Honeywell International Inc. · NASDAQ:HON
Honeywell International — Honeywell Technologies — Q3 2026 Earnings Presentation
27 slides from Honeywell International's earnings presentation, Oct 22, 2026
Slide 1: Third Quarter 2026 Earnings Presentation
Third Quarter 2026 Earnings Presentation October 22, 2026 3Q 2026 Earnings – October 22, 2026 Pictured above is Honeywell Technologies’ LNG Accelerate Integrated Modular LNG solution
Slide 2: Forward-looking statements and Non-GAAP financial measures
Forward-looking statements Non-GAAP financial measures We describe many of the trends and other factors that drive our business and future results in This presentation contains financial measures presented on a non-GAAP basis. Honeywell this presentation. Such discussions contain forward-looking sta
Slide 3: Key messages
Key messages 01 Delivered strong third quarter results, with broad-based strength across all segments Third quarter results Sales $5.0B 02 Resilient short-cycle demand (+8%1) and growing backlog (+7%1) supporting strong setup into 2027 Organic growth 7% Segment margin 21.3% 03 Organic growth enabled
Slide 4: 2026 orders progression
2026 orders progression Orders by quarter 3Q commentary 5,700 30% 5,600 5,500 • Resilient demand across most of the portfolio 5,400 5,300 5,200 25% 5,100 5,000 4,900 • Short-cycle orders +8%2 organic driven by demand in sensing 4,800 20% 4,700 4,600 and industrial measurement (IA) and double-digit g
Slide 5: Energy segment investments driving continued backlog expansion
Energy segment investments driving continued backlog expansion • >$1B of incremental energy orders since 1Q26 US Gas US Processing Petchem Middle East LNG African Refining Liquefaction Middle East • Large investments in Africa for refining and Refining petrochemical plants • Continued strength in LN
Slide 6: 3Q 2026 financial summary
3Q 2026 financial summary Sales Segment Margin* Adjusted EPS* Free Cash Flow* Up 7% Organic* Up 370 bps Up 34% 95% conversion* $0.7B $5.0B $2.27 21.3% $0.6B $4.9B 17.6% $1.70 3Q25 3Q26 3Q25 3Q26 3Q25 3Q26 3Q25 3Q26 + Strength across all segments + Productivity, including stranded cost + Strong segme
Slide 7: 3Q 2026 segment margin and adjusted EPS bridges
3Q 2026 segment margin and adjusted EPS bridges 630 bps (350) bps $0.12 ($0.06) $0.36 Up 34% 20 bps $0.28 ($0.13) +370 bps $2.27 70 bps 21.3% $1.70 17.6% 3Q25 Segment Volume Price, productivity Inflation Portfolio, 3Q26 Segment 3Q25 Adjusted Operational Divestitures Corporate / Below the line, Tax 3
Slide 8: Delivering on debt paydown commitments
Delivering on debt paydown commitments • On plan toCommentary deliver < 3.0x year-end gross Commentary ~$18B leverage, or <2.25x net leverage • ~$3.5B of planned debt repayments in fourth quarter, driving year-end gross debt ~$13B • Supported by stronger free cash flow generation and planned cash re
Slide 9: Aggressively eliminating stranded costs
Aggressively eliminating stranded costs Fixed cost % of sales1 On track to remove all remaining stranded cost by ~500 bps improvement end of 2026; positioning the company for continued fixed cost productivity in 2027 Continued progress on reducing fixed cost percent of sales, ~270 bps improvement ye
Slide 10: Revised 2026 guidance
Revised 2026 guidance Prior 2026 Revised 2026 Revised 4Q26 Commentary Sales $19.8B - $20.0B $20.0B - $20.1B $5.0B - $5.1B • Raising full-year organic growth, adjusted Organic 3% - 4% 4% - 5% 5% - 6% EPS and free cash flow guidance; expect growth* segment margin to be at high end of previous range Se
Slide 11: Key takeaways
Key takeaways 01 Third quarter results exceeded expectations on growth, margin and EPS 02 Short-cycle demand remains resilient; PA&T entering multi-year growth upcycle 03 Free cash flow generation accelerating in second half 04 Raising 2026 guidance after strong 3Q performance 05 Strong results coup
Slide 12: Appendix
Appendix 3Q 3Q2026 2026Earnings Earnings––October October22, 22,2026 2026
Slide 13: 3Q 2026 segment results
3Q 2026 segment results ($M) Sales Segment Margin* Commentary • Double-digit organic sales growth in products businesses led by fire and security Building $2,020 27.0% • Sales growth across all regions, with strength in India, Asia Pacific and the Americas Automation Up 8% Organic* Up 30 bps • Doubl
Slide 14: 3Q 2026 sales growth
3Q 2026 sales growth 3Q Reported 3Q Organic* Building Automation 8% 8% Products 10% 11% Solutions 4% 4% Process Automation & Technology 16% 8% Aftermarket 17% 4% Projects 16% 14% Industrial Automation (23%) 4% Products (15%) Flat Solutions (40%) 16% *Non-GAAP financial measure 3Q 2026 Earnings – Oct
Slide 15: Additional 2026 inputs
Additional 2026 inputs 2025 2026E 3Q26 4Q26E Total Corporate1 ($884M) ~($575M) ($101M) ~($135M) Repositioning and other2 ($98M) ~($105M) ($16M) ~($20M) Net interest ($646M) ~($475M) ($93M) ~($105M) Stock compensation ($152M) ~($135M) ($31M) ~($40M) Other below the line3 $31M ~($25M) ($14M) ~($15M) T
Slide 16: 3Q 2026 Earnings – July 2Q October
3Q 2026 Earnings – July 2Q October 23, 2026 22, 2026
Slide 17: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this presentation to which reconciliations are attached to the most directly comparable financial measures calculated and presented in accordanc
Slide 18: Reconciliation of Organic Sales Percent Change
Reconciliation of Organic Sales Percent Change 3Q26 3Q26 Honeywell Technologies Process Automation and Technology Reported sales percent change 1% Reported sales percent change 16% Less: Impact of divestitures to the prior period (8)% Less: Impact of divestitures to the prior period —% Reported sale
Slide 19: Reconciliation of Operating Income to Segment Profit
Reconciliation of Operating Income to Segment Profit, Calculation of Operating Income, Segment Profit, and Segment Profit Margin ($M) 3Q 2026 3Q 2025 4Q 2025 2025 Operating income $ 740 $ 413 $ (443) $ 1,171 Stock compensation expense1 104 22 38 153 Repositioning, other2,3 20 223 95 390 Pension and
Slide 20: Reconciliation of Operating Income to Segment Profit
Reconciliation of Operating Income to Segment Profit, Calculation of Operating Income, Segment Profit, and Segment Profit Margin We define operating income as segment sales less total cost of products and services sold, research and development expenses, selling, general and administrative expenses,
Slide 21: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share to Adjusted Earnings Per Share 3Q25 4Q25 FY2025 1Q26 2Q26 3Q26 4Q26E 2026E Earnings per share of common stock from continuing operations - diluted1 $ 2.99 $ (1.77) $ 3.24 $ 0.17 $ 16.64 $ 2.40 $2.08 - $2.13 $21.88 - $21.93 Pension income2 (0.18) 0.22 (0.13) (0.20
Slide 22: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share to Adjusted Earnings Per Share 1 For the three months ended September 30 and December 31, 2025, adjusted earnings per share utilizes weighted average shares of approximately 319.4 million and 319.3 million, respectively. For the twelve months ended December 31, 2
Slide 23: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share to Adjusted Earnings Per Share We define adjusted earnings per share as diluted earnings per share from continuing operations adjusted to exclude various charges as listed above. We believe adjusted earnings per share is a measure that is useful to investors and
Slide 24: Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate
Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate ($M) 3Q 2026 2025 Income before taxes $ 839 $ 1,304 Acquisition-related intangibles amortization 131 509 Acquisition-related costs 40 45 Divestiture-related costs 170 230 Quantinuum loss — 178 (Gain) loss on sale of nonstrategic bus
Slide 25: Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate
Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate We define adjusted income before taxes as income before taxes from continuing operations adjusted for items presented above. We define adjusted income tax expense as income tax expense adjusted for items presented above. We define a
Slide 26: Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow ($M) 3Q26 3Q25 2026E Cash provided by operating activities from continuing operations $ 607 $ 2,306 $ 2.1 Capital expenditures (77) (150) ~(0.6) Separation-related cost payments 158 2 ~0.5 Quantinuum — 31 ~0.1 Resideo indemnif
Slide 27: Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow, Reconciliation of Net Income Attributable to Honeywell Technologies to Adjusted Net Income Attributable to Honeywell Technologies, and Calculation of Adjusted Free Cash Flow Conversion ($M) 3Q 2026 Cash provided by operating
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