Proceeds from issuance — — — 4,035 of long-term debt Payments of long-term -1,501 -246 -14,688 -1,555 debt Repurchases of common — -100 -1,000 -3,704 stock 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 -2,771 -219 -6,017 -640 financing activities Effect of foreign exchange rate changes 22 — -46 167 on cash and cash equivalents Net (decrease) increase in cash and -3,057 2,581 -6,793 2,363 cash equivalents Cash and cash equivalents at 8,751 10,349 12,487 10,567 beginning of period Cash and cash equivalents at end of $ 5,694 $ 12,930 $ 5,694 $ 12,930 period
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. - MORE - Honeywell Technologies Q3’26 Results - 11 Honeywell International Inc.
Three Months Ended September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Honeywell Technologies Reported sales percent change 1% Less: Impact of divestitures to the (8)% prior period Reported sales percent change, adjusted for 9% impact of divestitures 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 8% impact of divestitures 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 16% impact of divestitures 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 (27)% prior period Reported sales percent change, adjusted for 4% impact of divestitures 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. - MORE - Honeywell Technologies Q3’26 Results - 12 Honeywell International Inc.
Reconciliation of Operating Income to Segment Profit, Calculation of Operating Income and Segment Profit Margins
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. Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company’s investment in Quantinuum, which does not meet the 8 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 - MORE - Honeywell Technologies Q3’26 Results - 13 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. - MORE - Honeywell Technologies Q3’26 Results - 14 Honeywell International Inc.
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. 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, 1 2025, pension income was $40 million, net of tax expense of $25 2 million. ────────────────────────────────────────────────────────────────────────────── 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, 3 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. 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 4 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. 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 5 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. For the twelve months ended December 31, 2026, the expected adjustment 6 for debt restructuring costs excluding spin-off impact is $228 million, net of tax benefit of $70 million. For the three months ended September 30, 2026, the adjustment for ERP implementation costs was $7 million, net of tax benefit of $2 million. 7 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. 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 8 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. For the twelve months ended December 31, 2025, the impairment charge 9 of indefinite-lived intangible assets associated with the Industrial Automation reportable segment was $44 million, without tax benefit. For the twelve months ended December 31, 2025, the impairment charge 10 of goodwill associated with the Industrial Automation reportable segment was $724 million, without tax benefit. 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, 11 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.
For the three months ended September 30, 2025, the gain related to the Resideo indemnification and reimbursement agreement termination was 12 $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. For the three months ended September 30, 2025, the adjustment to increase environmental liabilities was $22 million, net of tax benefit 13 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. For the three months ended September 30, 2025, the adjustment for loss on settlement of divestiture of asbestos liabilities was $112 million, 14 net of tax 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. For the twelve months ended December 31, 2026, the expected adjustment 15 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. For the three months ended September 30, 2026, the adjustment for equity losses on Quantinuum is $112 million, net of tax benefit of $35 17 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. 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, 18 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. - MORE - Honeywell Technologies Q3’26 Results - 16 Honeywell International Inc.
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 Technologies Q3’26 Results - 17 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)
Three Months Ended September 30, 2026 ──────────────────────────────────────────────────────────────────────── Cash provided by operating activities $ 607 from continuing operations Capital expenditures -77 Separation-related cost payments 158 Free cash flow $ 688 Net income attributable to Honeywell $ 767 Technologies from continuing operations Pension income1 -67 Amortization of acquisition-related 102 intangibles2 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 $ 724 Honeywell Technologies Cash provided by operating activities $ 607 from continuing operations ÷ Net income attributable to Honeywell $ 767 Technologies from continuing operations Operating cash flow conversion % 79 % Free cash flow $ 688 ÷ Adjusted net income attributable to $ 724 Honeywell Technologies 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. For the three months ended September 30, 2026, acquisition-related 2 intangibles amortization includes $102 million net of tax benefit of $29 million. For the three months ended September 30, 2026, the adjustment for 3 acquisition-related costs, which is principally comprised of third-party transaction and integration costs was $31 million, net of tax benefit of $9 million. For the three months ended September 30, 2026, the adjustment for 4 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. For the three months ended September 30, 2026, the gain on sale of 6 personal protection equipment business was $216 million, net of tax expense of $123 million. For the three months ended September 30, 2026, the adjustment for 7 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.
