NOTE 22. SEGMENT FINANCIAL DATA
Honeywell globally manages its business operations through four reportable business segments. Segment information is consistent with how the Chairman and Chief Executive Officer, who is the Company's chief operating decision maker, and management reviews the businesses, makes investing and resource allocation decisions, and assesses operating performance.
Honeywell’s senior management evaluates segment performance based on segment profit. Each segment’s profit is measured as segment income (loss) before taxes excluding general corporate unallocated expense, interest and other financial charges, interest income, amortization of acquisition-related intangibles, certain acquisition- and divestiture-related costs, impairment of goodwill, impairment of assets held for sale, stock compensation expense, pension and other postretirement income (expense), repositioning and other (gains) charges, and other items within Other (income) expense.
In October 2025, the Company announced a planned realignment, expected to be effective in the first quarter of 2026, of its business units comprising its Industrial Automation and Energy and Sustainability Solutions reportable business segments. This realignment will form a new reportable business segment, Process Automation and Technology, and result in a new composition of its Industrial Automation reportable business segment. Process Automation and Technology will be comprised of UOP, which is currently in Energy and Sustainability Solutions, and the core portion of the Process Solutions business, which is currently in Industrial Automation. The new composition of Industrial Automation will continue to include the smart energy, thermal solutions, and process measurement and control businesses, currently included in the Process Solutions business, as well as the Sensing and Safety Technologies, Warehouse and Workflow Solutions, and Productivity Solutions and Services businesses. Following the realignment, the Company’s reportable business segments will be Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation. The realignment will not impact the Company’s historical consolidated financial position, results of operations, or cash flows. The Company expects to report its financial performance based on this realignment effective with the first quarter of 2026.
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| Year Ended December 31, 2025 | Aerospace Technologies | Industrial Automation | Building Automation | Energy and Sustainability Solutions | Corporate and All Other | Total Honeywell |
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| Net sales |
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| Products | $9,943 | $6,389 | $5,357 | $2,826 | $— | $24,515 |
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| Services | 7,567 | 3,012 | 2,010 | 308 | 30 | 12,927 |
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| Total Net sales | 17,510 | 9,401 | 7,367 | 3,134 | 30 | 37,442 |
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| Less |
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| Cost of products and services sold | 11,282 | 5,492 | 3,832 | 1,873 | |
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| Selling, general and administrative expenses | 737 | 1,335 | 1,110 | 357 | |
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| Other segment items1 | 1,207 | 831 | 472 | 212 | |
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| Total Segment profit | $4,284 | $1,743 | $1,953 | $692 | $(545) | $8,127 |
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| Depreciation and amortization | $380 | $343 | $242 | $226 | $197 | $1,388 |
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| Capital expenditures | 404 | 201 | 108 | 146 | 127 | 986 |
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| 1 | For each reportable segment, the other segment items category includes research and development expenses, equity income of affiliated companies and certain allocated overhead expenses, which are comprised of salaries and fringe benefits, professional & purchased services, and other indirect spend across core corporate functions such as central IT, corporate finance, human resources, supply chain, legal, government relations, and other corporate functions. |
| Year Ended December 31, 2024 | Aerospace Technologies | Industrial Automation | Building Automation | Energy and Sustainability Solutions | Corporate and All Other | Total Honeywell |
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| Net sales |
|---|
| Products | $8,509 | $7,175 | $4,800 | $2,357 | $— | $22,841 |
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| Services | 6,949 | 2,876 | 1,740 | 287 | 24 | 11,876 |
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| Total Net sales | 15,458 | 10,051 | 6,540 | 2,644 | 24 | 34,717 |
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| Less |
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| Cost of products and services sold | 9,781 | 5,880 | 3,482 | 1,562 | |
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| Selling, general and administrative expenses | 645 | 1,392 | 954 | 270 | |
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| Other segment items | 1,044 | 817 | 423 | 197 | |
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| Total Segment profit | $3,988 | $1,962 | $1,681 | $615 | $(579) | $7,667 |
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| Depreciation and amortization | $299 | $362 | $198 | $104 | $190 | $1,153 |
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| Capital expenditures | 371 | 214 | 78 | 80 | 128 | 871 |
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117 Honeywell International Inc.
