Honeywell (HON) Q4 2025 Earnings Call Transcript

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• We exited the year with a sales growth of 6% excluding the impact of the 2024 Bombardier agreement, which demonstrates the outcome of our portfolio actions and our emerging focus on innovation stemming from continued investment in R&D

  80% confidence

• Honeywell is close to capacity with Department of Defense with minimal past-due deliveries

  80% confidence

• Next quantum machine committed for 2027 timeframe

  80% confidence

• Vitality index for RemainCo Honeywell is high 40s, approximately 45%

  80% confidence

• Multiple ongoing commercial OE contract negotiations with 5-7+ year terms expected to have positive long-term impact on Aerospace margins

  80% confidence

• Fundamentally, the inflationary trend in industrial segment and segments per Honeywell Surf they remain quite persistent... 2026 is gonna look very similar to 2025 in the same ZIP code

  80% confidence

• R&D investment level of 4.4-4.8% of sales considered the sweet spot with majority focused on new product development versus upgrades

  80% confidence

• Honeywell Forge Building Automation is 9-12 months ahead of Process Connected Plant offering in IoT platform development

  80% confidence

• Aerospace stranded costs elimination expected 12-18 months post-spin

  80% confidence

• Operationally, we really are expanding margins about 50 to 90 basis points

  80% confidence

• Supply chain delivered 14 consecutive quarters of double-digit volume growth in Aerospace

  80% confidence

• This collaboration between QuantiNUM and NVIDIA is creating a future where AI becomes more expansive through quantum computing, and quantum computing becomes more powerful through AI

  80% confidence

• Petrochemical catalysts experiencing continued project deferrals due to excess global capacity and customer reluctance

  80% confidence

• Data centers approaching more than 5% of Building Automation revenue

  80% confidence

• We have built now a business in industrial automation, which is heavily focused on sensing and measurement

  80% confidence

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