Core Insights - Honeywell International reported first-quarter earnings of $2.51 per share on revenue of $9.8 billion, exceeding Wall Street expectations of $2.21 per share and $9.6 billion in sales [2] - The company raised its full-year profit forecast, reflecting optimism despite challenges from tariffs and economic uncertainty [3][5] Financial Performance - Earnings increased by 7% year over year, while revenue grew by 8%, including contributions from acquisitions [2] - The company's backlog rose by 8%, driven by strong performance in building automation and energy sectors [2] Market Outlook - Honeywell maintains its full-year growth guidance and has slightly raised its earnings outlook, anticipating a net impact of approximately $500 million from tariffs, which it aims to offset through pricing strategies [3][5] - CEO Vimal Kapur acknowledged the uncertain global demand environment but emphasized the company's commitment to delivering results for customers and shareholders [4] Strategic Changes - Honeywell plans to separate into three streamlined businesses by the end of 2026, focusing on aerospace, automation, and advanced materials [6] - This restructuring could present a favorable investment opportunity for those interested in the individual business units [6]

Core Insights - Honeywell International Inc. reported revenue of $9.82 billion for the quarter ended March 2025, reflecting a year-over-year increase of 7.9% and surpassing the Zacks Consensus Estimate by 2.59% [1] - The company's EPS for the quarter was $2.51, up from $2.25 in the same quarter last year, resulting in an EPS surprise of 13.57% compared to the consensus estimate of $2.21 [1] Financial Performance - Net Sales in Building Automation reached $1.69 billion, exceeding the estimated $1.59 billion, marking an 18.7% increase year-over-year [4] - Aerospace Technologies generated $4.17 billion in Net Sales, surpassing the $4.04 billion estimate, with a year-over-year growth of 13.7% [4] - Corporate and All Other segment reported Net Sales of $19 million, significantly higher than the estimated $10.85 million, representing a 171.4% increase compared to the previous year [4] Segment Profit Analysis - Aerospace Technologies segment profit was $1.10 billion, slightly above the average estimate of $1.06 billion [4] - Building Automation segment profit reached $440 million, exceeding the average estimate of $411.37 million [4] - Energy and Sustainability Solutions segment profit was $346 million, close to the estimated $348.48 million [4] - Industrial Automation segment profit was $424 million, slightly below the average estimate of $430.38 million [4] - Corporate and All Other segment reported a loss of $51 million, better than the average estimate of a loss of $74.95 million [4] Stock Performance - Honeywell's shares have returned -5.2% over the past month, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Honeywell's Q1 2025 adjusted EPS was $2.51, exceeding the guidance range of $2.15-$2.25[24] - Organic sales grew by 4%, driven by double-digit growth in commercial aftermarket, defense and space, and building solutions[24] - Segment margin remained flat at 23.0%, with expansion in Energy and Sustainability Solutions (ESS) and Building Automation (BA)[24] - Free cash flow reached $0.3 billion in Q1 2025[24] Guidance and Outlook - The company is raising its 2025 EPS guidance while considering the net impact of tariffs, mitigation actions, and global economic uncertainty[4] - Q2 2025 sales are projected to be between $9.8 billion and $10.1 billion, with organic growth of 1%-4%[27] - The adjusted EPS for Q2 2025 is expected to be $2.60-$2.70, representing a 4%-8% increase[27] - Full-year 2025 sales are estimated to be $39.6 billion to $40.5 billion, with organic growth of 1%-4% excluding the Bombardier Agreement (BBD)[27] - Full-year 2025 adjusted EPS is projected to be $10.20-$10.50, a 3%-6% increase, or a (1%)-2% increase excluding BBD[27] - Free cash flow for 2025 is expected to be $5.4 billion to $5.8 billion, up 10%-18%, or down (2%)-up 5% excluding BBD[27] Portfolio Transformation - Honeywell is on track to complete the spin-offs of Aerospace and Automation, and Advanced Materials, while maintaining operational focus[17] - Share repurchase has been accelerated to $3 billion year-to-date, aiming for a 2% net share count reduction in 2025[17] - The company announced the Sundyne acquisition for $2.2 billion in an all-cash transaction[24] Mitigation of Global Trade Uncertainty - Honeywell estimates a $500 million exposure in 2025 due to current tariffs, which it plans to fully offset through mitigation efforts[22] - The company is utilizing a multi-pronged approach, including targeted pricing actions, direct material productivity, alternative sourcing, and proactive customer communication[23]

Group 1: Market Overview - On April 29, US stock market opened with Dow Jones up 0.09%, Nasdaq down 0.54%, and S&P 500 down 0.4% [1] - Honeywell's stock rose over 3% due to better-than-expected Q1 performance [1] - General Motors' stock fell over 2% due to suspension of stock buyback guidance related to Trump tariffs [1] Group 2: Company Performance - Coca-Cola reported a 2% decline in net revenue to $11.1 billion, but comparable EPS exceeded expectations at $0.73 [2] - General Motors' Q1 net sales and revenue reached $44.02 billion, a 2.3% year-over-year increase, with adjusted EPS of $2.78, above market expectations [3] - Honeywell's Q1 sales grew 8% year-over-year, with adjusted EPS of $2.51, a 7% increase compared to the previous year [4]

[Cautionary Statement about Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statement%20about%20Forward-Looking%20Statements) This section outlines forward-looking statements regarding proposed spin-offs, divestitures, and acquisitions, noting potential risks and uncertainties - The report contains forward-looking statements regarding proposed spin-offs (Advanced Materials into Solstice, Automation and Aerospace Technologies separation), the sale of the personal protective equipment business, and the acquisition of Sundyne[5](index=5&type=chunk) - These statements are based on management's assumptions but are not guarantees, and actual results may differ due to material risks and uncertainties, including macroeconomic and geopolitical risks, supply chain disruptions, capital markets volatility, and inflation[5](index=5&type=chunk) [About Honeywell](index=4&type=section&id=About%20Honeywell) Honeywell International Inc. operates globally across diverse industries, focusing on automation, aviation, and energy transition through four key segments - Honeywell International Inc. is an integrated operating company serving diverse global industries, focusing on automation, the future of aviation, and energy transition, supported by its Honeywell Accelerator operating system and Honeywell Forge Internet of Things (IoT) platform[7](index=7&type=chunk) - The company's business is structured into four segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions[7](index=7&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20Financial%20Information) This part presents Honeywell's unaudited financial statements and management's discussion and analysis for the first quarter [ITEM 1. Financial Statements and Supplementary Data (unaudited)](index=5&type=section&id=ITEM%201%20Financial%20Statements%20and%20Supplementary%20Data%20(unaudited)) This section presents Honeywell's unaudited consolidated financial statements for the three months ended March 31, 2025, and 2024, including statements of operations, comprehensive income, balance sheets, cash flows, and shareowners' equity, along with detailed notes explaining the basis of presentation, significant accounting policies, and specific financial items [Consolidated Statement of Operations (unaudited)](index=5&type=section&id=Consolidated%20Statement%20of%20Operations%20(unaudited)) This statement details Honeywell's revenues, expenses, and net income for the three months ended March 31, 2025, and 2024 Consolidated Statement of Operations Summary | Metric | 3 Months Ended March 31, 2025 (Millions $) | 3 Months Ended March 31, 2024 (Millions $) | | :--------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net Sales | 9,822 | 9,105 | | Total Cost of products and services sold | 6,037 | 5,583 | | Research and development expenses | 439 | 360 | | Selling, general and administrative expenses | 1,361 | 1,302 | | Impairment of assets held for sale | 15 | — | | Other (income) expense | (200) | (231) | | Interest and other financial charges | 286 | 220 | | Income before taxes | 1,884 | 1,871 | | Tax expense | 417 | 396 | | Net income | 1,467 | 1,475 | | Net income attributable to Honeywell | 1,449 | 1,463 | | Earnings per share of common stock—basic | 2.24 | 2.24 | | Earnings per share of common stock—assuming dilution | 2.22 | 2.23 | [Consolidated Statement of Comprehensive Income (unaudited)](index=6&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income%20(unaudited)) This statement presents Honeywell's net income and other comprehensive income components for the three months ended March 31, 2025, and 2024 Consolidated Statement of Comprehensive Income Summary | Metric | 3 Months Ended March 31, 2025 (Millions $) | 3 Months Ended March 31, 2024 (Millions $) | | :----------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net income | 1,467 | 1,475 | | Other comprehensive income (loss), net of tax | (285) | 63 | | Comprehensive income | 1,182 | 1,538 | | Comprehensive income attributable to Honeywell | 1,152 | 1,550 | [Consolidated Balance Sheet (unaudited)](index=7&type=section&id=Consolidated%20Balance%20Sheet%20(unaudited)) This statement provides a snapshot of Honeywell's assets, liabilities, and equity as of March 31, 2025, and December 31, 2024 Consolidated Balance Sheet Summary | Metric | March 31, 2025 (Millions $) | December 31, 2024 (Millions $) | | :----------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Total current assets | 27,645 | 27,908 | | Total assets | 75,218 | 75,196 | | Total current liabilities | 22,071 | 21,256 | | Long-term debt | 25,744 | 25,479 | | Total shareowners' equity | 18,024 | 