HON · Honeywell International Inc. Common Stock Ex Distribution When Issued

Honeywell delivered a mixed first-quarter 2026 performance: top-line growth was modest at 2% YoY on $9.14 billion in sales, supported by pricing and new product launches, while orders surged 7% organically—led by Building and Industrial Automation—pushing backlog to $38.3 billion. However, GAAP EPS fell sharply to $1.29 (−35% YoY), weighed down by $320 million in impairment charges related to assets held for sale (PSS and WWS), higher repositioning costs, debt restructuring, and other separation-related items. Excluding these, adjusted EPS rose 11% to $2.45, underpinned by 6% growth in segment profit ($2.13 billion) and a lower share count. Segment-level performance diverged: Building Automation (+11% sales, +13% segment profit) and Process Automation (+5% sales, +15% segment profit) outperformed, while Industrial Automation declined 11% in sales (though grew 1% organically). Margin dynamics reflected strategic trade-offs: operating margin contracted 320 bps to 16.1% due to impairments and separation costs, yet non-GAAP segment margin expanded 90 bps to 23.3%, aided by pricing power and accelerated removal of stranded costs ahead of the Aerospace spin-off. Management reaffirmed full-year guidance across most metrics—including sales, organic growth, and adjusted EPS—but reduced the operating cash flow outlook to $4.4–$4.7 billion (from $4.7–$5.0 billion), citing timing of collections impacted by Middle East conflict and higher spin-off-related payments. The announcement of the WWS divestiture to American Industrial Partners—completing the strategic review of non-core automation assets—and the firming of the Honeywell Aerospace spin-off date to June 29, 2026, mark definitive milestones in Honeywell’s multi-year portfolio simplification, positioning both businesses for independent investor focus ahead of their respective June 2026 investor days.