10-K – 2026-02-17 – hon-20251231.htm

Products 4,480   3,868   3,583  
Building Solutions 2,887   2,672   2,448  
Net Building Automation sales 7,367   6,540   6,031  
Energy and Sustainability Solutions
UOP 3,134   2,644   2,586  
Net Energy and Sustainability Solutions sales 3,134   2,644   2,586  
Corporate and All Other 30   24   12  
Net sales $ 37,442   $ 34,717   $ 33,009  

Aerospace Technologies – A global supplier of products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets including commercial air transport, business aviation, airlines, aircraft operators, and defense and space primes and U.S. government. Aerospace Technologies products and services include auxiliary power units, propulsion engines, environmental control systems, integrated avionics, connectivity services, electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, management and technical services, advanced systems and instruments, satellite and space components, aircraft wheels and brakes, and thermal systems. Aerospace Technologies also provides spare parts, repair, overhaul, and maintenance services (principally to aircraft operators), and sells licenses or intellectual property to other parties. Honeywell Forge solutions enable customers to turn data into predictive maintenance and predictive analytics to enable better fleet management and make flight operations more efficient.
71     Honeywell International Inc.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

Industrial Automation – A global provider of industrial automation solutions that deliver intelligent, sustainable, and secure operations for customers in refining/petrochemicals, life sciences, utilities, and warehouse and logistics segments. With millions of installed assets, Industrial Automation deploys outcome-based solutions to increase asset utilization; improve operational efficiency and labor productivity; reduce carbon emissions with less energy consumption; and enhance cyber security for critical infrastructure and operational assets. Industrial Automation offerings include automation control and instrumentation products and services; smart energy products; sensing technologies with an array of custom-engineered sensors and services; gas detection technologies; and system design, advanced automation equipment, software and analytics for manufacturing, distribution, and fulfillment operations. Industrial Automation combines these products and services with proprietary machine learning and artificial intelligence algorithms in products and projects which are digitally enabled through the Company's industry leading industrial IoT platform, Honeywell Forge.
Building Automation – A global provider of products, software, solutions, and technologies that enable building owners and occupants to ensure their facilities are safe, energy efficient, sustainable, and productive. Building Automation products and services include advanced software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrades of systems. Honeywell Forge solutions enable customers to digitally manage buildings, connecting data from different assets to enable smart maintenance, improve building performance, and even protect from incoming security threats.
Energy and Sustainability Solutions – A global provider of energy security for customers through a century of domain expertise and innovation to provide efficient and responsible energy expansion through digitally optimized operations. The business segment is comprised of five end-market focused verticals: Refining, Petrochemicals, Low Carbon Energy, Gas & LNG, and Industrial Solutions. The reportable business segment is comprised of the UOP business unit. The UOP business delivers licensed process technology, equipment, engineering, catalysts, adsorbents, and services through end-to-end solutions to its customers enabled by the convergence of its domain expertise and vast installed base, combined with the Honeywell Forge platform. Forge provides connectivity, data integration, and software solutions powered by deep expertise across ESS which serve customer asset productivity and efficiency needs.
Corporate and All Other – Corporate and All Other includes revenue from Honeywell's majority-owned investment in Quantinuum. Through Quantinuum, Honeywell provides a wide range of service offerings of fully integrated quantum computing hardware and software solutions.
See Note 22 Segment Financial Data for a summary by disaggregated product and services sales for each reportable business segment.
The Company recognizes revenue arising from performance obligations outlined in contracts with its customers that are satisfied at a point in time and over time. The disaggregation of the Company's revenue based on timing of recognition is as follows:

Years Ended December 31,
  2025 2024 2023
Products, transferred point in time 52   % 53   % 54   %
Products, transferred over time 13   13   14  
Net product sales 65   66   68  
Services, transferred point in time 5   4   11  
Services, transferred over time 30   30   21  
Net service sales 35   34   32  
Net sales 100   % 100   % 100   %

CONTRACT BALANCES
The Company tracks progress on satisfying performance obligations under contracts with customers. The related billings and cash collections are recorded in the Consolidated Balance Sheet in Accounts receivable—net and Other assets (unbilled receivables (contract assets) and billed receivables), and Accrued liabilities and Other liabilities (customer advances and deposits (contract liabilities)). Unbilled receivables arise when the timing of cash collected from customers differs from the timing of revenue recognition, such as when contract provisions require specific milestones to be met before a customer can be billed. Contract assets are recognized when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Contract liabilities are recorded when customers remit contractual cash payments in advance of the Company satisfying performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time. Contract liabilities are derecognized when revenue is recorded.
Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The following table summarizes the Company's contract assets and liabilities balances:

  2025 2024
Contract assets—January 1 $ 2,155   $ 2,013  
Contract assets—December 31 1
2,403   2,155  
Change in contract assets—increase (decrease) 248   142  
Contract liabilities—January 1 ( 4,120 ) ( 4,214 )
Contract liabilities—December 31 2
( 3,839 ) ( 4,120 )
Change in contract liabilities—decrease (increase) 281   94  
Net change $ 529   $ 236  

1
As of December 31, 2025 and 2024, contract assets excludes $ 68 million and $ 3 million, respectively, that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations .

2
As of December 31, 2025 and 2024, contract liabilities excludes $ 379 million and $ 21 million, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations .

For the years ended December 31, 2025, and 2024, the Company recognized revenue of $ 1,964  million and $ 2,101 million, respectively, that was previously included in the beginning balance of contract liabilities.
Contract assets included $ 2,424 million and $ 2,102 million of unbilled balances under long-term contracts as of December 31, 2025, and 2024, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate.
When contracts are modified to account for changes in contract specifications and requirements, the Company considers whether the modification either creates new or changes the existing enforceable rights and obligations. Contract modifications for goods or services and not distinct from the existing contract, due to the significant integration with the original good or service provided, are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. When the modifications include additional performance obligations that are distinct and at relative stand-alone selling price, they are accounted for as a new contract and performance obligation, which are recognized prospectively.
PERFORMANCE OBLIGATIONS
A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When contracts with customers require highly complex integration or manufacturing services that are not separately identifiable from other promises in the contracts and, therefore, not distinct, then the entire contract is accounted for as a single performance obligation. In situations when the Company's contracts include distinct goods or services that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct goods or services. For any contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on the estimated relative stand-alone selling price of each distinct good or service in the contract. For product sales, each product sold to a customer typically represents a distinct performance obligation. In such cases, the observable stand-alone sales are used to determine the stand-alone selling price.
Performance obligations are satisfied as of a point in time or over time. Performance obligations are supported by contracts with customers, providing a framework for the nature of the distinct goods, services, or bundle of goods and services. The timing of satisfying the performance obligation is typically indicated by the terms of the contract. The Company's remaining performance obligations as of December 31, 2025, are $ 37,475 million.
Performance obligations recognized as of December 31, 2025, will be satisfied over the course of future periods. The Company's disclosure of the timing for satisfying the performance obligation is based on the requirements of contracts with customers. However, from time to time, these contracts may be subject to modifications, impacting the timing of satisfying the performance obligations. Performance obligations expected to be satisfied within one year and greater than one year are 57 % and 43 %, respectively.
The timing of satisfaction of the Company's performance obligations does not significantly vary from the typical timing of payment. Typical payment terms of the Company's fixed price over time contracts include progress payments based on specified events or milestones or based on project progress. For some contracts, the Company may be entitled to receive an advance payment.
The Company applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for contracts for which the Company recognizes revenue in proportion to the amount the Company has the right to invoice for services performed.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 4. REPOSITIONING AND OTHER (GAINS) CHARGES
A summary of net repositioning and other (gains) charges follows:

  Years Ended December 31,
2025 2024 2023
Severance $ 138   $ 136   $ 162  
Asset impairments 11   22   41  
Exit costs 61   63   132  
Reserve adjustments ( 57 ) ( 97 ) ( 56 )
Total net repositioning charges 153   124   279  
Asbestos-related charges and loss on asbestos liabilities divestiture, net of insurance and reimbursements 1
214   61   534  
Probable and reasonably estimable environmental liabilities, net of reimbursements 268   37   35  
Gain on Resideo indemnification and reimbursement agreement termination 1
( 802 ) —   —  
Other charges —   17   ( 4 )
Total net repositioning and other (gains) charges
$ ( 167 ) $ 239   $ 844  

1
Refer to Note 19 Commitments and Contingencies for further discussion of the 2025 asbestos liabilities divestiture transaction and gain related to the Resideo indemnification and reimbursement agreement termination.