Full text with the tables
Exhibit 99
Contacts:
Media Investor Relations
Stacey Jones Mark Macaluso
(980) 378-6258 (704) 627-6118
stacey.jones@honeywell.com mark.macaluso@honeywell.com
HONEYWELL TECHNOLOGIES REPORTS THIRD QUARTER RESULTS, RAISES FULL-YEAR 2026
OUTLOOK
• Sales of $5.0 billion, up 1% reported (7% organic 1 ) driven by broad-based
growth across all segments
• Operating margin of 14.8%, up 640 basis points; segment margin 1 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 EPS 1 of $2.27, up 34%
• Operating cash of $0.6 billion; free cash flow 1 of $0.7 billion, with
conversion 1 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 -- 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%
organic 1 , 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 profit 1 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
margin 1 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 share 1 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 flow 1 of $688 million increased 15%, with free cash flow conversion 1
of 95%, driven by higher operating income and lower capital expenditures.
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Honeywell Technologies Q3’26 Results - 2
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%
Organic1Growth 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 $2.40 $2.99 -20%
Operations
Adjusted Earnings Per Share1 $2.27 $1.70 34%
Cash Flow from Operations - Continuing $607 $2,306 -74%
Operations
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%
Organic1Growth 8%
Segment Profit $546 $502 9%
Segment Margin 27.0% 26.7% 30 bps
PROCESS AUTOMATION AND TECHNOLOGY
Sales $1,859 $1,598 16%
Organic1Growth 8%
Segment Profit $412 $389 6%
Segment Margin 22.2% 24.3% (210) bps
INDUSTRIAL AUTOMATION
Sales $1,115 $1,450 -23%
Organic1Growth 4%
Segment Profit $205 $216 -5%
Segment Margin 18.4% 14.9% 350 bps
- MORE -
Honeywell Technologies Q3’26 Results - 3
Building Automation
sales grew 8% organically 1 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% organically 1 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% organically 1 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 Guidance
1
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.
Segment margin and adjusted EPS are non-GAAP financial measures.
Management cannot reliably predict or estimate, without unreasonable
2 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.
Adjusted EPS and adjusted EPS V% guidance excludes items identified in
3 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.
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
4 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 organic 1 sales growth of 4% to 5%,
and 5% to 6% organic 1 growth in the fourth quarter; segment margin 1 of
approximately 20.5%, at the upper end of its previous guidance range,
representing segment margin 1 expansion of approximately 290 basis points; and
adjusted earnings per share 1 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.
- MORE -
Honeywell Technologies Q3’26 Results - 4
Conference Call Details
Honeywell Technologies will discuss its third-quarter results and full-year 2026
guidance for 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.
- MORE -
Honeywell Technologies Q3’26 Results - 5
Honeywell International Inc.
