Honeywell(US:HON)2025-10-23 13:35Financial Performance - Honeywell's net sales for Q3 2025 reached $10,408 million, a 7% increase from $9,728 million in Q3 2024[12] - The company's net income for the nine months ended September 30, 2025, was $4,895 million, compared to $4,450 million for the same period in 2024, reflecting a 10% year-over-year growth[12] - Earnings per share (EPS) for Q3 2025 was $2.87, up from $2.17 in Q3 2024, representing a 32% increase[12] - Honeywell reported a comprehensive income of $1,629 million for Q3 2025, compared to $1,107 million in Q3 2024, indicating a 47% increase[15] - Net income attributable to Honeywell for the nine months ended September 30, 2025, was $4,844 million, compared to $4,420 million for the same period in 2024, reflecting an increase of 9.6%[21] - For the nine months ended September 30, 2025, net income attributable to Honeywell was $4,844 million, with basic earnings per share of $7.57, compared to $4,420 million and $6.79 for the same period in 2024, indicating a 10% increase in net income and an 11% increase in earnings per share[123] Expenses and Costs - Research and development expenses increased to $497 million in Q3 2025, compared to $368 million in Q3 2024, marking a 35% rise[12] - Honeywell's total costs and expenses for Q3 2025 were $8,186 million, up from $7,904 million in Q3 2024, reflecting a 4% increase[12] - The cost of products sold for the nine months ended September 30, 2025, was $13,533 million, compared to $12,448 million for the same period in 2024, indicating an increase of about 8.7%[112] - The cost of products and services sold for the three months ended September 30, 2025, was $8,128 million, compared to $7,384 million in 2024, indicating an increase of about 10.1%[171] Assets and Liabilities - Total assets increased to $80,917 million as of September 30, 2025, up from $75,196 million at December 31, 2024, representing a growth of 9.1%[18] - Total current liabilities increased to $22,639 million as of September 30, 2025, compared to $21,256 million at December 31, 2024, an increase of 6.5%[18] - Long-term debt rose to $30,092 million as of September 30, 2025, up from $25,479 million at December 31, 2024, indicating an increase of 18.5%[18] - Honeywell's total liabilities related to foreign currency exchange contracts as of September 30, 2025, amounted to $898 million, up from $210 million as of December 31, 2024[115] Cash Flow and Dividends - Cash and cash equivalents at the end of the period rose to $12,930 million, up from $10,644 million a year earlier, marking a 21.5% increase[21] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $5,204 million, compared to $3,816 million for the same period in 2024, a growth of 36.3%[21] - Cash dividends paid totaled $2,214 million for the nine months ended September 30, 2025, slightly up from $2,161 million in the same period of 2024[21] - The company reported a cash dividend of $1.13 per share for the three months ended September 30, 2025, compared to $1.08 per share in 2024[24] Strategic Initiatives - The company plans to spin off its Advanced Materials business into a standalone entity, Solstice Advanced Materials, which is expected to enhance strategic focus[5] - The company is evaluating strategic alternatives for its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses[5] - The company plans to separate its Automation and Aerospace Technologies businesses into independent publicly traded companies, expected to be completed in the second half of 2026[50] - Honeywell is focused on three megatrends: automation, future of aviation, and energy transition, leveraging its Honeywell Accelerator operating system[7] Acquisitions and Divestitures - On May 22, 2025, the company announced the acquisition of Johnson Matthey's Catalyst Technologies business for £1.8 billion, expected to close in the first half of 2026[38] - The acquisition of Sundyne on June 6, 2025, was completed for $2,158 million, with identifiable net assets acquired valued at $1,007 million and goodwill of $1,261 million[39] - The company finalized the acquisition of Carrier Global Corporation's Global Access Solutions business for $4,913 million, with net assets acquired valued at $2,074 million and goodwill of $2,924 million[47] - The company completed the sale of its personal protective equipment business for $1,157 million, recognizing a pre-tax loss of $30 million for the nine months ended September 30, 2025[49] Environmental and Legal Matters - As of September 30, 2025, total environmental liabilities amounted to $981 million, up from $678 million at the end of 2024, reflecting an increase of 45%[131] - The company agreed to pay a total of $203 million in penalties and disgorgement to resolve investigations by the DOJ, SEC, and Brazilian authorities[146] - The total number of unresolved asbestos-related claims decreased to 4,302 as of September 30, 2025, down from 4,950 at the end of 2024, indicating a resolution of 1,880 claims during the nine months[136] Shareholder Equity - The total shareowners' equity decreased to $17,747 million as of September 30, 2025, down from $19,154 million at December 31, 2024, a decline of 7.4%[18] - Honeywell's total shares outstanding as of September 30, 2025, were 634.9 million, down from 650.2 million as of September 30, 2024, representing a decrease of approximately 2%[124] - The company repurchased common stock worth $3,704 million during the nine months ended September 30, 2025, compared to $1,200 million in the same period of 2024[21]