Honeywell Technologies Reports Second Quarter Results
Second Quarter 2026 Consolidated Results (including legacy Aerospace Technologies segment):
-
Orders up 4% leading to
~$38 billion backlog -
Sales of
$9.7 billion , reported sales up 4% and organic1 sales up 4% - Operating margin of 17.9% and segment margin1 of 23.1%
-
Earnings per share (EPS) of
$17.83 , which reflects the impact of a one-time gain on deconsolidation of Quantinuum, and adjusted EPS1 of$4.52
Second Quarter 2026
-
Orders up 16% leading to
~$20 billion backlog -
Sales of
$5.2 billion , up 3% reported and up 4% organic1 - Operating margin of 12.8% and segment margin1 of 19.0%
-
EPS of
$16.65 and adjusted EPS1 of$1.95
Management Commentary
"The second quarter marked a historic milestone for
Table 1: Summary of Consolidated Financial Results
Including
(Dollars in millions, except per share amounts)
|
|
|
2Q 2026 |
|
2Q 2025 |
|
Change |
|
Sales |
|
|
|
|
|
4% |
|
Organic1 Growth |
|
|
|
|
|
4% |
|
Operating Income |
|
|
|
|
|
(6%) |
|
Operating Income Margin |
|
17.9% |
|
19.8% |
|
(190 bps) |
|
Segment Profit1 |
|
|
|
|
|
5% |
|
Segment Margin1 |
|
23.1% |
|
22.8% |
|
30 bps |
|
Earnings Per Share - Continuing Operations |
|
|
|
|
|
312% |
|
Adjusted Earnings Per Share1 |
|
|
|
|
|
(4%) |
|
Cash Flow from Operations - Continuing Operations |
|
|
|
|
|
20% |
|
Free Cash Flow1,4 |
|
|
|
|
|
43% |
The information in Tables 2, 3 and 4 and all subsequent commentary (other than under the heading “Honeywell Aerospace”) refers to
Table 2: Summary of
(Dollars in millions, except per share amounts)
|
|
|
2Q 2026 |
|
2Q 2025 |
|
Change |
|
Sales |
|
|
|
|
|
3% |
|
Organic1 Growth |
|
|
|
|
|
4% |
|
Operating Income |
|
|
|
|
|
(1%) |
|
Operating Income Margin |
|
12.8% |
|
13.3% |
|
(50 bps) |
|
Segment Profit1 |
|
|
|
|
|
9% |
|
Segment Margin1 |
|
19.0% |
|
18.0% |
|
100 bps |
|
Earnings Per Share - Continuing Operations |
|
|
|
|
|
1,276% |
|
Adjusted Earnings Per Share1 |
|
|
|
|
|
10% |
|
Cash Flow from Operations - Continuing Operations |
|
|
|
|
|
201% |
|
Free Cash Flow1,4 |
|
|
|
|
|
300% |
| _______________ |
|
* Results refer to |
Table 3: Summary of
(Dollars in millions)
|
BUILDING AUTOMATION |
|
2Q 2026 |
|
2Q 2025 |
|
Change |
|
Sales |
|
|
|
|
|
10% |
|
Organic1 Growth |
|
|
|
|
|
9% |
|
Segment Profit |
|
|
|
|
|
13% |
|
Segment Margin |
|
27.1% |
|
26.2% |
|
90 bps |
|
PROCESS AUTOMATION AND TECHNOLOGY |
|
|
|
|
|
|
|
Sales |
|
|
|
|
|
4% |
|
Organic1 Growth |
|
|
|
|
|
(1%) |
|
Segment Profit |
|
|
|
|
|
(4%) |
|
Segment Margin |
|
22.1% |
|
23.9% |
|
(180) bps |
|
|
|
|
|
|
|
|
|
Sales |
|
|
|
|
|
(5%) |
|
Organic1 Growth |
|
|
|
|
|
4% |
|
Segment Profit |
|
|
|
|
|
—% |
|
Segment Margin |
|
17.2% |
|
16.3% |
|
90 bps |
Building Automation sales for the second quarter grew 9% organically1 year over year. Building products grew 10% led by continued double-digit growth in the fire business, and building solutions grew 7%, driven by services. Orders increased 13% year over year led by robust growth in data center and hospitality verticals. Segment margin expanded 90 basis points to 27.1% driven by volume leverage and pricing, partially offset by inflation.
Table 4:
|
|
Previous Guidance |
Current Guidance |
|
Sales |
|
|
|
Organic Growth |
2% - 3% |
3% - 4% |
|
Segment Margin2 |
19.8% - 20.3% |
20.1% - 20.5% |
|
Expansion |
Up 220 - 270 bps |
Up 250 - 290 bps |
|
Adjusted Earnings Per Share2,3 |
|
|
|
Adjusted Earnings Growth3 |
22% - 28% |
25% - 29% |
|
Operating Cash Flow |
|
|
|
Free Cash Flow4 |
|
|
|
1 |
|
See additional information at the end of this release regarding non-GAAP financial measures. |
|
2 |
|
Segment margin and adjusted EPS are non-GAAP financial measures. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment margin and adjusted EPS. We therefore, do not present a guidance range, or a reconciliation to, the nearest GAAP financial measures of operating margin or EPS. |
|
3 |
|
Adjusted EPS and adjusted EPS V% guidance excludes items identified in the non-GAAP reconciliation of adjusted EPS at the end of this release, and any potential future one-time items that we cannot reliably predict or estimate. |
|
4 |
|
With respect to historical periods, free cash flow adjusts for capital expenditures, spin-off and separation-related cost payments, Resideo indemnification and reimbursement agreement termination payment, cash payment for settlement of the divestiture of asbestos liabilities, and cash flows attributable to Quantinuum. With respect to the company’s outlook for 2026, free cash flow adjusts for capital expenditures, spin-off and separation-related cost payments, and cash flows attributable to Quantinuum. |
2026 Outlook
The former Aerospace Technologies segment now operates independently as
The information below represents results for the former Aerospace Technologies segment on a basis consistent with
In the second quarter, Aerospace Technologies segment sales of
Conference Call Details
About Honeywell Technologies
Honeywell Technologies is a global, pure-play automation company with a legacy of innovating to help solve the world's most mission-critical challenges, enhancing the quality of life for people and communities around the world. We serve the building, industrial, and process sectors with a broad portfolio of services, solutions, and products, underpinned by our Honeywell Technologies Accelerator operating system and Honeywell Technologies Forge intelligence layer. By combining the deep domain expertise of our more than 50,000 employees with decades of data from our global installed base, we are uniquely positioned to lead the industrial sector's transition from automation to autonomy. For more news and information on Honeywell Technologies, please visit Honeywell Technologies Newsroom.
