Honeywell International 10-Q 2025-06-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

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☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

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 registrant as specified in its charter)

Delaware									22-2640650
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)
855 South Mint Street									28202
Charlotte,			North Carolina
(Address of principal executive offices)									(Zip Code)

			(704)			627-6200
			(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class						Trading Symbol(s)						Name of each exchange on which registered
Common Stock, par value $1 per share						HON						The Nasdaq Stock Market LLC
3.500% Senior Notes due 2027						HON 27						The Nasdaq Stock Market LLC
2.250% Senior Notes due 2028						HON 28A						The Nasdaq Stock Market LLC
3.375% Senior Notes due 2030						HON 30						The Nasdaq Stock Market LLC
0.750% Senior Notes due 2032						HON 32						The Nasdaq Stock Market LLC
3.750% Senior Notes due 2032						HON 32A						The Nasdaq Stock Market LLC
4.125% Senior Notes due 2034						HON 34						The Nasdaq Stock Market LLC
3.750% Senior Notes due 2036						HON 36						The Nasdaq Stock Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer			x			Accelerated filer			☐
Non-accelerated filer			☐			Smaller reporting company			☐
						Emerging growth company			☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

There were 634,896,562 shares of Common Stock outstanding at June 30, 2025.

TABLE OF CONTENTS

						Cautionary Statement about Forward-Looking Statements			1
						About Honeywell			2
PART I						Financial Information
ITEM 1						Financial Statements and Supplementary Data (unaudited):			3
						Consolidated Statement of Operations (unaudited) – Three and Six Months Ended June 30, 2025, and 2024			3
						Consolidated Statement of Comprehensive Income (unaudited) – Three and Six Months Ended June 30, 2025, and 2024			4
						Consolidated Balance Sheet (unaudited) – June 30, 2025, and December 31, 2024			5
						Consolidated Statement of Cash Flows (unaudited) – Six Months Ended June 30, 2025, and 2024			6
						Consolidated Statement of Shareowners' Equity (unaudited) – Three and Six Months Ended June 30, 2025, and 2024			7
						Note 1 – Basis of Presentation			8
						Note 2 – Summary of Significant Accounting Policies			8
						Note 3 – Acquisitions and Divestitures			9
						Note 4 – Revenue Recognition and Contracts with Customers			12
						Note 5 – Repositioning and Other Charges			15
						Note 6 – Income Taxes			17

Showing the first 8K of 177K characters. Open the full section

(Dollars in tables and graphs in millions, except per share amounts)

The following Management's Discussion and Analysis of Financial Condition and Results of Operations is intended to help the reader understand the results of operations and financial condition of Honeywell International Inc. and its consolidated subsidiaries (Honeywell, we, us, our, or the Company) for the three and six months ended June 30, 2025. The financial information as of June 30, 2025, should be read in conjunction with the Consolidated Financial Statements for the year ended December 31, 2024, contained in our 2024 Annual Report on Form 10-K.

BUSINESS UPDATE

MACROECONOMIC CONDITIONS

We continue to monitor macroeconomic and geopolitical developments amid heightened trade tensions, economic and trade policy uncertainty, and inflationary risks. The trade policy volatility during 2025—including new tariffs and, in some cases, subsequent rollbacks or suspensions—could adversely impact global growth and contribute to inflationary pressures. Global conflicts, tariffs, labor disruptions, and regulations continue to generate volatility in global markets and can contribute to supply chain vulnerabilities and pricing fluctuations. We remain proactive in our collaboration with suppliers to minimize shortages and mitigate supply chain and pricing volatility.

Mitigation strategies remain crucial to meet customer demand in this evolving environment. Our mitigation strategies include supply chain simplification, continued alignment to local supply sources, pricing actions and dual source strategies, long-term strategies for constrained materials, direct engagement with key suppliers, and new supplier development. Strong relationships with strategic primary and secondary suppliers allow us to collaborate together to reliably source key components and raw materials, develop new products, commit our resources to assist certain suppliers, and at times, alter designs of existing products. We believe these mitigation strategies enable us to reduce supply risk, foster new product innovation, and expand our market presence. Additionally, due to the stringent quality controls and product qualification we perform on any new or altered product, these mitigation strategies have not impacted, and we do not expect them to impact, product quality or reliability.

To date, our strategies have helped minimize our exposure to these conditions. However, if we are not successful in sustaining or executing these strategies, these macroeconomic conditions could have a material adverse effect on our consolidated results of operations or operating cash flows.

PORTFOLIO TRANSFORMATION

We continually assess the relative strength of each business in our portfolio as to strategic fit, market position, profit, and cash flow contribution in order to identify target investment and acquisition opportunities in order to upgrade our combined portfolio. We also identify businesses that do not fit into our long-term strategic plan based on their market position, relative profitability, or growth potential. During the second quarter, we completed the divestiture of our PPE business, as well as closed on the acquisition of Sundyne. We also announced our agreement to acquire Johnson Matthey's Catalyst Technologies business segment.

