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Media			Investor Relations
Stacey Jones			Mark Macaluso
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stacey.jones@honeywell.com			mark.macaluso@honeywell.com

 

•Fourth Quarter Sales of $9.8 Billion, Up 6%, Adjusted Sales1 of $10.1 Billion, Up 10%, Up 11% Organic1

•Fourth Quarter GAAP Earnings Per Share (EPS) of $0.49 and Adjusted EPS1 of $2.59

•Fourth Quarter Orders Up 23% Organically, Driving Backlog to Over $37 Billion

•Expect 2026 Adjusted EPS2,3 of $10.35 - $10.65, Up 6% - 9%

•Honeywell Aerospace Spin-Off Now Expected in Third Quarter 2026; Leadership Team Announced

CHARLOTTE, N.C., January 29, 2026 -- Honeywell (NASDAQ: HON) today announced results for the fourth quarter and full year 2025 and issued its outlook for 2026. The company also provided an update on anticipated timing for the spin-off of Honeywell Aerospace into an independent publicly traded company, now expected to be completed in the third quarter of 2026, ahead of the company's prior expectations.

Fourth-quarter sales growth was driven primarily by strong demand in the Aerospace and Building Automation segments. Orders grew 23% organically, led by double-digit growth in Aerospace Technologies and Energy and Sustainability Solutions (ESS), which drove a 4% sequential increase in backlog to over $37 billion.

Operating income decreased 35% and operating margin contracted 640 basis points to 10.2% primarily due to a one-time impairment charge related to the classification of the Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) businesses as assets held for sale, and a one-time charge within the Aerospace Technologies segment related to the previously disclosed Flexjet-related litigation matters in the fourth quarter of 2025. Excluding these charges and other items, adjusted segment profit1 increased 23%, or 2% excluding the impact of the Bombardier agreement ("BBD") signed in the fourth quarter of 20244, to $2.3 billion led by growth in Aerospace Technologies and Building Automation, driving adjusted segment margin1 expansion of 240 basis points (or margin contraction of 70 basis points ex. BBD4) to 22.8%.

EPS for the fourth quarter of $0.49 was down 72% primarily driven by the aforementioned one-time charges. Excluding these charges and other items, adjusted EPS1 of $2.59 was up 17%, or down 3% ex. BBD4, driven by higher adjusted segment profit and a lower share count, partially offset by a higher effective tax rate. Finally, operating cash flow was $1.2 billion, down 38%, and free cash flow1,5 was $2.5 billion, up 48%, or up 13% ex. BBD4.

For the full year, reported sales increased 8% and adjusted sales increased 9%, with organic sales1 up 7% (or 6% organically ex. BBD4), exceeding the high end of original full year guidance by 2 points. Operating income decreased 6% and operating margin contracted 250 basis points, while adjusted segment profit1 grew 11% (or 6% ex. BBD4) with adjusted segment margin1 expansion of 40 basis points (or contraction of 40 basis points ex. BBD4) to 22.5%. Full-year EPS was $7.57, flat year over year, and full-year adjusted EPS1 was $9.78, up 12% year over year (or 7% ex. BBD4). Operating cash flow was $6.1 billion, up 19%, and free cash flow1,5 was $5.1 billion, up 20% (or up 7% ex. BBD4).

"We concluded 2025 with strong results that exceeded the high end of our guidance for adjusted sales and adjusted EPS. Orders grew 23% stemming from robust demand in the Aerospace Technologies and Energy and Sustainability Solutions segments, including from our LNG acquisition that closed last year. As a result, we exited 2025 with a record backlog of over $37 billion which positions us well for 2026," said Vimal Kapur, chairman and CEO of Honeywell.

Kapur added, "During the quarter, we also made considerable progress on our portfolio optimization, with the spin off of Solstice Advanced Materials complete. Building on this momentum, we now expect the separation of our automation and aerospace businesses to be completed in the third quarter of 2026. In preparation, this quarter we established our go-forward segment structure for Honeywell, built on complementary business models that will drive cross-portfolio synergies and accelerate profitable growth over the long term, and announced the leadership team for Honeywell Aerospace. These actions all marked critical steps in our simplification journey. With strong management teams and clear strategies in place for both automation and aerospace, we are confident in our ability to deliver on our 2026 commitments,” concluded Kapur.