Additional Information
Honeywell Technologies uses our Investor Relations website, investor.honeywell.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media.
Forward Looking Statements
We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including statements related to the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. Forward-looking statements are those that address activities, events, or developments that we or our management intend, expect, project, believe, or anticipate will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control, including Honeywell Technologies' current expectations, estimates, and projections regarding the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements, including the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and the anticipated benefits of each. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as changes in or application of trade and tax laws and policies, including the impacts of tariffs and other trade barriers and restrictions, lower GDP growth or recession in the U.S. or globally, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, including ongoing conflicts in the Middle East, that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K, and our other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.
This release contains financial measures presented on a non-GAAP basis. Honeywell's and Honeywell Technologies' non-GAAP financial measures used in this release are as follows:
- Segment profit, on an overall Honeywell and Honeywell Technologies basis;
- Segment profit margin, on an overall Honeywell and Honeywell Technologies basis;
- Organic sales growth;
- Free cash flow; and
- Adjusted earnings per share.
Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.
Honeywell International Inc.
Consolidated Statement of Operations (Unaudited)
(Dollars in millions, except per share amounts)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Product sales |
$ |
6,374 |
|
|
$ |
6,177 |
|
|
$ |
12,241 |
|
|
$ |
11,984 |
|
|
Service sales |
|
3,345 |
|
|
|
3,145 |
|
|
|
6,621 |
|
|
|
6,263 |
|
|
Net sales |
|
9,719 |
|
|
|
9,322 |
|
|
|
18,862 |
|
|
|
18,247 |
|
|
Costs, expenses and other |
|
|
|
|
|
|
|
||||||||
|
Cost of products sold |
|
4,205 |
|
|
|
3,947 |
|
|
|
8,068 |
|
|
|
7,670 |
|
|
Cost of services sold |
|
1,861 |
|
|
|
1,711 |
|
|
|
3,602 |
|
|
|
3,451 |
|
|
Total Cost of products and services sold |
|
6,066 |
|
|
|
5,658 |
|
|
|
11,670 |
|
|
|
11,121 |
|
|
Research and development expenses |
|
524 |
|
|
|
459 |
|
|
|
1,016 |
|
|
|
875 |
|
|
Selling, general and administrative expenses |
|
1,344 |
|
|
|
1,362 |
|
|
|
2,654 |
|
|
|
2,672 |
|
|
Impairment of assets held for sale |
|
48 |
|
|
|
— |
|
|
|
311 |
|
|
|
15 |
|
|
Loss on debt extinguishment |
|
2 |
|
|
|
— |
|
|
|
241 |
|
|
|
— |
|
|
Gain on deconsolidation of subsidiary |
|
(6,629 |
) |
|
|
— |
|
|
|
(6,629 |
) |
|
|
— |
|
|
Other (income) expense |
|
472 |
|
|
|
(113 |
) |
|
|
465 |
|
|
|
(342 |
) |
|
Interest and other financial charges |
|
363 |
|
|
|
329 |
|
|
|
719 |
|
|
|
614 |
|
|
Total costs, expenses and other |
|
2,190 |
|
|
|
7,695 |
|
|
|
10,447 |
|
|
|
14,955 |
|
|
Income from continuing operations before taxes and equity losses |
|
7,529 |
|
|
|
1,627 |
|
|
|
8,415 |
|
|
|
3,292 |
|
|
Tax expense |
|
1,578 |
|
|
|
244 |
|
|
|
1,669 |
|
|
|
613 |
|
|
Equity loss |
|
265 |
|
|
|
— |
|
|
|
265 |
|
|
|
— |
|
|
Net income from continuing operations |
|
5,686 |
|
|
|
1,383 |
|
|
|
6,481 |
|
|
|
2,679 |
|
|
Net income from discontinued operations |
|
— |
|
|
|
186 |
|
|
|
— |
|
|
|
357 |
|
|
Net income |
|
5,686 |
|
|
|
1,569 |
|
|
|
6,481 |
|
|
|
3,036 |
|
|
Less: Net (loss) income attributable to noncontrolling interest |
|
4 |
|
|
|
(1 |
) |
|
|
(22 |
) |
|
|
17 |
|
|
Net income attributable to |
$ |
5,682 |
|
|
$ |
1,570 |
|
|
$ |
6,503 |
|
|
$ |
3,019 |
|
|
Earnings per share of common stock—basic: |
|
|
|
|
|
|
|
||||||||
|
Earnings per share of common stock from continuing operations—basic |
$ |
17.92 |
|
|
$ |
4.35 |
|
|
$ |
20.50 |
|
|
$ |
8.31 |
|
|
Earnings per share of common stock from discontinued operations—basic |
|
— |
|
|
|
0.57 |
|
|
|
— |
|
|
|
1.08 |
|
|
Total earnings per share of common stock—basic |
$ |
17.92 |
|
|
$ |
4.92 |
|
|
$ |
20.50 |
|
|
$ |
9.39 |
|
|
Earnings per share of common stock—assuming dilution: |
|
|
|
|
|
|
|
||||||||
|
Earnings per share of common stock from continuing operations—assuming dilution |
$ |
17.83 |
|
|
$ |
4.33 |
|
|
$ |
20.39 |
|
|
$ |
8.26 |
|
|
Earnings per share of common stock from discontinued operations—assuming dilution |
|
— |
|
|
|
0.57 |
|
|
|
— |
|
|
|
1.08 |
|
|
Total earnings per share of common stock—assuming dilution |
$ |
17.83 |
|
|
$ |