19,154 | | Total liabilities, redeemable noncontrolling interest and shareowners' equity | 75,218 | 75,196 | [Consolidated Statement of Cash Flows (unaudited)](index=8&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%20(unaudited)) This statement outlines Honeywell's cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2025, and 2024 Consolidated Statement of Cash Flows Summary | Metric | 3 Months Ended March 31, 2025 (Millions $) | 3 Months Ended March 31, 2024 (Millions $) | | :----------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash provided by operating activities | 597 | 448 | | Net cash used for investing activities | (371) | (273) | | Net cash (used for) provided by financing activities | (1,180) | 3,696 | | Net (decrease) increase in cash and cash equivalents | (910) | 3,831 | | Cash and cash equivalents at end of period | 9,657 | 11,756 | [Consolidated Statement of Shareowners' Equity (unaudited)](index=9&type=section&id=Consolidated%20Statement%20of%20Shareowners%27%20Equity%20(unaudited)) This statement details changes in Honeywell's shareowners' equity, including dividends and stock repurchases, for the three months ended March 31, 2025, and 2024 Consolidated Statement of Shareowners' Equity Summary | Metric | 3 Months Ended March 31, 2025 (Millions $) | 3 Months Ended March 31, 2024 (Millions $) | | :----------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Total shareowners' equity (end of period) | 18,024 | 17,045 | | Cash dividends per share of common stock | 1.13 | 1.08 | | Repurchases of common stock (shares in millions) | (8.9) | (3.4) | | Repurchases of common stock (cost in millions $) | (1,902) | (671) | [Note 1. Basis of Presentation](index=10&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation) This note explains the basis for preparing the unaudited interim financial statements and the fiscal calendar used - The unaudited Consolidated Financial Statements reflect all necessary adjustments for fair presentation, with interim results not necessarily indicative of the entire year[27](index=27&type=chunk) - Honeywell uses a predetermined fiscal calendar for quarterly closing dates, which may cause minor differences in year-over-year comparisons, but these effects are generally not significant[28](index=28&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=10&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) This note details reclassifications, supply chain financing, and the evaluation and adoption of new accounting pronouncements - Certain prior year amounts were reclassified to conform to current year presentation, including the separate disclosure of changes in Income taxes within operating activities on the Consolidated Statement of Cash Flows[30](index=30&type=chunk) - Amounts outstanding related to supply chain financing programs are included in Accounts payable, totaling approximately **$1,108 million** as of March 31, 2025, and **$1,150 million** as of December 31, 2024[31](index=31&type=chunk) - The Company is evaluating the impact of new FASB ASUs on Income Statement Expense Disaggregation Disclosures (ASU 2024-03) and Income Taxes Disclosures (ASU 2023-09), while ASU 2023-07 on Segment Reporting was adopted for Q1 2025 interim disclosures without material impact[33](index=33&type=chunk)[34](index=34&type=chunk)[37](index=37&type=chunk) [Note 3. Acquisitions, Divestitures, and Assets and Liabilities Held for Sale](index=11&type=section&id=Note%203%20%E2%80%93%20Acquisitions%2C%20Divestitures%2C%20and%20Assets%20and%20Liabilities%20Held%20for%20Sale) This note outlines recent and planned acquisitions, divestitures, and the classification of assets held for sale, including related impairment charges - Honeywell agreed to acquire Sundyne in an all-cash transaction for **$2,160 million**, expected to close in Q2 2025 and be included within the Energy and Sustainability Solutions segment[38](index=38&type=chunk) - Recent acquisitions include Air Products' LNG business (**$1,837 million**), CAES Systems Holdings LLC (**$1,935 million**), Civitanavi Systems S.p.A. (**$200 million**), and Carrier Global Corporation's Global Access Solutions business (**$4,913 million**)[39](index=39&type=chunk)[40](index=40&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - The company announced intentions to separate its Automation and Aerospace Technologies businesses into independent public companies by H2 2026 and spin off its Advanced Materials business (Solstice Advanced Materials) by end of 2025 or early 2026, both intended as tax-free separations[46](index=46&type=chunk)[47](index=47&type=chunk) - The Personal Protective Equipment (PPE) business is classified as held for sale, with an agreement to sell for **$1,325 million** expected to close in Q2 2025. A **$15 million** impairment charge was recognized in Q1 2025 to write down the disposal group to fair value less costs to sell[49](index=49&type=chunk)[50](index=50&type=chunk) [Note 4. Revenue Recognition and Contracts with Customers](index=14&type=section&id=Note%204%20%E2%80%93%20Revenue%20Recognition%20and%20Contracts%20with%20Customers) This note provides a breakdown of net sales by segment and timing of recognition, along with remaining performance obligations Net Sales by Segment | Segment | Q1 2025 (Millions $) | Q1 2024 (Millions $) | Change (%) | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Aerospace Technologies | 4,172 | 3,669 | 13.7% | | Industrial Automation | 2,378 | 2,478 | (4.0)% | | Building Automation | 1,692 | 1,426 | 18.7% | | Energy and Sustainability Solutions | 1,561 | 1,525 | 2.4% | | Corporate and All Other | 19 | 7 | 171.4% | | **Total Net Sales** | **9,822** | **9,105** | **7.9%** | - The gas detection business was realigned from Sensing and Safety Technologies to Process Solutions within Industrial Automation in April 2024, with historical periods recast to reflect this change[53](index=53&type=chunk) Revenue Recognition Timing | Timing of Recognition | Q1 2025 | Q1 2024 | | :-------------------------- | :------ | :------ | | Products, transferred point in time | 57 % | 58 % | | Products, transferred over time | 11 % | 11 % | | Services, transferred point in time | 5 % | 5 % | | Services, transferred over time | 27 % | 26 % | | **Net sales** | **100 %** | **100 %** | - Remaining performance obligations as of March 31, 2025, totaled **$36,097 million**, with **53%** expected to be satisfied within one year and **47%** greater than one year[68](index=68&type=chunk)[69](index=69&type=chunk) [Note 5. Repositioning and Other Charges](index=17&type=section&id=Note%205%20%E2%80%93%20Repositioning%20and%20Other%20Charges) This note details repositioning charges, including severance and exit costs, and other charges for the periods presented Repositioning and Other Charges Summary | Charge Type | 3 Months Ended March 31, 2025 (Millions $) | 3 Months Ended March 31, 2024 (Millions $) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Total net repositioning charges | 9 | 34 | | Asbestos-related charges, net | 20 | 18 | | Probable and reasonably estimable environmental liabilities, net | 16 | 24 | | Other charges | — | 17 | | **Total net repositioning and other charges** | **45** | **93** | - In Q1 2025, gross repositioning charges totaled **$36 million**, including **$24 million** for severance related to **713** workforce reductions (primarily Building Automation and Industrial Automation) and **$11 million** for exit costs. **$27 million** of previously established reserves were returned to income[74](index=74&type=chunk) - In Q1 2024, gross repositioning charges totaled **$49 million**, including **$33 million** for severance related to **1,362** workforce reductions (primarily Industrial Automation and Building Automation) and **$15 million** for exit costs. **$15 million** of previously established reserves were returned to income[77](index=77&type=chunk) [Note 6. Income Taxes](index=18&type=section&id=Note%206%20%E2%80%93%20Income%20Taxes) This note explains the effective tax rate changes, primarily due to internal legal entity restructuring - The effective tax rate increased in Q1 2025 compared to Q1 2024 due to increased tax expense related to internal legal entity restructuring in advance of the anticipated sale of the PPE business[81](index=81&type=chunk) [Note 7. Inventories](index=18&type=section&id=Note%207%20%E2%80%93%20Inventories) This note provides a breakdown of inventory components, including raw materials, work in process, and finished products Inventories Breakdown | Inventory Type | March 31, 2025 (Millions $) | December 31, 2024 (Millions $) | | :----------------- | :-------------------------- | :----------------------------- | | Raw materials | 1,744 | 1,528 | | Work in process | 1,396 | 1,346 | | Finished products | 3,471 | 3,568 | | **Total Inventories** | **6,611** | **6,442** | [Note 8. Goodwill and Other Intangible Assets—Net](index=19&type=section&id=Note%208%20%E2%80%93%20Goodwill%20and%20Other%20Intangible%20Assets%E2%80%94Net) This note details changes in goodwill by segment and the net carrying amount of other intangible assets Goodwill by Segment | Segment | December 31, 2024 (Millions $) | Acquisitions (Millions $) | Currency Translation Adjustment (Millions $) | March 31, 2025 (Millions $) | | :-------------------------------- | :----------------------------- | :------------------------ | :--------------------------------------- | :-------------------------- | | Aerospace Technologies | 3,028 | 5 | 11 | 3,044 | | Industrial Automation | 9,164 | — | 92 | 9,256 | | Building Automation | 6,136 | — | 57 | 6,193 | | Energy and Sustainability Solutions | 2,598 | 3 | 4 | 2,605 | | Corporate and All Other | 899 | — | 24 | 923 | | **Total Goodwill** | **21,825** | **8** | **188** | **22,021** | Other Intangible Assets Net Carrying Amount | Intangible Type | March 31, 2025 Net Carrying Amount (Millions $) | December 31, 2024 Net Carrying Amount (Millions $) | | :-------------------------- | :------------------------------------------ | :--------------------------------------------- | | Patents and technology | 1,638 | 1,664 | | Customer relationships | 4,069 | 4,160 | | Trademarks (definite-life) | 103 | 102 | | Other (definite-life) | 288 | 291 | | Trademarks (indefinite-life) | 439 | 439 | | **Total Other intangible assets—net** | **6,537** | **6,656** | - Intangible assets amortization expense increased to **$136 million** for Q1 2025, up from **$70 million** in Q1 2024[84](index=84&type=chunk) [Note 9. Debt and Credit Agreements](index=20&type=section&id=Note%209%20%E2%80%93%20Debt%20and%20Credit%20Agreements) This note outlines the company's long-term debt, short-term borrowings, and available credit facilities Debt and Credit Agreements Summary | Metric | March 31, 2025 (Millions $) | December 31, 2024 (Millions $) | | :----------------------------------------- | :-------------------------- | :----------------------------- | | Total Long-term debt and current related maturities | 27,076 | 26,826 | | Less: Current maturities of long-term debt | 1,332 | 1,347 | | **Total Long-term debt** | **25,744** | **25,479** | - Commercial paper and other short-term borrowings outstanding increased to **$5.8 billion** as of March 31, 2025 (weighted average interest rate **4.10%**), from **$4.3 billion** as of December 31, 2024 (weighted average interest rate **4.22%**)[89](index=89&type=chunk) - The Company entered into a new **$3.0 billion** 364-day credit agreement on March 17, 2025, replacing a **$1.5 billion** agreement, and maintains a **$4.0 billion** five-year credit agreement, with no outstanding borrowings under either as of March 31, 2025[90](index=90&type=chunk)[91](index=91&type=chunk) [Note 10. Leases](index=21&type=section&id=Note%2010%20%E2%80%93%20Leases) This note presents the company's operating and finance lease liabilities Lease Liabilities | Lease Type | March 31, 2025 (Millions $) | December 31, 2024 (Millions $) | | :-------------------------- | :-------------------------- | :----------------------------- | | Operating lease liabilities | 1,159 | 1,126 | | Finance lease liabilities | 140 | 154 | [Note 11. Derivative Instruments and Hedging Transactions](index=22&type=section&id=Note%2011%20%E2%80%93%20Derivative%20Instruments%20and%20Hedging%20Transactions) This note details the notional amounts and fair values of derivative instruments used for hedging and other purposes Derivative Instruments and Hedging Transactions Summary | Metric | March 31, 2025 Notional (Millions $) | December 31, 2024 Notional (Millions $) | March 31, 2025 Fair Value Asset (Millions $) | December 31, 2024 Fair Value Asset (Millions $) | March 31, 2025 Fair Value (Liability) (Millions $) | December 31, 2024 Fair Value (Liability) (Millions $) | | :----------------------------------------- | :----------------------------------- | :-------------------------------------- | :------------------------------------------ | :--------------------------------------------- | :------------------------------------------------ | :-------------------------------------------------- | | Total derivatives designated as hedging instruments | 12,142 | 12,349 | 45 | 157 | (334) | (205) | | Total Derivative instruments | 20,596 | 21,122 | 46 | 160 | (340) | (210) | - The carrying value of debt instruments designated as net investment hedges increased to **$6,399 million** as of March 31, 2025, from **$6,158 million** as of December 31, 2024[95](index=95&type=chunk) [Note 12. Fair Value Measurements](index=24&type=section&id=Note%2012%20%E2%80%93%20Fair%20Value%20Measurements) This note describes the fair value hierarchy used for financial and nonfinancial assets and liabilities, including Level 2 and Level 3 measurements - The Company classifies financial and nonfinancial assets and liabilities based on a three-level fair value hierarchy, with most derivatives and available-for-sale investments classified as **Level 2**[102](index=102&type=chunk) - The disposal group of the PPE business was measured at fair value less costs to sell using significant unobservable inputs (**Level 3**)[109](index=109&type=chunk) [Note 13. Earnings Per Share](index=25&type=section&id=Note%2013%20%E2%80%93%20Earnings%20Per%20Share) This note provides the calculation of basic and diluted earnings per share, including factors affecting diluted EPS Earnings Per Share Calculation | Metric | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :----------------------------------------- | :---------------------------- | :---------------------------- | | Net income attributable to Honeywell (Millions $) | 1,449 | 1,463 | | Weighted average shares outstanding (Millions) | 648.2 | 652.3 | | Earnings per share of common stock—basic | $2.24 | $2.24 | | Total weighted average diluted shares outstanding (Millions) | 651.7 | 656.6 | | Earnings per share of common stock—assuming dilution | $2.22 | $2.23 | - The diluted EPS calculations excluded **2.4 million** stock options in Q1 2025 (compared to **4.9 million** in Q1 2024) because their exercise cost exceeded the average market price[110](index=110&type=chunk) [Note 14. Accumulated Other Comprehensive Loss](index=26&type=section&id=Note%2014%20%E2%80%93%20Accumulated%20Other%20Comprehensive%20Loss) This note details the components of accumulated other comprehensive loss, including foreign exchange and pension adjustments Accumulated Other Comprehensive Loss Components | Component | Balance at Dec 31, 2024 (Millions $) | Net Current Period OCI (Loss) (Millions $) | Balance at Mar 31, 2025 (Millions $) | | :----------------------------------------- | :----------------------------------- | :--------------------------------------- | :----------------------------------- | | Foreign Exchange Translation Adjustment | (2,872) | (290) | (3,162) | | Pension and Other Postretirement Benefit Adjustments | (642) | 11 | (631) | | Changes in Fair Value of Available for Sale Investments | (1) | — | (1) | | Changes in Fair Value of Cash Flow Hedges | 24 | (18) | 6 | | **Total** | **(3,491)** | **(297)** | **(3,788)** | [Note 15. Commitments and Contingencies](index=26&type=section&id=Note%2015%20%E2%80%93%20Commitments%20and%20Contingencies) This note discusses environmental liabilities, asbestos-related claims, and ongoing legal investigations and resolutions - Environmental liabilities increased to **$747 million** as of March 31, 2025, from **$678 million** at December 31, 2024, with **$106 million** in new accruals and **$37 million** in payments[116](index=116&type=chunk) - Honeywell has an indemnification agreement with Resideo Technologies, Inc. for **90%** of annual net spending on environmental matters at certain sites, capped at **$140 million** annually. A receivable of **$90 million** was recorded in Q1 2025[119](index=119&type=chunk)[120](index=120&type=chunk) - Asbestos-related liabilities for Bendix claims decreased to **$1,439 million** as of March 31, 2025, from **$1,482 million** at December 31, 2024, with **4,954** unresolved claims at period-end[121](index=121&type=chunk)[124](index=124&type=chunk) - The Company is cooperating with an SEC investigation primarily focused on certain accounting matters in its former Performance Materials and Technologies segment, but does not expect a material adverse effect[129](index=129&type=chunk) - Comprehensive resolution was reached in December 2022 for Petrobras and Unaoil investigations, with a **$203 million** payment made in January 2023, resolving all related investigations[130](index=130&type=chunk)[131](index=131&type=chunk) [Note 16. Pension Benefits](index=29&type=section&id=Note%2016%20%E2%80%93%20Pension%20Benefits) This note outlines the net periodic benefit cost for U.S. and non-U.S. pension plans and related transactions Net Periodic Pension Benefit Cost | Component | U.S. Plans Q1 2025 (Millions $) | U.S. Plans Q1 2024 (Millions $) | Non-U.S. Plans Q1 2025 (Millions $) | Non-U.S. Plans Q1 2024 (Millions $) | | :-------------------------------- | :------------------------------ | :------------------------------ | :-------------------------------- | :-------------------------------- | | Service cost | 7 | 7 | 1 | 3 | | Interest cost | 147 | 150 | 47 | 47 | | Expected return on plan assets | (289) | (281) | (73) | (74) | | Amortization of prior service (credit) cost | — | (2) | — | — | | Recognition of actuarial (gains) losses | — | — | 14 | — | | **Net periodic benefit (income) cost** | **(135)** | **(126)** | **(11)** | **(24)** | - The Company repurchased **$200 million** of its common stock from the Honeywell U.S. Pension Plan Master Trust during Q1 2025[136](index=136&type=chunk) [Note 17. Other (Income) Expense](index=30&type=section&id=Note%2017%20%E2%80%93%20Other%20(Income)%20Expense) This note provides a breakdown of other income and expense components, including interest income, pension income, and acquisition/divestiture costs Other (Income) Expense Breakdown | Component | 3 Months Ended March 31, 2025 (Millions $) | 3 Months Ended March 31, 2024 (Millions $) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Interest income | (90) | (105) | | Pension ongoing income—non-service | (155) | (161) | | Other postretirement income—non-service | (4) | (6) | | Equity income of affiliated companies | (17) | (16) | | Foreign exchange (gain) loss | 4 | 26 | | Divestiture-related costs | 48 | — | | Acquisition-related costs | 6 | 2 | | Expense related to Russia-Ukraine conflict | — | 17 | | Other, net | 8 | 12 | | **Total Other (income) expense** | **(200)** | **(231)** | [Note 18. Segment Financial Data](index=30&type=section&id=Note%2018%20%E2%80%93%20Segment%20Financial%20Data) This note presents financial data for Honeywell's four reportable business segments, including segment profit and total assets - Honeywell globally manages its business operations through four reportable business segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions[138](index=138&type=chunk) - Effective Q2 2024, segment profit calculation was updated to exclude amortization of acquisition-related intangible assets, certain acquisition- and divestiture-related costs, and impairments, with historical periods recast for comparability[139](index=139&type=chunk)[140](index=140&type=chunk) Segment Profit by Business Segment | Segment | Q1 2025 Segment Profit (Millions $) | Q1 2024 Segment Profit (Millions $) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | | Aerospace