In addition, on October 8, 2024, we announced our intention to spin off our Advanced Materials business into Solstice Advanced Materials, an independent, U.S. publicly traded company, which is targeted to be completed during the fourth quarter of 2025. The planned spin-off is intended to be a tax-free spin to Honeywell shareowners for U.S. federal income tax purposes. The spin-off will be subject to the satisfaction of a number of customary conditions, including, among others, finalization of the financial statements of Solstice Advanced Materials, the filing and effectiveness of applicable filings (including a Form 10 registration statement) with the SEC, assurance that the spin-off of Solstice Advanced Materials will be tax-free to Honeywell’s shareowners, receipt of applicable regulatory approvals, and final approval by Honeywell’s Board of Directors. The proposed spin-off is complex in nature, and may be affected by unanticipated developments, credit and equity markets, or changes in market conditions.

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On February 6, 2025, we announced our intention to pursue a separation of our Automation and Aerospace Technologies businesses into independent, U.S. publicly traded companies, which is intended to be completed in the second half of 2026. The planned separation is intended to be a tax-free separation to Honeywell shareowners for U.S. federal income tax purposes. The separation will be subject to the satisfaction of a number of customary conditions, including, among others, the filing and effectiveness of applicable filings (including a Form 10 registration statement that includes required financial statements) with the SEC, assurance that the separation of the businesses will be tax-free to Honeywell’s shareowners, receipt of applicable regulatory approvals, and final approval by Honeywell’s Board of Directors. The proposed separation is complex in nature, and may be affected by unanticipated developments, credit and equity markets, or changes in market conditions.

On July 8, 2025, we announced we are evaluating strategic alternatives for our Productivity Solutions and Services and Warehouse and Workflow Solutions businesses within the Industrial Automation reportable segment to further simplify Honeywell's portfolio and accelerate shareowner value creation ahead of our planned separation into three independent, U.S. publicly traded companies.

LIABILITY MANAGEMENT REORGANIZATION

On June 23, 2025, we completed our previously announced reorganization (the “Liability Management Reorganization”) in connection with which: (i) certain of our asbestos-related assets and liabilities were allocated to a separate, wholly owned entity, (ii) certain assets and liabilities associated with certain sites for which we had or may have had environmental liabilities were allocated to a separate, wholly owned entity, (iii) certain assets and liabilities associated with certain other sites (not included in clause (ii) above) for which we had or may have had environmental liabilities were allocated to a separate, wholly owned entity, and (iv) all of our remaining assets and liabilities (i.e., all assets and liabilities not included in clauses (i)-(iii) above) were allocated to the Company. The reorganization is intended to provide us flexibility with respect to managing certain asbestos, environmental, and other liabilities, including any future strategic transactions involving such liabilities, and enable us to focus on our operating business, while efficiently managing potential asbestos liabilities, existing or future environmental liabilities and remediation obligations, and certain other liabilities.

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RESULTS OF OPERATIONS

Consolidated Financial Results

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Net Sales by Segment

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Segment Profit by Segment

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CONSOLIDATED OPERATING RESULTS

Net Sales

The change in Net sales was attributable to the following:

						Q2 2025 vs. Q2 2024												Year to Date 2025 vs. 2024
Volume						2%												2%
Price						3%												2%
Foreign currency translation						—%												—%
Acquisitions, divestitures, and other, net						3%												4%
Total % change in Net sales						8%												8%

A discussion of Net sales by reportable business segment can be found in the Review of Business Segments section of this Management's Discussion and Analysis.

Q2 2025 compared with Q2 2024

Net sales increased due to the following:

• Increased pricing and price adjustments to offset inflation,

• Incremental sales from recent acquisitions, and

• Higher sales volumes.

YTD 2025 compared with YTD 2024

Net sales increased due to the following:

• Incremental sales from recent acquisitions,

• Increased pricing and price adjustments to offset inflation, and

• Higher sales volumes.

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Our backlog of orders increased 14% to $36.6 billion, as of June 30, 2025, compared to June 30, 2024. Backlog represents the estimated remaining value of work to be performed or products to be shipped under firm contracts. Backlog is equal to our remaining performance obligations under the contracts that meet the guidance on revenue from contracts with customers as discussed in Note 4 Revenue Recognition and Contracts with Customers of Notes to Consolidated Financial Statements. Our backlog by reportable business segment is as follows:

			June 30, 2025
Aerospace Technologies			$	15,881
Industrial Automation			5,560
Building Automation			8,839
Energy and Sustainability Solutions			6,302
Corporate and All Other1			19
Total backlog			$	36,601

1						The backlog within Corporate and All Other relates to the Quantinuum business.

Cost of Products and Services Sold

Q2 2025 compared with Q2 2024

Cost of products and services sold increased due to the following:

• Incremental costs from recent acquisitions of approximately $0.3 billion or 5%, and

• Higher direct and indirect material costs and higher labor costs of approximately $0.2 billion or 3%.

YTD 2025 compared with YTD 2024

Cost of products and services sold increased due to the following:

• Incremental costs from recent acquisitions of approximately $0.6 billion or 5%, and

• Higher direct and indirect material costs and higher labor costs of approximately $0.4 billion or 3%.

