Honeywell (HON) Q1 2026 Earnings Transcript

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Thursday, April 23, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Vimal Kapur

• Chief Financial Officer — Mike Stepniak

• Chief Operating Officer — Jim Courier

Vimal Kapur: Honeywell International Inc. delivered beardown results successful the archetypal quarter, gathering connected the momentum from 2025 contempt a analyzable geopolitical backdrop and impermanent proviso concatenation constraints successful Aerospace. Automation grew 7% organically connected the spot of our gathering and concern automation conception arsenic good arsenic successful petrochemical and refining verticals successful the Process segment. Including the orders maturation successful Aerospace, we drove backlog to implicit $38 cardinal with book-to-bill supra 1.1. Sales maturation was robust crossed Electronic Solutions and Aerospace, occurrence and aftermarket services successful Building Automation, and GTL and LNG successful Process Automation and Technology, bolstered by our innovation and caller merchandise engine.

We expanded borderline 90 ground points to implicit 23%, driven by pricing discipline, productivity, and accelerated stranded outgo removal up of the Aerospace spin. All of this drove 11% adjusted net maturation successful the quarter, demonstrating the spot and agility of the Honeywell International Inc. operating system. We besides made tremendous advancement connected the portfolio translation that began successful 2023. We announced the merchantability of our Productivity Solution and Services and Warehouse and Workflow Solution businesses, respectively, which we expect to adjacent successful 2026. We are besides excited to denote that we expect to implicit the Honeywell International Inc. Aerospace spin-off successful the 3rd 4th connected June 29, marking the last measurement successful our transformation.

All of the acquisitions, divestitures, spin-off, and simplification efforts implicit the past 3 years person positioned some Aerospace and Automation for a agleam aboriginal arsenic independent, starring concern companies. Despite the beardown commencement to the year, we are taking a prudent attack to our guidance fixed the uncertainty surrounding the struggle successful the Middle East. We stay assured successful our quality to thrust accelerating maturation successful the 2nd fractional arsenic our backlog supports a pickup successful maturation successful Process Automation and Technology. We volition proceed to intimately show the concern and supply immoderate further updates if the concern changes materially.

Before we get into the details, I privation to convey each our employees for their focus, commitment, and dedication passim our multiyear transformation. The aboriginal is agleam arsenic we acceptable some businesses and cogwheel to thrive with the close strategical absorption and superior allocation priorities that volition thrust worth for our customers, employees, and shareholders. Let maine crook to descent 3 to sermon the advancement connected our portfolio transformation. As I mentioned, we are progressing connected the last separation milestone with the Aerospace spin-off present expected to implicit connected June 29, conscionable implicit 2 months away. The enactment squad for some Honeywell International Inc. and Honeywell International Inc. Aerospace are successful spot and already executing for our customers today.