The following table summarizes the pre-tax distribution of total net repositioning and other (gains) charges by classification in the Consolidated Statement of Operations:

  Years Ended December 31,
2025 2024 2023
Cost of products and services sold $ 513   $ 109   $ 680  
Selling, general and administrative expenses 122   113   163  
Other (income) expense ( 802 ) 17   1  

Total net repositioning and other (gains) charges
$ ( 167 ) $ 239   $ 844  

The following table summarizes the pre-tax amount of total net repositioning and other (gains) charges by reportable business segment. These amounts are excluded from segment profit as described in Note 22 Segment Financial Data :

  Years Ended December 31,
2025 2024 2023
Aerospace Technologies $ ( 3 ) $ ( 3 ) $ 23  
Industrial Automation 77   60   139  
Building Automation 41   25   58  
Energy and Sustainability Solutions 8   18   7  
Corporate and All Other ( 290 ) 139   617  
Total net repositioning and other (gains) charges
$ ( 167 ) $ 239   $ 844  

NET REPOSITIONING CHARGES
In 2025, th e Company recognized gross repositioning charges totaling $ 210 million, including severance costs of $ 138 million related to workforce reductions of 3,425 manufacturing and administrative positions primarily in the Company's Industrial Automation and Building Automation reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $ 11 million related to the write-down of certain assets primarily within the Company's Industrial Automation reportable business segment and corporate function. The repositioning charges included exit costs of $ 61 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Industrial Automation reportable business segment and corporate function. Also, $ 57 million of previously established reserves, primarily for severance, were returned to income due to higher-than-expected voluntary exits and adjustments to the scope of previously announced repositioning actions.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

In 2024, the Company recognized gross repositioning charges totaling $ 221 million, including severance costs of $ 136 million related to workforce reductions of 3,486 manufacturing and administrative positions mainly in the Company's Industrial Automation reportable business segment and corporate function. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $ 22 million related to the write-down of certain assets primarily within the Company's Building Automation reportable business segment. The repositioning charges included exit costs of $ 63 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Industrial Automation reportable business segment. Also, $ 97  million of previously established reserves, primarily for severance, were returned to income due to higher-than-expected voluntary exits and adjustments to the scope of previously announced repositioning actions.
In 2023, the Company recognized gross repositioning charges totaling $ 335 million, including severance costs of $ 162 million related to workforce reductions of 5,854 manufacturing and administrative positions mainly in the Company's Industrial Automation and Building Automation reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives. The repositioning charges included asset impairments of $ 41 million related to the write-down of certain assets within the Company's Industrial Automation reportable business segment and corporate function. The repositioning charges included exit costs of $ 132 million related to current period costs incurred for closure obligations associated with site transitions in the Company's Industrial Automation reportable business segment. Also, $ 56 million of previously established reserves, primarily for severance, were returned to income due to higher-than-expected voluntary exits and adjustments to the scope of previously announced repositioning actions.
The following table summarizes the status of the Company's repositioning reserves, excluding amounts that are included in Liabilities held for sale in the Consolidated Balance Sheet:

Severance
Costs Asset
Impairments Exit
Costs Total
Balance at December 31, 2022 $ 229   $ —   $ 74   $ 303  
Charges 162   41   132   335  
Usage—cash ( 170 ) —   ( 110 ) ( 280 )
Usage—noncash —   ( 36 ) —   ( 36 )
Divestitures —   ( 4 ) ( 5 ) ( 9 )
Adjustments ( 42 ) ( 1 ) ( 13 ) ( 56 )
Foreign currency translation 6   —   13   19  
Balance at December 31, 2023 185   —   91   276  
Charges 136   22   63   221  
Usage—cash ( 92 ) —   ( 97 ) ( 189 )
Usage—noncash —   ( 6 ) —   ( 6 )
Adjustments ( 41 ) ( 16 ) ( 40 ) ( 97 )
Foreign currency translation
—   —   ( 2 ) ( 2 )
Reclassifications to Liabilities held for sale
( 14 ) —   ( 8 ) ( 22 )
Balance at December 31, 2024 174   —   7   181  
Charges 138   11   61   210  
Usage—cash ( 90 ) —   ( 63 ) ( 153 )
Usage—noncash —   ( 10 ) —   ( 10 )

Adjustments ( 52 ) ( 1 ) ( 3 ) ( 56 )
Foreign currency translation 6   —   —   6  
Reclassifications to Liabilities held for sale ( 6 ) —   —   ( 6 )
Balance at December 31, 2025 $ 170   $ —   $ 2   $ 172  

Certain repositioning projects will recognize exit costs in future periods when the actual liability is incurred. Such exit costs incurred in 2025, 2024, and 2023 wer e $ 60  million , $ 57  million, and $ 53  million , respectively.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 5. INCOME TAXES
INCOME BEFORE TAXES

  Years Ended December 31,
2025 2024 2023
U.S. $ 373   $ 1,442   $ 1,652  
Non-U.S. 5,103   4,802   4,539  
Total Income before taxes $ 5,476   $ 6,244   $ 6,191  

TAX EXPENSE
Tax expense consists of:

  Years Ended December 31,
2025 2024 2023

Current      
U.S. Federal $ 49   $ 478   $ 13  
U.S. State 27   57   22  
Non-U.S. 914   943   1,038  
Total current tax expense 990   1,478   1,073  
Deferred
U.S. Federal 10   ( 209 ) 58  
U.S. State ( 54 ) ( 23 ) 17  
Non-U.S. 62   3   114  
Total deferred tax expense (benefit)
18   ( 229 ) 189  
Total Tax expense
$ 1,008   $ 1,249   $ 1,262  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows:

December 31, 2025
Amount Percent

U.S. federal statutory income tax rate 1,150   21.0  
State and local income taxes, net of federal income tax effect 1
( 45 ) ( 0.8 )
Foreign tax effects
Puerto Rico
Statutory tax rate difference between Puerto Rico and United States 124   2.3  
Preferential tax rate ( 252 ) ( 4.6 )
Other 54   1.0  
Switzerland
Statutory tax rate difference between Switzerland and United States ( 278 ) ( 5.1 )
Subnational tax effects 144   2.6  
Other ( 23 ) ( 0.4 )
Other foreign jurisdictions 265   4.9  
Effect of cross-border tax laws
Global intangible low-taxed income 153   2.8  
Other ( 82 ) ( 1.5 )
Tax credits
Research and development tax credits ( 214 ) ( 3.9 )
Other ( 3 ) ( 0.1 )
Changes in valuation allowance 129   2.4  
Nontaxable or nondeductible items
Impairment losses 164   3.0  
Indemnification termination gain ( 168 ) ( 3.1 )
Other 4   0.1  
Changes in unrecognized tax benefits ( 24 ) ( 0.4 )
Other adjustments
Outside basis differences ( 71 ) ( 1.3 )
Other ( 19 ) ( 0.5 )

Effective income tax rate $ 1,008   18.4   %

1 State taxes in Arizona and Illinois made up the majority (greater than 50 percent) of the tax effect in this category.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows:

  Years Ended December 31,
2024 2023

U.S. federal statutory income tax rate 21.0   % 21.0   %
Taxes on non-U.S. earnings 1,2,3
( 0.7 ) ( 2.4 )
U.S. state income taxes 1
0.6   0.2  
Reserves for tax contingencies 1.6   3.9  
Employee stock compensation ( 0.7 ) ( 0.3 )

Restructuring 4
( 0.3 ) —  
U.S. federal tax credits
( 2.2 ) ( 1.7 )
U.S. valuation allowance 4
1.0   ( 0.1 )
All other items—net ( 0.3 ) ( 0.2 )
Effective income tax rate 20.0   % 20.4   %

1 Net of changes in valuation allowance.

2 Includes U.S. taxes on non-U.S. earnings, net of foreign tax credits.

3 2023 includes ( 4.2 )% deferred tax benefit resulting from a non-U.S. legislative change, offset by 4.2 % deferred tax expense resulting from a full valuation allowance.

4 2024 includes ( 1.0 )% deferred tax benefit resulting from an outside basis difference in assets held for sale, offset by 1.0 % deferred tax expense resulting from a full valuation allowance.

