Conference Call Participants I would now like to hand the call over to Sean Meakim, Vice President of Investor Relations. Please, go ahead. This morning, we will review our financial results for the second quarter, share our guidance for the third quarter and provide an update to our full year 2023 outlook. As always, we'll leave time for your questions at the end. Second quarter organic sales were up 3% year-over-year, led by double-digit growth in commercial Aerospace, Process Solutions and UOP. Our Aeros ...

| UNITED STATES | | --- | | SECURITIES AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | | Form 10-Q | | __________________ | | ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) | | OF THE SECURITIES EXCHANGE ACT OF 1934 | | For the quarterly period ended June 30, 2023 | | OR | | ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) | | OF THE SECURITIES EXCHANGE ACT OF 1934 | | For the transition period from ______ to _____ | | Commission file number 1-8974 | Honeywell International Inc. (Exact name of r ...

Honeywell International Inc. (NASDAQ:HON) Bank of America Securities 2023 Financial Services Conference June 14, 2023 9:00 AM ET Company Participants Greg Lewis - Senior Vice President and Chief Financial Officer Conference Call Participants Joe O'Dea - Wells Fargo Joe O'Dea All right. Good morning, everyone. I'm Joe O'Dea, I lead the multi-industry team at Wells Fargo, and we're excited kick off Day Two of the conference and thrilled to have Honeywell here with us this morning. And welcome Greg Lewis, the ...

Honeywell International Inc. (NASDAQ:HON) Company Conference Call May 23, 2023 8:00 AM ET Company Participants Greg Lewis - Senior Vice President, Chief Financial Officer Conference Call Participants Moderator - Wolfe Research Moderator Okay, so with me I’ve got Greg Lewis, SVP and CFO of Honeywell. Thanks for being here. Greg Lewis Thank you. Moderator Greg, I know you’ve got some opening slides, so over to you. Greg Lewis Yes, just really quickly--oh, thank you very much, appreciate that. While that’ ...

Honeywell International, Inc. (NASDAQ:HON) Goldman Sachs Industrials & Materials Conference Call May 10, 2023 8:00 AM ET Company Participants Lucian Boldea - President and CEO Conference Call Participants Joe Ritchie - Goldman Sachs Group Joe Ritchie All right. Good morning, everybody. Welcome to Day 2 of the Goldman Sachs Industrials and Materials Conference. My name is Joe Ritchie, head of our Industrials and Materials team. I also cover the multi-industry sector. Before we get going with our first presen ...

MSD Specialty Chemicals • Reduced investment in warehouse automation capacity leads to demand trough in 2023 • Short-cycle softness impacting sensing and safety technologies and productivity solutions and services, particularly in the first half (HSD) e-Commerce • Mix shift and operational improvements driving another strong year of margin expansion Overall Favorable End Market Outlook in 2023 1Q 2023 Earnings - April 27, 2023 13 ADDITIONAL 2023 INPUTS | --- | --- | --- | --- | --- | |---------------------- ...

And I think that, that's very -- the $10 billion authorization continues to underpin that kind of an algorithm. So I think I wouldn't look too much or too little into it. They're just supportive of that. And we're going to continue to buy back shares as we see the price aggressively, and we'll do at least 1%. All right. Darius, just a natural follow-up. Would -- it's like quite a statement, never seen a better time to be a buyer. I don't think I've ever heard you say anything in that context or that bullish ...