 

Aerospace Technologies sales for the fourth quarter grew 21% organically1 year over year, or 11% excluding the impact of the prior year’s Bombardier agreement4, led by ongoing strength in commercial aftermarket and defense and space. Commercial aftermarket sales1 increased 13% organically with double-digit growth in both business jet and air transport end markets. Defense and space sales rose 10% driven by sustained elevated global demand. Commercial original equipment growth accelerated from the prior quarter, supported by higher output from an improving supply chain. Orders and backlog both increased at a strong double-digit rate compared to the previous year. Adjusted segment margin1 expanded 620 basis points to 26.5% as a result of the impact of the prior year’s Bombardier agreement4. Excluding this prior year impact, adjusted segment margin1 declined 60 basis points as commercial excellence and volume leverage were more than offset by cost inflation.

Industrial Automation sales for the fourth quarter grew 1% year over year on an organic basis1 and 4% sequentially. Growth was driven by WWS, up 5% on steady conversion of our robust pipeline, continued strength in sensing, up 3% on strong tailwinds in industrial and aerospace and defense end markets, and a return to growth of 1% in PSS, which also delivered double-digit orders growth. Process solutions sales were flat on an organic basis, as strength in aftermarket services was offset by declines in measurement and controls products. Segment margin contracted 120 basis points year over year to 18.4% driven by cost inflation, partially offset by commercial excellence and benefit from the personal protective equipment (PPE) sale. Beginning in 2026, the core Process Solutions business will be reported as part of Process Automation and Technology (PA&T).

Building Automation sales for the fourth quarter increased 8% organically1 year over year. Building solutions grew 9%, led by double-digit growth in services and building products grew 8%, highlighted by continued strength in North America and the Middle East. Orders increased both year over year and sequentially, driven by demand across both building solutions and building products. Segment margin expanded 20 basis points from the prior year to 27.0%, supported by commercial excellence and volume leverage partially offset by inflation.

Energy and Sustainability Solutions sales for the fourth quarter decreased 7% organically1 year over year, driven by demand softness in petrochemical catalysts. Orders growth continued in UOP, led by strong demand in LNG and robust double-digit growth in refining and petrochemicals projects. Segment margin contracted 300 basis points to 23.7% driven by unfavorable mix from lower catalyst volumes and cost inflation. The advanced materials (AM) business is excluded from the ESS reportable business segment in the fourth quarter and full-year 2025 results following the spin-off of Solstice Advanced Materials and subsequent classification of AM as discontinued operations. Beginning in 2026, the businesses in ESS will be reported as part of Process Automation and Technology (PA&T).

Honeywell also announced its outlook for 2026. The company expects sales of $38.8 billion to $39.8 billion with organic1 sales growth in the range of 3% to 6%. Segment margin2 is expected to be 22.7% to 23.1%, with segment margin2,6 expansion of 20 to 60 basis points. Adjusted earnings per share3 is expected to be $10.35 to Honeywell Q4’25 Results - 6

$10.65, up 6% to 9%. The company expects operating cash flow of $4.7 billion to $5.0 billion. Free cash flow1,5 is expected to be $5.3 billion to $5.6 billion, representing growth of 4% to 10% for the full year. A summary of the company's 2026 guidance can be found below. The company's outlook includes full-year expected results for Aerospace, PSS, and WWS, and does not incorporate the pending acquisition of Johnson Matthey's Catalyst Technologies business.