Consolidated Statement of Operations (Unaudited)
(Dollars in millions, except per share amounts)
Three Nine
Months Months
Ended Ended
September Septemb…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Product $ 3,628 $ 3,573 $ 10,856 $ 10,724
sales
Service 1,366 1,356 4,148 3,979
sales
Net 4,994 4,929 15,004 14,703
sales
Costs,
expenses
and
other
Cost of
products 2,127 2,041 6,421 6,179
sold
Cost of
services 849 1,114 2,593 2,749
sold
Total
Cost of
products 2,976 3,155 9,014 8,928
and
services
sold
Research
and 239 268 825 774
develop…
expenses
Selling,
general
and 1,039 1,093 3,078 3,372
adminis…
expenses
Impairm…
of
assets — — 311 15
held for
sale
Loss on
debt — — 241 —
extingu…
Gain on
deconso… — — -6,629 —
of
subsidi…
Other
(income) -389 -957 -301 -1,124
expense
Interest
and
other 143 263 579 715
financi…
charges
Total
costs,
expenses 4,008 3,822 7,118 12,680
and
other
Income
from
continu…
operati…
before 986 1,107 7,886 2,023
taxes
and
equity
losses
Tax 60 153 1,378 427
expense
Equity 147 — 412 —
loss
Net
income
from 779 954 6,096 1,596
continu…
operati…
Net
(loss)
income -103 905 1,061 3,299
from
discont…
operati…
Net 676 1,859 7,157 4,895
income
Less:
Net
(loss)
income 12 34 -10 51
attribu…
to
noncont…
interest
Net
income
attribu… $ 664 $ 1,825 $ 7,167 $ 4,844
to
Honeywe…
Technol…
Earnings
per
share of
common
stock—b…
Earnings
per
share of
common $ 2.42 $ 3.01 $ 19.30 $ 5.02
stock
from
continu…
operati…
Earnings
per
share of
common -0.33 2.73 3.29 10.11
stock
from
discont…
operati…
Total
earnings
per $ 2.09 $ 5.74 $ 22.59 $ 15.13
share of
common
stock—b…
Earnings
per
share of
common
stock—a…
dilutio…
Earnings
per
share of
common
stock $ 2.40 $ 2.99 $ 19.19 $ 4.99
from
continu…
operati…
dilution
Earnings
per
share of
common
stock -0.32 2.72 3.27 10.05
from
discont…
operati…
dilution
Total
earnings
per
share of $ 2.08 $ 5.71 $ 22.46 $ 15.04
common
stock—a…
dilution
Weighted
average
number
of 317.5 317.7 317.3 320.2
shares
outstan…
- basic
Weighted
average
number
of
shares 319.2 319.4 319.1 322.0
outstan…
-
assuming
dilution
- MORE -
Honeywell Technologies Q3’26 Results - 6
Honeywell International Inc.
Segment Data (Unaudited)
(Dollars in millions)
Three Nine
Months Months
Ended Ended
Net September Septemb…
sales 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Building $ 2,020 $ 1,878 $ 5,904 $ 5,396
Automat…
Process
Automat… 1,859 1,598 5,051 4,656
and
Technol…
Industr… 1,115 1,450 4,039 4,627
Automat…
Total
Segment 4,994 4,926 14,994 14,679
sales
Quantin… — 3 10 24
Total
Net $ 4,994 $ 4,929 $ 15,004 $ 14,703
sales
Reconciliation of Segment Profit to Income Before Taxes
Three Nine
Months Months
Ended Ended
Segment September September
profit 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Building $ 546 $ 502 $ 1,584 $ 1,421
Automat…
Process
Automat… 412 389 1,142 1,088
and
Technol…
Industr… 205 216 703 704
Automat…
Corpora…
and All -101 -241 -438 -650
Other
Total
Segment 1,062 866 2,991 2,563
profit
Interest
and
other -143 -263 -579 -715
financi…
charges
Interest 50 85 207 247
income1
Amortiz…
of -131 -135 -352 -364
acquisi…
intangi…
Impairm…
of
assets — — -311 -15
held for
sale
Stock
compens… -104 -22 -182 -115
expense3
Pension
ongoing 90 75 263 151
income4
Other
postret… 2 3 6 11
income4
Reposit…
and
other -17 581 -133 516
gains
(charge…
Loss on
debt — — -241 —
extingu…
Divesti… -94 -25 -489 -70
costs6
Gain on
deconso… — — 6,629 —
of
subsidi…
Equity -147 — -412 —
loss
Gain
(loss)
on sale
of 339 — 345 -30
non-str…
busines…
and
assets1
Other -68 -18 -128 -36
expense7
Quantin… — -40 -140 -120
Loss8
Income
before $ 839 $ 1,107 $ 7,474 $ 2,023
taxes
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.
Amounts included in Cost of products and services sold (service cost
4 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.
Amounts include the other components of Selling, general and
administrative expenses and Other (income) expense not included within
7 other categories in this reconciliation. Equity income of affiliated
companies from strategically aligned investments and trademark
licensing income are included in segment profit.
Includes consolidated losses of Quantinuum prior to the deconsolidation
of the Company’s investment in Quantinuum, which does not meet the
8 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.
