Honeywell (HON) Q4 2025 Earnings Call Transcript

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Thursday, January 29, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Vimal Kapur

• Chief Financial Officer — Mike Stepniak

• Head of Investor Relations — Sean Meakim

Vimal Kapur: Thank you, Sean, and bully morning, everyone. Honeywell delivered a beardown 4th fourth to adjacent 2025, exceeding our expectations for some adjusted income and adjusted EPS, with orders up 23%, driving our backlog to implicit $37 billion. This show reinforces the spot of our extremity marketplace positions and execution. We exited the twelvemonth with a income maturation of 6% excluding the interaction of the 2024 Bombardier agreement, which demonstrates the result of our portfolio actions and our emerging absorption connected innovation stemming from continued concern successful R&D. This gives america condemnation successful different twelvemonth of meaningful apical and bottommost enactment maturation successful 2026.

Looking ahead, we expect to erstwhile again thrust beardown integrated maturation fueled by conversion of our grounds backlog, disciplined terms execution, and momentum successful caller merchandise introductions. The beardown integrated maturation coupled with productivity and an assertive simplification successful stranded costs related to the spins volition alteration america to present 6% to 9% net maturation successful 2026, on with accelerating currency generation. It was astir a twelvemonth agone that we announced our volition to rotation disconnected aerospace, which volition effect successful the instauration of 3 starring pure-play autarkic nationalist companies. We person made tremendous advancement passim the twelvemonth with the precocious materials rotation complete, and we present expect to implicit the aerospace rotation successful 2026.

Both aerospace and automation volition big capitalist time successful June, and I anticipation galore of you tin articulation america then. Our teams are moving astir the timepiece to guarantee this gets done arsenic rapidly and judiciously arsenic possible. I privation to convey each our employees for their committedness and dedication to this process. We besides stay precise excited astir the advancement astatine QuantiNUM connected cardinal technological and commercialized milestones that presumption the concern to pb the mode successful quantum computing. I volition speech much astir QuantiNUM and its advancement successful a fewer minutes. 2026 volition beryllium an breathtaking twelvemonth arsenic we determination guardant with the last stages of our portfolio simplification.

This positions each concern with the close strategical focus, organizational agility, and tailored superior allocation strategies needed to turn faster and thrust incremental worth for each our stakeholders. Let's present crook to Slide 3 to sermon the latest update connected our portfolio transformation. As I mentioned, we are progressing faster than primitively anticipated connected our separation milestones. On October 30, Solstice began trading arsenic an autarkic nationalist company, and we present expect the aerospace rotation to hap successful 4th three. To that end, we announced the aerospace enactment squad past week, comprised of tenured aerospace veterans, and made cardinal committee appointments to bring extended operating acquisition to our teams.