Table 3: Full-Year 2026 Guidance2

 

Sales						$38.8B - $39.8B
Organic1 Growth						3% - 6%
Segment Margin						22.7% - 23.1%
Expansion6						Up 20 - 60 bps
Adjusted Earnings Per Share3						$10.35 - $10.65
Adjusted Earnings Growth3						6% - 9%
Operating Cash Flow						$4.7B - $5.0B
Free Cash Flow1,5						$5.3B - $5.6B
Free Cash Flow1,5 Growth						4% - 10%

In the fourth quarter, Honeywell took steps to further optimize its portfolio and operations ahead of the planned separation of its automation and aerospace businesses now expected in the third quarter of 2026. On October 30, 2025, the company completed the spin-off of Solstice Advanced Materials, now trading on the Nasdaq Stock Market under the ticker ‘SOLS’ and, as a result, began reporting its AM business unit as discontinued operations. In November, the company announced the appointment of Jim Currier as President and CEO of Honeywell Aerospace and Craig Arnold as Chairman of the Honeywell Aerospace Board of Directors upon separation. In January 2026, the company announced Josh Jepsen as CFO of Honeywell Aerospace and made numerous other leadership appointments. In addition, following the strategic alternatives review completed in the fourth quarter, PSS and WWS businesses have been classified as held for sale. The intended sale allows Honeywell to focus on its core areas of automation expertise which are exposed to long-term secular growth drivers that further position the company as a global automation leader.

On January 21, 2026, Honeywell and Flexjet announced that they have reached a comprehensive agreement to resolve their pending litigation and look forward to rebuilding the parties' commercial partnership. The agreement will resolve in full all pending claims among and between the parties, as well as related litigation involving StandardAero and Duncan Aviation. Simultaneously, and as a partial consideration for the resolution of the Honeywell Q4’25 Results - 7

litigation, Honeywell and Flexjet have agreed to extend their aircraft engine maintenance through 2035. Honeywell and Flexjet look forward to working collaboratively going forward.

Honeywell will discuss its fourth-quarter results and full-year 2026 guidance during an investor conference call starting at 8:30 a.m. Eastern Standard 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 is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology that help make the world smarter and safer as well as more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

Honeywell uses our Investor Relations website, www.honeywell.com/investor, 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), including statements related to the proposed separation of Automation and Aerospace Technologies and the planned sale of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. 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, including Honeywell's current expectations, estimates, and projections regarding the proposed separation of Automation and Aerospace Technologies and the planned sale of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. 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, including the proposed separation of Automation and Aerospace Technologies and the planned sale of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and the anticipated benefits of each. 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, 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’s non-GAAP financial measures used in this release are as follows:

•Segment profit, on an overall Honeywell basis;

•Segment profit margin, on an overall Honeywell basis;

•Adjusted segment profit, on an overall Honeywell basis;

•Adjusted segment profit margin, on an overall Honeywell basis;

•Aerospace Technologies adjusted segment profit;

•Aerospace Technologies adjusted segment profit margin;

•Organic sales growth;

•Adjusted net sales;

•Free cash flow; 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 Honeywell Q4’25 Results - 8

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. 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.

Consolidated Statement of Operations (Unaudited)

(Dollars in millions, except per share amounts)

 

			Three Months Ended December 31,												Twelve Months Ended December 31,
			2025						2024						2025						2024
Product sales			$	6,351					$	6,138					$	24,515					$	22,841
Service sales			3,407						3,031						12,927						11,876
Net sales			9,758						9,169						37,442						34,717
Costs, expenses and other
Cost of products sold1			4,360						4,252						16,153						15,017
Cost of services sold1			1,928						1,552						7,460						6,343
Total Cost of products and services sold			6,288						5,804						23,613						21,360
Research and development expenses			465						405						1,812						1,454
Selling, general and administrative expenses1			1,501						1,345						5,450						5,235
Impairment of goodwill			288						—						288						—
Impairment of assets held for sale			220						94						235						219
Other (income) expense			—						(104)						(1,247)						(843)
Interest and other financial charges			376						289						1,344						1,048
Total costs, expenses and other			9,138						7,833						31,495						28,473
Income from continuing operations before taxes			620						1,336						5,947						6,244
Tax expense			316						193						1,069						1,249
Net income from continuing operations			304						1,143						4,878						4,995
Net (loss) income from discontinued operations			(17)						147						304						745
Net Income			287						1,290						5,182						5,740
Less: Net (loss) income attributable to the noncontrolling interest			(8)						5						43						35
Net income attributable to Honeywell			$	295					$	1,285					$	5,139					$	5,705
Earnings per share of common stock from continuing operations - basic			$	0.49					$	1.76					$	7.62					$	7.63
(Loss) earnings per share of common stock from discontinued operations - basic			$	(0.03)					$	0.22					$	0.42					$	1.13
Earnings per share of common stock - basic			$	0.46					$	1.98					$	8.04					$	8.76
Earnings per share of common stock from continuing operations - assuming dilution			$	0.49					$	1.74					$	7.57					$	7.58
(Loss) earnings per share of common stock from discontinued operations - assuming dilution			$	(0.03)					$	0.22					$	0.42					$	1.13
Earnings per share of common stock - assuming dilution			$	0.46					$	1.96					$	7.99					$	8.71
Weighted average number of shares outstanding - basic			635.2						650.6						639.0						650.9
Weighted average number of shares outstanding - assuming dilution			638.6						654.8						642.8						655.3