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Gross Margin

Q2 2025 compared with Q2 2024

Gross margin increased by approximately $0.3 billion and gross margin percentage was flat at 38.9% compared to the same period of 2024.

YTD 2025 compared with YTD 2024

Gross margin increased by approximately $0.6 billion and gross margin percentage decreased 10 basis points to 38.7% compared to 38.8% for the same period of 2024.

Research and Development Expenses

Q2 2025 compared with Q2 2024

Research and development expenses increased as a percentage of net sales due to increased investment in new product development in our Aerospace Technologies business.

YTD 2025 compared with YTD 2024

Research and development expenses increased as a percentage of net sales due to increased investment in new product development in our Aerospace Technologies business.

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A summary of our research and development costs is as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Company funded research and development expenses			$	481					$	382					$	920					$	742
Customer-sponsored research and development1			260						281						527						550
Total research and development costs			$	741					$	663					$	1,447					$	1,292

1			Includes deferred customer funded nonrecurring engineering and development activities and expenditures on customer programs with a significant engineering performance obligation, included in Cost of products and services sold in the Consolidated Statement of Operations.

Selling, General and Administrative Expenses

Q2 2025 compared with Q2 2024

Selling, general and administrative expenses increased due to incremental costs from acquisitions.

YTD 2025 compared to YTD 2024

Selling, general and administrative expenses increased due to the following:

• Incremental costs from acquisitions of approximately $0.2 billion or 8%,

• Partially offset by higher productivity of approximately $0.1 billion or 4%.

Impairment of Assets Held for Sale

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Impairment of assets held for sale			$	—					$	—					$	15					$	—

YTD 2025 compared to YTD 2024

An impairment charge was recorded on assets held for sale related to the PPE business during the six months ended June 30, 2025.

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Other (Income) Expense

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Other (income) expense			$	(87)					$	(246)					$	(287)					$	(477)

Q2 2025 compared with Q2 2024

Other income decreased due to the following:

• Higher divestiture-related costs of approximately $0.1 billion, and

• Lower pension and other postretirement income of approximately $0.1 billion.

YTD 2025 compared to YTD 2024

Other income decreased due to the following:

• Higher divestiture-related costs of approximately $0.1 billion, and

• Lower pension and other postretirement income of approximately $0.1 billion.

Interest and Other Financial Charges

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Interest and other financial charges			$	330					$	250					$	616					$	470

Q2 2025 compared with Q2 2024

Interest and other financial charges increased due to higher interest rates on issuances of long-term debt in past years.

YTD 2025 compared to YTD 2024

Interest and other financial charges increased due to higher interest rates on issuances of long-term debt in past years.

Tax Expense

Q2 2025 compared with Q2 2024

The effective tax rate decreased 490 basis-points, primarily driven by changes in accruals on foreign tax matters.

YTD 2025 compared with YTD 2024

The effective tax rate decreased 200 basis-points, primarily driven by changes in accruals on foreign tax matters.

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Net Income Attributable to Honeywell

Q2 2025 compared to Q2 2024

Earnings per share of common stock–assuming dilution increased due to the following:

• Higher segment profit ($0.20 after tax) and

• Lower effective tax rate ($0.10),

• Partially offset by higher interest and other financial charges ($0.10 after tax), and

• Higher divestiture-related costs ($0.09 after tax).

YTD 2025 compared with YTD 2024

Earnings per share of common stock–assuming dilution increased due to the following:

• Higher segment profit ($0.40 after tax),

• Partially offset by higher interest and other financial charges ($0.18 after tax), and

• Higher divestiture-related costs ($0.17 after tax).

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REVIEW OF BUSINESS SEGMENTS

We globally manage our business operations through four reportable business segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions.

AEROSPACE TECHNOLOGIES

Net Sales

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						% Change						2025						2024						% Change
Net sales			$	4,307					$	3,891					11		%				$	8,479					$	7,560					12		%
Cost of products and services sold			2,718						2,418												5,310						4,635
Selling, general and administrative and other expenses			491						413												972						830
Segment profit			$	1,098					$	1,060					4		%				$	2,197					$	2,095					5		%

			2025 vs. 2024
			Three Months Ended June 30,												Six Months Ended June 30,
Factors Contributing to Year-Over-Year Change			Net Sales						Segment Profit						Net Sales						Segment Profit
Organic1			6		%				2		%				7		%				4		%
Foreign currency translation			—		%				—		%				—		%				—		%
Acquisitions, divestitures, and other, net			5		%				2		%				5		%				1		%
Total % change			11		%				4		%				12		%				5		%

1						Organic sales % change, presented for all of our reportable business segments, is defined as the change in Net sales, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date. We believe this non-GAAP measure is useful to investors and management in understanding the ongoing operations and analysis of ongoing operating trends.

Q2 2025 compared to Q2 2024

Sales increased $416 million due to higher organic sales of $180 million in Defense and Space driven by higher sales volumes due to increased shipments and higher organic sales of $118 million in Commercial Aviation Aftermarket driven by increased pricing in air transport. Additionally, the acquisitions of CAES and Civitanavi Systems contributed $197 million to sales in the three months ended June 30, 2025.

