HONEYWELL INTERNATIONAL INC (HON) · Material Event (8-K) SEC Filing

EX-99 2 exhibit99-q22026earningsre.htm EX-99 Document Exhibit 99 Contacts Media Investor Relations Stacey Jones Mark Macaluso (980) 378-6258 (704) 627-6118 stacey.jones honeywell.com mark.macaluso honeywell.com HONEYWELL TECHNOLOGIES REPORTS SECOND QUARTER RESULTSCHARLOTTE, N.C., July 23, 2026 -- Honeywell Technologies (NASDAQ HON) today announced results for the second quarter of 2026. The consolidated results include the operations of Honeywell Aerospace (NASDAQ HONA), which successfully separated in a spin-off from Honeywell Technologies on June 29, 2026 (third quarter 2026).Second Quarter 2026 Consolidated Results (including legacy Aerospace Technologies segment) Orders up 4% leading to $38 billion backlog Sales of $9.7 billion, reported sales up 4% and organic1 sales up 4% Operating margin of 17.9% and segment margin1 of 23.1% Earnings per share (EPS) of $17.83, which reflects the impact of a one-time gain on deconsolidation of Quantinuum, and adjusted EPS1 of $4.52Second Quarter 2026 Honeywell Technologies Results (excluding Aerospace Technologies) Orders up 16% leading to $20 billion backlog Sales of $5.2 billion, up 3% reported and up 4% organic1 Operating margin of 12.8% and segment margin1 of 19.0% EPS of $16.65 and adjusted EPS1 of $1.95Management Commentary The second quarter marked a historic milestone for Honeywell Technologies as we completed the separation of Honeywell Aerospace and began a new era as a leading pure-play automation company. The results we delivered this quarter are the outcome of a year-plus long process to simplify our business, and we are already seeing the benefits of this transformation today. Honeywell Technologies delivered strong organic orders and sales growth, and 100 basis points of segment margin expansion, leading to double digit earnings growth in the second quarter and reinforcing our confidence in the long-term targets that we shared at our recent investor day. As a simplified company, Honeywell Technologies is now positioned to further accelerate profitable growth as we leverage our deep domain expertise and vast installed base to create enduring value for our shareowners, said Vimal Kapur, chairman and chief executive officer of Honeywell Technologies. - MORE -Honeywell Technologies Q2 26 Results - 2Table 1 Summary of Consolidated Financial ResultsIncluding Honeywell Technologies and Honeywell Aerospace business(Dollars in millions, except per share amounts) 2Q 2026 2Q 2025 Change Sales $9,719 $9,322 4% Organic1 Growth 4% Operating Income $1,737 $1,843 (6%) Operating Income Margin 17.9% 19.8% (190 bps) Segment Profit1 $2,240 $2,128 5% Segment Margin1 23.1% 22.8% 30 bps Earnings Per Share - Continuing Operations $17.83 $4.33 312% Adjusted Earnings Per Share1 $4.52 $4.72 (4%) Cash Flow from Operations - Continuing Operations $1,276 $1,064 20% Free Cash Flow1,4 $1,252 $878 43% The information in Tables 2, 3 and 4 and all subsequent commentary (other than under the heading Honeywell Aerospace ) refers to Honeywell Technologies only*. Please refer to our quarterly report on Form 10-Q for the second quarter of 2026 for additional information. Table 2 Summary of Honeywell Technologies Financial Results(Dollars in millions, except per share amounts) 2Q 2026 2Q 2025 Change Sales $5,187 $5,018 3% Organic1 Growth 4% Operating Income $662 $666 (1%) Operating Income Margin 12.8% 13.3% (50 bps) Segment Profit1 $985 $904 9% Segment Margin1 19.0% 18.0% 100 bps Earnings Per Share - Continuing Operations $16.65 $1.21 1,276% Adjusted Earnings Per Share1 $1.95 $1.77 10% Cash Flow from Operations - Continuing Operations $563 $187 201% Free Cash Flow1,4 $456 $114 300% * Results refer to Honeywell Technologies only, excluding results attributable to the Honeywell Aerospace business, including adjustments related to the perimeter of the Aerospace spin-off, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items.- MORE -Honeywell Technologies Q2 26 Results - 3Table 3 Summary of Honeywell Technologies Segment Financial Results(Dollars in millions) BUILDING AUTOMATION 2Q 2026 2Q 2025 Change Sales $2,002 $1,826 10% Organic1 Growth 9% Segment Profit $542 $479 13% Segment Margin 27.1% 26.2% 90 bps PROCESS AUTOMATION AND TECHNOLOGY Sales $1,679 $1,613 4% Organic1 Growth (1%) Segment Profit $371 $386 (4%) Segment Margin 22.1% 23.9% (180) bps INDUSTRIAL AUTOMATION Sales $1,501 $1,577 (5%) Organic1 Growth 4% Segment Profit $258 $257 % Segment Margin 17.2% 16.3% 90 bps Building Automation sales for the second quarter grew 9% organically1 year over year. Building products grew 10% led by continued double-digit growth in the fire business, and building solutions grew 7%, driven by services. Orders increased 13% year over year led by robust growth in data center and hospitality verticals. Segment margin expanded 90 basis points to 27.1% driven by volume leverage and pricing, partially offset by inflation.Process Automation and Technology sales for the second quarter decreased 1% organically1 year over year. Projects sales increased 5% organically, led by continued strength in LNG and a return to growth in automation projects. This was offset by a 6% decline in aftermarket sales driven by higher catalyst shipments in the prior year. Orders were up 24% led by demand in LNG. Segment margin contracted 180 basis points to 22.1% driven by lower catalyst volumes and unfavorable product mix. Industrial Automation sales for the second quarter grew 4% organically1 year over year led by 10% growth in solutions, driven by strength in utilities projects and strong backlog conversion in the warehouse business. Products grew 1% led by demand in sensing and industrial measurement. Segment margin expanded 90 basis points year over year to 17.2% driven by pricing and productivity, partially offset by inflation.- MORE -Honeywell Technologies Q2 26 Results - 4Table 4 Honeywell Technologies Full-Year 2026 Guidance1 Previous Guidance Current Guidance Sales $19.9B - $20.2B $19.8B - $20.0B Organic Growth 2% - 3% 3% - 4% Segment Margin2 19.8% - 20.3% 20.1% - 20.5% Expansion Up 220 - 270 bps Up 250 - 290 bps Adjusted Earnings Per Share2,3 $7.90 - $8.30 $8.05 - $8.35 Adjusted Earnings Growth3 22% - 28% 25% - 29% Operating Cash Flow $2.1B $2.1B Free Cash Flow4 $2.0B $2.0B 1 See additional information at the end of this release regarding non-GAAP financial measures. 