Segment Data (Unaudited)

 

			Three Months Ended December 31,												Twelve Months Ended December 31,
Net Sales			2025						2024						2025						2024
Aerospace Technologies			$	4,520					$	3,986					$	17,510					$	15,458
Industrial Automation			2,369						2,566						9,401						10,051
Building Automation			1,971						1,798						7,367						6,540
Energy and Sustainability Solutions			892						814						3,134						2,644
Corporate and all other			6						5						30						24
Total Net sales			$	9,758					$	9,169					$	37,422					$	34,717

Reconciliation of Segment Profit to Income Before Taxes

 

			Three Months Ended December 31,												Twelve Months Ended December 31,
Segment Profit			2025						2024						2025						2024
Aerospace Technologies			$	909					$	811					$	4,284					$	3,988
Industrial Automation			435						503						1,743						1,962
Building Automation			532						482						1,953						1,681
Energy and Sustainability Solutions			211						217						692						615
Corporate and All Other			(168)						(146)						(545)						(579)
Total Segment profit			1,919						1,867						8,127						7,667
Interest and other financial charges			(376)						(289)						(1,344)						(1,048)
Interest income1			111						102						369						430
Amortization of acquisition-related intangibles2			(163)						(139)						(570)						(411)
Impairment of goodwill			(288)						—						(288)						—
Impairment of assets held for sale			(220)						(94)						(235)						(219)
Stock compensation expense3			(50)						(39)						(196)						(189)
Pension ongoing income4			156						163						544						591
Pension mark-to-market expense4			(149)						(126)						(163)						(126)
Other postretirement income4			4						(2)						15						11
Repositioning and other charges5,6			(119)						(53)						167						(239)
Other income (expense)7			(205)						(54)						(479)						(223)
Income before taxes			$	620					$	1,336					$	5,947					$	6,244

Consolidated Balance Sheet (Unaudited)

 

			December 31, 2025						December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents			$	12,487					$	9,906
Short-term investments			443						386
Accounts receivable—net			7,621						7,247
Inventories			6,162						5,884
Assets held for sale			2,932						1,365
Other current assets			1,182						1,259
Current assets of discontinued operations			—						1,861
Total current assets			30,827						27,908
Investments and long-term receivables			1,404						1,230
Property, plant and equipment—net			4,629						4,457
Goodwill			21,079						21,019
Other intangible assets—net			6,736						6,621
Deferred income taxes			193						235
Other assets			9,247						10,556
Assets of discontinued operations			—						3,170
Total assets			74,115						75,196
LIABILITIES
Current liabilities:
Accounts payable			$	6,315					$	6,109
Commercial paper and other short-term borrowings			5,893						4,273
Current maturities of long-term debt			1,546						1,325
Accrued liabilities			8,462						8,055
Current liabilities of discontinued operations			—						1,086
Liabilities held for sale			1,200						408
Total current liabilities			23,416						21,256
Long-term debt			27,141						25,440
Deferred income taxes			1,599						1,581
Postretirement benefit obligations other than pensions			111						112
Asbestos related liabilities			—						1,325
Other liabilities			6,408						5,581
Liabilities of discontinued operations			—						740
Redeemable noncontrolling interest			—						7
Shareowners’ equity			15,440						19,154
Total liabilities, redeemable noncontrolling interest and shareowners’ equity			$	74,115					$	75,196

Consolidated Statement of Cash Flows (Unaudited)

Appendix

The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP).