- MORE -
Honeywell Technologies Q3’26 Results - 7
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 5,086 4,429
$155 and $167, respectively
Inventories 2,056 1,677
Assets held for sale — 2,492
Other current assets 988 841
Current assets of
discontinued — 8,232
operations
Total current assets 14,316 30,387
Equity method investments 7,273 195
Long-term receivables and
other 1,114 1,113
investments
Property, plant and 2,706 2,466
equipment—net
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 — 11,612
operations
Total assets $ 53,098 $ 73,681
Liabilities
Current liabilities
Accounts payable $ 3,592 $ 3,434
Commercial paper and other
short-term 2,424 5,893
borrowings
Current maturities of 3,783 1,541
long-term debt
Accrued liabilities 5,112 5,063
Liabilities held for sale — 1,198
Current liabilities of
discontinued — 6,285
operations
Total current liabilities 14,911 23,414
Long-term debt 10,386 27,137
Deferred income taxes 1,561 815
Postretirement benefit
obligations other 80 111
than pensions
Other liabilities 3,506 3,986
Liabilities of discontinued — 3,188
operations
Shareowners' equity 22,654 15,030
Total liabilities and
shareowners’ $ 53,098 $ 73,681
equity
- MORE -
Honeywell Technologies Q3’26 Results - 8
Honeywell International Inc.
Consolidated Statement of Cash Flows (Unaudited)
(Dollars in millions)
Three Nine
Cash Months Months
flows Ended Ended
from Septem… Septemb…
opera… 30, 30,
activ… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 676 $ 1,859 $ 7,157 $ 4,895
income
Less:
Net
income -103 905 1,061 3,299
from
disco…
opera…
Net
income
from 779 954 6,096 1,596
conti…
opera…
Adjus…
to
recon…
net
income
from
conti…
opera…
to net
cash
provi…
by
opera…
activ…
Depre… 70 72 215 206
Amort… 186 176 483 510
Gain
on
decon… — — -6,629 —
of
subsi…
Equity
loss
(inco… 157 -2 397 -14
of
affil…
compa…
(Gain)
loss
on
sale
of -346 — -351 29
non-s…
busin…
and
assets
Impai…
of
assets — — 311 15
held
for
sale
Loss
on — — 241 —
debt
extin…
Repos…
and 13 -583 133 -516
other
charg…
Net
payme…
for
repos… -21 -93 -119 -307
and
other
charg…
Resid…
indem…
and
reimb… — 1,590 — 1,590
agree…
termi…
payme…
Pensi…
and
other -91 -80 -268 -164
postr…
income
Pensi…
and
other 3 -3 -6 -13
postr…
benef…
payme…
Stock
compe… 104 23 182 115
expen…
Defer…
income -533 -142 687 -248
taxes
Other -322 -56 -2 -362
Chang…
in
assets
and
liabi…
net
of the
effec…
of
acqui…
and
dives…
Accou… -217 93 -546 -344
recei…
Inven… -18 -23 -50 -297
Other
curre… 126 4 -206 -168
assets
Accou… -178 196 44 376
payab…
Accru… 1,019 -112 567 510
liabi…
Income -124 292 -247 96
taxes
Net
cash
provi…
by
opera… 607 2,306 932 2,610
activ…
from
conti…
opera…
Net
cash
(used
for)
provi…
by -488 982 -189 2,594
opera…
activ…
-
disco…
opera…
Net
cash
provi… 119 3,288 743 5,204
by
opera…
activ…
Cash
flows
from
inves…
activ…
Capit… -77 -150 -369 -375
expen…
Incre…
in -266 -384 -771 -1,064
inves…
Decre…
in 215 295 728 1,047
inves…
Recei…
(paym…
from
settl… -2 12 123 -403
of
deriv…
contr…
Cash
paid
for
acqui… -1,743 -38 -1,763 -2,201
net of
cash
acqui…
Decon…
of — — -623 —
subsi…
cash
Proce…
from
sale
of 1,448 — 1,454 1,157
busin…
net of
cash
trans…
Net
cash
used
for
inves… -425 -265 -1,221 -1,839
activ…
from
conti…
opera…
Net
cash
used
for
inves… — -223 -252 -529
activ…
from
disco…
opera…
Net
cash
used -425 -488 -1,473 -2,368
for
inves…
activ…
- MORE -
Honeywell Technologies Q3’26 Results - 9
Cash flows from
financing activities
Proceeds from issuance
of commercial 4,502 7,308 12,413 19,171
paper and other
short-term borrowings
Payments of commercial
paper and other -4,558 -6,721 -15,882 -16,711
short-term borrowings
Proceeds from issuance 47 42 246 140
of common stock
Proceeds from issuance — — — 4,035
of long-term debt
Payments of long-term -1,501 -246 -14,688 -1,555
debt
Repurchases of common — -100 -1,000 -3,704
stock
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 -2,771 -219 -6,017 -640
financing activities
Effect of foreign
exchange rate changes 22 — -46 167
on cash and cash
equivalents
Net (decrease)
increase in cash and -3,057 2,581 -6,793 2,363
cash
equivalents
Cash and cash
equivalents at 8,751 10,349 12,487 10,567
beginning
of period
Cash and cash
equivalents at end of $ 5,694 $ 12,930 $ 5,694 $ 12,930
period
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Honeywell Technologies Q3’26 Results - 10
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.