Financial Performance - Net sales for Q1 2023 increased to $8,864 million, up 5.8% from $8,376 million in Q1 2022[13] - Net income attributable to Honeywell rose to $1,394 million in Q1 2023, compared to $1,134 million in Q1 2022[13] - Earnings per share (diluted) increased to $2.07 in Q1 2023 from $1.64 in Q1 2022[13] - Comprehensive income attributable to Honeywell was $1,331 million in Q1 2023, compared to $1,242 million in Q1 2022[16] - Net income attributable to Honeywell for Q1 2023 was $1.394 billion, compared to $1.134 billion in Q1 2022, reflecting a 22.9% year-over-year increase[22] - Net sales for Q1 2023 reached $8,864 million, up from $8,376 million in Q1 2022[44] - Net sales for Q1 2023 were $8,864 million, with cost of products sold at $4,068 million and cost of services sold at $1,430 million[89] - Net income attributable to Honeywell increased to $1.394 billion in Q1 2023 from $1.134 billion in Q1 2022, with basic earnings per share rising to $2.09 from $1.66[99] - Net sales increased by 6% in Q1 2023 compared to Q1 2022, driven by a 6% increase in pricing and a 2% increase in volume, partially offset by a 2% unfavorable foreign currency translation impact[158] - Gross margin increased by $0.3 billion, with gross margin percentage rising 160 basis points to 38.0% compared to 36.4% in Q1 2022[163] - Net sales for Q1 2023 were $8,864 million, up from $8,376 million in Q1 2022, with product sales at $6,310 million and service sales at $2,554 million[13] - Net income attributable to Honeywell for Q1 2023 was $1,394 million, compared to $1,134 million in Q1 2022[13] - Earnings per share (basic) for Q1 2023 were $2.09, up from $1.66 in Q1 2022[13] - Total costs, expenses, and other for Q1 2023 were $7,082 million, compared to $6,871 million in Q1 2022[13] Cash Flow and Liquidity - Cash and cash equivalents declined to $6,869 million as of March 31, 2023, from $9,627 million as of December 31, 2022[19] - Net cash used for operating activities in Q1 2023 was $784 million, a significant decline from $36 million provided by operating activities in Q1 2022[22] - Cash and cash equivalents decreased by $2.758 billion in Q1 2023, ending the quarter at $6.869 billion compared to $9.281 billion in Q1 2022[22] - The company repurchased $699 million worth of common stock in Q1 2023, a decrease from $1.018 billion in Q1 2022[22] - Cash dividends per share increased to $1.030 in Q1 2023 from $0.980 in Q1 2022[25] - Cash and cash equivalents decreased to $7.2 billion as of March 31, 2023, from $10.1 billion as of December 31, 2022[197] - Net cash provided by operating activities decreased by $820 million in Q1 2023, primarily due to a $1.38 billion decrease in other operating activities[204] - Cash related to investing activities decreased by $19 million in Q1 2023, driven by a $176 million decrease in cash paid for acquisitions and a $79 million net decrease in investments[205] - Cash related to financing activities decreased by $254 million in Q1 2023, primarily due to a $1.32 billion increase in payments of long-term debt[206] - The company repurchased $699 million of common stock in Q1 2023 and has a remaining authorization of $2.1 billion under its $10 billion share repurchase program[208] - The company made payments of approximately $1.5 billion in early 2023 related to the NARCO Buyout and UOP Matters, with an expected receipt of $295 million related to the HWI Sale[211] Balance Sheet and Debt - Total assets decreased to $59,883 million as of March 31, 2023, from $62,275 million as of December 31, 2022[19] - Total current liabilities decreased to $17,896 million as of March 31, 2023, from $19,938 million as of December 31, 2022[19] - Long-term debt decreased to $14,670 million as of March 31, 2023, from $15,123 million as of December 31, 2022[19] - Total Honeywell shareowners' equity increased to $16,919 million as of March 31, 2023, from $16,697 million as of December 31, 2022[19] - Total shareowners' equity decreased to $17.515 billion in Q1 2023 from $19.051 billion in Q1 2022[25] - The company entered into a $1.5 billion 364-day credit agreement and a $4.0 billion five-year credit agreement in March 2023[77] - As of March 31, 2023, there were no outstanding borrowings under the new credit agreements[78] - The company's total long-term debt decreased to $14.670 billion