2 Segment margin and adjusted EPS are non-GAAP financial measures. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment margin and adjusted EPS. We therefore, do not present a guidance range, or a reconciliation to, the nearest GAAP financial measures of operating margin or EPS. 3 Adjusted EPS and adjusted EPS V% guidance excludes items identified in the non-GAAP reconciliation of adjusted EPS at the end of this release, and any potential future one-time items that we cannot reliably predict or estimate. 4 With respect to historical periods, free cash flow adjusts for capital expenditures, spin-off and separation-related cost payments, Resideo indemnification and reimbursement agreement termination payment, cash payment for settlement of the divestiture of asbestos liabilities, and cash flows attributable to Quantinuum. With respect to the company s outlook for 2026, free cash flow adjusts for capital expenditures, spin-off and separation-related cost payments, and cash flows attributable to Quantinuum. 2026 OutlookHoneywell Technologies is updating its full-year outlook after a strong second quarter and improved organic growth fundamentals for process and industrial in the second half. The company now expects full-year sales of $19.8 billion to $20.0 billion with organic1 sales growth of 3% to 4%, and 4% to 6% organic1 growth in the second half. The company now expects segment margin1 in the range of 20.1% to 20.5% with segment margin1 expansion of 250 to 290 basis points year over year and adjusted earnings per share1 in the range of $8.05 to $8.35, up 25% to 29%. Operating cash flow is expected to be approximately $2.1 billion, while free cash flow1 expectations are unchanged at approximately $2.0 billion for the full year. Guidance incorporates expected results for the acquisition of Johnson Matthey's Catalyst Technologies business, which closed on July 17, 2026, and the expected close of the Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) business divestitures by early August. Honeywell AerospaceThe former Aerospace Technologies segment now operates independently as Honeywell Aerospace and trades under the ticker symbol HONA following its spin-off from Honeywell Technologies on June 29. Consistent with precedent spin-off transactions, Honeywell Aerospace's financial results may differ from Aerospace Technologies financial information for the former segment due to the perimeter of the transaction, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items, for both current and prior reporting periods. Because the creation of carve-out financial statements requires a lengthier closing process, Honeywell Aerospace announced that it will issue its second quarter results on a standalone basis after market close on August 5.The information below represents results for the former Aerospace Technologies segment on a basis consistent with Honeywell Technologies on a consolidated basis. Please refer to Honeywell Technologies' quarterly - MORE -Honeywell Technologies Q2 26 Results - 5report on Form 10-Q for the second quarter of 2026 for information on results for or including the former Aerospace Technologies segment.In the second quarter, Aerospace Technologies segment sales of $4.5 billion grew 5% organically year over year. Mechanical supply chain showed sequential improvement during the quarter though material supply continued to limit sales growth across end markets. Sales growth was led by a 17% increase in Commercial aviation original equipment due to shipments recoupling to build schedules, particularly in commercial air transport, and a 7% increase in Commercial aviation aftermarket driven by increasing demand from the installed base. Defense and space sales were flat as continued strong demand was constrained by output and program timing. Segment profit grew 2% from the prior year to $1.1 billion, which included approximately $40 million of inventory obsolescence charges related to lower demand for pockets of existing inventory stock driven by emerging repair technologies extending product lives.Conference Call DetailsHoneywell Technologies will discuss its second-quarter results and full-year 2026 guidance for during an investor conference call starting at 8 30 a.m. Eastern Daylight Time today. A live webcast of the investor call as well as related presentation materials will be available through the Investor Relations section of the company's website (www.honeywell.com investor). A replay of the webcast will be available for 30 days following the presentation.About Honeywell TechnologiesHoneywell Technologies is a global, pure-play automation company with a legacy of innovating to help solve the world's most mission-critical challenges, enhancing the quality of life for people and communities around the world. We serve the building, industrial, and process sectors with a broad portfolio of services, solutions, and products, underpinned by our Honeywell Technologies Accelerator operating system and Honeywell Technologies Forge intelligence layer. By combining the deep domain expertise of our more than 50,000 employees with decades of data from our global installed base, we are uniquely positioned to lead the industrial sector's transition from automation to autonomy. For more news and information on Honeywell Technologies, please visit Honeywell Technologies Newsroom.Additional InformationHoneywell Technologies uses our Investor Relations website, investor.honeywell.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. - MORE -Honeywell Technologies Q2 26 Results - 6Forward Looking StatementsWe describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including statements related to the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. Forward-looking statements are those that address activities, events, or developments that we or our management intend, expect, project, believe, or anticipate will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control, including Honeywell Technologies' current expectations, estimates, and projections regarding the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements, including the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and the anticipated benefits of each. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as changes in or application of trade and tax laws and policies, including the impacts of tariffs and other trade barriers and restrictions, lower GDP growth or recession in the U.S. or globally, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, including ongoing conflicts in the Middle East, that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K, and our other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.This release contains financial measures presented on a non-GAAP basis. Honeywell's and Honeywell Technologies' non-GAAP financial measures used in this release are as follows Segment profit, on an overall Honeywell and Honeywell Technologies basis Segment profit margin, on an overall Honeywell and Honeywell Technologies basis Organic sales growth Free cash flow and Adjusted earnings per share.Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures. - MORE -Honeywell Technologies Q2 26 Results - 7Honeywell International Inc.Consolidated Statement of Operations (Unaudited)(Dollars in millions, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Product sales $ 6,374 $ 6,177 $ 12,241 $ 11,984 Service sales 3,345 3,145 6,621 6,263 Net sales 9,719 9,322 18,862 18,247 Costs, expenses and other Cost of products sold 4,205 3,947 8,068 7,670 Cost of services sold 1,861 1,711 3,602 3,451 Total Cost of products and services sold 6,066 5,658 11,670 11,121 Research and development expenses 524 459 1,016 875 Selling, general and administrative expenses 1,344 1,362 2,654 2,672 Impairment of assets held for sale 48 311 15 Loss on debt extinguishment 2 241 Gain on deconsolidation of subsidiary (6,629) (6,629) Other (income) expense 472 (113) 465 (342) Interest and other financial charges 363 329 719 614 Total costs, expenses and other 2,190 7,695 10,447 14,955 Income from continuing operations before taxes and equity losses 7,529 1,627 8,415 3,292 Tax expense 1,578 244 1,669 613 Equity loss 265 265 Net income from continuing operations 5,686 1,383 6,481 2,679 Net income from discontinued operations 186 357 Net income 5,686 1,569 6,481 3,036 Less Net (loss) income attributable to noncontrolling interest 4 (1) (22) 17 Net income attributable to Honeywell Technologies $ 5,682 $ 1,570 $ 6,503 $ 3,019 Earnings per share of common stock basic Earnings per share of common stock from continuing operations basic $ 17.92 $ 4.35 $ 20.50 $ 8.31 Earnings per share of common stock from discontinued operations basic 0.57 1.08 Total earnings per share of common stock basic $ 17.92 $ 4.92 $ 20.50 $ 9.39 Earnings per share of common stock assuming dilution Earnings per share of common stock from continuing operations assuming dilution $ 17.83 $ 4.33 $ 20.39 $ 8.26 Earnings per share of common stock from discontinued operations assuming dilution 0.57 1.08 Total earnings per share of common stock assuming dilution $ 17.83 $ 4.90 $ 20.39 $ 9.34 Weighted average number of shares outstanding - basic 317.1 318.8 317.2 321.4 Weighted average number of shares outstanding - assuming dilution 318.6 320.5 319.0 323.2 - MORE -Honeywell Technologies Q2 26 Results - 8Honeywell International Inc.Segment Data (Unaudited)(Dollars in millions) Three Months Ended June 30, Six Months Ended June 30, Net sales 2026 2025 2026 2025 Aerospace Technologies $ 4,532 $ 4,307 $ 8,854 $ 8,479 Building Automation 2,002 1,826 3,884 3,518 Process Automation and Technology 1,679 1,613 3,192 3,058 Industrial Automation 1,501 1,574 2,922 3,171 Total Segment sales 9,714 9,320 18,852 18,226 Quantinuum 5 2 10 21 Total Net sales $ 9,719 $ 9,322 $ 18,862 $ 18,247 Reconciliation of Segment Profit to Income Before Taxes Three Months Ended June 30, Six Months Ended June 30, Segment profit 2026 2025 2026 2025 Aerospace Technologies $ 1,126 $ 1,098 $ 2,270 $ 2,197 Building Automation 542 479 1,038 919 Process Automation and Technology 371 386 730 699 Industrial Automation 258 256 499 486 Corporate and All Other (57) (91) (105) (144) Total Segment profit 2,240 2,128 4,432 4,157 Interest and other financial charges (363) (329) (719) (614) Interest income1 79 79 169 170 Amortization of acquisition-related intangibles2 (116) (132) (269) (267) Impairment of assets held for sale (48) (311) (15) Stock compensation expense3 (51) (55) (108) (114) Pension ongoing income4 168 85 332 225 Other postretirement income4 2 4 4 8 Repositioning and other gains (charges)5 (91) (30) (159) (78) Loss on debt extinguishment (2) (241) Divestiture-related costs6 (820) (56) (1,134) (67) Gain on deconsolidation of subsidiary 6,629 6,629 Equity loss (265) (265) Other expense7 (30) (16) (70) (33) Quantinuum Loss8 (68) (51) (140) (80) Income before taxes $ 7,264 $ 1,627 $ 8,150 $ 3,292 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, repositioning, asbestos, and environmental gains (expenses). 6 Amounts included in Selling, general and administrative expenses, Research and development expenses, and Other (income) expense. 7 Amounts include the other components of Selling, general and administrative expenses and Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies from strategically aligned investments is included in segment profit. 