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.

Reconciliation of Organic Sales Percent Change

(Unaudited) 

			Three Months Ended December 31, 2025						Twelve Months Ended December 31, 2025
Honeywell
Reported sales percent change			6%						8%
Less: Impact of divestitures to the prior period			(3)%						(2)%
Reported sales percent change, adjusted for impact of divestitures			9%						10%
Less: Foreign currency translation			1%						—%
Less: Acquisitions			1%						4%
Less: Other1			(4)%						(1)%
Organic sales percent change			11%						7%
Aerospace Technologies
Reported sales percent change			13%						13%
Less: Impact of divestitures to the prior period			—%						—%
Reported sales percent change, adjusted for impact of divestitures			13%						13%
Less: Foreign currency translation			—%						—%
Less: Acquisitions			—%						3%
Less: Other1			(8)%						(2)%
Organic sales percent change			21%						12%
Industrial Automation
Reported sales percent change			(8)%						(6)%
Less: Impact of divestitures to the prior period			(11)%						(6)%
Reported sales percent change, adjusted for impact of divestitures			3%						—%
Less: Foreign currency translation			2%						—%
Less: Acquisitions			—%						—%
Less: Other			—%						—%
Organic sales percent change			1%						—%
Building Automation
Reported sales percent change			10%						13%
Less: Impact of divestitures to the prior period			—%						—%
Reported sales percent change, adjusted for impact of divestitures			10%						13%
Less: Foreign currency translation			2%						—%
Less: Acquisitions			—%						5%
Less: Other			—%						—%
Organic sales percent change			8%						8%
Energy and Sustainability Solutions
Reported sales percent change			10%						19%
Less: Impact of divestitures to the prior period			—%						—%
Reported sales percent change, adjusted for impact of divestitures			10%						19%
Less: Foreign currency translation			—%						—%
Less: Acquisitions			17%						20%
Less: Other			—%						—%
Organic sales percent change			(7)%						(1)%

1						Includes Flexjet-related litigation matters of $312 million, which are considered to be unusual and not indicative of the Company's ongoing performance.

We define organic sales percentage as the year-over-year change in reported sales 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 forward-looking measures 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.

Reconciliation of Net Sales to Adjusted Net Sales

(Unaudited)

We define adjusted net sales as net sales less the sales impact of the Flexjet-related litigation matters. Management considers the nature and significance of these litigation matters to be unusual and not indicative of the Company's ongoing performance. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Reconciliation of Operating Income to Segment Profit and Adjusted Segment Profit, Calculation of Operating Income, Segment Profit, and Adjusted Segment Profit Margins

(Unaudited)

 

			Three Months Ended December 31,																		Twelve Months Ended December 31,
			2025						2024									2025						2024
Operating income			$	996					$	1,521											$	6,044					$	6,449
Stock compensation expense1			50						39												196						189
Repositioning, Other2,3			133						58												675						265
Pension and other postretirement service costs3			25						16												73						61
Amortization of acquisition-related intangibles4			163						139												570						411
Acquisition-related costs5			—						—												2						25
Indefinite-lived intangible asset impairment1			44						—												44						48
Impairment of goodwill			288						—												288						—
Impairment of assets held for sale			220						94												235						219
Segment profit			$	1,919					$	1,867											$	8,127					$	7,667
Flexjet-related litigation matters6			373						—												373						—
Adjusted segment profit			$	2,292					$	1,867											$	8,500					$	7,667
Operating income			$	996					$	1,521											$	6,044					$	6,449
÷ Net sales			$	9,758					$	9,169											$	37,442					$	34,717
Operating income margin %			10.2		%				16.6		%										16.1		%				18.6		%
Segment profit			$	1,919					$	1,867											$	8,127					$	7,667
÷ Net sales			$	9,758					$	9,169											$	37,442					$	34,717
Segment profit margin %			19.7		%				20.4		%										21.7		%				22.1		%
Adjusted segment profit			$	2,292					$	1,867											$	8,500					$	7,667
÷ Adjusted net sales			10,070						9,169												37,754						34,717
Adjusted segment profit margin %			22.8		%				20.4		%										22.5		%				22.1		%