in Q1 2023 from $15.123 billion in Q4 2022[76] - Total borrowings were $19.2 billion as of March 31, 2023, compared to $19.6 billion as of December 31, 2022[199] Segment Performance - Aerospace segment net sales increased to $3,111 million in Q1 2023, up from $2,749 million in Q1 2022, driven by growth in Commercial Aviation Aftermarket ($1,423 million vs. $1,168 million) and Defense and Space ($1,147 million vs. $1,103 million)[44] - Honeywell Building Technologies net sales rose to $1,487 million in Q1 2023, compared to $1,429 million in Q1 2022, with Products contributing $908 million (up from $879 million) and Building Solutions at $579 million (up from $550 million)[44] - Performance Materials and Technologies net sales grew to $2,749 million in Q1 2023, up from $2,453 million in Q1 2022, led by Process Solutions ($1,288 million vs. $1,152 million) and Advanced Materials ($896 million vs. $821 million)[44] - Safety and Productivity Solutions net sales declined to $1,515 million in Q1 2023 from $1,744 million in Q1 2022, with Warehouse and Workflow Solutions dropping to $464 million from $592 million[44] - Aerospace segment net sales increased by 13% to $3.111 billion, with segment profit rising 10% to $827 million[177] - Honeywell Building Technologies segment net sales increased by 4% to $1.487 billion, with segment profit rising 12% to $375 million[182] - Performance Materials and Technologies segment net sales increased by 12% to $2.749 billion, with segment profit rising 11% to $566 million[187] - Safety and Productivity Solutions segment net sales decreased by 13% to $1.515 billion, but segment profit increased by 3% to $260 million[191] Research and Development - Research and development expenses increased to $357 million in Q1 2023, up 2% from $350 million in Q1 2022[13] - Research and development expenses were reclassified as a separate line item starting January 1, 2023, with no impact on net income or cash flows[32] - Research and development expenses remained flat in Q1 2023 compared to Q1 2022[166] Acquisitions and Divestitures - The company acquired US Digital Designs, Inc. for $186 million in January 2022, allocating $53 million to intangible assets and $129 million to goodwill[41] - Honeywell entered into an agreement to acquire Compressor Controls Corporation for $670 million in April 2023, expected to close in the second half of 2023[40] - Honeywell received initial cash proceeds of $256 million from the HWI Sale, with the fair value of remaining proceeds classified as Level 3[94] - Honeywell received $256 million in initial proceeds from the HWI Sale on March 17, 2023[118] Contract Assets and Liabilities - Contract assets increased by $159 million to $2,453 million as of March 31, 2023, compared to $2,294 million at the beginning of the year[55] - Contract liabilities decreased by $292 million to $4,291 million as of March 31, 2023, from $4,583 million at the start of the year[55] - The company recognized $953 million in revenue in Q1 2023 that was previously included in contract liabilities[55] - Total remaining performance obligations stood at $30,260 million as of March 31, 2023, with Aerospace accounting for $12,592 million and Performance Materials and Technologies at $8,381 million[61] - 61% of performance obligations are expected to be satisfied within one year, while 39% will be satisfied beyond one year[62] Repositioning and Restructuring - Total net repositioning and other charges for Q1 2023 were $141 million, compared to $387 million in Q1 2022[67] - The company recognized repositioning charges of $103 million in Q1 2023, including $67 million in severance costs related to workforce reductions of 1,797 positions[67] - Repositioning charges in Q1 2023 included $12 million in asset impairments and $24 million in exit costs[67] Inventory and Supply Chain - Total inventories increased to $5.776 billion in Q1 2023 from $5.538 billion in Q4 2022[74] - Accounts payable related to supply chain financing programs totaled $1.004 billion as of March 31, 2023, up from $992 million at the end of 2022[34] Tax and Environmental Liabilities - The effective tax rate decreased in 2023 compared to 2022, primarily due to increased benefits from taxes on non-U.S. earnings[73] - Environmental liabilities increased to $673 million in Q1 2023 from $615 million