8 Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company s investment in Quantinuum, which does not meet the definition of an operating segment. Included in Net sales, Cost of products and services sold, Research and development expenses, Selling, general and administrative expenses, and Other (income) expense. - MORE -Honeywell Technologies Q2 26 Results - 9Honeywell International Inc.Consolidated Balance Sheet (Unaudited)(Dollars in millions) June 30, 2026 December 31, 2025 ASSETS Current assets Cash and cash equivalents $ 8,751 $ 12,487 Short-term investments 445 443 Accounts receivable, less allowances of $172 and $202, respectively 8,337 7,621 Inventories 6,401 6,162 Assets held for sale 2,366 2,492 Other current assets 1,779 1,182 Total current assets 28,079 30,387 Equity method investments 7,459 206 Long-term receivables and other investments 1,167 1,198 Property, plant and equipment net 4,594 4,629 Goodwill 19,967 21,079 Other intangible assets net 6,413 6,736 Deferred income taxes 199 199 Other assets 9,466 9,247 Total assets $ 77,344 $ 73,681 LIABILITIES Current liabilities Accounts payable $ 6,390 $ 6,315 Commercial paper and other short-term borrowings 2,478 5,893 Current maturities of long-term debt 5,282 1,546 Accrued liabilities 7,769 8,462 Liabilities held for sale 1,275 1,198 Total current liabilities 23,194 23,414 Long-term debt 26,228 27,141 Deferred income taxes 2,695 1,577 Postretirement benefit obligations other than pensions 106 111 Other liabilities 6,264 6,408 Shareowners' equity 18,857 15,030 Total liabilities and shareowners equity $ 77,344 $ 73,681 - MORE -Honeywell Technologies Q2 26 Results - 10Honeywell International Inc.Consolidated Statement of Cash Flows (Unaudited)(Dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cash flows from operating activities Net income $ 5,686 $ 1,569 $ 6,481 $ 3,036 Less Net income from discontinued operations 186 357 Net income from continuing operations 5,686 1,383 6,481 2,679 Adjustments to reconcile net income from continuing operations to net cash (used for) provided by operating activities Depreciation 156 143 290 269 Amortization 156 205 379 404 Gain on deconsolidation of subsidiary (6,629) (6,629) Equity loss income of affiliated companies 256 (12) 240 (23) (Gain) loss on sale of non-strategic businesses and assets 30 (6) 29 Impairment of assets held for sale 48 311 15 Loss on debt extinguishment 2 241 Repositioning and other charges 91 41 159 84 Net payments for repositioning and other charges (82) (91) (145) (195) Pension and other postretirement income (169) (89) (336) (233) Pension and other postretirement benefit payments (6) (7) (11) (12) Stock compensation expense 51 55 108 114 Deferred income taxes 1,079 (12) 962 (31) Other 203 (107) 252 (317) Changes in assets and liabilities, net of the effects of acquisitions and divestitures Accounts receivable (271) (429) (718) (853) Inventories (31) (291) (234) (438) Other current assets (314) (183) (449) (154) Accounts payable 378 244 89 112 Accrued liabilities 895 554 70 412 Income taxes (223) (370) (428) (420) Net cash provided by operating activities from continuing operations 1,276 1,064 626 1,442 Net cash provided by operating activities from discontinued operations 255 474 Net cash provided by operating activities 1,276 1,319 626 1,916 Cash flows from investing activities Capital expenditures (315) (226) (538) (416) Increase in investments (311) (330) (505) (681) Decrease in investments 301 415 513 753 Receipts (payments) from settlements of derivative contracts 42 (290) 127 (415) Cash paid for acquisitions, net of cash acquired (23) (2,158) (28) (2,163) Deconsolidation of subsidiary cash (623) (623) Proceeds from sale of business, net of cash transferred 1,157 6 1,157 Net cash used for investing activities from continuing operations (929) (1,432) (1,048) (1,765) Net cash used for investing activities from discontinued operations (77) (115) Net cash used for investing activities (929) (1,509) (1,048) (1,880) - MORE -Honeywell Technologies Q2 26 Results - 11 Cash flows from financing activities Proceeds from issuance of commercial paper and other short-term borrowings 3,153 7,008 7,911 11,863 Payments of commercial paper and other short-term borrowings (5,306) (6,577) (11,324) (9,990) Proceeds from issuance of common stock 29 56 199 98 Proceeds from issuance of long-term debt 3,989 4,035 Payments of long-term debt (582) (1,265) (13,187) (1,309) Repurchases of common stock (1,702) (1,000) (3,604) Cash dividends paid (795) (747) (1,576) (1,479) Pre-separation funding 15,835 Other (12) (3) (104) (35) Net cash provided by (used for) financing activities (3,513) 759 (3,246) (421) Effect of foreign exchange rate changes on cash and cash equivalents (60) 123 (68) 167 Net decrease in cash and cash equivalents (3,226) 692 (3,736) (218) Cash and cash equivalents at beginning of period 11,977 9,657 12,487 10,567 Cash and cash equivalents at end of period $ 8,751 $ 10,349 $ 8,751 $ 10,349 - MORE -Honeywell Technologies Q2 26 Results - 12AppendixNon-GAAP Financial MeasuresThe following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release to which reconciliations are attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The reconciliations include the financial measures on a consolidated Honeywell basis and include adjustments related to the separation of Honeywell Aerospace (the Separation Adjustments). The amounts shown as Separation Adjustments are unaudited and represent our best estimates.Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Honeywell's and Honeywell Technologies businesses.As indicated herein, certain forward-looking non-GAAP financial measures are not reconciled because management cannot reliably predict or estimate certain items for the reasons specified herein with respect to each non-GAAP financial measure.- MORE -Honeywell Technologies Q2 26 Results - 13Honeywell International Inc.Reconciliation of Organic Sales Percent Change(Unaudited) Three Months Ended June 30, 2026 Honeywell Reported sales percent change 4% Less Impact of divestitures to the prior period (2)% Reported sales percent change, adjusted for impact of divestitures 6% Less Foreign currency translation 1% Less Acquisitions 1% Less Other % Organic sales percent change 4% Less Separation Adjustments1 % Organic sales percent change (Honeywell Technologies) 4% Building Automation Reported sales percent change 10% Less Impact of divestitures to the prior period % Reported sales percent change, adjusted for impact of divestitures 10% Less Foreign currency translation 1% Less Acquisitions % Less Other % Organic sales percent change 9% Process Automation and Technology Reported sales percent change 4% Less Impact of divestitures to the prior period % Reported sales percent change, adjusted for impact of divestitures 4% Less Foreign currency