4.90 |
|
|
$ |
20.39 |
|
|
$ |
9.34 |
|
|
Weighted average number of shares outstanding - basic |
|
317.1 |
|
|
|
318.8 |
|
|
|
317.2 |
|
|
|
321.4 |
|
|
Weighted average number of shares outstanding - assuming dilution |
|
318.6 |
|
|
|
320.5 |
|
|
|
319.0 |
|
|
|
323.2 |
|
Segment Data (Unaudited)
(Dollars in millions)
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
Net sales |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Aerospace Technologies |
$ |
4,532 |
|
$ |
4,307 |
|
$ |
8,854 |
|
$ |
8,479 |
|
Building Automation |
|
2,002 |
|
|
1,826 |
|
|
3,884 |
|
|
3,518 |
|
|
|
1,679 |
|
|
1,613 |
|
|
3,192 |
|
|
3,058 |
|
|
|
1,501 |
|
|
1,574 |
|
|
2,922 |
|
|
3,171 |
|
Total Segment sales |
|
9,714 |
|
|
9,320 |
|
|
18,852 |
|
|
18,226 |
|
Quantinuum |
|
5 |
|
|
2 |
|
|
10 |
|
|
21 |
|
Total Net sales |
$ |
9,719 |
|
$ |
9,322 |
|
$ |
18,862 |
|
$ |
18,247 |
Reconciliation of Segment Profit to Income Before Taxes
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
Segment profit |
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Aerospace Technologies |
$ |
1,126 |
|
|
$ |
1,098 |
|
|
$ |
2,270 |
|
|
$ |
2,197 |
|
|
Building Automation |
|
542 |
|
|
|
479 |
|
|
|
1,038 |
|
|
|
919 |
|
|
|
|
371 |
|
|
|
386 |
|
|
|
730 |
|
|
|
699 |
|
|
|
|
258 |
|
|
|
256 |
|
|
|
499 |
|
|
|
486 |
|
|
Corporate and All Other |
|
(57 |
) |
|
|
(91 |
) |
|
|
(105 |
) |
|
|
(144 |
) |
|
Total Segment profit |
|
2,240 |
|
|
|
2,128 |
|
|
|
4,432 |
|
|
|
4,157 |
|
|
Interest and other financial charges |
|
(363 |
) |
|
|
(329 |
) |
|
|
(719 |
) |
|
|
(614 |
) |
|
Interest income1 |
|
79 |
|
|
|
79 |
|
|
|
169 |
|
|
|
170 |
|
|
Amortization of acquisition-related intangibles2 |
|
(116 |
) |
|
|
(132 |
) |
|
|
(269 |
) |
|
|
(267 |
) |
|
Impairment of assets held for sale |
|
(48 |
) |
|
|
— |
|
|
|
(311 |
) |
|
|
(15 |
) |
|
Stock compensation expense3 |
|
(51 |
) |
|
|
(55 |
) |
|
|
(108 |
) |
|
|
(114 |
) |
|
Pension ongoing income4 |
|
168 |
|
|
|
85 |
|
|
|
332 |
|
|
|
225 |
|
|
Other postretirement income4 |
|
2 |
|
|
|
4 |
|
|
|
4 |
|
|
|
8 |
|
|
Repositioning and other gains (charges)5 |
|
(91 |
) |
|
|
(30 |
) |
|
|
(159 |
) |
|
|
(78 |
) |
|
Loss on debt extinguishment |
|
(2 |
) |
|
|
— |
|
|
|
(241 |
) |
|
|
— |
|
|
Divestiture-related costs6 |
|
(820 |
) |
|
|
(56 |
) |
|
|
(1,134 |
) |
|
|
(67 |
) |
|
Gain on deconsolidation of subsidiary |
|
6,629 |
|
|
|
— |
|
|
|
6,629 |
|
|
|
— |
|
|
Equity loss |
|
(265 |
) |
|
|
— |
|
|
|
(265 |
) |
|
|
— |
|
|
Other expense7 |
|
(30 |
) |
|
|
(16 |
) |
|
|
(70 |
) |
|
|
(33 |
) |
|
Quantinuum Loss8 |
|
(68 |
) |
|
|
(51 |
) |
|
|
(140 |
) |
|
|
(80 |
) |
|
Income before taxes |
$ |
7,264 |
|
|
$ |
1,627 |
|
|
$ |
8,150 |
|
|
$ |
3,292 |
|
|
1 |
|
Amounts included in Other (income) expense. |
|
2 |
|
Amounts included in Cost of products and services sold. |
|
3 |
|
Amounts included in Selling, general and administrative expenses. |
|
4 |
|
Amounts included in Cost of products and services sold (service cost component), Selling, general and administrative expenses (service cost component), Research and development expenses (service cost component), and Other (income) expense (non-service cost component). |
|
5 |
|
Amounts included in Cost of products and services sold, Selling, general and administrative expenses, repositioning, asbestos, and environmental gains (expenses). |
|
6 |
|
Amounts included in Selling, general and administrative expenses, Research and development expenses, and Other (income) expense. |
|
7 |
|
Amounts include the other components of Selling, general and administrative expenses and Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies from strategically aligned investments is included in segment profit. |
|
8 |
|
Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company’s investment in Quantinuum, which does not meet the definition of an operating segment. Included in Net sales, Cost of products and services sold, Research and development expenses, Selling, general and administrative expenses, and Other (income) expense. |
Consolidated Balance Sheet (Unaudited)
(Dollars in millions)
|
|
|
|
|
||
|
ASSETS |
|
|
|
||
|
Current assets |
|
|
|
||
|
Cash and cash equivalents |
$ |
8,751 |
|
$ |
12,487 |
|
Short-term investments |
|
445 |
|
|
443 |
|
Accounts receivable, less allowances of |
|
8,337 |
|
|
7,621 |
|
Inventories |
|
6,401 |
|
|
6,162 |
|
Assets held for sale |
|
2,366 |
|
|
2,492 |
|
Other current assets |
|
1,779 |
|
|
1,182 |
|
Total current assets |
|
28,079 |
|
|
30,387 |
|
Equity method investments |
|
7,459 |
|
|
206 |
|
Long-term receivables and other investments |
|
1,167 |
|
|
1,198 |
|
Property, plant and equipment—net |
|
4,594 |
|
|
4,629 |
|
|
|
19,967 |
|
|