in Q1 2022, with $82 million in new accruals and $24 million in payments[104] - Reimbursements from Resideo for environmental matters totaled $35 million in Q1 2023, with a corresponding receivable of $59 million recorded[108] - Asbestos-related liabilities decreased to $1.276 billion in Q1 2023 from $2.616 billion in Q1 2022, primarily due to the NARCO buyout of $1.325 billion[109] - Insurance recoveries for asbestos-related liabilities decreased to $260 million in Q1 2023 from $265 million in Q1 2022[110] - Honeywell agreed to a one-time payment of $1.325 billion to the Trust as part of the NARCO Buyout agreement[115] Derivatives and Hedging - The company's total derivatives at fair value were $18.340 billion in Q1 2023, compared to $18.727 billion in Q4 2022[84] - The carrying value of debt instruments designated as net investment hedges was $4,816 million as of March 31, 2023, compared to $3,836 million as of December 31, 2022[85] - Long-term debt carrying amount with fair value hedging adjustments was $4,787 million as of March 31, 2023, compared to $4,696 million as of December 31, 2022[86] - Interest rate swap agreements resulted in a $67 million loss on hedged items and a $67 million gain on derivatives designated as hedges for Q1 2023[89] Fair Value Measurements - Total assets accounted for at fair value were $698 million as of March 31, 2023, with Level 1 assets at $86 million, Level 2 at $573 million, and Level 3 at $39 million[91] - Total liabilities accounted for at fair value were $271 million as of March 31, 2023, primarily consisting of Level 2 liabilities[91] - The right to HWI Net Sale Proceeds, classified as Level 3, had a fair value of $39 million as of March 31, 2023, down from $295 million as of December 31, 2022[91][93] Legal and Regulatory Matters - The company is subject to various lawsuits and investigations, some involving substantial amounts, as discussed in Note 14 of the financial statements[214] - Unresolved Bendix-related asbestos claims increased to 5,706 as of March 31, 2023, from 5,608 as of December 31, 2022[121] Credit Ratings and Market Access - The company's credit ratings remain stable with S&P, Fitch, and Moody's maintaining long-term ratings of A, A, and A2, respectively[203] - Operating cash flows are expected to meet future operating cash needs, supported by available cash, committed credit lines, and access to public debt and equity markets[212] Other Financial Metrics - Total shares outstanding decreased to 665.7 million in Q1 2023 from 680.7 million in Q1 2022[100] - Accumulated other comprehensive income (loss) decreased to $(3.538) billion in Q1 2023 from $(3.475) billion in Q1 2022, primarily due to foreign exchange translation adjustments[103] - Selling, general and administrative expenses decreased in Q1 2023 due to prior year charges related to suspending operations in Russia[168] - Long-term receivables had a carrying value of $221 million and a fair value of $177 million as of March 31, 2023[98] - Sales decreased by $229 million in Q1 2023 compared to Q1 2022, driven by lower organic sales in Warehouse and Workflow Solutions ($127 million), Productivity Solutions and Services ($44 million), and Sensing and Safety Technologies ($29 million), along with a $29 million unfavorable foreign currency impact[192]

Honeywell International Inc. (NASDAQ:HON) Jefferies eVTOL Summit Conference Transcript March 28, 2023 3:20 PM ET Executives Mike Madsen - President and CEO, Honeywell Aerospace Analysts Sheila Kahyaoglu - Jefferies Sheila Kahyaoglu Thank you for joining us. Mike Madsen Thank you. It’s a pleasure. Question-and-Answer Session Q - Sheila Kahyaoglu Okay. We will start it off. Thanks, everyone, for being here for our last presentation of the day. My name is Sheila Kahyaoglu. I am KC investor [ph]. I run the Jeff ...

Honeywell International Inc. (NASDAQ:HON) Bank of America Global Industrials Conference March 21, 2023 4:00 AM ET Company Participants Sean Meakim - IR Mike Madsen - President and CEO, Honeywell Aerospace Conference Call Participants Andrew Obin - Bank of America Andrew Obin Thanks so much. The opening presentation, we have Honeywell. Thanks so much. Sean, thank you. And presenting, we have Mike Madsen, President and CEO of Honeywell Aerospace. I think Mike has a couple of slides, that he will present, and ...