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Segment profit increased $38 million and segment margin percentage decreased 170 basis points to 25.5% compared to 27.2% for the same period of 2024.

YTD 2025 compared to YTD 2024

Sales increased $919 million due to higher organic sales of $358 million in Commercial Aviation Aftermarket and higher organic sales of $313 million in Defense and Space, both driven by higher sales volumes due to increased shipments. Additionally, the acquisitions of CAES and Civitanavi Systems contributed $377 million to sales in the six months ended June 30, 2025.

Segment profit increased $102 million and segment margin percentage decreased 180 basis points to 25.9% compared to 27.7% for the same period of 2024.

On February 6, 2025, the Company announced its intention to separate its Automation and Aerospace Technologies businesses into independent, U.S. publicly traded companies.

INDUSTRIAL AUTOMATION

Net Sales

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						% Change						2025						2024						% Change
Net sales			$	2,380					$	2,506					(5)		%				$	4,758					$	4,984					(5)		%
Cost of products and services sold			1,376						1,451												2,760						2,897
Selling, general and administrative and other expenses			548						578												1,118						1,136
Segment profit			$	456					$	477					(4)		%				$	880					$	951					(7)		%

			2025 vs. 2024
			Three Months Ended June 30,												Six Months Ended June 30,
Factors Contributing to Year-Over-Year Change			Net Sales						Segment Profit						Net Sales						Segment Profit
Organic			—		%				1		%				(1)		%				(4)		%
Foreign currency translation			1		%				—		%				(1)		%				(1)		%
Acquisitions, divestitures, and other, net			(6)		%				(5)		%				(3)		%				(2)		%
Total % change			(5)		%				(4)		%				(5)		%				(7)		%

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Q2 2025 compared to Q2 2024

Sales decreased $126 million due to lower sales of $141 million driven by the sale of our PPE business on May 21, 2025.

Segment profit decreased $21 million and segment margin percentage increased 20 basis points to 19.2% compared to 19.0% for the same period in 2024.

YTD 2025 compared to YTD 2024

Sales decreased $226 million due to lower sales of $141 million driven by the sale of our PPE business on May 21, 2025, and lower organic sales of $68 million in Productivity Solutions and Services driven by a decrease in license and settlement payments.

During the second quarter of 2022, our Productivity Solutions and Services business entered into a license and settlement agreement (the Agreement). Under the Agreement, we received $360 million, paid in equal quarterly installments over eight quarters, beginning with the second quarter of 2022 and ending with the first quarter of 2024. The Agreement provides each party a license to its existing patent portfolio for use by the other party's existing products and resolved the patent-related litigation between the parties.

Segment profit decreased $71 million and segment margin percentage decreased 60 basis points to 18.5% compared to 19.1% for the same period in 2024.

On July 8, 2025, the Company announced it is evaluating strategic alternatives for its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses.

BUILDING AUTOMATION

Net Sales

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						% Change						2025						2024						% Change
Net sales			$	1,826					$	1,571					16		%				$	3,518					$	2,997					17		%
Cost of products and services sold			944						844												1,812						1,608
Selling, general and administrative and other expenses			403						330												787						642
Segment profit			$	479					$	397					21		%				$	919					$	747					23		%

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			2025 vs. 2024
			Three Months Ended June 30,												Six Months Ended June 30,
Factors Contributing to Year-Over-Year Change			Net Sales						Segment Profit						Net Sales						Segment Profit
Organic			8		%				10		%				8		%				11		%
Foreign currency translation			—		%				1		%				(1)		%				(1)		%
Acquisitions, divestitures, and other, net			8		%				10		%				10		%				13		%
Total % change			16		%				21		%				17		%				23		%

Q2 2025 compared to Q2 2024

Sales increased $255 million due to higher organic sales of $84 million in Products driven by higher demand. Additionally, the acquisition of Access Solutions contributed $123 million of inorganic sales in the three months ended June 30, 2025. Beginning June 3, 2025, Access Solutions results are considered organic following the first 12 months after the transaction date.

Segment profit increased $82 million and segment margin percentage increased 90 basis points to 26.2% compared to 25.3% for the same period of 2024.

YTD 2025 compared to YTD 2024

Sales increased $521 million due to higher organic sales of $135 million in Products and higher organic sales of $104 million in Building Solutions, both driven by higher demand. Additionally, the acquisition of Access Solutions contributed $302 million of inorganic sales in the six months ended June 30, 2025.

Segment profit increased $172 million and segment margin percentage increased 120 basis points to 26.1% compared to 24.9% for the same period of 2024.