translation % Less Acquisitions 5% Less Other % Organic sales percent change (1)% Industrial Automation Reported sales percent change (5)% Less Impact of divestitures to the prior period (9)% Reported sales percent change, adjusted for impact of divestitures 4% Less Foreign currency translation % Less Acquisitions % Less Other % Organic sales percent change 4% - MORE -Honeywell Technologies Q2 26 Results - 14 Aerospace Technologies Reported sales percent change 5% Less Impact of divestitures to the prior period % Reported sales percent change, adjusted for impact of divestitures 5% Less Foreign currency translation % Less Acquisitions % Less Other % Organic sales percent change 5% 1 Includes the financial results of the Honeywell Aerospace business which will be reflected as discontinued operations in the third quarter. These financial results may differ from Aerospace Technologies financial information due to the perimeter of the transaction, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items, for both current and prior reporting periods. We define organic sales percentage as the year-over-year change in reported sales relative to the comparable period, adjusted for the impact of divestitures to the prior period, and excluding the impact on sales from foreign currency translation, acquisitions for the first 12 months following the transaction date, and certain other items that are unusual or non-recurring in nature. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. A quantitative reconciliation of reported sales percent change to organic sales percent change has not been provided for the forward-looking measure of organic sales percent change because management cannot reliably predict or estimate, without unreasonable effort, the fluctuations in global currency markets that impact foreign currency translation, nor is it reasonable for management to predict the timing, occurrence and impact of acquisition and divestiture transactions, all of which could significantly impact our reported sales percent change. - MORE -Honeywell Technologies Q2 26 Results - 15Honeywell International Inc.Reconciliation of Net Sales to Honeywell Technologies Net Sales (Unaudited)(Dollars in millions) Three Months Ended June 30, 2026 2025 Honeywell Less Separation Adjustments1 Honeywell Technologies Honeywell Less Separation Adjustments1 Honeywell Technologies Honeywell Net sales $ 9,719 $ 4,532 $ 5,187 $ 9,322 $ 4,304 $ 5,018 Less Quantinuum 5 5 2 2 Segment sales $ 9,714 $ 5,182 $ 9,320 $ 5,016 1 Includes the financial results of the Honeywell Aerospace business which will be reflected as discontinued operations in the third quarter. These financial results may differ from Aerospace Technologies financial information due to the perimeter of the transaction, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items, for both current and prior reporting periods. Twelve Months Ended December 31, 2025 Honeywell Less Separation Adjustments1 Honeywell Technologies Honeywell Net sales $ 37,442 $ 17,497 $ 19,945 Less Quantinuum 30 30 Segment sales $ 37,412 $ 19,915 1 Includes the financial results of the Honeywell Aerospace business which will be reflected as discontinued operations in the third quarter. These financial results may differ from Aerospace Technologies financial information due to the perimeter of the transaction, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items, for both current and prior reporting periods. Honeywell Technologies Segment sales represent reported net sales from continuing operations, adjusted for the separation impacts, less sales attributable to the Aerospace Technologies business, due to the spin-off on June 29, 2026. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.- MORE -Honeywell Technologies Q2 26 Results - 16Honeywell International Inc.Reconciliation of Operating Income to Segment Profit, Calculation of Operating Income and Segment Profit Margins (Unaudited)(Dollars in millions) Three Months Ended June 30, 2026 2025 Honeywell Less Separation Adjustments1 Honeywell Technologies Honeywell Less Separation Adjustments1 Honeywell Technologies Operating income $ 1,737 $ 1,075 $ 662 $ 1,843 $ 1,177 $ 666 Stock compensation expense2 51 15 36 55 10 45 Repositioning, Other3,4 100 26 74 42 14 28 Pension and other postretirement service costs5 13 3 10 14 4 10 Amortization of acquisition-related intangibles6 116 24 92 132 19 113 Acquisition-related costs7 3 3 (7) (7) Divestiture-related costs8 112 112 ERP implementation costs2 5 5 Impairment of assets held for sale 48 48 Loss on Quantinuum8 55 55 49 49 Segment profit $ 2,240 $ 985 $ 2,128 $ 904 Operating income $ 1,737 $ 662 $ 1,843 $ 666 Segment sales 9,714 5,182 9,320 5,016 Operating income margin % 17.9 % 12.8 % 19.8 % 13.3 % Segment profit $ 2,240 $ 985 $ 2,128 $ 904 Segment sales 9,714 5,182 9,320 5,016 Segment profit margin % 23.1 % 19.0 % 22.8 % 18.0 % 1 Includes the financial results of the Honeywell Aerospace business which will be reflected as discontinued operations in the third quarter. These financial results may differ from Aerospace Technologies financial information due to the perimeter of the transaction, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items, for both current and prior reporting periods. 2 Included in Selling, general and administrative expenses. 3 Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. 4 Included in Cost of products and services sold and Selling, general and administrative expenses. 5 Included in Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. 6 Included in Cost of products and services sold. 7 Included in Cost of products and services sold. Includes acquisition-related fair value adjustments to inventory. 8 Included in Research and development expenses and Selling, general and administrative expenses. 