The effective tax rate decreased by 1.6 percentage points in 2025 compared to 2024, largely driven by an increase in benefit for U.S. federal tax credits. The Company’s 2025 non-U.S. effective tax rate was 19.1 %, a decrease of 0.6 percentage points compared to 2024. The decrease in the non-U.S. effective tax rate was primarily attributable to changes in accruals on foreign tax matters partially offset by other foreign discrete adjustments.
The effective tax rate decreased by 0.4 percentage points in 2024 compared to 2023. The decrease was primarily attributable to a reduced benefit from taxes on non-U.S. earnings, offset by a decrease in accruals on various foreign tax matters. The Company’s 2024 non-U.S. effective tax rate was 19.7 %, a decrease of 5.6 percentage points compared to 2023. The decrease in the non-U.S. effective tax rate was primarily attributable to changes in accruals on foreign tax matters and other foreign discrete adjustments, partially offset by increased expense on global minimum taxes.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

DEFERRED TAX ASSETS (LIABILITIES)
The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows:

Deferred tax assets December 31,
2025 2024
Postretirement benefits other than pensions $ 45   $ 50  
Asbestos and environmental 189   373  
Capitalized research and development 917   946  
Employee compensation and benefits 104   130  
Lease liabilities 212   228  
Other accruals and reserves 389   375  
Net operating losses 650   618  
Capital loss carryover and outside basis differences 544   467  
Tax credit carryforwards and other attributes 648   269  
Gross deferred tax assets 3,698   3,456  
Valuation allowance ( 1,374 ) ( 1,253 )
Total deferred tax assets 2,324   2,203  
Deferred tax liabilities
Deferred revenue ( 175 ) ( 244 )
Pension ( 1,339 ) ( 1,481 )
Property, plant and equipment
( 351 ) ( 212 )
Right-of-use asset ( 198 ) ( 198 )
Intangibles ( 886 ) ( 654 )
Unremitted earnings of foreign subsidiaries ( 482 ) ( 488 )
Other asset basis differences ( 271 ) ( 272 )

Total deferred tax liabilities ( 3,702 ) ( 3,549 )
Net deferred tax liability 1
$ ( 1,378 ) $ ( 1,346 )

1 As of December 31, 2025, Net deferred tax liability excludes $ 136 million of deferred tax assets that are included in Assets held for sale in the Consolidated Balance Sheet. As of December 31, 2024, Net deferred tax liability excludes $ 124 million of deferred tax liabilities that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations .

The Company's gross deferred tax assets include $ 1,258  million related to non-U.S. operations comprised primarily of net operating losses and other tax attribute carryforwards in Germany, Luxembourg, Switzerland, and the United Kingdom. The Company maintains a valuation allowance of $ 1,058  million against a portion of the non-U.S. gross deferred tax assets and a valuation allowance of $ 316  million against the U.S. gross deferred tax asset, primarily related to capital loss and other credit carryforwards. The change in the valuation allowance resulted in an increase of $ 88  million, a decrease of $ 13  million, and an increase of $ 458  million to income tax expense in 2025, 2024, and 2023, respectively. If the Company determines that the likelihood of realization of existing deferred tax assets changes, a corresponding increase or decrease to valuation allowances will be recognized as an increase or reduction to income tax expense in the period that determination is made.
As of December 31, 2025, the Company's net operating loss, capital loss, tax credit carryforwards, and other attributes were as follows:

Jurisdiction Net Operating
and Capital Loss
Carryforwards Tax Credit
Carryforwards and Other Attributes

U.S. Federal $ 697   $ 72  
U.S. State 267   21  
Non-U.S. 3,611   223  
Total
$ 4,575   $ 316  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

Many jurisdictions impose limitations on the timing and utilization of net operating loss and tax credit carryforwards. Approximately $ 3,228  million of the non-U.S. net operating loss has no expiration period. The U.S. federal capital loss carryforward of $ 510  million expires in 2026. The remaining net operating loss, capital loss and credit carryforwards, and other tax attributes have expiration periods through 2045.
The table below summarizes the Company's change in unrecognized tax benefits for the years ended December 31, 2025, 2024, and 2023:

Years Ended December 31,
2025 2024 2023
Change in unrecognized tax benefits      
Balance at beginning of year $ 1,201   $ 1,215   $ 1,077  
Gross increases related to current period tax positions 30   64   89  
Gross increases related to prior periods tax positions 99   12   181  
Gross decreases related to prior periods tax positions ( 2 ) ( 17 ) —  
Decrease related to resolutions of audits with tax authorities ( 91 ) ( 31 ) ( 132 )
Expiration of the statute of limitations for the assessment of taxes ( 44 ) ( 9 ) ( 3 )
Foreign currency translation 45   ( 33 ) 3  
Balance at end of year $ 1,238   $ 1,201   $ 1,215  

As of December 31, 2025, 2024, and 2023, there were $ 1,238 million, $ 1,201 million, and $ 1,215 million, respectively, of unrecognized tax benefits that if recognized would be recorded as a component of tax expense.
The following table summarizes tax years that remain subject to examination by major tax jurisdictions as of December 31, 2025:

Jurisdiction Open Tax Years
Examination in progress Examination not yet initiated
U.S. Federal 2017-2021 2022-2025
U.S. State 2013-2024 2025
Canada 2018-2021 2022-2025
China 2013-2024 2025
Germany
2017-2020 2021-2025
India 2006-2020 2021-2025
Malaysia 2019-2023 2024-2025
Puerto Rico N/A 2020-2025
Switzerland N/A 2020-2025
United Kingdom 2013-2023 2024-2025

Based on the outcome of these examinations, or as a result of the expiration of statute of limitations for specific jurisdictions, it is reasonably possible that certain unrecognized tax benefits for tax positions taken on previously filed tax returns will materially change from those recorded as liabilities in the Company's financial statements. In addition, the outcome of these examinations may impact the valuation of certain deferred tax assets (such as net operating losses) in future periods.
Unrecognized tax benefits for examinations in progress were $ 874  million, $ 787  million, and $ 803  million as of December 31, 2025, 2024, and 2023, respectively. Estimated interest and penalties related to the underpayment of income taxes are classified as a component of Tax expense in the Consolidated Statement of Operations and totaled $ 55  million, $ 94  million, and $ 74  million for the years ended December 31, 2025, 2024, and 2023, respectively. Accrued interest and penalties were $ 751  million, $ 707  million, and $ 612  million as of December 31, 2025, 2024, and 2023, respectively.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The amounts of cash taxes paid by the Company for continuing and discontinued operations are as follows:

December 31, 2025

Federal $ 658  
State 42
Foreign
Canada 105
China 156
Switzerland 224
All other foreign 613  
Income taxes paid, net of refunds $ 1,798  

NOTE 6. INVENTORIES

  December 31,
2025 2024
Raw materials $ 1,638   $ 1,447  
Work in process 1,203   1,153  
Finished products 3,321   3,284  
Total Inventories 1
$ 6,162   $ 5,884  

1
As of December 31, 2025 and 2024, Total Inventories excludes $ 394 million and $ 197 million, respectively, that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Op erations .

NOTE 7. PROPERTY, PLANT AND EQUIPMENT—NET

  December 31,
2025 2024
Land and improvements $ 177   $ 192  
Machinery and equipment 8,095   7,724  
Buildings and improvements 3,024   3,031  
Construction in progress 764   764  
Total Property, plant and equipment 12,060   11,711  
Less: Accumulated depreciation 7,431   7,254  
Total Property, plant and equipment—net 1
$ 4,629   $ 4,457  

1
As of December 31, 2025 and 2024, Total Property, plant and equipment—net excludes $ 153 million and $ 155 million, respectively, that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations .

Depreciation expense was $ 546 million , $ 493 million, and $ 490 million for the years ended December 31, 2025, 2024, and 2023, respectively.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS—NET
The following table summarizes the change in the carrying amount of goodwill for the years ended December 31, 2025, and 2024, by reportable business segment:

Aerospace Technologies Industrial Automation Building Automation Energy and Sustainability Solutions Corporate and All Other Total Goodwill
December 31, 2023 $ 2,386   $ 9,650   $ 3,380   $ 916   $ 906   $ 17,238  
Acquisitions 660   —   2,827   876   —   4,363  
Currency translation adjustment ( 18 ) ( 75 ) ( 71 ) —   ( 7 ) ( 171 )
Reclassified to Assets held for sale —   ( 411 ) —   —   —   ( 411 )
December 31, 2024 3,028   9,164   6,136   1,792   899   21,019  
Acquisitions ( 28 ) —   122   1,259   —   1,353  
Currency translation adjustment 25   312   181   1   50   569  
Impairment
—   ( 724 ) —   —   —   ( 724 )
Reclassified to Assets held for sale
—   ( 1,138 ) —   —   —   ( 1,138 )
December 31, 2025 $ 3,025   $ 7,614   $ 6,439   $ 3,052   $ 949   $ 21,079  

Other intangible assets are comprised of:

  December 31, 2025 December 31, 2024
Gross
Carrying
Amount Accumulated
Amortization Net
Carrying
Amount Gross
Carrying
Amount Accumulated
Amortization Net
Carrying
Amount
Definite-life intangibles
           
Patents and technology $ 3,354   $ ( 1,714 ) $ 1,640   $ 3,506   $ ( 1,845 ) $ 1,661  
Customer relationships 6,325   ( 2,008 ) 4,317   6,378   ( 2,224 ) 4,154  
Trademarks 297   ( 232 ) 65   398   ( 296 ) 102  
Other 592   ( 272 ) 320   558   ( 268 ) 290  
Total definite-life intangibles—net
10,568   ( 4,226 ) 6,342   10,840   ( 4,633 ) 6,207  
Indefinite-life intangibles

Trademarks 1
394   —  394   414   —  414  
Total Other intangible assets—net 2
$ 10,962   $ ( 4,226 ) $ 6,736   $ 11,254   $ ( 4,633 ) $ 6,621  

1 An impairment charge of $ 44 million and $ 48 million was recorded on indefinite-lived intangible assets related to the Industrial Automation business and personal protective equipment business during the years ended December 31, 2025 and 2024, respectively.

2 As of December 31, 2025 and 2024, Total Other intangible assets—net excludes net carrying amount of $ 262 million and $ 597 million, respectively, that is included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations .

Intangible assets amortization expense includes $ 570 million, $ 411 million, and $ 290 million for the years ended December 31, 2025, 2024, and 2023, respectively. Estimated future intangible asset amortization expense for each of the next five years for intangible assets recorded as of December 31, 2025, is as follows:

  December 31, 2025
2026 $ 599  
2027 598  
2028 584  
2029 571  
2030 549  

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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 9. DEBT AND CREDIT AGREEMENTS

  December 31,
2025 2024
1.35 % notes due 2025
—   1,250  
2.50 % notes due 2026
1,500   1,500  
1.10 % notes due 2027
1,000   1,000  
3.50 % euro notes due 2027
763   675  
4.65 % notes due 2027
1,150   1,150  
4.95 % notes due 2028
500   500  
2.25 % euro notes due 2028
881   779  
4.25 % notes due 2029
750   750  
2.70 % notes due 2029
750   750  
4.875 % notes due 2029
500   500  
4.70 % notes due 2030
1,000   1,000  
3.375 % euro notes due 2030
881   779  
1.95 % notes due 2030
949   1,000  
4.95 % notes due 2031
500   500  
1.75 % notes due 2031
1,496   1,500  
4.75 % notes due 2032
650   650  
0.75 % euro notes due 2032
587   519  
3.75 % euro notes due 2032
587   519  
5.00 % notes due 2033
1,100   1,100  
4.50 % notes due 2034
1,000   1,000  
4.125 % euro notes due 2034
1,174   1,039  
5.00 % notes due 2035
1,450   1,450  
3.75 % euro notes due 2036
881   779  
5.70 % notes due 2036
441   441  
5.70 % notes due 2037
462   462  
5.375 % notes due 2041
417   417  
3.812 % notes due 2047
442   442  
2.80 % notes due 2050
701   750  
5.25 % notes due 2054
1,750   1,750  
5.35 % notes due 2064
650   650  
4.37 % term loan due 2027
1,000   1,000  
One month term SOFR plus 0.875 % term loan due 2027
2,750   —  
6.625 % debentures due 2028
201   201  
9.065 % debentures due 2033
51   51  
Industrial development bond obligations, floating rate maturing at various dates through 2037
22   22  
Other (including finance leases), 2.5 % weighted average interest rate maturing at various dates through 2040
110   329  
Fair value of hedging instruments ( 79 ) ( 136 )
Debt issuance costs ( 280 ) ( 303 )
Total Long-term debt and current related maturities 28,687   26,765  
Less: Current maturities of long-term debt
1,546   1,325  
Total Long-term debt $ 27,141   $ 25,440  

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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The schedule of principal payments on long-term debt, excluding fair value of hedging instruments and debt issuance costs, is as follows:

  December 31, 2025
2026 $ 1,546  
2027 6,731  
2028 1,588  
2029 2,002  
2030 2,830  
Thereafter 14,349  
Total Long-term debt and current related maturities $ 29,046  

Commercial Paper and Other Short-Term Borrowings
As of December 31, 2025, and 2024, the Company had $ 5.9 billion and $ 4.3 billion of Commercial paper and other short-term borrowings outstanding at a weighted average interest rate of 3.68 % and 4.22 %, respectively.
Issuances of Senior Notes
On August 1, 2024, the Company issued $ 1.15  billion 4.65 % Senior Notes due 2027, $ 1.0  billion 4.70 % Senior Notes due 2030, $ 650  million 4.75 % Senior Notes due 2032, and $ 700  million 5.00 % Senior Notes due 2035 (collectively, the August 2024 USD Notes). The Company may redeem the August 2024 USD Notes at any time, and from time to time, in whole or in part, at the Company's option at the applicable redemption price. The offering provided gross proceeds of $ 3.5  billion, offset by $ 20  million in discount and closing costs related to the offering.
On March 1, 2024, the Company issued $ 500  million 4.875 % Senior Notes due 2029, $ 500  million 4.95 % Senior Notes due 2031, $ 750  million 5.00 % Senior Notes due 2035, $ 1.75  billion 5.25 % Senior Notes due 2054, and $ 650  million 5.35 % Senior Notes due 2064 (collectively, the March 2024 USD Notes). The Company may redeem the March 2024 USD Notes at any time, and from time to time, in whole or in part, at the Company's option at the applicable redemption price. The offering provided gross proceeds of $ 4.2  billion, offset by $ 44  million in discount and closing costs related to the offering.
On March 1, 2024, the Company issued € 750  million 3.375 % Senior Notes due 2030 and € 750  million 3.75 % Senior Notes due 2036 (collectively, the 2024 Euro Notes). The Company may redeem the 2024 Euro Notes at any time, and from time to time, in whole or in part, at the Company's option at the applicable redemption price. The offering provided gross proceeds of $ 1.6  billion, offset by $ 21  million in discount and closing costs related to the offering.
The August 2024 USD Notes, March 2024 USD Notes, and 2024 Euro Notes are senior unsecured and unsubordinated obligations of the Company and rank equally with each other and with all of the Company's existing and future senior unsecured debt and senior to all of the Company's subordinated debt. The Company intends to use the proceeds from the issuances for general corporate purposes, which may include, among other things, the repayment of outstanding debt and financing of possible acquisitions or business expansion.
Term Loan Agreements
On July 1, 2025, the Company repaid its € 196  million ($ 230  million) Euro Term Loan Credit Agreement due 2026.
On May 7, 2025, the Company entered into a Delayed Draw Term Loan Agreement (the Term Loan Agreement). The Term Loan Agreement provides for a delayed draw term loan facility of an aggregate principal amount of up to $ 6.0  billion comprised of two tranches: (i) commitments to provide loans in an aggregate principal amount of up to $ 4.0  billion (Tranche A-1) and (ii) commitments to provide loans in an aggregate amount of up to $ 2.0  billion (Tranche A-2), which expired on December 19, 2025. On May 30, 2025, the Company borrowed $ 4.0  billion under Tranche A-1, of which $ 2.75  billion remained outstanding as of December 31, 2025. Interest rates on the term loans under each tranche will be based on prevailing market rates, plus a margin, in addition to a commitment fee on unused amounts. Amounts borrowed under the Term Loan Agreement are required to be paid no later than May 7, 2027, unless the Term Loan Agreement is terminated earlier pursuant to its terms. The Term Loan Agreement is maintained for general corporate purposes and provides financial flexibility as the Company manages the separation of Honeywell from Honeywell Aerospace, into two independent public companies.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

On August 12, 2024, the Company entered into a Fixed Rate Term Loan Credit Agreement (the Fixed Rate Term Loan Credit Agreement). The Fixed Rate Term Loan Credit Agreement provides for term loans in an aggregate principal amount of $ 1.0  billion at an interest rate of 4.37 % and is maintained for general corporate purposes. Amounts borrowed under the Fixed Rate Term Loan Credit Agreement are required to be repaid no later than August 12, 2027, unless the Fixed Rate Term Loan Credit Agreement is terminated earlier pursuant to its terms. Amounts borrowed under the Fixed Rate Term Loan Credit Agreement may be repaid at the Company’s election at any time, and from time to time, in whole or in part. Prior to August 12, 2026, principal payments in respect of the term loans will be subject to a make-whole premium, not to exceed 101 % of the aggregate principal amount of the term loans to be prepaid. As of December 31, 2025 and December 31, 2024, there were $ 1.0  billion of borrowings outstanding under the Fixed Rate Term Loan Credit Agreement.
Revolving Credit Agreements
On March 17, 2025, the Company entered into a $ 3.0  billion 364 -day credit agreement (the 364 -Day Credit Agreement). The 364 -Day Credit Agreement replaced the $ 1.5  billion 364 -day credit agreement dated as of March 18, 2024, which was terminated in accordance with its terms effective March 17, 2025. Amounts borrowed under the 364 -Day Credit Agreement are due no later than March 16, 2026, unless (i) Honeywell elects to convert all then outstanding amounts into a term loan, upon which such amounts shall be repaid in full on March 16, 2027, or (ii) the 364 -Day Credit Agreement is terminated earlier pursuant to its terms. The 364 -Day Credit Agreement is maintained for general corporate purposes.
The Company also maintains a $ 4.0  billion amended and restated five-year credit agreement dated as of March 18, 2024 (the Five-Year Credit Agreement) for general corporate purposes. Commitments under the Five-Year Credit Agreement can be increased pursuant to the terms of the Five-Year Credit Agreement to an aggregate amount not to exceed $ 4.5  billion.
As of December 31, 2025, there were no outstanding borrowings under the 364 -Day Credit Agreement or the Five-Year Credit Agreement.
Pre-Separation Funding
In connection with the spin-off of the Advanced Materials business, Solstice issued 5.625 % Senior Notes due September 30, 2033 in an aggregate principal amount of $ 1.0  billion (the Notes) pursuant to an indenture, dated as of September 30, 2025. The proceeds from the Notes offering were held in escrow until satisfaction of the conditions precedent to the spin-off and certain other escrow release conditions. The Notes are senior unsecured obligations of Solstice, guaranteed on a senior unsecured basis by certain of its domestic subsidiaries and, from and after the escrow release date, are guaranteed on a senior unsecured basis by each of Solstice's existing and future domestic subsidiaries that guarantees Solstice's senior credit facilities. On October 29, 2025, the proceeds from the Notes offering were released from escrow.
On October 29, 2025, Solstice entered into a credit agreement which provides for (i) a seven-year senior secured first-lien term B loan facility in an aggregate principal amount of $ 1.0  billion and (ii) a five-year senior secured first-lien revolving credit facility with aggregate commitments of $ 1.0  billion. Solstice borrowed $ 1.0  billion under the term B loan on October 29, 2025.
Solstice used the net proceeds from the sale of the Notes and the borrowings under the term B loan facility to make a distribution to Honeywell of $ 1.5  billion upon completion of the spin-off on October 30, 2025. As a result of the spin-off, these borrowings are not an obligation of Honeywell.

NOTE 10. LEASES
A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, IT equipment, and automobiles. The majority of the Company's leases have remaining lease terms of one year to 20 years, some of which include options to extend the leases for five years or more. Operating lease ROU assets are included in Other assets. The current portion of operating lease liabilities are included in Accrued liabilities, and the non-current portion of operating lease liabilities are included in Other liabilities in the Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment—net. The current portion of finance lease liabilities are included in Current maturities of long-term debt, and the non-current portion of finance lease liabilities are included in Long-term debt in the Consolidated Balance Sheet.
A portion of the Company's real estate leases are generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of the Company's automobile leases are considered variable. The variable lease payments for such automobile leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments are incurred.
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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

Years Ended December 31,
  2025 2024 2023
Operating lease cost $ 235   $ 232   $ 217  
Variable lease cost 5   7   4  
Short-term lease cost 7   2   13  
Finance lease cost
Amortization of right-of-use assets 51   74   54  
Interest on lease liability 3   5   3  
Total finance lease cost 54   79   57  
Total lease cost $ 301   $ 320   $ 291  

Supplemental cash flow information related to leases was as follows:

Years Ended December 31,
2025 2024 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases $ 236   $ 227   $ 217  
Operating cash flows for finance leases 4   5   3  
Financing cash flows for finance leases 52   73   54  
Right-of-use assets obtained in exchange for lease obligations
Operating leases $ 241   $ 211   $ 295  
Finance leases 20   79   40  

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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

Supplemental balance sheet information related to leases was as follows:
December 31,
2025 2024
Operating leases
Other assets 1
$ 876   $ 936  
Accrued liabilities $ 174   $ 176  
Other liabilities 809   863  
Total operating lease liabilities 2
$ 983   $ 1,039  
Finance leases
Property, plant and equipment $ 171   $ 196  
Accumulated depreciation ( 110 ) ( 107 )
Property, plant and equipment—net $ 61   $ 89  
Current maturities of long-term debt $ 37   $ 47  
Long-term debt 27   46  
Total finance lease liabilities $ 64   $ 93  
Weighted average remaining lease term
Operating leases 8 years 9 years
Finance leases 2 years 2 years
Weighted average discount rate
Operating leases 4.3   % 3.4   %
Finance leases 4.5   % 4.2   %

1
As of December 31, 2025 2024, Other assets excludes $ 88 million and $ 16 million, respectively, of right-of-use assets related to operating leases that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations .

2 As of December 31, 2025, Total operating lease liabilities excludes $ 13 million and $ 81 million of Accrued liabilities and Other liabilities, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. As of December 31, 2024, Total operating lease liabilities excludes $ 5 million and $ 11 million of Accrued liabilities and Other liabilities, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations .

As of December 31, 2025, maturities of lease liabilities were as follows:

  Operating Leases
Finance Leases
2026 $ 224   $ 39  
2027 202   20  
2028 178   6  
2029 142   2  
2030 106   —  
Thereafter 411   —  
Total lease payments 1,263   67  
Less: Interest 186   3  
Less: Lease liabilities held for sale 94   —  
Total maturities of lease liabilities $ 983   $ 64  

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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 11. DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS
DERIVATIVES AND HEDGING ACTIVITIES
The Company uses derivative financial instruments to manage its risks related to interest rates, foreign currency exchange rates, and commodity prices. Derivative financial instruments are not used for trading or other speculative purposes.
CREDIT RISK MANAGEMENT
The Company continues to monitor the creditworthiness of its counterparties to mitigate the risk of nonperformance. Financial instruments, including derivatives, expose the Company to counterparty credit risk. In addition, the Company grants credit terms to its customers in the normal course of business. The terms and conditions of the Company's credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. The Company's sales are not materially dependent on a single customer or a small group of customers.
INTEREST RATE RISK MANAGEMENT
Financial instruments, including derivatives, expose the Company to market risk related to changes in interest rates. The Company uses a combination of financial instruments, including long-term, medium-term, and short-term financing, variable-rate commercial paper, and interest rate swaps to convert the interest rate mix of the Company's total debt portfolio and related overall cost of borrowing.
FOREIGN CURRENCY RISK MANAGEMENT
The Company operates a global business in a wide variety of foreign currencies. The Company's exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities, and transactions arising from international trade. The Company's objective is to preserve the U.S. dollar value of foreign currency denominated cash flows and earnings. The Company monitors its collective foreign currency exposure and enters into foreign currency exchange forward and option contracts (foreign currency exchange contracts) with third parties, when necessary, to minimize the impact of changes in foreign currency exchange rates.
The Company has monetary assets and liabilities denominated in non-functional currencies. Prior to conversion into U.S. dollars, these assets and liabilities are remeasured at spot exchange rates as of the balance sheet date. The Company recognizes effects of changes in spot rates in Other (income) expense.
The Company uses foreign currency exchange contracts to hedge foreign currency exposure. These contracts are marked-to-market in net income and offset gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. The Company also uses foreign currency contracts to hedge forecasted sales and purchases, which are denominated in non-functional currencies. Changes in the forecasted non-functional currency cash flows due to movements in exchange rates are substantially offset by changes in the fair value of these foreign currency exchange contracts designated as hedges. Market value gains and losses on these contracts are recognized in earnings when the hedged transaction is recognized. As of December 31, 2025, and 2024, the Company held contracts with notional amounts of $ 10,191  million and $ 9,155 million, respectively, to exchange foreign currencies, principally the U.S. dollar, euro, Canadian dollar, British pound, Mexican peso, Chinese renminbi, and Indian rupee.
The Company also designates certain foreign currency debt and derivative contracts as hedges against portions of its net investment in foreign operations. Gains or losses of the foreign currency debt and derivative contracts designated as net investment hedges are recorded in the same manner as foreign currency translation adjustments.
COMMODITY PRICE RISK MANAGEMENT
The Company's operations subject the Company to risk related to the price volatility of certain commodities. To mitigate the commodity price risk associated with the Company's operations, the Company may enter into commodity derivative instruments. In both 2025 and 2024, the Company entered into various contracts to mitigate commodity price volatility. The Company elected to apply hedge accounting to these contracts.
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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

DERIVATIVE AND HEDGING INSTRUMENTS
The following table summarizes the notional amounts and fair values of the Company’s outstanding derivatives by risk category and instrument type within the Consolidated Balance Sheet:

Notional Fair Value Asset Fair Value (Liability)
December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024
Derivatives in fair value hedging relationships      
Interest rate swap agreements $ 4,068   $ 3,899   $ 14   $ 3   $ ( 93 ) $ ( 139 )
Derivatives in cash flow hedging relationships
Foreign currency exchange contracts 509   802   —   11   ( 6 ) ( 10 )
Commodity contracts —   1   —   —   —   —  
Derivatives in net investment hedging relationships

Cross currency swap agreements 6,139   7,214   —   124   ( 801 ) ( 56 )
Total derivatives designated as hedging instruments 10,716   11,916   14   138   ( 900 ) ( 205 )
Derivatives not designated as hedging instruments
Foreign currency exchange contracts 9,682   8,353   4   3   ( 5 ) ( 5 )

Total derivatives at fair value $ 20,398   $ 20,269   $ 18   $ 141   $ ( 905 ) $ ( 210 )

All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Accrued liabilities or Other liabilities.
In addition to the foreign currency derivative contracts designated as net investment hedges, certain of the Company's foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $ 6,962 million and $ 6,158 million as of December 31, 2025, and 2024, respectively.
Interest rate swap agreements are designated as hedge relationships with gains or losses on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. Gains and losses on interest rate swap agreements recognized in earnings were $ 57  million of income, $ 30  million of expense, and $ 121  million of income for the years ended December 31, 2025, 2024, and 2023, respectively. Gains and losses are fully offset by losses and gains on the underlying debt being hedged.
The following table sets forth the amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:

Carrying Amount
of Hedged Item Cumulative Amount of
Fair Value Hedging Adjustment
Included in the Carrying
Amount of Hedged Item
December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024
Long-term debt $ 3,989   $ 3,763   $ ( 79 ) $ ( 136 )

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HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments:

  Year Ended December 31, 2025
Net Sales Cost of
Products Sold Cost of
Services Sold Selling, General and
Administrative Expenses
Other
Income (Expense)
Interest and Other
Financial Charges
$ 37,442   $ 16,153   $ 7,460   $ 5,450   $ 1,247   $ 1,344  
Gain (loss) on cash flow hedges
Foreign currency exchange contracts
Amount reclassified from accumulated other comprehensive loss into income —   ( 3 ) ( 2 ) —   —   —  

Gain (loss) on fair value hedges
Interest rate swap agreements
Hedged items —   —   —   —   —   ( 57 )
Derivatives designated as hedges —   —   —   —   —   57  

Gain (loss) on derivatives not designated as hedging instruments
Foreign currency exchange contracts —   —   —   —   ( 376 ) —  

  Year Ended December 31, 2024
Net Sales Cost of
Products Sold Cost of
Services Sold
Selling, General and
Administrative Expenses
Other
Income (Expense)
Interest and Other
Financial Charges
$ 34,717   $ 15,017   $ 6,343   $ 5,235   $ 843   $ 1,048  
Gain (loss) on cash flow hedges
Foreign currency exchange contracts
Amount reclassified from accumulated other comprehensive loss into income 2   —   —   5   —   —  

Gain (loss) on fair value hedges
Interest rate swap agreements
Hedged items —   —   —   —   —   ( 30 )
Derivatives designated as hedges —   —   —   —   —   30  

Gain (loss) on derivatives not designated as hedging instruments
Foreign currency exchange contracts —   —   —   —   147   —  

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HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

  Year Ended December 31, 2023
Net Sales Cost of
Products Sold Cost of
Services Sold
Selling, General and
Administrative Expenses
Other
Income (Expense)
Interest and Other
Financial Charges
$ 33,009   $ 14,836   $ 5,801   $ 4,887   $ 830   $ 749  
Gain (loss) on cash flow hedges
Foreign currency exchange contracts
Amount reclassified from accumulated other comprehensive loss into income 15   26   10   10   —   —  

Gain (loss) on fair value hedges
Interest rate swap agreements
Hedged items —   —   —   —   —   ( 121 )
Derivatives designated as hedges —   —   —   —   —   121  

Gain (loss) on derivatives not designated as hedging instruments
Foreign currency exchange contracts —   —   —   —   ( 110 ) —  

As of December 31, 2025, the Company estimates that approximately $ 6 million of net derivative losses related to its cash flow hedges included in Accumulated other comprehensive loss will be reclassified into earnings within the next 12 months.
The following table summarizes the amount of gain or (loss) on net investment hedges recognized in Accumulated other comprehensive loss:

Years Ended December 31,
2025 2024
Euro-denominated long-term debt $ ( 664 ) $ 249  
Euro-denominated commercial paper ( 139 ) 72  
Cross currency swap agreements ( 868 ) 190  

NOTE 12. FAIR VALUE MEASUREMENTS
The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy:
• Level 1 - Inputs are based on quoted prices in active markets for identical assets and liabilities.
• Level 2 - Inputs are based on observable inputs other than quoted prices in active markets for identical or similar assets and liabilities.
• Level 3 - One or more inputs are unobservable and significant.
The Company classifies financial and nonfinancial assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis:

  December 31, 2025 December 31, 2024
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets    
Foreign currency exchange contracts $ —   $ 4   $ —   $ 4   $ —   $ 14   $ —   $ 14  
Available for sale investments 50   481   —   531   69   427   —   496  
Interest rate swap agreements —   14   —   14   —   3   —   3  
Cross currency swap agreements —   —   —   —   —   124   —   124  
Investments in equity securities 3   —   —   3   8   —   —   8  
Right to HWI Net Sale Proceeds —   —   4   4   —   —   6   6  
Total assets $ 53   $ 499   $ 4   $ 556   $ 77   $ 568   $ 6   $ 651  
Liabilities
Foreign currency exchange contracts $ —   $ 11   $ —   $ 11   $ —   $ 15   $ —   $ 15  
Interest rate swap agreements —   93   —   93   —   139   —   139  

Cross currency swap agreements —   801   —   801   —   56   —   56  

Total liabilities $ —   $ 905   $ —   $ 905   $ —   $ 210   $ —   $ 210  

The Company values foreign currency exchange contracts, interest rate swap agreements, cross currency swap agreements, and commodity contracts using broker quotations, or market transactions in either the listed or over-the-counter markets. These derivative instruments are classified within level 2. The Company also holds investments in commercial paper, certificates of deposits, time deposits, and corporate debt securities that are designated as available for sale. These investments are valued using published prices based on observable market data. These investments are classified within level 2.
The Company holds certain available for sale investments in U.S. government securities and investments in equity securities. The Company values these investments utilizing published prices based on quoted market pricing, which are classified within level 1.
The carrying value of cash and cash equivalents, trade accounts and notes receivables, payables, commercial paper, and other short-term borrowings contained in the Consolidated Balance Sheet approximates fair value.
The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:

  December 31, 2025 December 31, 2024
Carrying
Value Fair
Value Carrying
Value Fair
Value
Assets      

Long-term receivables $ 992   $ 961   $ 708   $ 652  

Liabilities
Long-term debt and related current maturities $ 28,688   $ 28,144   $ 26,826   $ 25,503  

The Company determined the fair value of the long-term receivables by utilizing transactions in the listed markets for identical or similar assets. As such, the fair value of these receivables is considered level 2.
The Company determined the fair value of the long-term debt and related current maturities utilizing transactions in the listed markets for identical or similar liabilities. As such, the fair value of the long-term debt and related current maturities is considered level 2.
As of December 31, 2025, the Company measured the disposal group of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses at fair value, less costs to sell. As of December 31, 2024, the Company measured the disposal group of the PPE business at fair value, less costs to sell. The fair value of the disposal groups were determined using significant unobservable inputs based on expected proceeds to be received upon the sales of the businesses, and are considered level 3. See Note 2 Acquisitions, Divestitures, and Discontin ued Operations for more information on the disposal groups.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 13. ACCRUED LIABILITIES

  December 31,
2025 2024
Customer advances and deferred income $ 3,860   $ 3,429  
Compensation, benefit and other employee related 1,401   1,328  
Income taxes 791   957  
Accrued interest 384   379  
Other taxes 215   252  
Product warranties and performance guarantees 180   202  
Environmental costs 180   237  
Derivative liabilities 178   —  
Operating lease liabilities 174   176  
Repositioning 172   181  
Insurance 45   60  
Asbestos-related liabilities —   157  
Other (primarily operating expenses) 882   697  
Total Accrued liabilities 1
$ 8,462   $ 8,055  

1
As of December 31, 2025 and 2024, Total Accrued liabilities excludes $ 484 million and $ 110 million, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations .

NOTE 14. OTHER LIABILITIES

  December 31,
2025 2024
Income taxes $ 1,518   $ 1,423  
Pension and other employee related 1,147   1,203  
Deferred income 1,111   1,166  
Operating lease liabilities 809   863  
Derivative liabilities 716   195  
Environmental costs 714   389  
Insurance 210   244  
Product warranties and performance guarantees 40   35  
Asset retirement obligations 18   15  
Other 125   48  
Total Other liabilities 1
$ 6,408   $ 5,581  

1
As of December 31, 2025 and 2024, Total Other liabilities excludes $ 182 million and $ 22 million, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations .

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 15. STOCK-BASED COMPENSATION PLANS
The 2016 Stock Incentive Plan of Honeywell International Inc. and its Affiliates (2016 Plan) and 2016 Stock Plan for Non-Employee Directors of Honeywell International Inc. (2016 Directors Plan) were both approved by the shareowners at the Annual Meeting of Shareowners effective on April 25, 2016. As of December 31, 2025, there were 25.3 million and 0.8 million shares of Honeywell common stock available for future grants under terms of the 2016 Plan and 2016 Directors Plan, respectively.
In connection with the spin-off of the Advanced Materials business as described in Note 2 Acquisitions, Divestitures, and Discontinued Operations , all outstanding equity awards were equitably converted to preserve the pre-spin-off value, as required by the 2016 Plan and the 2016 Directors Plan. For vested and unexercised stock options, as well as unvested stock options and restricted stock unit (RSU) awards associated with Honeywell employees, the exercise price and number of shares were adjusted as applicable. The terms of the outstanding awards, including remaining vesting periods of unvested awards, remain the same after conversion. For all unvested stock options and RSU awards associated with Solstice employees, the awards were equitably converted into Solstice awards and are no longer outstanding under the Company’s plans. The adjustments did not result in additional compensation expense.
The information disclosed in this note includes the results of both continuing and discontinued operations in the aggregate.
STOCK OPTIONS
The exercise price, term, and other conditions applicable to each option granted under the Company's stock plans are generally determined by the Management Development and Compensation Committee of the Board. The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of the Company's stock on that date. The fair value is recognized as an expense over the employee’s requisite service period (generally the vesting period of the award). Options generally vest over a four-year period and expire after 10 years.
The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on implied volatilities from traded options on our common stock and historical volatility of the Company's common stock. The Company used a Monte Carlo simulation model to derive an expected term which represents an estimate of the time options are expected to remain outstanding. Such model uses historical data to estimate option exercise activity and post-vest termination behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. treasury yield curve in effect at the time of grant.
The following table summarizes the impact to the Consolidated Statement of Operations from stock options:

  Years Ended December 31,
2025 2024 2023
Compensation expense $ 50   $ 52   $ 48  
Future income tax benefit recognized 10   12   11  

The following table sets forth fair value per share information, including related weighted average assumptions, used to determine compensation cost:

  Years Ended December 31,
2025 2024 2023
Weighted average fair value per share of options granted during the year 1
$ 43.69   $ 37.88   $ 38.84  
Assumptions
Expected annual dividend yield 2.55   % 2.60   % 2.50   %
Expected volatility 23.21   % 21.45   % 22.42   %
Risk-free rate of return 4.03   % 4.08   % 3.94   %
Expected option term (years) 4.92 4.87 4.86

1 Estimated on date of grant using Black-Scholes option-pricing model.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The following table summarizes information about stock option activity for the three years ended December 31, 2025:

Number of
Options
(in millions) Weighted Average
Exercise Price
Outstanding at December 31, 2022
14.1   $ 147.14  
Granted 1.6   195.27  
Exercised ( 1.7 ) 123.12  
Lapsed or canceled ( 0.6 ) 192.22  
Outstanding at December 31, 2023
13.4   153.86  
Granted 1.6   198.20  
Exercised ( 4.2 ) 125.30  
Lapsed or canceled ( 0.4 ) 195.71  
Outstanding at December 31, 2024
10.4   170.29  
Awards transferred to Solstice at spin-off ( 0.2 ) 147.23  
Adjustment to awards related to spin-off of Solstice 0.6   N/A
Granted 1.6   212.23  
Exercised ( 1.8 ) 130.42  
Lapsed or canceled ( 0.4 ) 178.87  
Outstanding at December 31, 2025
10.2   $ 172.62  
Vested and expected to vest at December 31, 2025 1
9.4   $ 172.06  
Exercisable at December 31, 2025
6.9   $ 163.04  

1 Represents the sum of vested options of 6.9 million and expected to vest options of 2.5 million. Expected to vest options are derived by applying the pre-vesting forfeiture rate assumption to total outstanding unvested options of 3.3 million.

The following table summarizes information about stock options outstanding and exercisable as of December 31, 2025:

Range of Exercise Prices Options Outstanding Options Exercisable
Number
Outstanding (in millions) Weighted
Average Life 1
Weighted
Average
Exercise
Price Per Share
Aggregate
Intrinsic
Value Number
Exercisable (in millions) Weighted
Average
Exercise
Price Per Share
Aggregate
Intrinsic
Value

$ 93.56 –$ 99.99
0.1   0.15 $ 93.56   $ 10   0.1   $ 93.56   $ 10  
$ 100.00 –$ 134.99
1.0   1.38 114.42   85   1.1   114.42   85  
$ 135.00 –$ 189.99
6.3   5.29 172.50   142   4.5   167.49   136  
$ 190.00 –$ 224.38
2.8   7.23 197.87   3   1.2   194.00   3  
10.2   5.36 $ 172.62   $ 240   6.9   $ 163.04   $ 234  

1 Average remaining contractual life in years.

There were 6.9 million and 9.6 million options exercisable at weighted average exercise prices of $ 157.58 and $ 138.24 as of December 31, 2024 , and 2023 , respectively.
The following table summarizes the financial statement impact from stock options exercised:

Years Ended December 31,
2025 2024 2023
Intrinsic value 1
$ 143   $ 357   $ 122  
Tax benefit realized 33   76   27  

1 Represents the amount by which the stock price exceeded the exercise price of the options on the date of exercise.

At December 31, 2025, there was $ 96 million of total unrecognized compensation cost related to non-vested stock option awards which is expected to be recognized over a weighted average period of 2.42 years. The total fair value of options vested for the years ended December 31, 2025, 2024, and 2023, wa s $ 48 million, $ 49 million, and $ 48 million, respectively.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

RESTRICTED STOCK UNITS
RSU awards entitle the holder to receive one share of common stock for each unit when the units vest. RSUs are issued to certain key employees and directors as compensation at fair market value at the date of grant. RSUs generally become fully vested over periods ranging from three to six years and are payable in Honeywell common stock upon vesting. Certain RSU awards are performance-based and awarded to eligible employees which entitle the grantee to receive shares of common stock if specified Company performance goals are achieved during the performance period and if the grantee remains employed through the vesting period.
The following table summarizes information about RSU activity for the three years ended December 31, 2025:

Number of
Restricted
Stock Units
(in millions) Weighted
Average
Grant Date
Fair Value
Per Share
Non-vested at December 31, 2022
2.7   $ 181.10  
Granted 1.1   194.81  
Vested ( 0.9 ) 171.92  
Forfeited ( 0.3 ) 187.13  
Non-vested at December 31, 2023
2.6   189.18  
Granted 1.0   200.44  
Vested ( 0.8 ) 185.70  
Forfeited ( 0.3 ) 191.68  
Non-vested at December 31, 2024
2.5   194.85  
Awards transferred to Solstice at spin-off ( 0.1 ) 204.06  
Adjustment to awards related to spin-off of Solstice 0.1   N/A
Granted 1.3   206.97  
Vested ( 0.8 ) 191.73  
Forfeited ( 0.3 ) 198.18  
Non-vested at December 31, 2025
2.7   $ 191.35  

As of December 31, 2025, there was approximately $ 264 million of total unrecognized compensation cost related to non-vested RSUs granted under the Company's stock plans which is expected to be recognized over a weighted average period of 1.77 years.
The following table summarizes the impact to the Consolidated Statement of Operations from RSUs:

  Years Ended December 31,
2025 2024 2023
Compensation expense $ 156   $ 142   $ 154  
Future income tax benefit recognized 28   30   32  

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HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 16. EARNINGS PER SHARE
The details of the earnings per share calculations for the years ended December 31, 2025, 2024, and 2023, are as follows (shares in millions):

Basic Years Ended December 31,
2025 2024 2023
Net income from continuing operations attributable to Honeywell
4,461   4,968   4,913  
Net income from discontinued operations attributable to Honeywell
268   737   745  
Net income attributable to Honeywell $ 4,729   $ 5,705   $ 5,658  
Weighted average shares outstanding 639.0   650.9   663.0  

Earnings per share of common stock from continuing operations—basic
$ 6.98   $ 7.63   $ 7.41  
Earnings per share of common stock from discontinued operations—basic $ 0.42   $ 1.13   $ 1.12  
Earnings per share of common stock—basic
$ 7.40   $ 8.76   $ 8.53  

Assuming Dilution Years Ended December 31,
2025 2024 2023
Net income from continuing operations attributable to Honeywell
4,461   4,968   4,913  
Net income from discontinued operations attributable to Honeywell
268   737   745  
Net income attributable to Honeywell $ 4,729   $ 5,705   $ 5,658  
Average shares
Weighted average shares outstanding 639.0   650.9   663.0  
Dilutive securities issuable—stock plans 3.8   4.4   5.2  
Total weighted average diluted shares outstanding 642.8   655.3   668.2  

Earnings per share of common stock from continuing operations—assuming dilution
$ 6.94   $ 7.58   $ 7.36  
Earnings per share of common stock from discontinued operations—assuming dilution 0.42   1.13   1.11  
Earnings per share of common stock—assuming dilution
$ 7.36   $ 8.71   $ 8.47  

The diluted earnings per share calculations exclude the effect of stock options when the cost to exercise an option exceeds the average market price of the common shares during the period. In 2025, 2024, and 2023, the weighted average number of stock options excluded from the computations was 2.9 million, 3.9 million, and 4.5 million, respectively. These stock options were outstanding at the end of each of the respective periods.
As of December 31, 2025, and 2024, the total shares outstanding were 635.3 million and 649.8 million, respectively, and as of December 31, 2025, and 2024, total shares issued were 957.6 million.
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HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 17. ACCUMULATED OTHER COMPREHENSIVE LOSS
The changes in Accumulated other comprehensive loss are provided in the tables below. Comprehensive income (loss) attributable to noncontrolling interest consists predominantly of net income.