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Honeywell Technologies Q3’26 Results - 11
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 (8)%
prior period
Reported sales percent change,
adjusted for 9%
impact of divestitures
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 8%
impact of divestitures
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 16%
impact of divestitures
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 (27)%
prior period
Reported sales percent change,
adjusted for 4%
impact of divestitures
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.
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Honeywell Technologies Q3’26 Results - 12
Honeywell International Inc.
Reconciliation of Operating Income to Segment Profit, Calculation of Operating
Income and Segment Profit Margins
(Unaudited)
(Dollars in millions)
Three Twelve
Months Months
Ended Ended
September December
2026 30, 2025 31, 2025
──────────────────────────────────────────────────────────────────────────────
Operating $ 740 $ 413 $ 1,171
income
Stock
compensat… 104 22 153
expense1
Repositio… 20 223 390
other2,3
Pension
and other
postretir… 13 14 57
service
costs4
Amortizat…
of 131 135 509
acquisiti…
intangibl…
Acquisiti… 7 9 2
costs6
Divestitu… 2 — —
costs7
ERP
implement… 9 — —
costs1
Indefinit…
intangible — — 44
asset
impairmen…
Impairment
of — — 724
goodwill
Impairment
of assets — — 270
held for
sale
Loss on — 50 187
Quantinuu…
Trademark
licensing 36 — —
income9
Segment $ 1,062 $ 866 $ 3,507
profit
Operating $ 740 $ 413 $ 1,171
income
÷ Segment 4,994 4,929 19,915
sales
Operating
income 14.8 % 8.4 % 5.9 %
margin %
Segment $ 1,062 $ 866 $ 3,507
profit
÷ Segment 4,994 4,929 19,915
sales
Segment
profit 21.3 % 17.6 % 17.6 %
margin %
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.
Includes consolidated losses of Quantinuum prior to the deconsolidation
of the Company’s investment in Quantinuum, which does not meet the
8 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
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Honeywell Technologies Q3’26 Results - 13
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.
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Honeywell Technologies Q3’26 Results - 14
Honeywell International Inc.
Reconciliation of Earnings per Share to Adjusted Earnings per Share
(Unaudited)
Three Twel…
Mont… Mont…
Ended Ended
Sept… Dece…
30, 31,
2026 2025 2025 2026…
──────────────────────────────────────────────────────────────────────────────
Ea…
per
sh…
of
co… $21…
st… $ 2.40 $ 2.99 $ 3.24 -
fr… $21…
co…
op…
-
di…
Pe… -0.… -0.… -0.… No
in… For…
Am…
of 0.32 0.32 1.20 1.20
ac…
in…
Ac… 0.10 0.05 0.11 0.12
co…
Di… -0.… 0.57 0.81 No
co… For…
De…
re… — — — 0.71
co…
ERP
im… 0.02 — — 0.08
co…
Im…
of
as… — — 0.65 0.74
he…
for
sa…
In…
in… — — 0.14 —
as…
im…
Im…
of — — 2.25 —
go…
(G…
lo…
on -0.… — 0.09 -0.69
sa…
of
bu…
Ga…
re…
to
Re…
in… — -2.… -2.… —
and
re…
ag…
te…
Ad…
to
es… — 0.07 0.07 —
fu…
en…
li…
Lo…
on
se…
of — 0.35 0.35 —
di…
of
as…
li…
Im…
of — — — 0.02
Ru…
co…
Ga…
on
de… — — — -15.…
of
Qu…
Eq…
lo… 0.35 — — No
of For…
Qu…
Lo…
on — 0.04 0.18 0.17
Qu…
Ad…
ea…
per
sh…
of $8.…
co… $ 2.27 $ 1.70 $ 6.46 -
st… 8.45
fr…
co…
op…
-
di…
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.