Technologies | 1,099 | 1,035 | | Industrial Automation | 424 | 474 | | Building Automation | 440 | 350 | | Energy and Sustainability Solutions | 346 | 303 | | Corporate and All Other | (51) | (68) | | **Total Segment profit** | **2,258** | **2,094** | Total Assets by Business Segment | Segment | March 31, 2025 (Millions $) | December 31, 2024 (Millions $) | | :-------------------------------- | :-------------------------- | :----------------------------- | | Aerospace Technologies | 17,506 | 16,966 | | Industrial Automation | 21,344 | 21,035 | | Building Automation | 11,719 | 11,438 | | Energy and Sustainability Solutions | 10,420 | 10,337 | | Corporate and All Other | 14,229 | 15,420 | | **Total assets** | **75,218** | **75,196** | [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=ITEM%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed discussion and analysis of Honeywell's financial condition and results of operations for the three months ended March 31, 2025, covering macroeconomic conditions, strategic business updates (spin-offs, separations), consolidated operating results, segment performance, and liquidity and capital resources [Business Update](index=33&type=section&id=BUSINESS%20UPDATE) This section provides an overview of macroeconomic conditions and strategic corporate actions, including planned spin-offs and separations [Macroeconomic Conditions](index=33&type=section&id=MACROECONOMIC%20CONDITIONS) The company monitors evolving macroeconomic conditions and geopolitical risks, implementing strategies to mitigate potential impacts - The company is closely monitoring evolving macroeconomic conditions and heightened geopolitical risks, including increased economic and trade policy uncertainty, rising trade tensions, global conflicts, tariffs, labor disruptions, and inflation[153](index=153&type=chunk) - Mitigation strategies include pricing actions, hedging, long-term strategies for constrained materials, direct supplier engagement, and new supplier development to reduce supply risk and foster innovation[154](index=154&type=chunk) [Spin-Off of Advanced Materials](index=33&type=section&id=SPIN-OFF%20OF%20ADVANCED%20MATERIALS) Honeywell plans to spin off its Advanced Materials business into an independent public company, Solstice Advanced Materials, by late 2025 or early 2026 - Honeywell announced its intention to spin off its Advanced Materials business into Solstice Advanced Materials, an independent, U.S. publicly traded company, targeted for completion by the end of 2025 or early 2026, intended as a tax-free spin-off[156](index=156&type=chunk) [Separation of Automation and Aerospace Technologies](index=34&type=section&id=SEPARATION%20OF%20AUTOMATION%20AND%20AEROSPACE%20TECHNOLOGIES) The company intends to separate its Automation and Aerospace Technologies businesses into independent public companies by the second half of 2026 - The Company announced its intention to pursue a separation of its Automation and Aerospace Technologies businesses into independent, U.S. publicly traded companies, intended to be completed in the second half of 2026 as a tax-free separation[157](index=157&type=chunk) [Results of Operations](index=34&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the consolidated operating results, including net sales, costs, and income components, for the reporting period [Net Sales](index=36&type=section&id=Net%20Sales) Net sales increased due to acquisitions, pricing, and higher volumes, partially offset by foreign currency impacts Net Sales Change Factors | Factor | Q1 2025 vs. Q1 2024 Change | | :-------------------------------- | :------------------------- | | Volume | 2% | | Price | 2% | | Foreign currency translation | (1)% | | Acquisitions, divestitures, and other, net | 5% | | **Total % change in Net sales** | **8%** | - Net sales increased due to incremental sales from recent acquisitions, increased pricing, and higher sales volumes, partially offset by the unfavorable impact of foreign currency translation[172](index=172&type=chunk) - Backlog of orders increased **13%** to **$36.1 billion** as of March 31, 2025, compared to March 31, 2024[170](index=170&type=chunk) [Cost of Products and Services Sold](index=37&type=section&id=Cost%20of%20Products%20and%20Services%20Sold) Costs increased due to acquisitions, higher material and labor costs, and sales of lower-margin products, partially offset by productivity gains - Cost of products and services sold increased due to incremental costs from recent acquisitions (approximately **$0.3 billion** or **5%**), higher direct and indirect material and labor costs (approximately **$0.2 billion** or **4%**), and higher sales volumes of lower margin products (approximately **$0.1 billion** or **2%**), partially offset by higher productivity (approximately **$0.2 billion** or **4%**)[179](index=179&type=chunk) [Gross Margin](index=37&type=section&id=Gross%20Margin) Gross margin increased in absolute terms but decreased as a percentage of sales due to various cost factors - Gross margin increased by approximately **$0.3 billion**, but the gross margin percentage decreased **20 basis points** to **38.5%** in Q1 2025 compared to **38.7%** for the same period of 2024[178](index=178&type=chunk) [Research and Development Expenses](index=38&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses increased, primarily driven by higher spending in the Aerospace Technologies business - Research and development expenses increased due to increased spending, primarily in the Aerospace Technologies business[182](index=182&type=chunk) Research and Development Costs | Metric | 3 Months Ended March 31, 2025 (Millions $) | 3 Months Ended March 31, 2024 (Millions $) | | :---------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Company funded research and development expenses | 439 | 360 | | Customer-sponsored research and development | 267 | 269 | | **Total research and development costs** | **706** | **629** | [Selling, General and Administrative Expenses](index=38&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) Selling, general and administrative expenses increased due to incremental costs from acquisitions - Selling, general and administrative expenses increased due to incremental costs from acquisitions[185](index=185&type=chunk) [Impairment of Assets Held for Sale](index=39&type=section&id=Impairment%20of%20Assets%20Held%20for%20Sale) An impairment charge was recorded for assets held for sale related to the Personal Protective Equipment business - An impairment charge of **$15 million** was recorded on assets held for sale related to the PPE business during the three months ended March 31, 2025[188](index=188&type=chunk) [Other (Income) Expense](index=39&type=section&id=Other%20(Income)%20Expense) Other income decreased primarily due to higher divestiture-related costs during the period - Other income decreased due to higher divestiture-related costs[190](index=190&type=chunk) [Interest and Other Financial Charges](index=39&type=section&id=Interest%20and%20Other%20Financial%20Charges) Interest and other financial charges increased, mainly attributable to prior year issuances of long-term debt - Interest and other financial charges increased to **$286 million** in Q1 2025 from **$220 million** in Q1 2024, primarily due to prior year issuances of long-term debt[191](index=191&type=chunk)[192](index=192&type=chunk) [Tax Expense](index=39&type=section&id=Tax%20Expense) The effective tax rate increased due to higher tax expense from internal legal entity restructuring for the PPE business sale - The effective tax rate increased **90 basis-points** as a result of increased tax expense related to internal legal entity restructuring in advance of the anticipated sale of the PPE business[196](index=196&type=chunk) [Net Income Attributable to Honeywell](index=40&type=section&id=Net%20Income%20Attributable%20to%20Honeywell) Diluted earnings per share slightly decreased due to higher divestiture costs, interest charges, and amortization, partially offset by segment profit - Earnings per share of common stock—assuming dilution slightly decreased, primarily due to higher divestiture-related costs (**$0.08** after tax), higher interest and other financial charges (**$0.08** after tax), and higher acquisition-related intangibles amortization (**$0.07** after tax), partially offset by higher segment profit (**$0.20** after tax)[201](index=201&type=chunk) [Review of Business Segments](index=41&type=section&id=REVIEW%20OF%20BUSINESS%20SEGMENTS) This section provides a detailed review of the financial performance for each of Honeywell's four reportable business segments [Aerospace Technologies](index=41&type=section&id=AEROSPACE%20TECHNOLOGIES) Sales and segment profit increased, driven by commercial aviation aftermarket and defense, though segment margin percentage decreased Aerospace Technologies Performance Summary | Metric | Q1 2025 (Millions $) | Q1 2024 (Millions $) | Change (%) | | :---------------- | :------------------- | :------------------- | :--------- | | Net sales | 4,172 | 3,669 | 14 % | | Segment profit | 1,099 | 1,035 | 6 % | Aerospace Technologies Change Factors | Factor | Net Sales Change (%) | Segment Profit Change (%) | | :-------------------------------- | :------------------- | :------------------------ | | Organic | 9 % | 6 % | | Foreign currency translation | — % | (1)% | | Acquisitions, divestitures, and other, net | 5 % | 1 % | | **Total % change** | **14 %** | **6 %** | - Sales increased by **$503 million**, driven by higher organic sales in Commercial Aviation Aftermarket (**$243 million**) due to increased flight hours and in Defense and Space (**$135 million**) due to increased shipments. Acquisitions of CAES and Civitanavi Systems contributed **$180 million**[208](index=208&type=chunk) - Segment margin percentage decreased **190 basis points** to **26.3%** in Q1 2025 from **28.2%** in Q1 2024[209](index=209&type=chunk) [Industrial Automation](index=42&type=section&id=INDUSTRIAL%20AUTOMATION) Sales and segment profit decreased due to lower organic sales in productivity solutions and sensing technologies, and unfavorable currency translation