ENERGY AND SUSTAINABILITY SOLUTIONS

Net Sales

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						% Change						2025						2024						% Change
Net sales			$	1,837					$	1,604					15		%				$	3,398					$	3,129					9		%
Cost of products and services sold			1,148						996												2,130						1,995
Selling, general and administrative and other expenses			246						203												479						426
Segment profit			$	443					$	405					9		%				$	789					$	708					11		%

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			2025 vs. 2024
			Three Months Ended June 30,												Six Months Ended June 30,
Factors Contributing to Year-Over-Year Change			Net Sales						Segment Profit						Net Sales						Segment Profit
Organic			6		%				(2)		%				3		%				1		%
Foreign currency translation			2		%				1		%				—		%				—		%
Acquisitions, divestitures, and other, net			7		%				10		%				6		%				10		%
Total % change			15		%				9		%				9		%				11		%

Q2 2025 compared to Q2 2024

Sales increased $233 million due to higher organic sales of $93 million in UOP due to higher licensing sales volumes in gas processing. Additionally, the acquisitions of LNG and Sundyne contributed $114 million in the three months ended June 30, 2025.

Segment profit increased $38 million and segment margin percentage decreased 110 basis points to 24.1% compared to 25.2% for the same period of 2024.

YTD 2025 compared to YTD 2024

Sales increased $269 million due to higher organic sales of $107 million in UOP due to higher licensing sales volumes in gas processing. Additionally, the acquisitions of LNG and Sundyne contributed $189 million in the six months ended June 30, 2025.

Segment profit increased $81 million and segment margin percentage increased 60 basis points to 23.2% compared to 22.6% for the same period of 2024.

On October 8, 2024, the Company announced its intention to spin off its Advanced Materials business into Solstice Advanced Materials, an independent, U.S. publicly traded company, which is expected to be completed during the fourth quarter of 2025.

CORPORATE AND ALL OTHER

Corporate and All Other primarily includes unallocated corporate costs, interest expense on holding-company debt, and the controlling majority-owned interest in Quantinuum. Corporate and All Other is not a separate reportable business segment as segment reporting criteria is not met. The Company continues to monitor the activities in Corporate and All Other to determine the need for further reportable business segment disaggregation.

REPOSITIONING CHARGES

See Note 5 Repositioning and Other Charges of Notes to Consolidated Financial Statements for a discussion of our repositioning actions and related charges incurred in the six months ended June 30, 2025, and 2024. Cash spending related to our repositioning actions was $81 million in the six months ended June 30, 2025, and was funded through operating cash flows.

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LIQUIDITY AND CAPITAL RESOURCES

(Dollars in tables in millions)

We leverage operating cash flows as the primary source of liquidity. Each of our businesses focuses on increasing operating cash flows through revenue growth, margin expansion, and improved working capital turnover. We also maintain other key sources of liquidity, including U.S. cash balances, and the ability to access non-U.S. cash balances, short-term debt from the commercial paper market, long-term borrowings, committed credit lines, and access to the public debt and equity markets.

CASH

As of June 30, 2025, and December 31, 2024, we held $10.7 billion and $11.0 billion, respectively, of cash and cash equivalents, including our short-term investments. We monitor third-party depository institutions that hold our cash and cash equivalents on a daily basis. Our emphasis is primarily safety of principal and secondarily maximizing yield of those funds. We diversify our cash and cash equivalents among counterparties to minimize exposure to any one counterparty.

As of June 30, 2025, we held $9.2 billion of the Company’s cash, cash equivalents, and short-term investments in non-U.S. subsidiaries. We do not have material amounts related to any jurisdiction subject to currency control restrictions that impact our ability to access and repatriate such amounts. Under current laws, we do not expect taxes on repatriation or restrictions on amounts held outside of the U.S. to have a material effect on our overall liquidity.

CASH FLOW SUMMARY

Our cash flows from operating, investing, and financing activities, as reflected in the Consolidated Statement of Cash Flows, are summarized as follows:

			Six Months Ended June 30,
			2025						2024						Variance
Cash and cash equivalents at beginning of period			$	10,567					$	7,925					$	2,642
Operating activities
Net income attributable to Honeywell			3,019						3,007						12
Noncash adjustments			744						514						230
Changes in working capital			(1,218)						(649)						(569)
Other operating activities			(629)						(1,053)						424
Net cash provided by operating activities			1,916						1,819						97
Net cash used for investing activities			(1,880)						(5,405)						3,525
Net cash (used for) provided by financing activities			(421)						5,298						(5,719)
Effect of foreign exchange rate changes on cash and cash equivalents			167						(61)						228
Net (decrease) increase in cash and cash equivalents			(218)						1,651						(1,869)
Cash and cash equivalents at end of period			$	10,349					$	9,576					$	773

Six months ended June 30, 2025

Net cash provided by operating activities was driven by Net income, partially offset by changes in working capital driven by an increase in accounts receivable due to timing of customer cash collections.

Net cash used for investing activities was driven by $2,163 million of cash paid for acquisitions, $554 million of capital expenditures, and $415 million of net payments from settlements of derivative contracts, partially offset by $1,157 million of proceeds from the sale of the PPE business.

Net cash used for financing activities was driven by $3,604 million of repurchases of common stock, $1,479 million of cash dividends paid, and $1,309 million of payments of long-term debt, partially offset by $4,035 million of long-term debt proceeds and $1,873 million of net proceeds of commercial paper.