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| Year Ended December 31, 2023 | Aerospace Technologies | Industrial Automation | Building Automation | Energy and Sustainability Solutions | Corporate and All Other | Total Honeywell |
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| Net sales |
|---|
| Products | $7,316 | $8,176 | $4,599 | $2,254 | $— | $22,345 |
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| Services | 6,308 | 2,580 | 1,432 | 332 | 12 | 10,664 |
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| Total Net sales | 13,624 | 10,756 | 6,031 | 2,586 | 12 | 33,009 |
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| Less |
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| Cost of products and services sold | 8,362 | 6,379 | 3,240 | 1,599 | |
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| Selling, general and administrative expenses | 538 | 1,361 | 884 | 231 | |
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| Other segment items | 964 | 807 | 378 | 187 | |
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| Total Segment profit | $3,760 | $2,209 | $1,529 | $569 | $(504) | $7,563 |
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| Depreciation and amortization | $267 | $386 | $107 | $81 | $163 | $1,004 |
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| Capital expenditures | 310 | 194 | 79 | 76 | 82 | 741 |
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| December 31, 2025 | December 31, 2024 |
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| Aerospace Technologies | $17,920 | $16,966 |
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| Industrial Automation | 20,351 | 21,035 |
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| Building Automation | 10,883 | 11,438 |
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| Energy and Sustainability Solutions | 7,933 | 5,351 |
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| Corporate and All Other | 16,594 | 15,375 |
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| Total assets | $73,681 | $70,165 |
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A reconciliation of segment profit to consolidated income before taxes are as follows:
| Years Ended December 31, |
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| 2025 · 2024 · 2023 |
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| Segment profit | $8,127 | $7,667 | $7,563 |
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| Interest and other financial charges | (1,344) | (1,048) | (749) |
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| Interest income1 | 369 | 430 | 321 |
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| Amortization of acquisition-related intangibles2 | (570) | (411) | (290) |
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| Impairment of goodwill | (724) | — | — |
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| Impairment of assets held for sale | (270) | (219) | — |
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| Stock compensation expense3 | (196) | (189) | (197) |
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| Pension ongoing income4 | 544 | 591 | 532 |
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| Pension mark-to-market expense4 | (163) | (126) | (153) |
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| Other postretirement income4 | 15 | 11 | 29 |
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| Repositioning and other gains (charges)5 | 167 | (239) | (844) |
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| Other expense6 | (479) | (223) | (21) |
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| Income before taxes | $5,476 | $6,244 | $6,191 |
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| 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, and Other (income) expense. |
| 6 | Amounts include the other components of Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies is included in segment profit. |
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NOTE 23. GEOGRAPHIC AREAS—FINANCIAL DATA
| Net Sales1 · Long-lived Assets2 |
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| Years Ended December 31, | Years Ended December 31, |
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| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 |
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| United States | $21,784 | $19,531 | $18,697 | $3,192 | $3,139 | $2,660 |
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| Europe | 8,112 | 7,963 | 7,265 | 484 | 415 | 439 |
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| Other international | 7,546 | 7,223 | 7,047 | 952 | 903 | 932 |
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| Total3 | $37,442 | $34,717 | $33,009 | $4,628 | $4,457 | $4,031 |
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| 1 | Sales between geographic areas approximate market value and are not significant. Net sales are classified according to their country of origin. Included in United States Net sales are export sales of $7,895 million, $4,760 million, and $4,134 million for the years ended December 31, 2025, 2024, and 2023, respectively. |
| 2 | Long-lived assets consists of Property, plant and equipment—net. |
| 3 | As of December 31, 2025 and 2024, total long-lived assets excludes $153 million and $155 million, respectively, that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations. |
NOTE 24. SUPPLEMENTAL CASH FLOW INFORMATION
| Years Ended December 31, |
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| 2025 · 2024 · 2023 |
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| Net payments for repositioning and other charges |
|---|
| Severance and exit cost payments | $(153) | $(189) | $(280) |
|---|
| Environmental payments | (175) | (221) | (196) |
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| Reimbursement receipts | 105 | 140 | 140 |
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| Insurance receipts for asbestos-related liabilities | 17 | 24 | 39 |
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| Insurance receivables settlements, write-offs, and other | — | 9 | 26 |
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| Asbestos-related liability payments | (172) | (233) | (174) |
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| Total net payments for repositioning and other charges | $(378) | $(470) | $(445) |
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| Interest paid, net of amounts capitalized1 | $1,300 | $869 | $649 |
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| Income taxes paid, net of refunds1 | 1,798 | 1,689 | 1,581 |
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| Non-cash investing and financing activities |
|---|
| Common stock contributed to savings plans1 | 276 | 225 | 216 |
|---|
| 1 | Amounts include both continuing and discontinued operations. |
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NOTE 25. UNAUDITED QUARTERLY FINANCIAL INFORMATION
| 2025 |
|---|
| March 31 · June 30 · September 30 · December 31 |
|---|
| Net sales | $8,925 | $9,322 | $9,437 | $9,758 |
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| Gross profit | 3,462 | 3,664 | 3,233 | 3,470 |
|---|
| Net income (loss) from continuing operations | 1,296 | 1,383 | 1,895 | (106) |
|---|
| Net income (loss) from discontinued operations | 171 | 186 | (36) | (17) |
|---|
| Net income (loss) attributable to Honeywell | $1,449 | $1,570 | $1,825 | $(115) |
|---|
| Earnings (loss) per common share from continuing operations—basic1 | $1.99 | $2.17 | $2.97 | $(0.15) |
|---|
| Earnings (loss) per common share from discontinued operations—basic1 | 0.25 | 0.29 | (0.10) | (0.03) |
|---|
| Earnings (loss) per common share—basic | $2.24 | $2.46 | $2.87 | $(0.18) |
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| Earnings (loss) per common share from continuing operations—assuming dilution1 | $1.97 | $2.16 | $2.96 | $(0.15) |
|---|
| Earnings (loss) per common share from discontinued operations—assuming dilution1 | 0.25 | 0.29 | (0.10) | (0.03) |
|---|
| Earnings (loss) per common share—assuming dilution1 | $2.22 | $2.45 | $2.86 | $(0.18) |
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| Cash dividends per common share | $1.13 | $1.13 | $1.13 | $1.19 |
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| 2024 |
|---|
| March 31 · June 30 · September 30 · December 31 |
|---|
| Net sales | $8,157 | $8,572 | $8,819 | $9,169 |
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| Gross profit | 3,222 | 3,351 | 3,419 | 3,365 |
|---|
| Net income from continuing operations | 1,290 | 1,336 | 1,226 | 1,143 |
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| Net income from discontinued operations | 185 | 224 | 189 | 147 |
|---|
| Net income attributable to Honeywell | $1,462 | $1,545 | $1,413 | $1,285 |
|---|
| Earnings per common share from continuing operations—basic1 | $1.96 | $2.04 | $1.87 | $1.76 |
|---|
| Earnings per common share from discontinued operations—basic1 | 0.28 | 0.33 | 0.30 | 0.22 |
|---|
| Earnings per common share—basic1 | $2.24 | $2.37 | $2.17 | $1.98 |
|---|
| Earnings per common share from continuing operations—assuming dilution1 | $1.95 | $2.03 | $1.86 | $1.74 |
|---|
| Earnings per common share from discontinued operations—assuming dilution1 | 0.28 | 0.33 | 0.30 | 0.22 |
|---|
| Earnings per common share—assuming dilution1 | $2.23 | $2.36 | $2.16 | $1.96 |
|---|
| Cash dividends per common share | $1.08 | $1.08 | $1.08 | $1.13 |
|---|
| 1 | Total for the full year may differ from the sum of the individual quarters due to the requirement to use weighted average shares each quarter, which may fluctuate with share repurchases and share issuances, and due to the impact of losses in a quarter. |
120 Honeywell International Inc.