Industrial Automation Performance Summary | Metric | Q1 2025 (Millions $) | Q1 2024 (Millions $) | Change (%) | | :---------------- | :------------------- | :------------------- | :--------- | | Net sales | 2,378 | 2,478 | (4)% | | Segment profit | 424 | 474 | (11)% | Industrial Automation Change Factors | Factor | Net Sales Change (%) | Segment Profit Change (%) | | :-------------------------------- | :------------------- | :------------------------ | | Organic | (2)% | (9)% | | Foreign currency translation | (2)% | (2)% | | Acquisitions, divestitures, and other, net | — % | — % | | **Total % change** | **(4)%** | **(11)%** | - Sales decreased by **$100 million**, primarily due to lower organic sales in Productivity Solutions and Services (**$48 million**) from decreased license and settlement payments, lower organic sales in Sensing and Safety Technologies (**$21 million**) due to reduced PPE demand, and unfavorable foreign currency translation (**$42 million**)[213](index=213&type=chunk) - Segment margin percentage decreased **130 basis points** to **17.8%** in Q1 2025 from **19.1%** in Q1 2024[215](index=215&type=chunk) [Building Automation](index=43&type=section&id=BUILDING%20AUTOMATION) Sales and segment profit increased significantly, driven by higher organic sales and the acquisition of Access Solutions Building Automation Performance Summary | Metric | Q1 2025 (Millions $) | Q1 2024 (Millions $) | Change (%) | | :---------------- | :------------------- | :------------------- | :--------- | | Net sales | 1,692 | 1,426 | 19 % | | Segment profit | 440 | 350 | 26 % | Building Automation Change Factors | Factor | Net Sales Change (%) | Segment Profit Change (%) | | :-------------------------------- | :------------------- | :------------------------ | | Organic | 8 % | 12 % | | Foreign currency translation | (2)% | (3)% | | Acquisitions, divestitures, and other, net | 13 % | 17 % | | **Total % change** | **19 %** | **26 %** | - Sales increased by **$266 million**, driven by higher organic sales in Building Solutions (**$68 million**) and Products (**$51 million**) due to increased demand. The acquisition of Access Solutions contributed **$179 million**[221](index=221&type=chunk) - Segment margin percentage increased **150 basis points** to **26.0%** in Q1 2025 from **24.5%** in Q1 2024[221](index=221&type=chunk) [Energy and Sustainability Solutions](index=44&type=section&id=ENERGY%20AND%20SUSTAINABILITY%20SOLUTIONS) Sales increased due to the LNG acquisition, partially offset by lower organic sales in Advanced Materials, with segment profit also rising Energy and Sustainability Solutions Performance Summary | Metric | Q1 2025 (Millions $) | Q1 2024 (Millions $) | Change (%) | | :---------------- | :------------------- | :------------------- | :--------- | | Net sales | 1,561 | 1,525 | 2 % | | Segment profit | 346 | 303 | 14 % | Energy and Sustainability Solutions Change Factors | Factor | Net Sales Change (%) | Segment Profit Change (%) | | :-------------------------------- | :------------------- | :------------------------ | | Organic | (2)% | 4 % | | Foreign currency translation | (1)% | (1)% | | Acquisitions, divestitures, and other, net | 5 % | 11 % | | **Total % change** | **2 %** | **14 %** | - Sales increased by **$36 million**, driven by **$75 million** from the LNG acquisition, partially offset by lower organic sales in Advanced Materials (**$39 million**) due to reduced fluorine product volumes[227](index=227&type=chunk) - Segment margin percentage increased **230 basis points** to **22.2%** in Q1 2025 from **19.9%** in Q1 2024[227](index=227&type=chunk) [Corporate and All Other](index=45&type=section&id=CORPORATE%20AND%20ALL%20OTHER) This category primarily includes unallocated corporate costs, holding-company debt interest, and the Quantinuum interest - This category primarily includes unallocated corporate costs, interest expense on holding-company debt, and the controlling majority-owned interest in Quantinuum, and is not a separate reportable business segment[229](index=229&type=chunk) [Repositioning Charges](index=45&type=section&id=REPOSITIONING%20CHARGES) Cash spending for repositioning actions in Q1 2025 was $43 million, funded through operating cash flows - Cash spending related to repositioning actions was **$43 million** in the three months ended March 31, 2025, funded through operating cash flows[230](index=230&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's cash position, cash flow summary, future cash requirements, and assessment of current liquidity [Cash](index=46&type=section&id=CASH) This section details the company's cash and cash equivalents, including amounts held in non-U.S. subsidiaries Cash and Cash Equivalents | Metric | March 31, 2025 (Millions $) | December 31, 2024 (Millions $) | | :------------------------------------------ | :-------------------------- | :----------------------------- | | Cash and cash equivalents (including short-term investments) | 10,100 | 11,000 | - **$8.0 billion** of the Company's cash, cash equivalents, and short-term investments were held in non-U.S. subsidiaries as of March 31, 2025, with no material currency control restrictions or repatriation taxes expected[234](index=234&type=chunk) [Cash Flow Summary](index=46&type=section&id=CASH%20FLOW%20SUMMARY) This summary outlines the net cash provided by or used for operating, investing, and financing activities Cash Flow Activities Summary | Activity | Q1 2025 (Millions $) | Q1 2024 (Millions $) | Variance (Millions $) | | :----------------------------------------- | :------------------- | :------------------- | :-------------------- | | Net cash provided by operating activities | 597 | 448 | 149 | | Net cash used for investing activities | (371) | (273) | (98) | | Net cash (used for) provided by financing activities | (1,180) | 3,696 | (4,876) | | Net (decrease) increase in cash and cash equivalents | (910) | 3,831 | (4,741) | - Operating cash flows increased by **$149 million**, driven by a **$423 million** favorable impact from other operating activities (timing of customer advances), partially offset by a **$286 million** unfavorable impact from working capital (increase in accounts receivable)[239](index=239&type=chunk) - Financing cash flows decreased by **$4,876 million**, primarily due to a **$5,664 million** decrease in long-term debt proceeds (used to fund 2024 acquisitions) and a **$1,231 million** increase in common stock repurchases, partially offset by a **$1,689 million** increase in net commercial paper proceeds[241](index=241&type=chunk) [Cash Requirements and Assessment of Current Liquidity](index=47&type=section&id=CASH%20REQUIREMENTS%20AND%20ASSESSMENT%20OF%20CURRENT%20LIQUIDITY) This section details principal future cash requirements and the company's expected sufficiency of liquidity sources - Principal future cash requirements include funding capital expenditures, share repurchases (**$1.9 billion** in Q1 2025), dividends, strategic acquisitions (e.g., Sundyne for **$2.2 billion**), and debt repayments[242](index=242&type=chunk)[244](index=244&type=chunk) - The company expects operating cash flows, available cash, committed credit lines, and access to public debt and equity markets to be sufficient for future operating needs and investment opportunities for at least the next twelve months[245](index=245&type=chunk) [Borrowings](index=48&type=section&id=BORROWINGS) This section details the company's fixed rate notes, commercial paper, term loans, and other borrowings Total Borrowings Breakdown | Metric | March 31, 2025 (Millions $) | December 31, 2024 (Millions $) | | :---------------- | :-------------------------- | :----------------------------- | | Fixed rate notes | 26,052 | 25,853 | | Commercial paper | 5,755 | 4,271 | | Term loan | 1,000 | 1,000 | | Variable rate notes | 22 | 22 | | Other | 411 | 392 | | Fair value of hedging instruments | (112) | (136) | | Debt issuance costs | (296) | (303) | | **Total borrowings** | **32,832** | **31,099** | - The company utilizes corporate bond markets for long-term fixed rate notes and the commercial paper market for short-term borrowings for general corporate purposes and acquisitions[250](index=250&type=chunk) - Honeywell has a **$1.0 billion** Fixed Rate Term Loan Credit Agreement (due 2027), a **$3.0 billion** 364-day credit agreement (due 2026), and a **$4.0 billion** five-year credit agreement (due 2029), with **$1.0 billion** outstanding under the term loan as of March 31, 2025[253](index=253&type=chunk) [Credit Ratings](index=49&type=section&id=CREDIT%20RATINGS) This section provides the company's credit ratings and outlooks from S&P, Fitch, and Moody's Credit Ratings Overview | Agency | Outlook | Short-term | Long-term | | :------- | :-------------- | :--------- | :-------- | | S&P | Watch Negative | A-1 | A | | Fitch | Watch Negative | F1 | A | | Moody's | Stable | P1 | A2 | - Moody's revised its credit rating outlook from positive to stable on January 10, 2025, while S&P and Fitch revised their outlooks from stable to credit watch negative/rating watch negative on February 6 and 7, 2025, respectively[254](index=254&type=chunk) [Other Matters](index=49&type=section&id=OTHER%20MATTERS) This section refers to discussions on litigation, critical accounting estimates, and recent accounting pronouncements [Litigation](index=49&type=section&id=LITIGATION) This section refers to Note 15 for detailed discussions of environmental, asbestos, and other litigation matters - Refers to Note 15 Commitments and Contingencies for further discussion of environmental, asbestos, and other litigation matters[255](index=255&type=chunk) [Critical Accounting Estimates](index=49&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) This section confirms no material changes to critical accounting estimates since the 2024 Annual Report on Form 10-K - There have been no material changes to the Company's Critical Accounting Estimates presented in its 2024 Annual Report on Form 10-K[256](index=256&type=chunk) [Recent Accounting Pronouncements](index=49&type=section&id=RECENT%20ACCOUNTING%20PRONOUNCEMENTS) This section refers to Note 2 for a discussion of recent accounting pronouncements - Refers to Note 2 Summary of Significant Accounting Policies for a discussion of recent accounting pronouncements[257](index=257&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures about Market Risks](index=49&type=section&id=ITEM%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) This section states that there have been no material changes to the Company's quantitative and qualitative disclosures about market risks since the 2024 Annual Report on Form 10-K - As of March 31, 2025, there has been no material change in the Company's quantitative and qualitative disclosures about market risks since the 2024 Annual Report on Form 10-K[258](index=258&type=chunk) [ITEM 4. Controls and Procedures](index=50&type=section&id=ITEM%204%20Controls%20and%20Procedures) Honeywell's management, including the CEO and CFO, concluded that the disclosure controls and procedures were effective as of March 31, 2025, and there were no material changes to internal control over financial reporting during the period - Honeywell management, including the Chairman and CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025[260](index=260&type=chunk) - There were no changes that materially affected, or are reasonably likely to materially affect, Honeywell's internal control over financial reporting during the period[260](index=260&type=chunk) [PART II. OTHER INFORMATION](index=51&type=section&id=PART%20II%20Other%20Information) This part contains other information not included in the financial statements, such as legal proceedings, risk factors, and equity sales [ITEM 1. Legal Proceedings](index=51&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 15 for detailed discussions of environmental, asbestos, and other litigation matters, confirming no new matters requiring disclosure for environmental monetary sanctions exceeding $300,000 - The Company is subject to various lawsuits, investigations, and claims, with further discussion provided in Note 15 Commitments and Contingencies[262](index=262&type=chunk) - There were no matters requiring disclosure for environmental monetary sanctions in excess of **$300,000**[263](index=263&type=chunk) [ITEM 1A. Risk Factors](index=51&type=section&id=ITEM%201A.%20Risk%20Factors) This section highlights that there have been no material changes to the Company's risk factors since the 2024 Annual Report on Form 10-K, while reiterating the impact of macroeconomic conditions and specific industry risks on its business segments - Other than as noted, there have been no material changes to the Company's Risk Factors presented in its 2024 Annual Report on Form 10-K[264](index=264&type=chunk) - The Company and its businesses may continue to be negatively affected by global macroeconomic conditions, including inflation, high interest rates, supply chain and labor disruptions, geopolitical instability, and trade restrictions[266](index=266&type=chunk) - Specific risks include customer buying patterns and supply chain constraints for Aerospace Technologies, reduced investments and demand for safety products in Industrial Automation, downturns in construction and competitive landscape for Building Automation, and capacity utilization and raw material demand for Energy and Sustainability Solutions[267](index=267&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board of Directors authorized a $10 billion share repurchase program in April 2023, with $3.6 billion remaining as of March 31, 2025. During Q1 2025, Honeywell repurchased 8.9 million shares for $1.9 billion - The Board of Directors authorized the repurchase of up to **$10 billion** of Honeywell common stock on April 24, 2023, with no expiration date[268](index=268&type=chunk) - During the three months ended March 31, 2025, Honeywell repurchased **8.9 million** shares of its common stock for **$1.9 billion**[270](index=270&type=chunk) - As of March 31, 2025, **$3.6 billion** remained available under the share repurchase authorization for additional share repurchases[270](index=270&type=chunk) [ITEM 4. Mine Safety Disclosures](index=52&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This section indicates that information concerning mine safety and other regulatory matters for the company's chabazite ore surface mine in Arizona is included in Exhibit 95 of the report - Information concerning mine safety and other regulatory matters associated with the Company's chabazite ore surface mine in Arizona is included in Exhibit 95 to this quarterly report[271](index=271&type=chunk) [ITEM 5. Other Information](index=52&type=section&id=ITEM%205.%20Other%20Information) This section states that no executive officers or directors adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 equity trading arrangements during the three months ended March 31, 2025 - During the three months ended March 31, 2025, none of the executive officers or directors adopted, terminated, or modified a "Rule 10b5-1 trading arrangement," or any "non-Rule 10b5-1 trading arrangement"[273](index=273&type=chunk) [ITEM 6. Exhibits](index=53&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including offer letters, credit agreements, certifications, mine safety disclosures, and XBRL taxonomy documents - The exhibits include offer letters, a 364-Day Credit Agreement, certifications (pursuant to Sarbanes-Oxley Act), Mine Safety Disclosures, and Inline XBRL documents[275](index=275&type=chunk) [Signatures](index=54&type=section&id=Signatures) This section confirms the report's signing by the Registrant's Principal Accounting Officer on April 29, 2025 - The report was signed on April 29, 2025, by Robert D. Mailloux, Vice President and Controller, as the Registrant's Principal Accounting Officer[279](index=279&type=chunk)

Financial Data and Key Metrics Changes - Honeywell exceeded the high end of its guidance on all metrics in the first quarter, with organic sales growth of 4% year over year [5][20] - Adjusted earnings per share (EPS) was $2.51, up 7% year over year, while earnings per share remained flat at $2.22 [21][22] - First quarter cash flow exceeded $300 million, over $100 million above the prior year, driven by better adjusted earnings [22][23] Business Line Data and Key Metrics Changes - Aerospace Technologies saw a 9% organic sales increase, with commercial aftermarket sales growing 15% due to robust demand [20][24] - Industrial Automation sales declined 2% organically, primarily due to lower demand in personal protective equipment [26] - Building Automation delivered an 8% organic sales increase, with significant growth in both Building Solutions and Building Products [27] Market Data and Key Metrics Changes - Orders reached $10.6 billion, up 3% year over year, supported by an organic backlog growth of 8% to a record $36.1 billion [22][24] - Advanced Materials sales declined 4% due to challenging prior year comparisons, but orders increased by 7% year over year [28] Company Strategy and Development Direction - Honeywell is focused on separating into three standalone public companies to unlock significant value and position each for long-term growth [10][44] - The company is actively pursuing acquisitions, having repurchased approximately $3 billion of its shares and announced the acquisition of Sundyne [12][35] - Honeywell's local for local strategy aims to mitigate tariff impacts and reduce exposure to international trade uncertainties [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current trade environment, despite increasing economic uncertainty and tariff impacts [5][18] - The company is maintaining its full-year organic growth guidance while raising adjusted EPS guidance, reflecting a proactive approach to mitigating risks [6][31] - Management acknowledged potential demand challenges but emphasized a strong backlog and operational stability [18][43] Other Important Information - Honeywell's segment margin for the first quarter remained flat at 23%, with an increase in R&D spending [21] - The company is taking a balanced approach to capital deployment, focusing on both share buybacks and strategic acquisitions [82][83] Q&A Session Summary Question: Details on tariffs and offset strategies - Management confirmed that the estimated tariff impact is approximately $500 million, with strategies including pricing adjustments and productivity measures to mitigate this impact [49][51] Question: Volume assumptions and contingency - Management indicated a conservative volume assumption of a decline of 1% to 2%, with a price increase of about 3% factored into the guidance [62][64] Question: Impact of tariffs by segment - The largest tariff exposure is in Industrial Automation and Aerospace, with Building Automation largely protected due to its local operations [88][89] Question: Aerospace aftermarket performance - The aftermarket saw a 15% growth, driven by a strong backlog, with pricing in line with initial guidance [107]

分组1 - Honeywell International Inc. reported quarterly earnings of $2.51 per share, exceeding the Zacks Consensus Estimate of $2.21 per share, and showing an increase from $2.25 per share a year ago, resulting in an earnings surprise of 13.57% [1] - The company achieved revenues of $9.82 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.59% and increasing from $9.11 billion year-over-year [2] - Over the last four quarters, Honeywell has consistently surpassed consensus EPS estimates and revenue estimates [2] 分组2 - The stock has underperformed, losing about 11.2% since the beginning of the year, compared to a decline of 6% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $2.55 on revenues of $10.1 billion, and for the current fiscal year, it is $10.26 on revenues of $40.2 billion [7] - The Zacks Industry Rank indicates that the Diversified Operations sector is in the top 33% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [8]

智通财经4月29日电，霍尼韦尔周二公布了第一季度的业绩，在所有指标上均超过了公司的指导值。该 公司还维持了其全年有机增长指导，提高了调整后每股收益指导范围，并重申了其自由现金流指导范 围。该公司报告称，第一季度销售额同比增长8%，有机销售额销售额增长4%，其中国防和航天以及建 筑解决方案连续第二个季度实现两位数的有机销售额增长。营业利润率收缩30个基点至20.1%，部门利 润率持平于23.0%，高于之前的指引。营业利润增长6%，分部利润1增长8%，达到23亿美元，这得益于 收购的贡献和对卓越商业的持续关注。第一季度每股收益为2.22美元，与去年同期持平，调整后每股收 益为2.51美元，同比增长7%。经营现金流为6亿美元，自由现金流1为3亿美元，同比增长61%。 霍尼韦尔第一季度业绩超预期 调整后每股收益2.51美元同比增长7% ...