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,
1 2025, pension income was $40 million, net of tax expense of $25
2 million.
──────────────────────────────────────────────────────────────────────────────
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,
3 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.
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
4 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.
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
5 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.
For the twelve months ended December 31, 2026, the expected adjustment
6 for debt restructuring costs excluding spin-off impact is $228
million, net of tax benefit of $70 million.
For the three months ended September 30, 2026, the adjustment for ERP
implementation costs was $7 million, net of tax benefit of $2 million.
7 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.
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
8 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.
For the twelve months ended December 31, 2025, the impairment charge
9 of indefinite-lived intangible assets associated with the Industrial
Automation reportable segment was $44 million, without tax benefit.
For the twelve months ended December 31, 2025, the impairment charge
10 of goodwill associated with the Industrial Automation reportable
segment was $724 million, without tax benefit.
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,
11 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.
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Honeywell Technologies Q3’26 Results - 15
For the three months ended September 30, 2025, the gain related to the
Resideo indemnification and reimbursement agreement termination was
12 $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.
For the three months ended September 30, 2025, the adjustment to
increase environmental liabilities was $22 million, net of tax benefit
13 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.
For the three months ended September 30, 2025, the adjustment for loss
on settlement of divestiture of asbestos liabilities was $112 million,
14 net of
tax 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.
For the twelve months ended December 31, 2026, the expected adjustment
15 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.
For the three months ended September 30, 2026, the adjustment for
equity losses on Quantinuum is $112 million, net of tax benefit of $35
17 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.
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,
18 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.
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Honeywell Technologies Q3’26 Results - 16
Honeywell International Inc.
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
(Unaudited)
(Dollars in millions)
Three Twelve
Months Three Months
Ended Months Ended
Septem… Ended Decemb…
30, Septemb… 31,
2026 30, 2025 2026(E)
──────────────────────────────────────────────────────────────────────────────
Cash
provi…
by
opera… $ 607 $ 2,306 $ 2.1
activ…
from
conti…
opera…
Capit… -77 -150 ~(0.6)
expen…
Separ…
cost 158 2 ~0.5
payme…
Quant… — 31 ~0.1
Resid…
indem…
and
reimb… — -1,590 —
agree…
termi…
payme…
Free
cash $ 688 $ 599 ~$2.1
flow
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 Technologies Q3’26 Results - 17
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 $ 607
from continuing operations
Capital expenditures -77
Separation-related cost payments 158
Free cash flow $ 688
Net income attributable to Honeywell $ 767
Technologies from continuing operations
Pension income1 -67
Amortization of acquisition-related 102
intangibles2
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 $ 724
Honeywell Technologies
Cash provided by operating activities $ 607
from continuing operations
÷ Net income attributable to Honeywell $ 767
Technologies from continuing operations
Operating cash flow conversion % 79 %
Free cash flow $ 688
÷ Adjusted net income attributable to $ 724
Honeywell Technologies
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.
For the three months ended September 30, 2026, acquisition-related
2 intangibles amortization includes $102 million net of tax benefit of
$29 million.
For the three months ended September 30, 2026, the adjustment for
3 acquisition-related costs, which is principally comprised of
third-party transaction and integration costs was $31 million, net of
tax benefit of $9 million.
For the three months ended September 30, 2026, the adjustment for
4 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.
For the three months ended September 30, 2026, the gain on sale of
6 personal protection equipment business was $216 million, net of tax
expense of $123 million.
For the three months ended September 30, 2026, the adjustment for
7 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.