21,079 |
|
Other intangible assets—net |
|
6,413 |
|
|
6,736 |
|
Deferred income taxes |
|
199 |
|
|
199 |
|
Other assets |
|
9,466 |
|
|
9,247 |
|
Total assets |
$ |
77,344 |
|
$ |
73,681 |
|
LIABILITIES |
|
|
|
||
|
Current liabilities |
|
|
|
||
|
Accounts payable |
$ |
6,390 |
|
$ |
6,315 |
|
Commercial paper and other short-term borrowings |
|
2,478 |
|
|
5,893 |
|
Current maturities of long-term debt |
|
5,282 |
|
|
1,546 |
|
Accrued liabilities |
|
7,769 |
|
|
8,462 |
|
Liabilities held for sale |
|
1,275 |
|
|
1,198 |
|
Total current liabilities |
|
23,194 |
|
|
23,414 |
|
Long-term debt |
|
26,228 |
|
|
27,141 |
|
Deferred income taxes |
|
2,695 |
|
|
1,577 |
|
Postretirement benefit obligations other than pensions |
|
106 |
|
|
111 |
|
Other liabilities |
|
6,264 |
|
|
6,408 |
|
Shareowners' equity |
|
18,857 |
|
|
15,030 |
|
Total liabilities and shareowners’ equity |
$ |
77,344 |
|
$ |
73,681 |
Consolidated Statement of Cash Flows (Unaudited)
(Dollars in millions)
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
5,686 |
|
|
$ |
1,569 |
|
|
$ |
6,481 |
|
|
$ |
3,036 |
|
|
Less: Net income from discontinued operations |
|
— |
|
|
|
186 |
|
|
|
— |
|
|
|
357 |
|
|
Net income from continuing operations |
|
5,686 |
|
|
|
1,383 |
|
|
|
6,481 |
|
|
|
2,679 |
|
|
Adjustments to reconcile net income from continuing operations to net cash (used for) provided by operating activities |
|
|
|
|
|
|
|
||||||||
|
Depreciation |
|
156 |
|
|
|
143 |
|
|
|
290 |
|
|
|
269 |
|
|
Amortization |
|
156 |
|
|
|
205 |
|
|
|
379 |
|
|
|
404 |
|
|
Gain on deconsolidation of subsidiary |
|
(6,629 |
) |
|
|
— |
|
|
|
(6,629 |
) |
|
|
— |
|
|
Equity loss income of affiliated companies |
|
256 |
|
|
|
(12 |
) |
|
|
240 |
|
|
|
(23 |
) |
|
(Gain) loss on sale of non-strategic businesses and assets |
|
— |
|
|
|
30 |
|
|
|
(6 |
) |
|
|
29 |
|
|
Impairment of assets held for sale |
|
48 |
|
|
|
— |
|
|
|
311 |
|
|
|
15 |
|
|
Loss on debt extinguishment |
|
2 |
|
|
|
— |
|
|
|
241 |
|
|
|
— |
|
|
Repositioning and other charges |
|
91 |
|
|
|
41 |
|
|
|
159 |
|
|
|
84 |
|
|
Net payments for repositioning and other charges |
|
(82 |
) |
|
|
(91 |
) |
|
|
(145 |
) |
|
|
(195 |
) |
|
Pension and other postretirement income |
|
(169 |
) |
|
|
(89 |
) |
|
|
(336 |
) |
|
|
(233 |
) |
|
Pension and other postretirement benefit payments |
|
(6 |
) |
|
|
(7 |
) |
|
|
(11 |
) |
|
|
(12 |
) |
|
Stock compensation expense |
|
51 |
|
|
|
55 |
|
|
|
108 |
|
|
|
114 |
|
|
Deferred income taxes |
|
1,079 |
|
|
|
(12 |
) |
|
|
962 |
|
|
|
(31 |
) |
|
Other |
|
203 |
|
|
|
(107 |
) |
|
|
252 |
|
|
|
(317 |
) |
|
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: |
|
|
|
|
|
|
|
||||||||
|
Accounts receivable |
|
(271 |
) |
|
|
(429 |
) |
|
|
(718 |
) |
|
|
(853 |
) |
|
Inventories |
|
(31 |
) |
|
|
(291 |
) |
|
|
(234 |
) |
|
|
(438 |
) |
|
Other current assets |
|
(314 |
) |
|
|
(183 |
) |
|
|
(449 |
) |
|
|
(154 |
) |
|
Accounts payable |
|
378 |
|
|
|
244 |
|
|
|
89 |
|
|
|
112 |
|
|
Accrued liabilities |
|
895 |
|
|
|
554 |
|
|
|
70 |
|
|
|
412 |
|
|
Income taxes |
|
(223 |
) |
|
|
(370 |
) |
|
|
(428 |
) |
|
|
(420 |
) |
|
Net cash provided by operating activities from continuing operations |
|
1,276 |
|
|
|
1,064 |
|
|
|
626 |
|
|
|
1,442 |
|
|
Net cash provided by operating activities from discontinued operations |
|
— |
|
|
|
255 |
|
|
|
— |
|
|
|
474 |
|
|
Net cash provided by operating activities |
|
1,276 |
|
|
|
1,319 |
|
|
|
626 |
|
|
|
1,916 |
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
||||||||
|
Capital expenditures |
|
(315 |
) |
|
|
(226 |
) |
|
|
(538 |
) |
|
|
(416 |
) |
|
Increase in investments |
|
(311 |
) |
|
|
(330 |
) |
|
|
(505 |
) |
|
|
(681 |
) |
|
Decrease in investments |
|
301 |
|
|
|
415 |
|
|
|
513 |
|
|
|
753 |
|
|
Receipts (payments) from settlements of derivative contracts |
|
42 |
|
|
|
(290 |
) |
|
|
127 |
|
|
|
(415 |
) |
|
Cash paid for acquisitions, net of cash acquired |
|
(23 |
) |
|
|
(2,158 |
) |
|
|
(28 |
) |
|
|
(2,163 |
) |
|
Deconsolidation of subsidiary cash |
|
(623 |
) |
|
|
— |
|
|
|
(623 |
) |
|
|
— |
|
|
Proceeds from sale of business, net of cash transferred |
|
— |
|
|
|
1,157 |
|
|
|
6 |
|
|
|
1,157 |
|
|
Net cash used for investing activities from continuing operations |
|
(929 |
) |
|
|
(1,432 |
) |
|
|
(1,048 |
) |
|
|
(1,765 |
) |
|
Net cash used for investing activities from discontinued operations |
|
— |
|
|
|
(77 |
) |
|
|
— |
|
|
|
(115 |
) |
|
Net cash used for investing activities |
|
(929 |
) |
|
|
(1,509 |
) |
|
|
(1,048 |
) |
|
|
(1,880 |
) |
|
Cash flows from financing activities |
|
|
|
|
|
|
|
||||||||
|
Proceeds from issuance of commercial paper and other short-term borrowings |
|
3,153 |
|
|
|
7,008 |
|
|