9 Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company s investment in Quantinuum, which does not meet the definition of an operating segment. Included in Net sales, Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. - MORE -Honeywell Technologies Q2 26 Results - 17 Twelve Months Ended December 31, 2025 Honeywell Less Separation Adjustments1 Honeywell Technologies Operating income $ 5,573 $ 4,402 $ 1,171 Stock compensation expense2 196 43 153 Repositioning, Other3,4 675 285 390 Pension and other postretirement service costs5 73 16 57 Amortization of acquisition-related intangibles6 570 61 509 Acquisition-related costs7 2 2 Indefinite-lived intangible asset impairment2 44 44 Impairment of goodwill 724 724 Impairment of assets held for sale 270 270 Loss on Quantinuum8 187 187 Segment profit $ 8,314 $ 3,507 Operating income $ 5,573 $ 1,171 Segment sales 37,412 19,915 Operating income margin % 14.9 % 5.9 % Segment profit $ 8,314 $ 3,507 Segment sales 37,412 19,915 Segment profit margin % 22.2 % 17.6 % 1 Includes the financial results of the Honeywell Aerospace business which will be reflected as discontinued operations in the third quarter. These financial results may differ from Aerospace Technologies financial information due to the perimeter of the transaction, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items, for both current and prior reporting periods. 2 Included in Selling, general and administrative expenses. 3 Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. 4 Included in Cost of products and services sold and Selling, general and administrative expenses. 5 Included in Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. 6 Included in Cost of products and services sold. 7 Included in Cost of products and services sold. Includes acquisition-related fair value adjustments to inventory. 8 Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company s investment in Quantinuum, which does not meet the definition of an operating segment. Included in Net sales, Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. We define operating income as segment sales less total cost of products and services sold, research and development expenses, selling, general and administrative expenses, impairment of goodwill, and impairment of assets held for sale. We define segment profit, on an overall Honeywell and Honeywell Technologies basis, as operating income, excluding stock compensation expense, pension and other postretirement service costs, amortization of acquisition-related intangibles, certain acquisition- and divestiture-related costs and impairments, repositioning and other charges and the results of Quantinuum. We define segment profit margin, on an overall Honeywell and Honeywell Technologies basis, as segment profit divided by net sales. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. A quantitative reconciliation of operating income to segment profit, on an overall company basis, has not been provided for all forward-looking measures of segment profit and segment profit margin included herein. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment profit. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results. To the extent quantitative information becomes available without unreasonable effort in the future, and closer to the period to which the forward-looking measures pertain, a reconciliation of operating income to segment profit will be included within future filings.Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any - MORE -Honeywell Technologies Q2 26 Results - 18future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies.- MORE -Honeywell Technologies Q2 26 Results - 19Honeywell International Inc.Reconciliation of Earnings per Share to Adjusted Earnings per Share(Unaudited) Three Months Ended June 30, 2026 2025 Honeywell Less Separation Adjustments1 Honeywell Technologies Honeywell Less Separation Adjustments1 Honeywell Technologies Earnings per share of common stock from continuing operations - diluted2 $ 17.83 $ 1.18 $ 16.65 $ 4.33 $ 3.12 $ 1.21 Pension income3 (0.40) (0.19) (0.21) (0.21) (0.18) (0.03) Amortization of acquisition-related intangibles4 0.28 0.06 0.22 0.31 0.04 0.27 Acquisition-related costs5 0.02 0.02 Divestiture-related costs6 1.69 1.43 0.26 0.14 (0.03) 0.17 Debt restructuring costs7 0.10 0.09 0.01 ERP implementation costs8 0.01 0.01 Impairment of assets held for sale9 0.11 0.11 Loss on sale of business10 0.09 0.09 Impact of Russia-Ukraine conflict11 0.02 0.02 Gain on deconsolidation of Quantinuum12 (15.87) (15.87) Equity loss of Quantinuum13 0.65 0.65 Loss on Quantinuum14 0.08 0.08 0.06 0.06 Adjusted earnings per share of common stock from continuing operations - diluted $ 4.52 $ 1.95 $ 4.72 $ 1.77 1 Includes the financial results of the Honeywell Aerospace business which will be reflected as discontinued operations in the third quarter. These financial results may differ from Aerospace Technologies financial information due to the perimeter of the transaction, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items, for both current and prior reporting periods. 2 For the three months ended June 30, 2026 and 2025, adjusted earnings per share utilizes weighted average shares of 318.6 million and 320.5 million, respectively. Per share amounts have been adjusted to reflect the reverse stock split, which took effect June 29, 2026. 3 For the three months ended June 30, 2026 and 2025, pension income was $129 million and $65 million, net of tax expense of $39 million and $20 million, respectively. For the three months ended June 30, 2026 and 2025, pension income for Honeywell Technologies was $68 million and $8 million, net of tax expense of $21 million and $3 million, respectively. 4 For the three months ended June 30, 2026 and 2025, acquisition-related intangibles amortization includes $89 million and $100 million, net of tax benefit of $27 million and $32 million, respectively. For the three months ended June 30, 2026 and 2025, acquisition-related intangibles amortization for Honeywell Technologies includes $71 million and $86 million, net of tax benefit of $21 million and $27 million, respectively. 5 For the three months ended June 30, 2026, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs was $6 million, net of tax benefit of $2 million. 