[Q1 2025 Performance and 2025 Outlook](index=1&type=section&id=HONEYWELL%20REPORTS%20FIRST%20QUARTER%20RESULTS%3B%20UPDATES%202025%20GUIDANCE) Honeywell reported strong Q1 2025 results, updated its full-year guidance, and announced significant portfolio transformation plans including the separation of Automation and Aerospace businesses [First Quarter 2025 Performance Highlights](index=1&type=section&id=First-Quarter%20Performance) Honeywell reported strong first-quarter 2025 results, exceeding guidance on all metrics. The company achieved 8% reported sales growth and 4% organic sales growth, driven by double-digit organic growth in the defense and space and building solutions sectors. While operating margin saw a slight contraction, segment margin remained flat at 23.0%. Adjusted EPS grew 7% to $2.51, and free cash flow increased significantly by 61% year-over-year Q1 2025 Financial Highlights vs. Q1 2024 (in millions) | Metric | 1Q 2025 | 1Q 2024 | Change | Organic Growth | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $9,822 | $9,105 | +8% | 4% | | **Operating Income Margin** | 20.1% | 20.4% | -30 bps | N/A | | **Segment Margin** | 23.0% | 23.0% | 0 bps | N/A | | **EPS** | $2.22 | $2.23 | 0% | N/A | | **Adjusted EPS** | $2.51 | $2.34 | +7% | N/A | | **Operating Cash Flow** | $597 | $448 | +33% | N/A | | **Free Cash Flow** | $346 | $215 | +61% | N/A | - Backlog increased by **8%** year-over-year (excluding acquisitions), indicating strong customer demand, particularly in Building Automation and Energy and Sustainability Solutions[4](index=4&type=chunk) - The company deployed **$2.9 billion** in capital, including **$1.9 billion** for share repurchases, and announced the **$2.2 billion** acquisition of Sundyne[4](index=4&type=chunk)[7](index=7&type=chunk) [Full-Year 2025 Guidance Update](index=2&type=section&id=TABLE%201%3A%20FULL-YEAR%202025%20GUIDANCE) Honeywell maintained its full-year organic sales growth forecast of 2% to 5% but updated other key metrics. The company raised its adjusted EPS guidance to a range of $10.20 to $10.50, an increase of 5 cents at the midpoint. The segment margin guidance was slightly narrowed to 23.2% - 23.5%. Free cash flow guidance remains unchanged at $5.4 billion to $5.8 billion. This guidance incorporates expected impacts from tariffs and global demand uncertainty but does not yet include the pending Sundyne acquisition Full-Year 2025 Guidance Changes | Metric | Previous Guidance | Current Guidance | | :--- | :--- | :--- | | **Sales (in billions)** | $39.6 - $40.6 | $39.6 - $40.5 | | **Organic Growth** | 2% - 5% | 2% - 5% (Maintained) | | **Segment Margin** | 23.2% - 23.6% | 23.2% - 23.5% | | **Adjusted EPS** | $10.10 - $10.50 | $10.20 - $10.50 (Raised) | | **Operating Cash Flow (in billions)** | $6.7 - $7.1 | $6.7 - $7.1 (Maintained) | | **Free Cash Flow (in billions)** | $5.4 - $5.8 | $5.4 - $5.8 (Maintained) | [Portfolio Transformation](index=2&type=section&id=Portfolio%20Transformation) Honeywell is actively transforming its portfolio by planning to separate its Automation and Aerospace businesses, in addition to the previously announced spin-off of Advanced Materials. These actions, intended for completion in the second half of 2026, will result in three distinct, publicly-listed companies. The company has established dedicated management offices to oversee these separations - The company's Board of Directors has decided to separate the Automation and Aerospace businesses, along with the planned spin-off of Advanced Materials[6](index=6&type=chunk) - The transformation aims to create **three industry-leading public companies** and is expected to be completed in the **second half of 2026**[6](index=6&type=chunk) [Segment Performance Analysis](index=2&type=section&id=TABLE%203%3A%20SUMMARY%20OF%20SEGMENT%20FINANCIAL%20RESULTS) Detailed analysis of Honeywell's segment performance, highlighting sales growth, profitability, and key operational drivers across its business units [Aerospace Technologies](index=2&type=section&id=Aerospace%20Technologies) Aerospace Technologies delivered strong results with a 9% organic sales increase, driven by a 15% rise in commercial aftermarket sales and 10% growth in defense and space. Backlog grew 9% on high-single-digit order growth. However, segment margin contracted by 190 basis points to 26.3% due to mix pressure and acquisition impacts, which were partially offset by productivity actions Aerospace Technologies Q1 2025 Performance | Metric | 1Q 2025 | 1Q 2024 | Change | Organic Growth | | :--- | :--- | :--- | :--- | :--- | | **Sales (in millions)** | $4,172 | $3,669 | +14% | 9% | | **Segment Profit (in millions)** | $1,099 | $1,035 | +6% | N/A | | **Segment Margin** | 26.3% | 28.2% | -190 bps | N/A | - Growth was primarily driven by a **15%** increase in commercial aftermarket sales and a **10%** increase in defense and space sales[8](index=8&type=chunk) [Industrial Automation](index=3&type=section&id=Industrial%20Automation) Industrial Automation sales declined by 2% organically. While warehouse and workflow solutions returned to growth (up 5%), this was offset by modest declines in smart energy and thermal solutions and demand headwinds in Europe for productivity solutions. Segment margin contracted 130 basis points to 17.8%, impacted by receivables write-downs and lower volume Industrial Automation Q1 2025 Performance | Metric | 1Q 2025 | 1Q 2024 | Change | Organic Growth | | :--- | :--- | :--- | :--- | :--- | | **Sales (in millions)** | $2,378 | $2,478 | -4% | -2% | | **Segment Profit (in millions)** | $424 | $474 | -11% | N/A | | **Segment Margin** | 17.8% | 19.1% | -130 bps | N/A | - Warehouse and workflow solutions grew **5%**, but this was offset by declines in other areas. Sensing and safety technologies decreased **5%** due to weaker volumes in personal protective equipment[9](index=9&type=chunk) [Building Automation](index=3&type=section&id=Building%20Automation) Building Automation demonstrated robust performance with 8% organic sales growth. This was led by 11% organic growth in building solutions for the second consecutive quarter and 6% organic growth in building products. Orders grew both year-over-year and sequentially. Segment margin expanded significantly by 150 basis points to 26.0%, driven by volume leverage and productivity Building Automation Q1 2025 Performance | Metric | 1Q 2025 | 1Q 2024 | Change | Organic Growth | | :--- | :--- | :--- | :--- | :--- | | **Sales (in millions)** | $1,692 | $1,426 | +19% | 8% | | **Segment Profit (in millions)** | $440 | $350 | +26% | N/A | | **Segment Margin** | 26.0% | 24.5% | +150 bps | N/A | - Growth was strong across the segment, with building solutions up **11%** organically and building products up **6%** organically, highlighted by double-digit growth in fire products[9](index=9&type=chunk) [Energy and Sustainability Solutions](index=3&type=section&id=Energy%20and%20Sustainability%20Solutions) Energy and Sustainability Solutions saw a 2% organic sales decline. UOP grew 2%, but this was offset by a 4% decline in advanced materials due to tough prior-year comparisons in fluorine products. Despite the sales dip, advanced materials orders grew 7% year-over-year. Segment margin expanded by an impressive 230 basis points to 22.2%, benefiting from commercial excellence, productivity, and a margin-accretive acquisition Energy and Sustainability Solutions Q1 2025 Performance | Metric | 1Q 2025 | 1Q 2024 | Change | Organic Growth | | :--- | :--- | :--- | :--- | :--- | | **Sales (in millions)** | $1,561 | $1,525 | +2% | -2% | | **Segment Profit (in millions)** | $346 | $303 | +14% | N/A | | **Segment Margin** | 22.2% | 19.9% | +230 bps | N/A | - UOP grew **2%** led by strength in refining, petrochemicals, and sustainability projects. Advanced materials sales declined **4%** but saw double-digit order growth in fluorine products[9](index=9&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Financial%20Statements) Overview of Honeywell's consolidated financial statements, detailing the statement of operations, balance sheet, and cash flows for the reported periods [Consolidated Statement of Operations](index=6&type=section&id=Consolidated%20Statement%20of%20Operations) For