We define operating income as net sales less total cost of products and services sold, research and development expenses, selling, general and administrative expenses, impairment of goodwill, and impairment of assets held for sale. We define segment profit, on an overall Honeywell 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, and repositioning and other charges. We define adjusted segment profit, on an overall Honeywell basis, as segment profit excluding the segment profit impact of the Flexjet-related litigation matters. We define segment profit margin, on an overall Honeywell basis, as segment profit divided by net sales. We define adjusted segment profit margin, on an overall Honeywell basis, as adjusted segment profit divided by adjusted 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 Honeywell 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, particularly pension mark-to-market expense as it is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. 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.

Calculations of Aerospace Technologies Adjusted Segment Profit and Adjusted Segment Profit Margin

(Unaudited)

 

			Three Months Ended December 31,												Twelve Months Ended December 31,
Aerospace Technologies			2025						2024						2025						2024
Segment profit			$	909					$	811					$	4,284					$	3,988
÷ Net sales			$	4,520					$	3,986					$	17,510					$	15,458
Segment profit margin %			20.1		%				20.3		%				24.5		%				25.8		%
Segment profit			$	909					$	811					$	4,284					$	3,988
Add: Flexjet-related litigation matters1			373						—						373						—
Adjusted segment profit			$	1,282					$	811					$	4,657					$	3,988
Net sales			$	4,520					$	3,986					$	17,510					$	15,458
Add: Flexjet-related litigation matters1			312						—						312						—
Adjusted net sales			$	4,832					$	3,986					$	17,822					$	15,458
Adjusted segment profit margin %			26.5		%				20.3		%				26.1		%				25.8		%

1						For the three and twelve months ended December 31, 2025, reflects a $312 million impact to sales due to contra revenue accounting and a $373 million impact to segment profit as a result of the settlement of the Flexjet-related litigation matters.

We define adjusted segment profit as segment profit excluding the segment profit impact associated with the Flexjet-related litigation matters. We define adjusted net sales as sales from continuing operations less the sales impact of the Flexjet-related litigation matters. We define adjusted segment profit margin as adjusted segment profit divided by adjusted net sales. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Reconciliation of Earnings per Share to Adjusted Earnings per Share

(Unaudited)

			Three Months Ended December 31,																		Twelve Months Ended December 31,												Twelve Months Ended December 31,
			2025						2024									2025						2024						2026E
Earnings per share of common stock from continuing operations- diluted1			$	0.49					$	1.74											$	7.57					$	7.58					$9.59 - $9.89
Pension mark-to-market expense2			0.18						0.15												0.19						0.14						No Forecast
Amortization of acquisition-related intangibles3			0.19						0.16												0.67						0.49						0.74
Acquisition-related costs4			0.02						0.03												0.05						0.10						0.02
Divestiture-related costs5			0.37						—												0.72						—						No Forecast
Russian-related charges6			—						—												—						0.03						—
Indefinite-lived intangible asset impairment7			0.07						—												0.07						0.06						—
Impairment of goodwill8			0.45						—												0.45						—						—
Impairment of assets held for sale9			0.35						0.14												0.37						0.33						—
Loss on sale of business10			—						—												0.04						—						—
Gain related to Resideo indemnification and reimbursement agreement termination11			—						—												(1.25)						—						—
Adjustment to estimated future environmental liabilities12			—						—												0.25						—						—
Loss on settlement of divestiture of asbestos liabilities13			—						—												0.17						—						—
Flexjet-related litigation matters14			0.47						—												0.48						—						—
Adjusted earnings per share of common stock from continuing operations - diluted			$	2.59					$	2.22											$	9.78					$	8.73					$10.35 - 10.65

1						For the three months ended December 31, 2025, and 2024, adjusted earnings per share utilizes weighted average shares of approximately 638.6 million and 654.8 million, respectively. For the twelve months ended December 31, 2025, and 2024, adjusted earnings per share utilizes weighted average shares of approximately 642.8 million and 655.3 million, respectively. For the twelve months ended December 31, 2026, expected earnings per share utilizes weighted average shares of approximately 638 million.
2						For the three months ended December 31, 2025 and 2024, pension mark-to-market expense was $113 million and $95 million, net of tax benefit of $36 million and $31 million, respectively. .For the twelve months ended December 31, 2025 and 2024, pension mark-to-market expense was $123 million and $95 million, net of tax benefit of $40 million and $31 million, respectively.
3						For the three months ended December 31, 2025, and 2024, acquisition-related intangibles amortization includes $124 million and $107 million, net of tax benefit of $39 million and $32 million, respectively. For the twelve months ended December 31, 2025, and 2024, acquisition-related intangibles amortization includes $432 million and $321 million, net of tax benefit of $138 million and $90 million, respectively. For the twelve months ended December 31, 2026, expected acquisition-related intangibles amortization includes approximately $470 million, net of tax benefit of approximately $110 million.
4						For the three months ended December 31, 2025, and 2024, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs, is $13 million and $21 million, net of tax benefit of $4 million and $5 million, respectively. For the twelve months ended December 31, 2025, and 2024, 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, is $35 million and $66 million, net of tax benefit of $10 million and $17 million, respectively. 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 $10 million, net of tax benefit of approximately $5 million.
5						For the three and twelve months ended December 31, 2025, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction costs, is $237 million and $460 million, net of tax benefit of approximately $11 million and $61 million, respectively.
6						For the twelve months ended December 31, 2024, the adjustment is a $17 million expense, without tax benefit, due to the settlement of a contractual dispute with a Russian entity associated with the Company’s suspension and wind down activities in Russia.
7						For the three and 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. For the twelve months ended December 31, 2024, the impairment charge of indefinite-lived intangible assets associated with the personal protective equipment business was $37 million, net of tax benefit of $11 million.
8						For the three and twelve months ended December 31, 2025, the impairment charge of goodwill associated with the Industrial Automation reportable segment was $288 million, without tax benefit.
9						For the three months ended December 31, 2025 and 2024, the impairment charge of assets held for sale was $220 million and $94 million, respectively, without tax benefit. For the twelve months ended December 31, 2025 and 2024, the impairment charge of assets held for sale was $235 million and $219 million, respectively, without tax benefit.
10						For the twelve months ended December 31, 2025, the loss on sale of the personal protective equipment business is $28 million, net of tax benefit of $2 million.
11						For the twelve months ended December 31, 2025, the adjustment for the gain related to the Resideo indemnification and reimbursement agreement termination was $802 million, without tax expense.
12						In the twelve months ended December 31, 2025, the Company enhanced its process for estimating environmental liabilities at sites undergoing active remediation, which led to earlier recognition of the estimated probable liabilities and an increase to estimated environmental liabilities. For the twelve months ended December 31, 2025, the adjustment to increase environmental liabilities was $161 million, net of tax benefit of $50 million.
13						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.

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, the pension mark-to-market expense as it 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 plans for the announced separation of Automation and Aerospace Technologies. We therefore do not include an estimate for the pension mark-to-market expense. Based on economic and industry conditions, future developments, and other relevant factors, these assumptions are subject to change.

Reconciliation of Cash Provided by Operating Activities to Free Cash Flow

(Unaudited)

 

 

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, cash payment for settlement of divestiture of asbestos liabilities, and the cash payment for settlement of Flexjet-related litigation matters.

 

Reconciliation of Expected Cash Provided by Operating Activities to Expected Free Cash Flow

(Unaudited)

 

									Twelve Months Ended December 31, 2026(E) ($B)
Cash provided by operating activities									~$4.7 - $5.0
Capital expenditures									~(1.3)
Spin-off and separation-related cost payments									~1.5
Settlement of Flexjet-related litigation matters									~0.4
Free cash flow									~$5.3 - $5.6

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 the cash payment for settlement of Flexjet-related litigation matters.

Appendix

The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this supplemental schedule to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP).

Reconciliation of Organic Sales % Change

(Unaudited)