|
7,911 |
|
|
|
11,863 |
|
|
Payments of commercial paper and other short-term borrowings |
|
(5,306 |
) |
|
|
(6,577 |
) |
|
|
(11,324 |
) |
|
|
(9,990 |
) |
|
Proceeds from issuance of common stock |
|
29 |
|
|
|
56 |
|
|
|
199 |
|
|
|
98 |
|
|
Proceeds from issuance of long-term debt |
|
— |
|
|
|
3,989 |
|
|
|
— |
|
|
|
4,035 |
|
|
Payments of long-term debt |
|
(582 |
) |
|
|
(1,265 |
) |
|
|
(13,187 |
) |
|
|
(1,309 |
) |
|
Repurchases of common stock |
|
— |
|
|
|
(1,702 |
) |
|
|
(1,000 |
) |
|
|
(3,604 |
) |
|
Cash dividends paid |
|
(795 |
) |
|
|
(747 |
) |
|
|
(1,576 |
) |
|
|
(1,479 |
) |
|
Pre-separation funding |
|
— |
|
|
|
— |
|
|
|
15,835 |
|
|
|
— |
|
|
Other |
|
(12 |
) |
|
|
(3 |
) |
|
|
(104 |
) |
|
|
(35 |
) |
|
Net cash provided by (used for) financing activities |
|
(3,513 |
) |
|
|
759 |
|
|
|
(3,246 |
) |
|
|
(421 |
) |
|
Effect of foreign exchange rate changes on cash and cash equivalents |
|
(60 |
) |
|
|
123 |
|
|
|
(68 |
) |
|
|
167 |
|
|
Net decrease in cash and cash equivalents |
|
(3,226 |
) |
|
|
692 |
|
|
|
(3,736 |
) |
|
|
(218 |
) |
|
Cash and cash equivalents at beginning of period |
|
11,977 |
|
|
|
9,657 |
|
|
|
12,487 |
|
|
|
10,567 |
|
|
Cash and cash equivalents at end of period |
$ |
8,751 |
|
|
$ |
10,349 |
|
|
$ |
8,751 |
|
|
$ |
10,349 |
|
Appendix
Non-GAAP Financial Measures
The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release to which reconciliations are attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The reconciliations include the financial measures on a consolidated
Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes.
Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate
As indicated herein, certain forward-looking non-GAAP financial measures are not reconciled because management cannot reliably predict or estimate certain items for the reasons specified herein with respect to each non-GAAP financial measure.
Reconciliation of Organic Sales Percent Change
(Unaudited)
|
|
Three Months Ended
|
|
|
|
|
Reported sales percent change |
4% |
|
Less: Impact of divestitures to the prior period |
(2)% |
|
Reported sales percent change, adjusted for impact of divestitures |
6% |
|
Less: Foreign currency translation |
1% |
|
Less: Acquisitions |
1% |
|
Less: Other |
—% |
|
Organic sales percent change |
4% |
|
Less: Separation Adjustments1 |
—% |
|
Organic sales percent change ( |
4% |
|
|
|
|
Building Automation |
|
|
Reported sales percent change |
10% |
|
Less: Impact of divestitures to the prior period |
—% |
|
Reported sales percent change, adjusted for impact of divestitures |
10% |
|
Less: Foreign currency translation |
1% |
|
Less: Acquisitions |
—% |
|
Less: Other |
—% |
|
Organic sales percent change |
9% |
|
|
|
|
|
|
|
Reported sales percent change |
4% |
|
Less: Impact of divestitures to the prior period |
—% |
|
Reported sales percent change, adjusted for impact of divestitures |
4% |
|
Less: Foreign currency translation |
—% |
|
Less: Acquisitions |
5% |
|
Less: Other |
—% |
|
Organic sales percent change |
(1)% |
|
|
|
|
|
|
|
Reported sales percent change |
(5)% |
|
Less: Impact of divestitures to the prior period |
(9)% |
|
Reported sales percent change, adjusted for impact of divestitures |
4% |
|
Less: Foreign currency translation |
—% |
|
Less: Acquisitions |
—% |
|
Less: Other |
—% |
|
Organic sales percent change |
4% |
|
|
|
|
Aerospace Technologies |
|
|
Reported sales percent change |
5% |
|
Less: Impact of divestitures to the prior period |
—% |
|
Reported sales percent change, adjusted for impact of divestitures |
5% |
|
Less: Foreign currency translation |
—% |
|
Less: Acquisitions |
—% |
|
Less: Other |
—% |
|
Organic sales percent change |
5% |
|
1 |
|
Includes the financial results of the |
We define organic sales percentage as the year-over-year change in reported sales relative to the comparable period, adjusted for the impact of divestitures to the prior period, and excluding the impact on sales from foreign currency translation, acquisitions for the first 12 months following the transaction date, and certain other items that are unusual or non-recurring in nature. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
A quantitative reconciliation of reported sales percent change to organic sales percent change has not been provided for the forward-looking measure of organic sales percent change because management cannot reliably predict or estimate, without unreasonable effort, the fluctuations in global currency markets that impact foreign currency translation, nor is it reasonable for management to predict the timing, occurrence and impact of acquisition and divestiture transactions, all of which could significantly impact our reported sales percent change.
Reconciliation of
(Unaudited)
(Dollars in millions)
|
|
Three Months Ended |
||||||||||||
|
|
2026 |
|
2025 |
||||||||||
|
|
|
Less: Separation Adjustments1 |
|
|
|
Less: Separation Adjustments1 |
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Net sales |
$ |
9,719 |
$ |
4,532 |
$ |
5,187 |
|
$ |
9,322 |
$ |
4,304 |
$ |
5,018 |
|
Less: Quantinuum |
|
5 |
|
— |
|
5 |
|
|
2 |
|
— |
|
2 |
|
Segment sales |
$ |
9,714 |
|
$ |
5,182 |
|
$ |
9,320 |
|
$ |
5,016 |
||
|
1 |
|
Includes the financial results of the |
|
|
Twelve Months Ended |
|||||
|
|
|
Less:
|
|
|||
|
|
|
|
|
|||
|
Net sales |
$ |
37,442 |
$ |
17,497 |
$ |
19,945 |
|
Less: Quantinuum |
|
30 |
|
— |
|
30 |
|
Segment sales |
$ |
37,412 |
|
$ |
19,915 |
|
|
1 |
|
Includes the financial results of the |
Reconciliation of Operating Income to Segment Profit, Calculation of Operating Income and Segment Profit Margins
(Unaudited)
(Dollars in millions)
|
|
Three Months Ended |
||||||||||||||||
|
|
2026 |
|
|
2025 |
|
||||||||||||
|
|
|
Less: Separation Adjustments1 |
|
|
|
Less: Separation Adjustments1 |
|
||||||||||
|
Operating income |
$ |
1,737 |
|
$ |
1,075 |
$ |
662 |
|
|
$ |
1,843 |
|
$ |
1,177 |
$ |
666 |
|
|
Stock compensation expense2 |
|
51 |
|
|
15 |
|
36 |
|
|
|
55 |
|
|
10 |
|
45 |
|
|
Repositioning, Other3,4 |
|
100 |
|
|
26 |
|
74 |
|
|
|
42 |
|
|
14 |
|
28 |
|
|
Pension and other postretirement service costs5 |
|
13 |
|
|
3 |
|
10 |
|
|
|
14 |
|
|
4 |
|
10 |
|
|
Amortization of acquisition-related intangibles6 |
|
116 |
|
|
24 |
|
92 |
|
|
|
132 |
|
|
19 |
|
113 |
|
|
Acquisition-related costs7 |
|
3 |
|
|
— |
|
3 |
|
|
|
(7 |
) |
|
— |
|
(7 |
) |
|
Divestiture-related costs8 |
|
112 |
|
|
112 |
|
— |
|
|
|
— |
|
|
— |
|
— |
|
|
ERP implementation costs2 |
|
5 |
|
|
— |
|
5 |
|
|
|
— |
|
|
— |
|
— |
|
|
Impairment of assets held for sale |
|
48 |
|
|
— |
|
48 |
|
|
|
— |
|
|
— |
|
— |
|
|
Loss on Quantinuum8 |
|
55 |
|
|
— |
|
55 |
|
|
|
49 |
|
|
— |
|
49 |
|
|
Segment profit |
$ |
2,240 |
|
|
$ |
985 |
|
|
$ |
2,128 |
|
|
$ |
904 |
|
||
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating income |
$ |
1,737 |
|
|
$ |
662 |
|
|
$ |
1,843 |
|
|
$ |
666 |
|
||
|
÷ Segment sales |
|
9,714 |
|
|
|
5,182 |
|
|
|
9,320 |
|
|
|
5,016 |
|
||
|
Operating income margin % |
|
17.9 |
% |
|
|
12.8 |
% |
|
|
19.8 |
% |
|
|
13.3 |
% |
||
|
Segment profit |
$ |
2,240 |
|
|
$ |
985 |
|
|
$ |
2,128 |
|
|
$ |
904 |
|
||
|
÷ Segment sales |
|
9,714 |
|
|
|
5,182 |
|
|
|
9,320 |
|
|
|
5,016 |
|
||
|
Segment profit margin % |
|
23.1 |
% |
|
|
19.0 |
% |
|
|
22.8 |
% |
|
|
18.0 |
% |
||
|
1 |
|
Includes the financial results of the |
|
2 |
|
Included in Selling, general and administrative expenses. |
|
3 |
|
Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. |
|
4 |
|
Included in Cost of products and services sold and Selling, general and administrative expenses. |
|
5 |
|
Included in Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. |
|
6 |
|
Included in Cost of products and services sold. |
|
7 |
|
Included in Cost of products and services sold. Includes acquisition-related fair value adjustments to inventory. |
|
8 |
|
Included in Research and development expenses and Selling, general and administrative expenses. |
|
9 |
|
Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company’s investment in Quantinuum, which does not meet the definition of an operating segment. Included in Net sales, Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. |
|
|
Twelve Months Ended
|
|||||||
|
|
2025 |
|||||||
|
|
|
Less:
|
|
|||||
|
Operating income |
$ |
5,573 |
|
$ |
4,402 |
$ |
1,171 |
|
|
Stock compensation expense2 |
|
196 |
|
|
43 |
|
153 |
|
|
Repositioning, Other3,4 |
|
675 |
|
|
285 |
|
390 |
|
|
Pension and other postretirement service costs5 |
|
73 |
|
|
16 |
|
57 |
|
|
Amortization of acquisition-related intangibles6 |
|
570 |
|
|
61 |
|
509 |
|
|
Acquisition-related costs7 |
|
2 |
|
|
— |
|
2 |
|
|
Indefinite-lived intangible asset impairment2 |
|
44 |
|
|
— |
|
44 |
|
|
Impairment of goodwill |
|
724 |
|
|
— |
|
724 |
|
|
Impairment of assets held for sale |
|
270 |
|
|
— |
|
270 |
|
|
Loss on Quantinuum8 |
|
187 |
|
|
— |
|
187 |
|
|
Segment profit |
$ |
8,314 |
|
|
$ |
3,507 |
|
|
|
|
|
|
|
|||||
|
Operating income |
$ |
5,573 |
|
|
$ |
1,171 |
|
|
|
÷ Segment sales |
|
37,412 |
|
|
|
19,915 |
|
|
|
Operating income margin % |
|
14.9 |
% |
|
|
5.9 |
% |
|
|
Segment profit |
$ |
8,314 |
|
|
$ |
3,507 |
|
|
|
÷ Segment sales |
|
37,412 |
|
|
|
19,915 |
|
|
|
Segment profit margin % |
|
22.2 |
% |
|
|
17.6 |
% |
|
|
1 |
|