the first quarter of 2025, Honeywell's net sales increased to $9.82 billion from $9.11 billion in the prior year. Income before taxes was relatively flat at $1.88 billion, and net income attributable to Honeywell was $1.45 billion, resulting in diluted earnings per share of $2.22, compared to $2.23 in Q1 2024 Q1 2025 Statement of Operations (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net sales** | $9,822 | $9,105 | | **Total Cost of products and services sold** | $6,037 | $5,583 | | **Income before taxes** | $1,884 | $1,871 | | **Net income attributable to Honeywell** | $1,449 | $1,463 | | **Earnings per share - assuming dilution** | $2.22 | $2.23 | [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2025, Honeywell's total assets were $75.22 billion, nearly unchanged from December 31, 2024. Cash and cash equivalents decreased to $9.66 billion from $10.57 billion. Total liabilities increased slightly to $55.42 billion, while total shareowners' equity decreased to $18.02 billion from $19.15 billion at year-end 2024, partly due to share repurchases Balance Sheet Summary (in millions) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $27,645 | $27,908 | | **Total assets** | $75,218 | $75,196 | | **Total current liabilities** | $22,071 | $21,256 | | **Long-term debt** | $25,744 | $25,479 | | **Total shareowners' equity** | $18,024 | $19,154 | [Consolidated Statement of Cash Flows](index=9&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) In the first three months of 2025, net cash provided by operating activities increased to $597 million from $448 million in the prior-year period. Net cash used for investing activities was $371 million. Financing activities resulted in a net cash use of $1.18 billion, driven primarily by $1.9 billion in common stock repurchases and $732 million in dividend payments. This led to a net decrease in cash of $910 million for the quarter Q1 2025 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $597 | $448 | | **Net cash used for investing activities** | ($371) | ($273) | | **Net cash (used for) provided by financing activities** | ($1,180) | $3,696 | | **Net (decrease) increase in cash** | ($910) | $3,831 | - Key financing activities included **$1.9 billion** in share repurchases and **$732 million** in cash dividends paid[35](index=35&type=chunk) [Non-GAAP Reconciliations](index=10&type=section&id=Appendix) Reconciliations of key non-GAAP financial measures to their GAAP equivalents, including organic sales, segment profit, adjusted EPS, and free cash flow [Reconciliation of Organic Sales](index=11&type=section&id=Reconciliation%20of%20Organic%20Sales%20Percent%20Change) The company provides a reconciliation from reported sales growth to organic sales growth, which excludes the impacts of foreign currency translation and acquisitions/divestitures. For Q1 2025, total company reported sales growth of 8% was adjusted for a 5% positive impact from acquisitions and a 1% negative impact from currency, resulting in 4% organic sales growth Q1 2025 Organic Sales Reconciliation | Segment | Reported Change | Foreign Currency | Acquisitions/Divestitures | Organic Change | | :--- | :--- | :--- | :--- | :--- | | **Honeywell** | 8% | (1)% | 5% | 4% | | **Aerospace** | 14% | 0% | 5% | 9% | | **Industrial Auto.** | (4)% | (2)% | 0% | (2)% | | **Building Auto.** | 19% | (2)% | 13% | 8% | | **Energy & Sust.** | 2% | (1)% | 5% | (2)% | [Reconciliation of Operating Income to Segment Profit](index=12&type=section&id=Reconciliation%20of%20Operating%20Income%20to%20Segment%20Profit) Honeywell reconciles GAAP Operating Income to the non-GAAP measure of Segment Profit by excluding items such as stock compensation, repositioning charges, amortization of acquisition-related intangibles, and other specific costs. In Q1 2025, Operating Income of $1.97 billion was reconciled to Segment Profit of $2.26 billion. This resulted in an Operating Income Margin of 20.1% and a Segment Profit Margin of 23.0% Q1 2025 Operating Income to Segment Profit (in millions) | Line Item | Q1 2025 | | :--- | :--- | | **Operating income** | $1,970 | | Stock compensation expense | $61 | | Repositioning, Other | $62 | | Amortization of acquisition-related intangibles | $136 | | Impairment of assets held for sale | $15 | | Other adjustments | $14 | | **Segment profit** | $2,258 | | **Operating income margin %** | 20.1% | | **Segment profit margin %** | 23.0% | [Reconciliation of EPS to Adjusted EPS](index=13&type=section&id=Reconciliation%20of%20Earnings%20per%20Share%20to%20Adjusted%20Earnings%20per%20Share) The company adjusts diluted EPS to arrive at adjusted EPS, which it believes provides a more meaningful measure of ongoing performance. For Q1 2025, diluted EPS of $2.22 was adjusted for items including pension mark-to-market expense ($0.02), amortization of acquisition-related intangibles ($0.16), and divestiture-related costs ($0.08), resulting in an adjusted EPS of $2.51 Q1 2025 EPS to Adjusted EPS Reconciliation | Line Item | Per Share Amount | | :--- | :--- | | **Earnings per share - diluted** | $2.22 | | Pension mark-to-market expense | $0.02 | | Amortization of acquisition-related intangibles | $0.16 | | Acquisition-related costs | $0.01 | | Divestiture-related costs | $0.08 | | Impairment of assets held for sale | $0.02 | | **Adjusted earnings per share - diluted** | $2.51 | [Reconciliation of Operating Cash Flow to Free Cash Flow](index=14&type=section&id=Reconciliation%20of%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow) Honeywell defines Free Cash Flow (FCF) as cash from operating activities minus capital expenditures. For Q1 2025, the company generated $597 million in operating cash flow and had $251 million in capital expenditures, resulting in Free Cash Flow of $346 million, a 61% increase from the $215 million generated in Q1 2024. The full-year 2025 FCF guidance is projected at $5.4 to $5.8 billion Q1 Free Cash Flow Reconciliation (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $597 | $448 | | Capital expenditures | ($251) | ($233) | | **Free cash flow** | $346 | $215 | Full-Year 2025 Expected Free Cash Flow (in billions) | Line Item | FY 2025 (E) | | :--- | :--- | | **Cash provided by operating activities** | ~$6.7 - $7.1 | | Capital expenditures | ~($1.3) | | **Free cash flow** | ~$5.4 - $5.8 |

Core Insights - Honeywell reported strong first-quarter results, exceeding guidance across all metrics, with a year-over-year sales growth of 8% and organic sales growth of 4% [2][3][8] - The company maintained its full-year organic growth guidance while raising its adjusted earnings per share guidance range [1][3][8] Financial Performance - First-quarter operating income increased by 6% to $1.97 billion, with segment profit rising 8% to $2.26 billion [2][6][14] - Earnings per share for the first quarter was $2.22, flat year over year, while adjusted earnings per share rose 7% to $2.51 [2][8][43] - Operating cash flow was $0.6 billion, and free cash flow increased by 61% year over year to $0.3 billion [2][8][14] Segment Performance - Aerospace Technologies sales grew 14% year over year, with a 9% organic growth driven by strong performance in commercial aftermarket and defense [7][14] - Industrial Automation sales declined 2% organically, with a segment margin contraction of 130 basis points to 17.8% [9][15] - Building Automation sales increased 19% year over year, with an 8% organic growth and segment margin expansion of 150 basis points to 26.0% [10][15] Strategic Initiatives - Honeywell is pursuing a separation of its Automation and Aerospace businesses, alongside a spin-off of Advanced Materials, expected to be completed in the second half of 2026 [4][5] - The company announced the acquisition of Sundyne for $2.2 billion and repurchased $1.9 billion of its shares during the quarter [5][8] Guidance Updates - Full-year sales are now expected to be between $39.6 billion and $40.5 billion, with organic sales growth projected in the range of 2% to 5% [3][13] - Adjusted earnings per share guidance has been raised to a range of $10.20 to $10.50, reflecting a 5-cent increase at the midpoint from prior guidance [3][13]