6 For the three months ended June 30, 2026 and 2025, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction, separation and simplification costs, was $537 million and $44 million, net of tax benefit of $296 million and $14 million, respectively. For the three months ended June 30, 2026 and 2025, the adjustment for divestiture-related costs for Honeywell Technologies, was $82 million and $54 million, net of tax benefit of $213 million and tax expense of $14 million, respectively. 7 For the three months ended June 30, 2026, the adjustment for debt restructuring costs was $31 million, net of tax benefit of $10 million. For the three months ended June 30, 2026, the adjustment for debt restructuring costs for Honeywell Technologies was $2 million, without tax benefit. 8 For the three months ended June 30, 2026, the adjustment for ERP implementation costs was $4 million, net of tax benefit of $1 million. 9 For the three months ended June 30, 2026, the impairment charge of assets held for sale was $36 million, net of tax benefit of $12 million. 10 For the three months ended June 30, 2025, the loss on sale of personal protection equipment business was $28 million, net of tax benefit of $2 million. 11 For the three months ended June 30, 2026, the adjustment for Russian-related charges was a $6 million expense, net of tax benefit of $2 million, due to the settlement of a contractual dispute associated with the Company s suspension and wind down activities in Russia. 12 For the three months ended June 30, 2026, the adjustment is $5,057 million, net of tax expense of $1,572. 13 For the three months ended June 30, 2026, the adjustment for equity losses on Quantinuum is $207 million, net of tax benefit of $58 million. 14 Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company s investment in Quantinuum, which does not meet the definition of an operating segment. For the three months ended June 30, 2026 and 2025, the net income adjustment for Quantinuum was $52 million and $40 million, net of tax benefit of $16 million and $11 million, respectively. The net adjustment also reflects an adjustment to NCI of $25 million and $20 million, respectively, for the three months ended June 30, 2026 and 2025. - MORE -Honeywell Technologies Q2 26 Results - 20 Twelve Months Ended December 31, 2025 2026(E) Honeywell Less Separation Adjustments1 Honeywell Technologies Honeywell Technologies Earnings per share of common stock from continuing operations - diluted2 $ 13.88 $ 10.64 $ 3.24 $21.05 - $21.35 Pension income3 (0.91) (0.78) (0.13) No Forecast Amortization of acquisition-related intangibles4 1.34 0.14 1.20 1.10 Acquisition-related costs5 0.11 0.11 0.06 Divestiture-related costs6 1.43 0.62 0.81 No Forecast Debt restructuring costs7 0.72 ERP implementation costs8 0.06 Impairment of assets held for sale9 0.65 0.65 0.74 Indefinite-lived intangible asset impairment10 0.14 0.14 Impairment of goodwill11 2.25 2.25 (Gain) loss on sale of business12 0.09 0.09 (0.02) Gain related to Resideo indemnification and reimbursement agreement termination13 (2.50) (2.50) Adjustment to estimated future environmental liabilities14 0.50 0.43 0.07 Loss on settlement of divestiture of asbestos liabilities15 0.35 0.35 Flexjet-related litigation matters16 0.95 0.95 Impact of Russia-Ukraine conflict17 0.02 Gain on deconsolidation of Quantinuum18 (15.85) Equity loss of Quantinuum19 No Forecast Loss on Quantinuum20 0.18 0.18 0.17 Adjusted earnings per share of common stock from continuing operations - diluted $ 18.46 $ 6.46 $8.05 - 8.35 1 Includes the financial results of the Honeywell Aerospace business which will be reflected as discontinued operations in the third quarter. These financial results may differ from Aerospace Technologies financial information due to the perimeter of the transaction, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items, for both current and prior reporting periods. 2 For the twelve months ended December 31, 2025, adjusted earnings per share utilizes weighted average shares of 321.4 million. For the twelve months ended December 31, 2026, expected earnings per share utilizes weighted average shares of approximately 319 million. Per share amounts have been adjusted to reflect the reverse stock split, which took effect June 29, 2026. 3 For the twelve months ended December 31, 2025, pension income was $291 million, net of tax expense of $89 million. For the twelve months ended December 31, 2025, pension income for Honeywell Technologies was $40 million, net of tax expense of $25 million. 4 For the twelve months ended December 31, 2025, acquisition-related intangibles amortization includes $432 million, net of tax benefit of $138 million. For the twelve months ended December 31, 2025, acquisition-related intangibles amortization for Honeywell Technologies includes $386 million, net of tax benefit of $123 million. For the twelve months ended December 31, 2026, the expected adjustment for acquisition-related intangibles amortization includes approximately $315 million, net of tax benefit of approximately $70 million. 5 For the twelve months ended December 31, 2025, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, was $35 million, net of tax benefit of $10 million. For the twelve months ended December 31, 2026, the expected adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs, is approximately $20 million, net of tax benefit of approximately $5 million. 6 For the twelve months ended December 31, 2025, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction costs, was $460 million, net of tax benefit of $61 million. For the twelve months ended December 31, 2025, the adjustment for divestiture-related costs for Honeywell Technologies was $262 million, net of tax expense of $31 million. 7 For the twelve months ended December 31, 2026, the expected adjustment for debt restructuring costs is $257 million, net of tax benefit of $80 million. For the twelve months ended December 31, 2026, the expected adjustment for debt restructuring costs excluding spin-off impact is $228 million, net of tax benefit of $70 million. 8 For the twelve months ended December 31, 2026, the expected adjustment for ERP implementation costs is approximately $20 million, net of tax benefit of approximately $5 million. 