Includes the financial results of the |
|
2 |
|
Included in Selling, general and administrative expenses. |
|
3 |
|
Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. |
|
4 |
|
Included in Cost of products and services sold and Selling, general and administrative expenses. |
|
5 |
|
Included in Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. |
|
6 |
|
Included in Cost of products and services sold. |
|
7 |
|
Included in Cost of products and services sold. Includes acquisition-related fair value adjustments to inventory. |
|
8 |
|
Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company’s investment in Quantinuum, which does not meet the definition of an operating segment. Included in Net sales, Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. |
We define operating income as segment sales less total cost of products and services sold, research and development expenses, selling, general and administrative expenses, impairment of goodwill, and impairment of assets held for sale. We define segment profit, on an overall
A quantitative reconciliation of operating income to segment profit, on an overall company basis, has not been provided for all forward-looking measures of segment profit and segment profit margin included herein. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment profit. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results. To the extent quantitative information becomes available without unreasonable effort in the future, and closer to the period to which the forward-looking measures pertain, a reconciliation of operating income to segment profit will be included within future filings.
Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies.
Reconciliation of Earnings per Share to Adjusted Earnings per Share
(Unaudited)
|
|
Three Months Ended |
||||||||||||||||||
|
|
2026 |
|
2025 |
||||||||||||||||
|
|
|
Less: Separation Adjustments1 |
|
|
|
Less: Separation Adjustments1 |
|
||||||||||||
|
Earnings per share of common stock from
|
$ |
17.83 |
|
$ |
1.18 |
|
$ |
16.65 |
|
|
$ |
4.33 |
|
$ |
3.12 |
|
$ |
1.21 |
|
|
Pension income3 |
|
(0.40 |
) |
|
(0.19 |
) |
|
(0.21 |
) |
|
|
(0.21 |
) |
|
(0.18 |
) |
|
(0.03 |
) |
|
Amortization of acquisition-related intangibles4 |
|
0.28 |
|
|
0.06 |
|
|
0.22 |
|
|
|
0.31 |
|
|
0.04 |
|
|
0.27 |
|
|
Acquisition-related costs5 |
|
0.02 |
|
|
— |
|
|
0.02 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Divestiture-related costs6 |
|
1.69 |
|
|
1.43 |
|
|
0.26 |
|
|
|
0.14 |
|
|
(0.03 |
) |
|
0.17 |
|
|
Debt restructuring costs7 |
|
0.10 |
|
|
0.09 |
|
|
0.01 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
ERP implementation costs8 |
|
0.01 |
|
|
— |
|
|
0.01 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Impairment of assets held for sale9 |
|
0.11 |
|
|
— |
|
|
0.11 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Loss on sale of business10 |
|
— |
|
|
— |
|
|
— |
|
|
|
0.09 |
|
|
— |
|
|
0.09 |
|
|
Impact of |
|
0.02 |
|
|
— |
|
|
0.02 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Gain on deconsolidation of Quantinuum12 |
|
(15.87 |
) |
|
— |
|
|
(15.87 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
Equity loss of Quantinuum13 |
|
0.65 |
|
|
— |
|
|
0.65 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Loss on Quantinuum14 |
|
0.08 |
|
|
— |
|
|
0.08 |
|
|
|
0.06 |
|
|
— |
|
|
0.06 |
|
|
Adjusted earnings per share of common stock from continuing operations - diluted |
$ |
4.52 |
|
|
$ |
1.95 |
|
|
$ |
4.72 |
|
|
$ |
1.77 |
|
||||
|
1 |
|
Includes the financial results of the |
|
2 |
|
For the three months ended |
|
3 |
|
For the three months ended |
|
4 |
|
For the three months ended |
|
5 |
|
For the three months ended |
|
6 |
|
For the three months ended |
|
7 |
|
For the three months ended |
|
8 |
|
For the three months ended |
|
9 |
|
For the three months ended |
|
10 |
|
For the three months ended |
|
11 |
|
For the three months ended |
|
12 |
|
For the three months ended |
|
13 |
|
For the three months ended |
|
14 |
|
Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company’s investment in Quantinuum, which does not meet the definition of an operating segment. For the three months ended |
|
|
Twelve Months Ended |
|||||||||||
|
|
2025 |
|
|
2026(E) |
||||||||
|
|
|
Less: Separation
|
|
|
|
|||||||
|
Earnings per share of common stock from continuing operations - diluted2 |
$ |
13.88 |
|
$ |
10.64 |
|
$ |
3.24 |
|
|
|
|
|
Pension income3 |
|
(0.91 |
) |
|
(0.78 |
) |
|
(0.13 |
) |
|
No Forecast |
|
|
Amortization of acquisition-related intangibles4 |
|
1.34 |
|
|
0.14 |
|
|
1.20 |
|
|
1.10 |
|
|
Acquisition-related costs5 |
|
0.11 |
|
|
— |
|
|
0.11 |
|
|
0.06 |
|
|
Divestiture-related costs6 |
|
1.43 |
|
|
0.62 |
|
|
0.81 |
|
|
No Forecast |
|
|
Debt restructuring costs7 |
|
— |
|
|
— |
|
|
— |
|
|
0.72 |
|
|
ERP implementation costs8 |
|
— |
|
|
— |
|
|
— |
|
|
0.06 |
|
|
Impairment of assets held for sale9 |
|
0.65 |
|
|
— |
|
|
0.65 |
|
|
0.74 |
|
|
Indefinite-lived intangible asset impairment10 |
|
0.14 |
|
|
— |
|
|
0.14 |
|
|
— |
|
|
Impairment of goodwill11 |
|
2.25 |
|
|
— |
|
|
2.25 |
|
|
— |
|
|
(Gain) loss on sale of business12 |
|
0.09 |
|
|
— |
|
|
0.09 |
|
|
(0.02 |
) |
|
Gain related to Resideo indemnification and reimbursement agreement termination13 |
|
(2.50 |
) |
|
— |
|
|
(2.50 |
) |
|
— |
|
|
Adjustment to estimated future environmental liabilities14 |
|
0.50 |
|
|
0.43 |
|
|
0.07 |
|
|
— |
|
|
Loss on settlement of divestiture of asbestos liabilities15 |
|
0.35 |
|
|
— |
|
|
0.35 |
|
|
— |
|
|
|
|
0.95 |
|
|
0.95 |
|
|
— |
|
|
— |
|
|
Impact of |
|
— |
|
|
— |
|
|
— |
|
|
0.02 |
|
|
Gain on deconsolidation of Quantinuum18 |
|
— |
|
|
— |
|
|
— |
|
|
(15.85 |
) |
|
Equity loss of Quantinuum19 |
|
— |
|
|
— |
|
|
— |
|
|
No Forecast |
|
|
Loss on Quantinuum20 |
|
0.18 |
|
|
— |
|
|
0.18 |
|
|
0.17 |
|
|
Adjusted earnings per share of common stock from continuing operations - diluted |
$ |
18.46 |
|
|
$ |
6.46 |
|
|
|
|||
|
1 |
|
Includes the financial results of the |
|
2 |
|
For the twelve months ended |
|
3 |
|
For the twelve months ended |
|
4 |
|
For the twelve months ended |
|
5 |
|
For the twelve months ended |
|
6 |
|
For the twelve months ended |
|
7 |
|
For the twelve months ended |
|
8 |
|
For the twelve months ended |
|
9 |
|
For the twelve months ended |
|
10 |
|
For the twelve months ended |
|
11 |
|
For the twelve months ended |
|
12 |
|
For the twelve months ended |
|
13 |
|
For the twelve months ended |
|
14 |
|
In the twelve months ended |
|
15 |
|
For the twelve months ended |
|
16 |
|
For the twelve months ended |
|
17 |
|
For the twelve months ended |
|
18 |
|
For the twelve months ended |
|
19 |
|
The equity losses of Quantinuum are based on our proportionate share of Quantinuum's earnings or losses, which are outside of the Company's control. We therefore do not include an estimate for these amounts. |
|
20 |
|
Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company’s investment in Quantinuum, which does not meet the definition of an operating segment. For the twelve months ended |
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 management in understanding our ongoing operations and in analysis of ongoing operating trends. For forward-looking information, management cannot reliably predict or estimate, without unreasonable effort, pension income or the divestiture-related costs. The pension income is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. The divestiture-related costs are subject to detailed development and execution of separation restructuring and simplification plans for the recently completed separation of
Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies.
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
(Unaudited)
(Dollars in millions)
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||
|
|
|
Less: Separation Adjustments1 |
|
|
|
Less: Separation Adjustments1 |
|
|
|
||||||||||||
|
Cash provided by operating activities from continuing operations |
$ |
1,276 |
|
$ |
713 |
|
$ |
563 |
|
|
$ |
1,064 |
|
$ |
877 |
|
$ |
187 |
|
|
|
|
Capital expenditures |
|
(315 |
) |
|
(128 |
) |
|
(187 |
) |
|
|
(226 |
) |
|
(118 |
) |
|
(108 |
) |
|
~(0.6) |
|
Spin-off and separation-related cost payments |
|
260 |
|
|
211 |
|
|
49 |
|
|
|
7 |
|
|
5 |
|
|
2 |
|
|
~0.4 |
|
Quantinuum |
|
31 |
|
|
— |
|
|
31 |
|
|
|
33 |
|
|
— |
|
|
33 |
|
|
~0.1 |
|
Free cash flow |
$ |
1,252 |
|
|
$ |
456 |
|
|
$ |
878 |
|
|
$ |
114 |
|
|
~1.8 - |
||||
|
1 |
|
Includes the financial results of the |
We define free cash flow as cash provided by operating activities from continuing operations less cash for capital expenditures and excluding spin-off and separation-related cost payments, the Resideo indemnification and reimbursement agreement termination payment, the cash payment for settlement of divestiture of asbestos liabilities, the cash payment for settlement of
We believe that free cash flow is a non-GAAP measure that is useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260722625234/en/
Media
(980) 378-6258
stacey.jones@honeywell.com
Investor Relations
(704) 627-6118
mark.macaluso@honeywell.com
Source:
