HONEYWELL INTERNATIONAL INC

Consolidated Statement of Shareowners’ Equity

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Note 1. Basis of Presentation

In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments necessary to present fairly the financial position, results of operations, cash flows, and shareowners’ equity of Honeywell International Inc. and its consolidated subsidiaries (Honeywell Technologies or the Company) for the periods presented. The interim results of operations and cash flows should not necessarily be taken as indicative of the entire year.

Honeywell Technologies reports its quarterly financial information using a calendar convention; the first, second, and third quarters are consistently reported as ending on March 31, June 30, and September 30, respectively. It is Honeywell Technologies’ practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires Honeywell Technologies’ businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on the Company’s business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. In the event differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, Honeywell Technologies will provide appropriate disclosures. Honeywell Technologies’ closing dates for the three and nine months ended September 30, 2026 and 2025, were September 26, 2026 and September 27, 2025, respectively.

Honeywell Technologies reports all share and per share amounts and beginning balances of Common stock and Additional paid-in capital on a retrospective adjusted basis to reflect reverse stock splits for all periods presented, as applicable. During the second quarter of 2026, the Company’s Board of Directors approved a one-for-two reverse stock split (the Reverse Stock Split) and proportionate reduction in the number of authorized shares of common stock, subject to and contingent upon the completion of the separation of the Aerospace Technologies business (the Aerospace Spin-Off). In the third quarter on June 29, 2026, following the Aerospace Spin-Off as discussed in Note 3 Acquisitions, Divestitures, and Discontinued Operations, the Reverse Stock Split became effective. As a result of the Reverse Stock Split, every two shares of common stock issued and outstanding or held by Honeywell Technologies as treasury shares were automatically combined into one share of common stock, and the number of authorized shares of common stock was reduced from 2 billion to 1 billion with no change in par value. Any fractional shares were settled in cash.

Note 2. Summary of Significant Accounting Policies

The accounting policies of the Company are set forth in Note 1 Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements in the Company’s 2025 Annual Report on Form 10-K. The Company includes herein certain updates to those policies.

Reclassifications

Certain prior year amounts are reclassified to conform to the current year presentation.

In the third quarter on June 29, 2026, the Company completed the previously announced separation of its Aerospace Technologies business into an independent, publicly traded company named Honeywell Aerospace Inc. (Honeywell Aerospace). On October 30, 2025, the Company completed the spin-off of its Advanced Materials business into an independent, publicly traded company named Solstice Advanced Materials Inc. (Solstice). Results of operations, financial position, and cash flows for the Aerospace Technologies and Advanced Materials businesses are reported as discontinued operations for all periods presented. Unless otherwise noted, information in these notes to consolidated financial statements relates to continuing operations.

Effective beginning in the first quarter of 2026, the Company realigned certain of its business units as reflected in Note 18 Segment Financial Data, which impacted the composition of its reportable segments. The Company recast historical periods to reflect this change in segment presentation, including the reallocation of goodwill on a relative fair value basis as discussed in Note 8 Goodwill and Other Intangible Assets—Net. Additionally, in conjunction with the Aerospace Spin-Off, the Company transferred assets of $26 million from the former Aerospace Technologies reportable business segment to the Industrial Automation reportable business segment. Prior period amounts have been recast.

Supply Chain Financing

Amounts outstanding related to supply chain financing programs are included in Accounts payable in the Consolidated Balance Sheet. Accounts payable included approximately $433 million and $620 million as of September 30, 2026 and December 31, 2025, respectively, related to these programs. The impact of these programs is not material to the Company’s overall liquidity.

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Equity Method Investments

The Company accounts for investments under the equity method of accounting when it has the ability to exercise significant influence, but not control, over an investee. Significant influence is generally considered to exist when the Company holds an ownership interest in the voting stock of an investee of between 20% and 50%, although other factors may also be considered.

Equity method investments are recorded within Equity Method Investments in the Consolidated Balance Sheet. Differences between the carrying amount of the investment and the Company’s proportionate share of the investee’s net assets are attributed to identifiable assets and liabilities, with any residual recorded as goodwill. Basis differences are amortized over their estimated useful lives. Equity method investments are assessed for other-than-temporary impairment when events occur, or circumstances change, that indicate it is more likely than not the fair value of the asset is below its carrying value. If there is an other-than-temporary decline in the value of an equity method investment, it is recognized as an impairment loss in the current period.

The Company recognizes its proportionate share of the investee’s earnings or losses in the Consolidated Statement of Operations. Equity income and loss are classified based on the nature of the investment. Results from strategically aligned investments are recorded in Other (income) expense, while results from non-strategic investments are recorded in Equity loss.

As of September 30, 2026, the carrying amount of the Company’s equity method investment in Quantinuum Inc. (Quantinuum) was $7,113 million. During the three and nine months ended September 30, 2026, the Company recognized equity losses of $147 million and $412 million, respectively, related to this investment.

Environmental

The Company accrues costs for environmental matters when it is probable that a liability has been incurred for a contaminated site and the amount can be reasonably estimated. These estimates are informed by a range of data inputs and analytical tools, including historical remediation data, ongoing refinements to remediation strategies and centralized data aggregation tools that allow the Company to compare site characteristics and expected remediation activities across similar sites in its portfolio. Recorded liabilities are evaluated regularly and adjusted as remediation efforts progress or as additional technical, regulatory or legal information becomes available; such adjustments are accounted for as changes in estimates in the period identified.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s Consolidated Financial Statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the accounting for internal-use software costs by removing all references to prescriptive and sequential software development stages. The new standard requires entities to consider whether significant development uncertainty has been resolved before starting to capitalize software costs and aligns disclosure requirements with Accounting Standards Codification (ASC) 360, Property, Plant, and Equipment. This ASU is effective for annual and interim reporting periods beginning after December 15, 2027, and can be applied prospectively, retrospectively, or using a modified transition method, with early adoption permitted. The Company is currently evaluating the impacts of this guidance on the Company’s Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires companies to disclose additional information about the types of expenses in commonly presented expense captions. The new standard requires tabular disclosure of specified natural expenses in certain expense captions, a qualitative description of amounts that are not separately disaggregated, and disclosure of the Company’s definition and total amount of selling expenses. The ASU should be applied prospectively for annual reporting periods beginning after December 15, 2026, with retrospective application and early adoption permitted. The Company is currently evaluating the impacts of this guidance on the Company’s Consolidated Financial Statements.

Note 3. Acquisitions, Divestitures, and Discontinued Operations

Acquisitions

Johnson Matthey’s Catalyst Technologies Business

On July 17, 2026, the Company acquired 100% of the outstanding equity interests of Johnson Matthey’s Catalyst Technologies business, a leading provider of catalyst manufacturing and process technology licensing, for total consideration of $1,743 million,

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net of cash acquired. The business is part of the Process Automation and Technology reportable business segment. The following table summarizes the determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Consolidated Balance Sheet as of September 30, 2026:

The Johnson Matthey's Catalyst Technologies business' identifiable intangible assets primarily include customer relationships and technology which will amortize over their estimated useful lives ranging fromtwo to 15 years using straight-line and accelerated amortization methods. The goodwill is not deductible for tax purposes. As of the end of the third quarter of 2026, the purchase accounting is subject to final adjustment, primarily for the valuation of long-lived and intangible assets, amounts allocated to goodwill, working capital adjustments, and tax balances.

Sundyne

On June 6, 2025, the Company acquired 100% of the outstanding equity interests of Sundyne, a leader in the design manufacturing, and aftermarket support of highly-engineered pumps and gas compressors for process industries, for total consideration of $2,160 million, net of cash acquired. The business is part of the Process Automation and Technology reportable business segment. The Company finalized the evaluation for the fair value of all the assets acquired and liabilities assumed with Sundyne during the second quarter of 2026. The following table summarizes the determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Consolidated Balance Sheet as of September 30, 2026:

The Sundyne identifiable intangible assets primarily include customer relationships, technology, and trademarks which will amortize over their estimated useful lives ranging fromone to 15 years using straight-line and accelerated amortization methods. The goodwill is not deductible for tax purposes.

Divestitures and Assets and Liabilities Held for Sale

Quantinuum

On June 4, 2026, the Company’s former consolidated subsidiary Quantinuum completed its initial public offering (IPO). Prior to the IPO, the Company consolidated Quantinuum under the Variable Interest Entity consolidation model as it had both the power to direct activities and the obligation to absorb losses of the entity. Upon completion of the IPO, the Company retained a 48% noncontrolling ownership interest in Quantinuum and accounts for its Quantinuum investment as an equity method investment. No cash contributions were made or cash distributions received by the Company as part of the IPO.

The Company recognized a gain of $6,629 million during the second quarter of 2026 as a result of the deconsolidation of Quantinuum. The gain was calculated as the difference between (i) the aggregate fair value of the retained interests in the former subsidiaries and (ii) the carrying value of the assets and liabilities of the former subsidiaries, less the carrying value of the non-controlling interest in the former subsidiaries.

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The initial fair value of the retained investment of $7,525 million at the date of deconsolidation was determined using a market approach based on the observable quoted market price of Quantinuum’s common stock. At the date of deconsolidation, the carrying value of Quantinuum’s net assets was $1,599 million and the carrying value of the noncontrolling interest was $703 million.

Differences between the carrying amount of the retained equity method investment and the Company’s proportionate share of Quantinuum’s net assets were attributed to identifiable assets and liabilities utilizing purchase accounting principles, with the residual amount recorded as equity method goodwill. The Company identified basis differences related to intangible assets of $1.1 billion and equity method goodwill of $6.1 billion. Basis differences related to intangible assets will be amortized over their estimated useful lives and are recorded within Equity loss in the Consolidated Statement of Operations. The weighted-average life of the Quantinuum intangible assets is 8 years and will be amortized using a straight-line method. Basis differences related to equity method goodwill will not be amortized.

Productivity Solutions and Services and Warehouse and Workflow Solutions Businesses

As of December 31, 2025, the Company concluded the assets and liabilities of each of the Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) businesses, which were a part of the Productivity goodwill reporting unit within the Industrial Automation reportable business segment, met the held for sale criteria, and the Company presented the associated assets and liabilities of each business as held for sale beginning December 31, 2025. On July 27, 2026, the Company completed the sale of its WWS business in exchange for total consideration of $157 million, net of cash transferred. On August 3, 2026, the Company completed the sale of its PSS business for total consideration of $1,370 million, net of cash transferred.

During the third quarter, the Company recognized a pre-tax gain on the sale of the businesses of $339 million, primarily attributed to a gain on the sale of the PSS business, which was recorded in Other (income) expense in the Consolidated Statement of Operations. During the nine months ended September 30, 2026, the Company recognized a $311 million increase to the valuation allowance to write down the WWS disposal group to fair value, less costs to sell.

The following table summarizes the assets and liabilities classified as held for sale in the Consolidated Balance Sheet as of December 31, 2025:

Spin-offs and Discontinued Operations

Our former Aerospace Technologies and Advanced Materials businesses are included in discontinued operations. Results of operations, financial position, and cash flows are reported as discontinued operations for all periods presented and the notes to the consolidated financial statements have been adjusted on a retrospective basis.

Aerospace Technologies Business

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In the third quarter on June 29, 2026 (the Distribution Date), the Company completed the Aerospace Spin-Off through a pro rata distribution of all of the issued and outstanding shares of common stock of Honeywell Aerospace to the holders of common stock of the Company. Each Honeywell Technologies shareowner received one share of Honeywell Aerospace common stock for every two shares of Honeywell Technologies common stock held of record as of the close of business on June 15, 2026, except that they received cash in lieu of any fractional shares of Honeywell Aerospace common stock that they would have received after application of such distribution ratio. The Company structured the transaction to be a tax-free separation to Honeywell Technologies for U.S. federal income tax purposes. Honeywell Aerospace is now an independent publicly traded company under the symbol “HONA” on the Nasdaq Stock Market LLC. After the date of the Aerospace Spin-Off, the Company no longer consolidates Honeywell Aerospace into its financial results.

We have continuing involvement with Honeywell Aerospace primarily through a transition services agreement, through which Honeywell Technologies and Honeywell Aerospace will continue to provide certain services to each other for a period of time following the separation, a tax matters agreement, and a trademark license agreement, among others.

Pursuant to the trademark license agreement, the Company granted to Honeywell Aerospace an exclusive license to use “Honeywell Aerospace” and other trademarks, subject to certain restrictions and exceptions. The trademark license agreement includes customary quality control provisions to protect and preserve the goodwill associated with “Honeywell” and the other licensed marks. In exchange, Honeywell Aerospace will pay Honeywell Technologies an aggregate amount of $1.125 billion over approximately five years, including an initial payment of $18.75 million due within five days of the Distribution Date followed by 59 equal monthly payments of $18.75 million. The term of the license agreement is 75 years, including an initial term ofsix years and additional renewal options totaling a maximum of 69 additional years. If Honeywell Aerospace elects not to renew the trademark license agreement, the Company is obligated to reimburse Honeywell Aerospace $50 million unless certain exceptions apply. Honeywell Technologies may unilaterally terminate the trademark license agreement under certain conditions, including, without limitation, (1) on the 6th anniversary of the distribution date, in which case the Company is obligated to reimburse Honeywell Aerospace $250 million of the license fees Honeywell Aerospace paid to Honeywell Technologies during the first five years of the license term, or (2) in connection with certain uncured breach events or following a change of control to which Honeywell Technologies has not provided prior consent.

Advanced Materials Business

On October 30, 2025, the Company completed the spin-off of its Advanced Materials business into an independent, publicly traded company named Solstice. The Company structured the transaction as a tax-free separation for U.S. federal income tax purposes, providing shareowners of record with one share of Solstice stock for every four shares of Honeywell common stock.

The following table summarizes the key components of net income (loss) from discontinued operations:

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The following table summarizes major classes of assets and liabilities of discontinued operations of the Aerospace Technologies business:

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Note 4. Revenue Recognition and Contracts with Customers

The Company has a comprehensive offering of products and services, including software and technologies, that are sold to a variety of customers in multiple end markets. Beginning in 2026, the disaggregation of revenue within its Building Automation, Process Automation and Technology, and Industrial Automation segments is reported based on business model. See the following disaggregated revenue table and related discussions by reportable business segment for details:

Building Automation– A global provider of unified building automation solutions across products, hardware, software, and analytics, which help our customers convert buildings into safe, sustainable, and integrated assets. Building Automation offerings include fire detection, building controls and optimization software, energy management systems, access control, and video management software, complemented by installation, maintenance, and upgrades. Our equipment-agnostic approach creates a large aftermarket opportunity. The reportable business segment is comprised of the Products and Solutions business models. The Products business is a leading provider of multi-domain controls and software offerings, primarily through an industry-leading, highly capable, channel partner network. The Solutions business is a leading provider of integrated systems and differentiated automation technologies. Within Building Automation, our Honeywell Technologies Forge solutions enable channel partners and end-users to digitally manage buildings, through asset onboarding, self-service capabilities, and applications. Digitalization, coupled with cloud transformation, creates the capability to connect assets, visualize data that provides actionable insights through intuitive dashboards, manage systems remotely, and leverage AI to facilitate installation, commissioning, and life-time service.

Process Automation and Technology– A global provider of end-to-end solutions that drive automation throughout the industrial lifecycle, develop and innovate advanced process technology solutions, and help accelerate customers' digital transformations. The business segment delivers to multiple sectors, including energy, mining and minerals, industrials, power generation, and life sciences. The reportable business segment is comprised of the Projects and Aftermarket business models. The Projects business offers automation solutions for new and existing industrial plants, solutions for critical turbomachinery control applications, licensing, engineering of new and existing energy facilities, and energy solutions including separation and purification, gas, renewable fuels, blue H2 / blue NH3, green H2, carbon capture, plastics circularity, and energy storage. The Aftermarket business offers solutions that improve safety, reliability, sustainability, and operations excellence and delivers licensed process technology, equipment, engineering catalyst, adsorbents, and services to enable the energy transition.

Industrial Automation– A global provider of sensing and measurement solutions serving mission-critical applications across diversified verticals, including energy, power and utilities, aerospace and defense, medical devices, and semiconductors. Across these verticals, customers desire similar outcomes, such as operational efficiency, asset effectiveness, people performance, and safety. The reportable business segment is comprised of the Products and Solutions business models. The Products business offerings include fiscal custody transfer solutions, fixed and portable gas detection, safety solutions for semiconductor manufacturing, terminal operations, sensors, switches and controls, burner management systems, and fuel and air delivery. Industrial Automation offers a comprehensive suite of solutions through aftermarket services, as well as through expanding its high-value digital services and connected solutions, anchored in Honeywell Forge. Our extensive installed base of sensing and measurement offerings, combined with vertical domain expertise and deep integration with Honeywell Technologies' Forge platform, delivers distinctive, value-accretive outcomes that address evolving customer needs. The combination of data, cloud and

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smarter edge solutions allows Industrial Automation to deliver enterprise level outcomes rather than just point solutions at each asset/site.

Corporate and All Other– Corporate and All Other includes revenue from Honeywell Technologies’ former majority-owned investment in Quantinuum prior to deconsolidation in the second quarter of 2026.

See Note 18 Segment Financial Data for a summary by disaggregated product and services sales for each reportable business segment.

The Company recognizes revenue arising from performance obligations outlined in contracts with its customers that are satisfied at a point in time and over time. The disaggregation of the Company’s revenue based on timing of recognition is as follows:

Contract Balances

The Company tracks progress on satisfying performance obligations under contracts with customers. The related billings and cash collections are recorded in the Consolidated Balance Sheet in Accounts receivable—net and Other assets (unbilled receivables (contract assets) and billed receivables), and Accrued liabilities and Other liabilities (customer advances and deposits (contract liabilities)). Unbilled receivables arise when the timing of cash collected from customers differs from the timing of revenue recognition, such as when contract provisions require specific milestones to be met before a customer can be billed. Contract assets are recognized when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Contract liabilities are recorded when customers remit contractual cash payments in advance of the Company satisfying performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time. Contract liabilities are derecognized when revenue is recorded.

Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period.

The following table summarizes the Company’s contract assets and liabilities balances:

For the three and nine months ended September 30, 2026, the Company recognized revenue of $124 million and $1,030 million, respectively, that was previously included in the beginning balance of contract liabilities. For the three and nine months ended September 30, 2025, the Company recognized revenue of $158 million and $990 million, respectively, that was previously included in the beginning balance of contract liabilities.

Contract assets included $1,440 million and $1,263 million of current unbilled balances under long-term contracts as of September 30, 2026 and December 31, 2025, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate.

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When contracts are modified to account for changes in contract specifications and requirements, the Company considers whether the modification either creates new or changes the existing enforceable rights and obligations. Contract modifications for goods or services that are not distinct from the existing contract, due to the significant integration with the original good or service provided, are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. When the modifications include additional performance obligations that are distinct and at relative stand-alone selling price, they are accounted for as a new contract and performance obligation, which are recognized prospectively.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When the contracts with customers require highly complex integration or manufacturing services that are not separately identifiable from other promises in the contracts and, therefore, not distinct, then the entire contract is accounted for as a single performance obligation. In situations when the Company’s contracts include distinct goods or services that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct goods or services. For any contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on the estimated relative stand-alone selling price of each distinct good or service in the contract. For product sales, each product sold to a customer typically represents a distinct performance obligation. In such cases, the observable stand-alone sales are used to determine the stand-alone selling price.

Performance obligations are satisfied as of a point in time or over time. Performance obligations are supported by contracts with customers, providing a framework for the nature of the distinct goods, services, or bundle of goods and services. The timing of satisfying the performance obligation is typically indicated by the terms of the contract. The Company’s remaining performance obligations as of September 30, 2026, are $18,798 million.

Performance obligations recognized as of September 30, 2026, will be satisfied over the course of future periods. The Company’s disclosure of the timing for satisfying the performance obligation is based on the requirements of contracts with customers. However, from time to time, these contracts may be subject to modifications, impacting the timing of satisfying the performance obligations. Performance obligations expected to be satisfied within one year and greater than one year are 49% and 51%, respectively.

The timing of satisfaction of the Company’s performance obligations does not significantly vary from the typical timing of payment. Typical payment terms of the Company’s fixed price over time contracts include progress payments based on specified events or milestones or based on project progress. For some contracts, the Company may be entitled to receive an advance payment.

The Company applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Company recognizes revenue in proportion to the amount the Company has the right to invoice for services performed.

Note 5. Repositioning and Other Charges

A summary of net repositioning and other charges follows:

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The following table summarizes the pre-tax distribution of total net repositioning and other charges by classification in the Consolidated Statement of Operations:

The following table summarizes the pre-tax amount of total net repositioning and other charges by reportable business segment. These amounts are excluded from segment profit as described in Note 18 Segment Financial Data:

Net Repositioning Charges

In the three months ended September 30, 2026, the Company recognized gross repositioning charges totaling $16 million, including severance costs of $8 million related to workforce reductions of 38 manufacturing and administrative positions primarily in the Company's Industrial Automation reportable business segment. These workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $2 million related to the write-down of certain assets within the Company’s Process Automation and Technology and Industrial Automation reportable business segments. The repositioning charges also included exit costs of $6 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company’s Industrial Automation reportable business segment and corporate function. Also, $5 million of previously established reserves, primarily for severance, were returned to income due to higher-than-expected voluntary exits and adjustments to the scope of previously announced repositioning actions.

In the three months ended September 30, 2025, the Company recognized gross repositioning charges totaling $58 million, including severance costs of $40 million related to workforce reductions of 1,055 manufacturing and administrative positions primarily in the Company’s Industrial Automation and Building Automation reportable business segments. These workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $2 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment. The repositioning charges also included exit costs of $16 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company’s Industrial Automation reportable business segment and corporate function. Also, $11 million of previously established reserves, primarily for severance, were returned to income due to higher-than-expected voluntary exits and adjustments to the scope of previously announced repositioning actions.

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In the nine months ended September 30, 2026, the Company recognized gross repositioning charges totaling $132 million, including severance costs of $50 million related to workforce reductions of 961 manufacturing and administrative positions primarily in the Company’s Process Automation and Technology reportable business segment and corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges also included asset impairments of $53 million for the write-down of certain assets within the Company’s Process Automation and Technology and Industrial Automation reportable business segments. The repositioning charges also included exit costs of $29 million primarily related to current period costs incurred for closure obligations associated with site transitions primarily in the Company’s Industrial Automation reportable business segment and corporate function. Also, $15 million of previously established reserves, primarily for severance, were returned to income due to higher-than-expected voluntary exits and adjustments to the scope of previously announced repositioning actions.

In the nine months ended September 30, 2025, the Company recognized gross repositioning charges totaling $113 million, including severance costs of $67 million related to workforce reductions of 1,896 manufacturing and administrative positions primarily in the Company’s Industrial Automation and Building Automation reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $4 million related to the write-down of certain assets within the Company’s Industrial Automation reportable business segment and corporate function. The repositioning charges also included exit costs of $42 million related to current period costs incurred for closure obligations associated with site transitions primarily in the Company’s Industrial Automation and Building Automation reportable business segments and corporate function. Also, $42 million of previously established reserves, primarily for severance, were returned to income due to adjustments to the scope of previously announced repositioning actions.

The following table summarizes the status of the Company’s repositioning reserves, excluding amounts included in Liabilities held for sale in the Consolidated Balance Sheet:

Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in the nine months ended September 30, 2026 and 2025, were $30 million and $39 million, respectively.

Note 6. Income Taxes

The effective tax rate was lower than the U.S. federal statutory rate of 21% and decreased during 2026 compared to 2025 primarily as a result of changes in accruals on U.S. federal, state, and foreign tax matters, partially offset by transaction related tax costs associated with the Aerospace Spin-Off and other divestiture activity and changes in estimates on prior tax positions.

Note 7. Inventories

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Note 8. Goodwill and Other Intangible Assets— Net

As part of the segment realignment discussed in Note 18 Segment Financial Data, the Company performed a reallocation of goodwill on a relative fair value basis as of the first quarter of 2026, with goodwill in prior periods recast on a consistent basis. This resulted in a reallocation of goodwill between the Industrial Automation and Process Automation and Technology reportable business segments. We performed interim impairment tests in the first quarter of 2026 for reporting units impacted and determined there wasno goodwill impairment.

The following table summarizes the change in the carrying amount of goodwill for the nine months ended September 30, 2026, by reportable business segment:

Other intangible assets are comprised of:

Intangible assets amortization expense was $131 million and $352 million for the three and nine months ended September 30, 2026, respectively, and $135 million and $364 million for the three and nine months ended September 30, 2025, respectively.

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Note 9. Debt and Credit Agreements

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Commercial Paper and Other Short-Term Borrowings

As of September 30, 2026, the Company had $2.4 billion of Commercial paper and other short-term borrowings outstanding at a weighted average interest rate of 3.85%. As of December 31, 2025, the Company had $5.9 billion of Commercial paper and other short-term borrowings outstanding at a weighted average interest rate of 3.68%.

Pre-Separation Funding

In March 2026, the Company entered into a series of debt transactions in anticipation of the Aerospace Spin-Off, in which Honeywell Aerospace issued an aggregate of $16.0 billion principal amount senior notes (the Aerospace Senior Notes). The Aerospace Senior Notes are senior unsecured obligations of Honeywell Aerospace, and were guaranteed on a senior unsecured basis by the Company until the Aerospace Spin-Off was completed. In connection with the Aerospace Spin-Off, the Aerospace Senior Notes were distributed to Honeywell Aerospace, and the Company was automatically and unconditionally released from all obligations under the guarantee.

Term Loan Agreements

In March 2026, the Company repaid its $1.0 billion 4.37% term loan due 2027. In August 2026, the Company made a partial prepayment of $1.5 billion on the $2.75 billion of borrowings outstanding under the 2025 term loan due 2027. As of September 30, 2026, there were $1.25 billion of borrowings outstanding under this term loan.

Revolving Credit Agreements

In March 2026, the Company entered into a $3.0 billion 364-day credit agreement (the 364-Day Credit Agreement). Upon completion of the Aerospace Spin-Off on June 29, 2026, the aggregate commitments thereunder were automatically reduced to $2.0 billion. The 364-Day Credit Agreement replaced the Company’s $3.0 billion 364-day credit agreement dated as of March 17, 2025, which was terminated in accordance with its terms effective March 6, 2026. Amounts borrowed under the 364-Day Credit Agreement are due no later than March 5, 2027, unless (i) the Company elects to convert all then outstanding amounts into a term loan, upon which such amounts shall be repaid in full on March 5, 2028, or (ii) the 364-Day Credit Agreement is terminated earlier pursuant to its terms.

In March 2026, the Company entered into a $4.0 billion five-year credit agreement (the Five-Year Credit Agreement). Upon completion of the Aerospace Spin-Off on June 29, 2026, the aggregate commitments thereunder were automatically reduced to $3.0 billion. The Five-Year Credit Agreement replaced the Company’s $4.0 billion five-year credit agreement dated as of March 18, 2024, which was terminated in accordance with its terms effective March 6, 2026. 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 $3.5 billion. Amounts borrowed under the Five-Year Credit Agreement are required to be repaid no later than March 6, 2031, unless such date is extended pursuant to the terms of the Five-Year Credit Agreement.

The 364-Day Credit Agreement and the Five-Year Credit Agreement are maintained for general corporate purposes.

As of September 30, 2026, there wereno outstanding borrowings under the 364-Day Credit Agreement or the Five-Year Credit Agreement.

Debt Tender Offers and Debt Redemption

In March 2026, the Company commenced a series of debt tender offers to purchase certain of its existing debt securities. On March 24, 2026, the Company purchased the following notes for an aggregate principal amount of $7.5 billion at early settlement of the debt tender offers:

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In addition, in March and April 2026, the Company fully redeemed the following notes:

As a result of the debt tender offers and debt redemptions, the Company incurred a $241 million Loss on debt extinguishment and an additional $44 million of debt restructuring costs included in Other (income) expense in the Consolidated Statement of Operations during the nine months ended September 30, 2026.

Note 10. Leases

The Company’s operating and finance lease portfolio is described in Note 10 Leases of Notes to Consolidated Financial Statements in the Company’s 2025 Annual Report on Form 10-K.

Supplemental cash flow information related to leases was as follows:

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Supplemental balance sheet information related to leases was as follows:

Note 11. Derivative Instruments and Hedging Transactions

Honeywell Technologies’ foreign currency, interest rate, credit, and commodity price risk management policies are described in Note 11 Derivative Instruments and Hedging Transactions of Notes to Consolidated Financial Statements in the Company’s 2025 Annual Report on Form 10-K.

The following table summarizes the notional amounts and fair values of the Company’s outstanding derivatives by risk category and instrument type within the Consolidated Balance Sheet:

All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Accrued liabilities or Other liabilities.

In addition to the foreign currency derivative contracts designated as net investment hedges, certain of the Company’s foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $2,220 million and $6,962 million as of September 30, 2026 and December 31, 2025, respectively.

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The following table sets forth the amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:

The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments:

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The following table summarizes the amounts of gain or (loss) on net investment hedges recognized in Accumulated other comprehensive loss:

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Note 12. Fair Value Measurements

The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy:

•Level 1 - Inputs are based on quoted prices in active markets for identical assets and liabilities.

•Level 2 - Inputs are based on observable inputs other than quoted prices in active markets for identical or similar assets and liabilities.

•Level 3 - One or more inputs are unobservable and significant.

The Company classifies financial and nonfinancial assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement.

The following table sets forth the Company’s financial assets and liabilities accounted for at fair value on a recurring basis:

The Company values foreign currency exchange contracts, interest rate swap agreements, and cross currency swap agreements using broker quotations, or market transactions in either the listed or over-the-counter markets. These derivative instruments are classified within level 2. The Company also holds investments in commercial paper, certificates of deposit, time deposits, and corporate debt securities that are designated as available for sale. These investments are valued using published prices based on observable market data. These investments are classified within level 2.

The Company holds certain available for sale investments in U.S. government securities and investments in equity securities. The Company values these investments utilizing published prices based on quoted market pricing, which are classified within level 1.

The carrying value of cash and cash equivalents, trade accounts and notes receivables, payables, commercial paper, and other short-term borrowings contained in the Consolidated Balance Sheet approximates fair value.

The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:

The Company determined the fair value of the long-term receivables by utilizing transactions in the listed markets for identical or similar assets. As such, the fair value of these receivables is considered level 2.

The Company determined the fair value of its equity method investment in Quantinuum utilizing published prices based on quoted market prices. As such, the fair value of these investments is considered level 1.

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The Company determined the fair value of the long-term debt and related current maturities by utilizing transactions in the listed markets for identical or similar liabilities. As such, the fair value of the long-term debt and related current maturities is considered level 2.

As of December 31, 2025, the Company measured the disposal group of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses at fair value, less costs to sell. The fair value of the disposal group was determined using significant unobservable inputs based on expected proceeds to be received upon the sale of the businesses. As such, the fair value of the disposal group was considered level 3. See Note 3 Acquisitions, Divestitures, and Discontinued Operations for more information on the disposal group.

Note 13. Earnings Per Share

The details of the earnings (loss) per share calculations for the three and nine months ended September 30, 2026 and 2025, are as follows (shares in millions):

Share and per share amounts have been retrospectively adjusted to reflect the Reverse Stock Split, as applicable. See Note 1 Basis of Presentation for additional information.

The diluted earnings per share calculations exclude the effect of stock options when the cost to exercise an option exceeds the average market price of the common shares during the period. For the three and nine months ended September 30, 2026, the weighted average number of stock options excluded from the computations were 1.8 million and 1.5 million, respectively. For the three and nine months ended September 30, 2025, the weighted average number of stock options excluded from the computations were 0.9 million and 1.3 million, respectively.

As of September 30, 2026 and 2025, the total shares outstanding were 317.4 million and 317.5 million, respectively, and as of both September 30, 2026 and 2025, total shares issued were 478.8 million.

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Note 14. Accumulated Other Comprehensive Loss

Changes in Accumulated Other Comprehensive Loss by Component

Note 15. Commitments and Contingencies

Environmental Matters

The Company is subject to various federal, state, local, and foreign government requirements relating to the protection of the environment. With respect to environmental matters involving site contamination, the Company continually conducts studies, individually or jointly with other potentially responsible parties, to determine the feasibility of various remedial techniques. It is the Company’s policy to record liabilities for environmental matters when remedial efforts or damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on the Company’s best estimate of the undiscounted future costs required to complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory, or legal information becomes available.

In conjunction with the Honeywell Aerospace Spin-Off, the Company entered into the Separation and Distribution Agreement with Honeywell Aerospace and underwent a separation, pursuant to which certain businesses and entities with associated environmental liabilities were transferred to Honeywell Aerospace. Honeywell Aerospace assumed responsibility for those environmental liabilities and agreed to indemnify the Company for any losses, costs, or liabilities incurred by the Company in connection with such environmental liabilities. In addition, the Company received acknowledgements from environmental agencies which established that Honeywell Aerospace would be obligated to remediate these environmental liabilities, and the Company may be looked to, for remediation if Honeywell Aerospace does not satisfy its remediation obligations. Accordingly, in connection with the Aerospace Spin-Off transaction, the Company derecognized $828 million of environmental liabilities through equity as part of the transferred businesses and recognized its residual obligation as a stand-ready obligation in accordance with ASC 460, Guarantees.

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The Company is unable to estimate the maximum potential amount of any payments in the event Honeywell Aerospace does not satisfy its environmental liabilities obligations because the scope, timing, and ultimate cost of future remediation activities depend on site-specific conditions, regulatory requirements, and other factors that cannot currently be estimated. The Company would not be responsible for any assumed obligations unless (i) Honeywell Aerospace was financially or legally incapable of satisfying its remediation or indemnification obligations and (ii) all available defenses of the Company to liability were finally (and without further right of appeal) determined by a court of competent jurisdiction to be invalid. The Company evaluates this scenario as a loss contingency at each reporting date. At September 30, 2026, the Company concluded that no additional accrual for liability was required under ASC 450-20 because a loss was remote.

The Company continues to be responsible for environmental liabilities related to properties and operations retained by the Company following the Aerospace Spin-Off, as set forth in the Separation and Distribution Agreement.

Environmental matters are further described in Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements in the Company’s 2025 Annual Report on Form 10-K.

The following table summarizes information concerning the Company’s recorded liabilities for environmental costs:

In conjunction with the Resideo Technologies, Inc. (Resideo) spin-off, the Company entered into an indemnification and reimbursement agreement with a Resideo subsidiary, pursuant to which Resideo’s subsidiary had an ongoing obligation to make cash payments to Honeywell Technologies in amounts equal to 90% of Honeywell Technologies’ annual net spending for environmental matters at certain sites as defined in the agreement. As the Company incurred costs for environmental matters deemed probable and reasonably estimable related to the sites covered by the indemnification and reimbursement agreement, a corresponding receivable from Resideo for 90% of such costs was also recorded. The amount payable to Honeywell Technologies in any given year was subject to a cap of $140 million, and the payment obligation was to continue until the earlier of December 31, 2043, or December 31 of the third consecutive year during which the annual payment obligation was less than $25 million. Reimbursements associated with this agreement were collected from Resideo quarterly and were $105 million in the nine months ended September 30, 2025.

In the third quarter of 2025, the Company and Resideo entered into a termination agreement for the accelerated monetization of the indemnification and reimbursement agreement. Upon closing of the transactions contemplated pursuant to the termination agreement, the Company received a one-time cash payment of $1,590 million in lieu of all future payments to which the Company was entitled pursuant to the indemnification and reimbursement agreement. Additionally, Resideo paid the quarterly payment of $35 million for the quarter ending September 30, 2025 due under the indemnification and reimbursement agreement. The Company applied the one-time cash payment and quarterly reimbursement payment against the outstanding receivable balance due from Resideo, inclusive of expenses incurred in the third quarter of 2025. The Company recognized a gain of $802 million in Other (income) expense for the cash proceeds received in excess of the receivables due from Resideo as of the third quarter of 2025.

As a result of the termination agreement, Resideo no longer has any obligation to make cash payments to Honeywell Technologies in respect of Honeywell Technologies’ net spending for environmental matters.

SEC Matter

The Company is cooperating with a formal investigation by the SEC which is focused on certain financial reporting matters, including with respect to the Company’s former Performance Materials and Technologies segment. At this time, the Company does not expect the outcome of this matter to have a material adverse effect on the Company’s consolidated results of operations, cash flows, or financial position.

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The Company is subject to a number of other lawsuits, investigations, and disputes (some of which involve substantial amounts claimed) arising out of the conduct of its business operations or those of previously owned entities, including matters relating to commercial transactions, government contracts, product liability, the integration of emerging technologies (such as, but not limited to, artificial intelligence and machine learning), prior acquisitions and divestitures, employment, employee benefit plans, intellectual property, legal, and environmental, health, and safety matters. The Company recognizes liabilities for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments or outcomes in such matters, as well as potential ranges of probable losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts.

Given the uncertainty inherent in litigation and investigations, including those discussed in this Note 15, the Company cannot predict when or how these matters will be resolved and does not believe it is possible to develop estimates of reasonably possible loss (or a range of possible loss) in excess of current accruals for commitment and contingency matters. Considering the Company’s past experience and existing accruals, the Company does not expect the outcome of such matters, either individually or in the aggregate, to have a material adverse effect on the Company’s consolidated financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments (including new discovery of facts, changes in legislation, and outcomes of similar cases through the judicial system), changes in assumptions or changes in settlement strategy, which could cause the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company’s consolidated results of operations or operating cash flows in the periods recognized or paid.

Note 16. Pension Benefits

Net periodic pension benefit (income) cost for the Company’s significant pension plans included the following components:

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The Company completedno repurchases of outstanding Honeywell Technologies shares of common stock from the Honeywell Technologies U.S. Pension Plan Master Trust during the three months ended September 30, 2026. The Company repurchased $100 million of outstanding Honeywell Technologies shares of common stock from the Honeywell Technologies U.S. Pension Plan Master Trust during the nine months ended September 30, 2026. The Company repurchased $100 million and $400 million of outstanding Honeywell Technologies shares of common stock from the Honeywell Technologies U.S. Pension Plan Master Trust during the three and nine months ended September 30, 2025, respectively.

In connection with the Aerospace Spin-Off, Honeywell Technologies transferred $6.4 billion of pension benefit obligations and $9.0 billion of plan assets for certain pension plans to Honeywell Aerospace.

Note 17. Other (Income) Expense

Note 18. Segment Financial Data

Following the Aerospace Spin-Off, Honeywell Technologies globally manages its business operations through three 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 review the businesses, make investing and resource allocation decisions, and assess operating performance.

Honeywell Technologies’ 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, loss on debt extinguishment, gain on deconsolidation of subsidiary, and other items within Other (income) expense.

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Effective during the first quarter of 2026, the Company realigned certain of its business units comprising the Industrial Automation and Energy and Sustainability Solutions reportable business segments. This realignment formed a new reportable business segment, Process Automation and Technology, and resulted in a new composition of the Industrial Automation reportable business segment. Process Automation and Technology is comprised of UOP, which was previously in Energy and Sustainability Solutions, and the core portion of the Process Solutions business, which was previously in Industrial Automation. The new composition of Industrial Automation continues to include the smart energy, thermal solutions, and process measurement and control businesses, previously 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 are Building Automation, Process Automation and Technology, and Industrial Automation. The realignment had no impact on the Company’s historical consolidated financial position, results of operations, or cash flows. Additionally, in conjunction with the Aerospace Spin-Off, the Company transferred assets of $26 million from the former Aerospace Technologies reportable business segment to the Industrial Automation reportable business segment. Prior period amounts have been recast.

Effective during the second quarter of 2026, the Company updated its calculation of segment profit to exclude the results of Quantinuum previously included in Corporate and All Other, as Quantinuum no longer meets the definition of an operating segment following the deconsolidation of Quantinuum. The Company recast historical periods to reflect segment profit under the new basis to facilitate comparability.

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A reconciliation of segment profit to consolidated income from continuing operations before taxes is as follows:

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