9 For the twelve months ended December 31, 2025, the impairment charge of assets held for sale was $209 million, net of tax benefit of $61 million. For the twelve months ended December 31, 2026, the expected impairment charge of assets held for sale is $236 million, net of tax benefit of $75 million. 10 For the twelve months ended December 31, 2025, the impairment charge of indefinite-lived intangible assets associated with the Industrial Automation reportable segment was $44 million, without tax benefit. 11 For the twelve months ended December 31, 2025, the impairment charge of goodwill associated with the Industrial Automation reportable segment was $724 million, without tax benefit. - MORE -Honeywell Technologies Q2 26 Results - 21 12 For the twelve months ended December 31, 2025, the adjustment for loss on sale of the personal protective equipment business was $28 million, net of tax benefit of $2 million. For the twelve months ended December 31, 2026, the expected gain on sale of personal protection equipment business is $5 million, net of tax expense of $1 million. 13 For the twelve months ended December 31, 2025, the gain related to the Resideo indemnification and reimbursement agreement termination was $802 million, without tax expense. 14 In the twelve months ended December 31, 2025, the Company enhanced its process for estimating environmental liabilities at sites undergoing active remediation, which led to earlier recognition of the estimated probable liabilities and an increase to estimated environmental liabilities. For the twelve months ended December 31, 2025, the adjustment to increase environmental liabilities was $161 million, net of tax benefit of $50 million. For the twelve months ended December 31, 2025, the adjustment to increase environmental liabilities for Honeywell Technologies was $22 million, net of tax benefit of $7 million. 15 For the twelve months ended December 31, 2025, the adjustment for loss on settlement of divestiture of asbestos liabilities was $112 million, net of tax benefit of $36 million. 16 For the twelve months ended December 31, 2025, the adjustment for the Flexjet-related litigation matters was $302 million, net of tax benefit of $71 million. Management considers the nature and significance of these litigation matters to be unusual and not indicative of the Company's ongoing performance. 17 For the twelve months ended December 31, 2026, the expected adjustment for Russian-related charges was a $6 million expense, net of tax benefit of $2 million, due to the settlement of a contractual dispute associated with the Company s suspension and wind down activities in Russia. 18 For the twelve months ended December 31, 2026, the expected adjustment is $5,057 million, net of tax expense of $1,572. 19 The equity losses of Quantinuum are based on our proportionate share of Quantinuum's earnings or losses, which are outside of the Company's control. We therefore do not include an estimate for these amounts. 20 Includes consolidated losses of Quantinuum prior to the deconsolidation of the Company s investment in Quantinuum, which does not meet the definition of an operating segment. For the twelve months ended December 31, 2025, the net income adjustment for Quantinuum was $135 million, net of tax benefit of $43 million. The net adjustment also reflects an adjustment to NCI of $78 million for the twelve months ended December 31, 2025. We define adjusted earnings per share as diluted earnings per share from continuing operations adjusted to exclude various charges as listed above. We believe adjusted earnings per share is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. For forward-looking information, management cannot reliably predict or estimate, without unreasonable effort, pension income or the divestiture-related costs. The pension income is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. The divestiture-related costs are subject to detailed development and execution of separation restructuring and simplification plans for the recently completed separation of Honeywell Technologies and Honeywell Aerospace. The equity losses of Quantinuum are based on our proportionate share of Quantinuum's earnings or losses, which are outside of the Company's control. We therefore do not include an estimate for these amounts. Based on economic and industry conditions, future developments, and other relevant factors, these assumptions are subject to change.Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies.- MORE -Honeywell Technologies Q2 26 Results - 22Honeywell International Inc.Reconciliation of Cash Provided by Operating Activities to Free Cash Flow(Unaudited)(Dollars in millions) Three Months EndedJune 30, 2026 Three Months EndedJune 30, 2025 Twelve Months Ended December 31, 2026(E) Honeywell Less Separation Adjustments1 Honeywell Technologies Honeywell Less Separation Adjustments1 Honeywell Technologies Honeywell Technologies Cash provided by operating activities from continuing operations $ 1,276 $ 713 $ 563 $ 1,064 $ 877 $ 187 $1.9 - $2.2 Capital expenditures (315) (128) (187) (226) (118) (108) (0.6) Spin-off and separation-related cost payments 260 211 49 7 5 2 0.4 Quantinuum 31 31 33 33 0.1 Free cash flow $ 1,252 $ 456 $ 878 $ 114 1.8 - $2.1 1 Includes the financial results of the Honeywell Aerospace business which will be reflected as discontinued operations in the third quarter. These financial results may differ from Aerospace Technologies financial information due to the perimeter of the transaction, allocation of Honeywell Technologies corporate costs, and treatment of intracompany transactions, among other items, for both current and prior reporting periods. We define free cash flow as cash provided by operating activities from continuing operations less cash for capital expenditures and excluding spin-off and separation-related cost payments, the Resideo indemnification and reimbursement agreement termination payment, the cash payment for settlement of divestiture of asbestos liabilities, the cash payment for settlement of Flexjet-related litigation matters, and cash flows attributable to Quantinuum. We believe that free cash flow is a non-GAAP measure that is useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity.