Core Viewpoint - Honeywell is actively progressing with its plan to spin off its aerospace business, aiming to establish an independent publicly listed aerospace company by the second half of 2026 [1][2] Group 1: Business Spin-off - The aerospace technology group will continue to operate under Honeywell until the completion of the spin-off, which is on track for the second half of 2026 [1][2] - The independent aerospace entity is expected to become one of the largest independent aerospace suppliers, leveraging its technological and system advantages to enhance future aviation through increased electrification and autonomy [1][2] Group 2: Aviation Safety Technology - Honeywell showcased its new ground warning software (SURF-A) at the expo, which is anticipated to receive certification and enter the market next year [2] - The software aims to enhance flight safety by providing early warnings to pilots about runway incursion risks, allowing them to take corrective actions to avoid potential collisions [2] Group 3: Sustainable Aviation Fuel - Honeywell is pursuing multiple pathways for sustainable aviation fuel (SAF) development, including converting biomass like straw and corn into ethanol for aviation fuel and a methanol route using green hydrogen [4] - A partnership has been established with a company in Inner Mongolia to create a project with an annual production capacity of 100,000 tons of methanol-based sustainable aviation fuel [4] Group 4: Local Market Expansion - Honeywell is actively collaborating with local airlines in China to advance joint certification efforts for aircraft models like Boeing 737 and Airbus A320 [3] - The company has a long history of involvement in China's aviation sector, contributing to key projects such as the C909 and C919 aircraft, providing advanced technology solutions and services [6] - Recent agreements with China Eastern Airlines and China Aviation Materials have been made to enhance local service capabilities and explore further cooperation in material procurement and distribution [6]

与此同时，双方还签署长期航材维修协议，霍尼韦尔将凭借其深厚的技术积淀，帮助中国东航降低运营 成本，缩短送修周期，从而实现机队的高效运营，并支持其可持续发展目标。此外，中国东航与霍尼韦 尔正就飞行安全相关产品的分销授权探讨未来合作机会。 霍尼韦尔与中国航材双方在进博会现场举行了经销商授牌仪式（霍尼韦尔供图） 同样是在此次进博会上，霍尼韦尔也与中国航空器材集团有限公司（以下简称"中国航材"）签署多项航 材采购和分销合作协议。 《中国民航报》、中国民航网 记者钱擘 报道：在正于上海举行的第八届中国国际进口博览会上，全球 知名高科技企业霍尼韦尔与中国企业签署了多项合作协议。 本届进博会期间，中国东航与霍尼韦尔在航材采购和维修领域达成合作协议，并将在航材分销领域进一 步探讨合作机会。 霍尼韦尔与中国东航签约仪式现场（霍尼韦尔供图） 及时的航材储备和高效的维修是保障机队运营最重要的环节之一。长期以来，中国东航与霍尼韦尔在航 材保障、航空电子设备和机械设备部件维修方面保持着紧密合作。本届进博会上，霍尼韦尔与中国东航 下属的东方航空技术有限公司签署航材采购协议。霍尼韦尔将继续为中国东航提供稳定、及时的航材储 备方案，保障机队 ...

Financial Data and Key Metrics Changes - Honeywell raised its 2025 EPS guidance for the third time this year, with earnings per share in Q3 reported at $2.86, up 32% year over year, and adjusted EPS at $2.82, up 9% year over year [5][17] - Organic sales growth accelerated to 6% year over year, with orders growing 22% organically to $11.9 billion [16][17] - Free cash flow for Q3 was $1.5 billion, down 16% from the prior year due to capital expenditures timing and higher working capital [18] Business Line Data and Key Metrics Changes - Aerospace Technologies grew 12% organically, driven by strength in commercial aftermarket and defense [18] - Industrial Automation sales increased 1% organically, while segment margin declined to 18.8% due to inflationary pressures [19][20] - Building Automation achieved 7% organic sales growth, with margin expanding 80 basis points year over year [20] - Energy and Sustainability Solutions saw a 2% organic decline, with segment margin flat at 24.5% [21] Market Data and Key Metrics Changes - North America and the Middle East led regional growth, while Europe experienced organic growth for the fourth consecutive quarter [20] - Orders in Aerospace showed strong double-digit growth across all end markets, with a book-to-bill ratio of 1.2 [18] Company Strategy and Development Direction - Honeywell is planning to realign its automation business structure in 2026, focusing on four segments: Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation [10][12] - The company is simplifying its portfolio and reducing legacy liabilities, including divesting Bendix asbestos liability and terminating an indemnification agreement for $1.6 billion [9][10] - Honeywell aims to leverage its R&D investments to drive growth through innovative products and solutions [16][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and highlighted strong order growth as a positive indicator for future performance [16][35] - The company anticipates a return to margin expansion in 2026, driven by improved pricing strategies and operational efficiencies [36][78] Other Important Information - The spin-off of Solstice Advanced Materials is expected to reduce 2025 sales by $700 million and adjusted EPS by approximately $0.21 [22][24] - Honeywell's recent capital raise for its quantum computing venture, Continuum, is expected to support its growth potential [14][36] Q&A Session Summary Question: What is the expected margin decline for Energy and Sustainability Solutions (ESS) in Q4? - Management indicated that the decline is primarily due to mix issues and expects ESS margins to normalize in 2026 [40][42] Question: What are the growth prospects for the Industrial Automation segment? - Management noted that while there are timing variabilities, they are optimistic about margin expansion and backlog improvements in Industrial Automation [48][49] Question: How is the Aerospace division managing destocking? - Management believes that destocking is largely behind them and expects sequential improvements in margins going into 2026 [50][51] Question: What is the pricing strategy across the organization? - Management emphasized a focus on preserving margins while maintaining volume, with expectations for improved pricing in 2026 [75][78] Question: What are the growth opportunities in the sensor business? - Management highlighted strong growth potential in the sensor business across aerospace, medical devices, and industrial sectors [102]