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Six months ended June 30, 2025 compared with six months ended June 30, 2024

Net cash provided by operating activities increased by $97 million, driven by a $424 million favorable impact of other operating activities due to timing of customer advances and $230 million increase in noncash adjustments driven by higher depreciation and amortization, partially offset by a $569 million unfavorable impact of working capital driven by an increase in accounts receivable due to timing of customer cash collections.

Net cash used for investing activities decreased by $3,525 million, driven by a $2,750 million decrease in cash paid for acquisitions and $1,157 million increase in proceeds from the sale of the PPE business, partially offset by a $491 million increase in net payments from settlements of derivative contracts.

Net cash used for financing activities increased by $5,719 million, driven by a $2,404 million increase in repurchases of common stock, $1,675 million decrease in long-term debt proceeds, $704 million increase in payments of long-term debt, $631 million decrease in net proceeds of commercial paper, and $211 million decrease in proceeds from the issuance of common stock.

ASSESSMENT OF CURRENT LIQUIDITY AND CASH REQUIREMENTS

Based on past performance and current expectations, we believe our operating cash flows will be sufficient to meet our future operating cash needs for at least the next twelve months. If necessary, our available cash, committed credit lines, and access to the public debt and equity markets provide additional sources of short-term and long-term liquidity to fund current operations, debt maturities, and future investment opportunities.

See Note 9 Debt and Credit Agreements of Notes to Consolidated Financial Statements for additional discussion of items impacting our liquidity.

In addition to normal operating cash requirements, our principal future cash requirements include funding capital expenditures, share repurchases, dividends, strategic acquisitions, and debt repayments. During the six months ended June 30, 2025, we repurchased common stock of $3.6 billion. Refer to the section titled Liquidity and Capital Resources of our 2024 Form 10-K for a discussion of our expected capital expenditures, share repurchases, mergers and acquisitions activity, and dividends for 2025.

We continually assess the relative strength of each business in our portfolio as to strategic fit, market position, profit, and cash flow contribution in order to identify target investment and acquisition opportunities in order to upgrade our combined portfolio. We identify acquisition candidates that will further our strategic plan and strengthen our existing core businesses. In the second quarter of 2025, we acquired Sundyne for total consideration of $2.2 billion, net of cash acquired, as well as announced our agreement to acquire Johnson Matthey's Catalyst Technologies business segment for £1.8 billion. We also identify businesses that do not fit into our long-term strategic plan based on their market position, relative profitability, or growth potential. These businesses are considered for potential divestiture, restructuring, or other repositioning actions, subject to regulatory constraints. On October 8, 2024, we announced our intention to spin off the Advanced Materials business into Solstice Advanced Materials, an independent, U.S. publicly traded company, which is targeted to be completed during the fourth quarter of 2025. On February 6, 2025, we announced our intention to separate its Automation and Aerospace Technologies businesses into independent, U.S. publicly traded companies, which is intended to be completed in the second half of 2026. On May 21, 2025, we completed the sale of our PPE business for $1.2 billion, net of cash transferred. In addition, on July 8, 2025, we announced we are evaluating strategic alternatives for our Productivity Solutions and Services and Warehouse and Workflow Solutions businesses within the Industrial Automation reportable business segment. See Note 3 Acquisitions and Divestitures of Notes to Consolidated Financial Statements for additional discussion.

We continually seek opportunities to improve our liquidity and working capital efficiency, which includes the extension of payment terms with our suppliers and transfer of our trade receivables to unaffiliated financial institutions on a true sale basis. The impact of these programs is not material to our overall liquidity.

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BORROWINGS

We leverage a variety of debt instruments to manage our overall borrowing costs. As of June 30, 2025, and December 31, 2024, our total borrowings were $36.5 billion and $31.1 billion, respectively.

			June 30, 2025						December 31, 2024
Fixed rate notes			$	25,198					$	25,853
Commercial paper			6,270						4,271
Term loans			5,000						1,000
Variable rate notes			22						22
Other			409						392
Fair value of hedging instruments			(87)						(136)
Debt issuance costs			(300)						(303)
Total borrowings			$	36,512					$	31,099

A key source of liquidity is our ability to access the corporate bond markets. Through these markets, we issue a variety of long-term fixed rate notes to manage our overall funding costs.

Another key source of liquidity is our ability to access the commercial paper market. Commercial paper notes are sold at a discount or premium and have a maturity of not more than 365 days from date of issuance. Borrowings under the commercial paper program are available for general corporate purposes as well as for financing acquisitions.

In addition, we have the following loan and revolving credit agreements:

• A $6.0 billion Delayed Draw Term Loan Agreement (the Term Loan Agreement), dated as of May 7, 2025. The Term Loan Agreement is comprised of two tranches: (i) commitments to provide loans in an aggregate principal amount of up to $4.0 billion, which was fully drawn effective May 30, 2025, and (ii) commitments to provide loans in an aggregate amount of up to $2.0 billion, expiring on December 19, 2025. Amounts borrowed under the Term Loan Agreement are required to be paid no later than May 7, 2027, unless the Term Loan Agreement is terminated earlier pursuant to its terms. As of June 30, 2025, there were $4.0 billion of borrowings outstanding on the Term Loan Agreement.

• A $1.0 billion Fixed Rate Term Loan Credit Agreement (the Fixed Rate Term Loan Credit Agreement), dated as of August 12, 2024. Amounts borrowed under the Fixed Rate Term Loan Credit Agreement are required to be repaid no later than August 12, 2027, unless the Fixed Rate Term Loan Credit Agreement is terminated earlier pursuant to its terms. As of June 30, 2025, there were $1.0 billion of borrowings outstanding under the Fixed Rate Term Loan Credit Agreement.

• A $3.0 billion 364-day credit agreement (the 364-Day Credit Agreement) with a syndicate of banks, dated as of March 17, 2025. Amounts borrowed under the 364-Day Credit Agreement are required to be repaid no later than March 16, 2026, unless (i) we elect to convert all then outstanding amounts into a term loan, upon which such amounts shall be repaid in full on March 16, 2027, or (ii) the 364-Day Credit Agreement is terminated earlier pursuant to its terms. The 364-Day Credit Agreement replaced the previously reported $1.5 billion 364-day credit agreement dated as of March 18, 2024, which was terminated in accordance with its terms effective March 17, 2025. As of June 30, 2025, there were no outstanding borrowings under our 364-Day Credit Agreement.

• A $4.0 billion five-year credit agreement (the Five-Year Credit Agreement) with a syndicate of banks, dated as of March 18, 2024. Commitments under the Five-Year Credit Agreement can be increased pursuant to the terms of the Five-Year Credit Agreement to an aggregate amount not to exceed $4.5 billion. As of June 30, 2025, there were no outstanding borrowings under our Five-Year Credit Agreement.

See Note 9 Debt and Credit Agreements of Notes to Consolidated Financial Statements for additional information regarding our debt instruments.

We also maintain a current shelf registration statement filed with the SEC under which we may issue additional debt securities, common stock, and preferred stock that may be offered in one or more offerings on terms to be determined at the time of the offering. We anticipate that net proceeds of any offering would be used for general corporate purposes, including repayment of existing indebtedness, share repurchases, capital expenditures, and acquisitions.

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CREDIT RATINGS

Our ability to access the global debt capital markets and the related cost of these borrowings is affected by the strength of our credit rating and market conditions. Our credit ratings are periodically reviewed by the major independent debt-rating agencies. As of June 30, 2025, S&P Global Inc. (S&P), Fitch Ratings Inc. (Fitch), and Moody’s Investor Service (Moody's) have ratings on our debt set forth in the table below:

			S&P						Fitch						Moody's
Outlook			Watch Negative						Watch Negative						Stable
Short-term			A-1						F1						P1
Long-term			A						A						A2

OTHER MATTERS

LITIGATION

See Note 15 Commitments and Contingencies of Notes to Consolidated Financial Statements for further discussion of environmental, asbestos, and other litigation matters.

CRITICAL ACCOUNTING ESTIMATES

There have been no material changes to our Critical Accounting Estimates presented in our 2024 Annual Report on Form 10-K. For a discussion of the Company’s Critical Accounting Estimates, see the section titled Critical Accounting Estimates in our 2024 Annual Report on Form 10-K.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 2 Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for a discussion of recent accounting pronouncements.

For a discussion of the Company’s quantitative and qualitative disclosures about market risks, see the section titled Quantitative and Qualitative Disclosures About Market Risks in our 2024 Annual Report on Form 10-K. As of June 30, 2025, there has been no material change in this information.

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Honeywell management, including the Chairman and Chief Executive Officer (CEO) and Chief Financial Officer (CFO), conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act)) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, the Chairman and CEO and the CFO concluded that such disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q to ensure information required to be disclosed in the reports that Honeywell files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that it is accumulated and communicated to our management, including our Chairman and CEO, our CFO, and our Controller, as appropriate, to allow timely decisions regarding required disclosure. There were no changes that materially affected, or are reasonably likely to materially affect, Honeywell’s internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q.

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PART II. OTHER INFORMATION

We are subject to a number of lawsuits, investigations, and claims (some of which involve substantial amounts) arising out of the conduct of our business. See a discussion of environmental, asbestos, and other litigation matters in Note 15 Commitments and Contingencies of Notes to Consolidated Financial Statements.

There were no matters requiring disclosure pursuant to the requirement to disclose certain environmental matters involving potential monetary sanctions in excess of $300,000.

Other than as noted below, there have been no material changes to our Risk Factors presented in our 2024 Annual Report on Form 10-K under the section titled Risk Factors. For further discussion of our Risk Factors, refer to the section titled Risk Factors in our 2024 Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the first quarter of 2025.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On April 24, 2023, the Board of Directors authorized the repurchase of up to $10 billion of Honeywell common stock, including approximately $2.1 billion of remaining availability under the previously announced $10 billion share repurchase authorization. The repurchase authorization does not have an expiration date and may be amended or terminated by the Board of Directors at any time without prior notice.

Repurchases may be made through a variety of methods, which could include open market purchases, accelerated share repurchase transactions, negotiated block transactions, 10b5-1 plans, other transactions that may be structured through investment banking institutions or privately negotiated, or a combination of the foregoing. Honeywell presently expects to repurchase outstanding shares from time to time (i) to offset the dilutive impact of employee stock-based compensation plans, including option exercises, restricted unit vesting, and matching contributions under our savings plans, and (ii) to reduce share count via share repurchases as and when attractive opportunities arise. The amount and timing of future repurchases may vary depending on market conditions and the level of operating, financing, and other investing activities.

During the three months ended June 30, 2025, Honeywell repurchased 8.2 million shares of its common stock, par value $1 per share. As of June 30, 2025, $1.9 billion remained available under the share repurchase authorization for additional share repurchases. The following table summarizes our purchases of Honeywell's common stock for the three months ended June 30, 2025:

Issuer Purchases of Equity Securities
Period						Total Number of Shares Purchased						Average Price Paid per Share****1						Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs						Approximate Dollar Value of Shares that May Yet Be Purchased Under Plans or Programs **(Dollars in millions)**1
March 30, 2025 - April 26, 2025						5,047,330						$199.49						5,047,330						$2,570
April 27, 2025 - May 24, 2025						1,798,837						$212.34						1,798,837						$2,188
May 25, 2025 - June 28, 2025						1,368,449						$225.78						1,368,449						$1,879

1						Excludes excise tax on net share repurchases.

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ITEM 4. MINE SAFETY DISCLOSURES

One of our wholly-owned subsidiaries has a placer claim for and operates a chabazite ore surface mine in Arizona. Information concerning mine safety and other regulatory matters associated with this mine is required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K and is included in Exhibit 95 to this quarterly report.

EQUITY TRADING ARRANGEMENTS ELECTIONS

Certain executive officers and directors of the Company may execute purchases and sales of the Company's common stock through Rule 10b5-1 and non-Rule 10b5-1 equity trading arrangements.

During the three months ended June 30, 2025, none of our executive officers or directors adopted, terminated, or modified a "Rule 10b5-1 trading arrangement," or adopted, terminated, or modified any "non-Rule 10b5-1 trading arrangement" (each as defined in Item 408 of Regulation S-K).

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Exhibit No.						Description
3.1						Amended and Restated Certificate of Incorporation of Honeywell International Inc., dated June 23, 2025 (incorporated by reference to Exhibit 3.1 to Honeywell's Form 8-K filed June 24, 2025)
3.2						Amended and Restated By-laws of Honeywell International Inc., dated June 23, 2025 (incorporated by reference to Exhibit 3.2 to Honeywell's Form 8-K filed June 24, 2025)
10.1						Delayed Draw Term Loan Agreement, dated as of May 7, 2025, among Honeywell International Inc., Bank of America, N.A., as administrative agent, and the syndication agents and documentation agents named therein in such capacity and as the initial lenders (incorporated by reference to Exhibit 10.1 to Honeywell's Form 8-K filed May 8, 2025)
10.2						Cooperation Agreement, by and among Elliott Investment Management L.P., Elliott Associates , L.P., Elliott International, L.P. and Honeywell International Inc., dated as of May 28, 2025 (incorporated by reference to Exhibit 10.1 to Honeywell's Form 8-K filed May 28, 2025)
10.3*						Agreement and Plan of Merger, dated April 9, 2025, by and among Honeywell International Inc., Hyperion Holdco Sub LLC, Hyperion Merger Sub 1, Inc. and Hyperion Merger Sub 2, Inc. (incorporated by reference to Appendix B to the definitive proxy statement of the Company filed on April 9, 2025)
10.4						Amendment No. 1 to the Agreement and Plan of Merger, dated as of June 23, 2025, by and among Honeywell International Inc., Hyperion Holdco Sub LLC, Hyperion Merger Sub 1, Inc. and Hyperion Merger Sub 2, Inc. (incorporated by reference to Exhibit 99.2 to Honeywell's Form 8-K filed June 24, 2025)
10.5**						Offer Letter dated April 4, 2025 from Honeywell International Inc. to Anne T. Madden (incorporated by reference to Exhibit 99.1 to Honeywell's Form 8-K filed April 8, 2025)
31.1						Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2						Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.1						Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
32.2						Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
95						Mine Safety Disclosures (filed herewith)
101.INS						Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH						Inline XBRL Taxonomy Extension Schema (filed herewith)
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase (filed herewith)
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase (filed herewith)
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase (filed herewith)
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase (filed herewith)
104						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

Certain of the exhibits and schedules to the Exhibits identified above with an asterisk (*) have been omitted in accordance with Regulation S-K Item 601(a)(5). The Company agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.

The Exhibit identified above with two asterisks (**) is a management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			HONEYWELL INTERNATIONAL INC.
Date: July 24, 2025			By:			/s/ Robert D. Mailloux
						Robert D. Mailloux Vice President and Controller (on behalf of the Registrant and as the Registrant’s Principal Accounting Officer)

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