Pre-tax Tax After-Tax
Year Ended December 31, 2023
Foreign exchange translation adjustment $ ( 269 ) $ —   $ ( 269 )
Pension and other postretirement benefit adjustments ( 538 ) 131   ( 407 )
Changes in fair value of available for sale investments 5   —   5  
Changes in fair value of cash flow hedges 17   ( 6 ) 11  
Total net current period other comprehensive income (loss) $ ( 785 ) $ 125   $ ( 660 )
Year Ended December 31, 2024
Foreign exchange translation adjustment $ 229   $ —   $ 229  
Pension and other postretirement benefit adjustments 542   ( 129 ) 413  
Changes in fair value of available for sale investments 1   —   1  
Changes in fair value of cash flow hedges ( 8 ) 9   1  
 Total net current period other comprehensive income (loss) $ 764   $ ( 120 ) $ 644  
Year Ended December 31, 2025      
Foreign exchange translation adjustment $ ( 907 ) $ —   $ ( 907 )
Pension and other postretirement benefit adjustments ( 944 ) 208   ( 736 )
Changes in fair value of available for sale investments 6   —   6  
Changes in fair value of cash flow hedges ( 20 ) 2   ( 18 )
Total net current period other comprehensive income (loss) $ ( 1,865 ) $ 210   $ ( 1,655 )

COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS

  December 31,
2025 2024
Cumulative foreign exchange translation adjustment $ ( 3,779 ) $ ( 2,872 )
Pension and other postretirement benefit adjustments ( 1,378 ) ( 642 )
Fair value adjustments of available for sale investments 5   ( 1 )
Fair value adjustments of cash flow hedges 6   24  
Total Accumulated other comprehensive loss $ ( 5,146 ) $ ( 3,491 )

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT

Foreign
Exchange
Translation
Adjustment Pension
and Other
Postretirement Benefit
Adjustments Changes in
 Fair Value
of Available
 for Sale
 Investments Changes in
Fair Value of
Cash Flow
Hedges Total
Balance at December 31, 2022 $ ( 2,832 ) $ ( 648 ) $ ( 7 ) $ 12   $ ( 3,475 )
Other comprehensive income (loss) before reclassifications ( 269 ) ( 477 ) 5   60   ( 681 )
Amounts reclassified from accumulated other comprehensive loss —   70   —   ( 49 ) 21  
Net current period other comprehensive income (loss) ( 269 ) ( 407 ) 5   11   ( 660 )
Balance at December 31, 2023 ( 3,101 ) ( 1,055 ) ( 2 ) 23   ( 4,135 )
Other comprehensive income (loss) before reclassifications 229   343   1   17   590  
Amounts reclassified from accumulated other comprehensive loss —   70   —   ( 16 ) 54  

Net current period other comprehensive income (loss) 229   413   1   1   644  
Balance at December 31, 2024 ( 2,872 ) ( 642 ) ( 1 ) 24   ( 3,491 )
Other comprehensive income (loss) before reclassifications ( 1,201 ) ( 769 ) 6   ( 26 ) ( 1,990 )
Amounts reclassified from accumulated other comprehensive loss 180   22   —   ( 2 ) 200  
Spin-off
114   11   —   10   135  
Net current period other comprehensive income (loss) ( 907 ) ( 736 ) 6   ( 18 ) ( 1,655 )
Balance at December 31, 2025 $ ( 3,779 ) $ ( 1,378 ) $ 5   $ 6   $ ( 5,146 )

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS

  Year Ended December 31, 2025
Affected Line in the Consolidated Statement of Operations
Net Sales Cost of
Products Sold
Cost of
Services Sold
Selling, General and
Administrative Expenses
Other
(Income) Expense
Interest and Other
Financial Charges
Total
Amortization of pension and other postretirement benefit items            
Actuarial losses recognized $ —   $ —   $ —   $ —   $ 154   $ —   $ 154  
Prior service (credit) recognized —   —   —   —   ( 9 ) —   ( 9 )
Settlements and curtailments —   —   —   —   ( 91 ) ( 91 )
Foreign currency translation adjustments —   —   —   —   180   —   180  

Total before tax $ —   $ —   $ —   $ —   $ 234   $ —   $ 234  
Tax expense (benefit) ( 34 )
Total reclassifications for the period, net of tax $ 200  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

  Year Ended December 31, 2024
Affected Line in the Consolidated Statement of Operations
Net Sales Cost of
Products Sold
Cost of
Services Sold
Selling, General and
Administrative Expenses
Other
(Income) Expense
Interest and Other
Financial Charges
Total
Amortization of pension and other postretirement benefit items            
Actuarial losses recognized $ —   $ —   $ —   $ —   $ 115   $ —   $ 115  
Prior service (credit) recognized —   —   —   —   ( 22 ) —   ( 22 )

Losses (gains) on cash flow hedges ( 2 ) ( 8 ) ( 3 ) ( 4 ) —   —   ( 17 )

Total before tax $ ( 2 ) $ ( 8 ) $ ( 3 ) $ ( 4 ) $ 93   $ —   $ 76  
Tax expense (benefit) ( 22 )
Total reclassifications for the period, net of tax $ 54  

  Year Ended December 31, 2023
Affected Line in the Consolidated Statement of Operations
Net Sales Cost of
Products Sold
Cost of
Services Sold
Selling, General and
Administrative Expenses
Other
(Income) Expense
Interest and Other
 Financial Charges
Total
Amortization of pension and other postretirement benefit items            
Actuarial losses recognized $ —   $ —   $ —   $ —   $ 141   $ —   $ 141  
Prior service (credit) recognized —   —   —   —   ( 63 ) —   ( 63 )

Losses (gains) on cash flow hedges ( 15 ) ( 28 ) ( 10 ) ( 10 ) —   —   ( 63 )

Total before tax $ ( 15 ) $ ( 28 ) $ ( 10 ) $ ( 10 ) $ 78   $ —   $ 15  
Tax expense (benefit) 6  
Total reclassifications for the period, net of tax $ 21  

NOTE 18. CAPITAL STOCK
The Company is authorized to issue up to 2.0 billion shares of common stock, with a par value of $ 1 per share. Common shareowners are entitled to receive such dividends as may be declared by the Board, are entitled to one vote per share, and are entitled, in the event of liquidation, to share ratably in all the assets of the Company which are available for distribution to the common shareowners. Common shareowners do not have preemptive or conversion rights. Shares of common stock issued and outstanding or held in treasury are not liable to further calls or assessments. There are no restrictions on the Company relative to dividends or the repurchase or redemption of common stock.
On April 24, 2023, the Board authorized the repurchase of up to a total of $ 10.0  billion of Honeywell common stock. Approximately $ 1.7 billion remained available as of December 31, 2025, for additional share repurchases.
Total following table summarizes the Company's repurchases of common stock:

  Years Ended December 31,
2025 2024 2023
Shares
(in millions) $ Shares
(in millions) $ Shares
(in millions) $

Reacquired stock or repurchases of common stock 1
18.1 3,819   8.0 1,672   19.2 3,715  

1 Includes excise tax on net share repurchases.

The Company is authorized to issue up to 40.0 million shares of preferred stock, without par value, and can determine the number of shares of each series, and the rights, preferences, and limitations of each series. At December 31, 2025, there was no preferred stock outstanding.
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HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 19. COMMITMENTS AND CONTINGENCIES
ENVIRONMENTAL MATTERS
The Company is subject to various federal, state, local, and foreign government requirements relating to the protection of the environment. The Company believes that, as a general matter, the Company's policies, practices, and procedures are properly designed to prevent unreasonable risk of environmental damage and personal injury and that the handling, manufacture, use, and disposal of hazardous substances are in accordance with environmental and safety laws and regulations. However, mainly because of past operations and operations of predecessor companies, the Company, like other companies engaged in similar businesses, incurred remedial response and voluntary cleanup costs for site contamination and is a party to lawsuits and claims associated with environmental and safety matters, including past production of products containing hazardous substances. Additional lawsuits, claims, and costs involving environmental matters are likely to continue to arise in the future.
With respect to environmental matters involving site contamination, the Company continually conducts studies, individually or jointly with other potentially responsible parties, to determine the feasibility of various remedial techniques. It is the Company's policy to record liabilities for environmental matters when remedial efforts or damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on the Company's best estimate of the undiscounted future costs required to complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory, or legal information becomes available. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other potentially responsible parties, technology, and information related to individual sites, the Company does not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of the Company's recorded liabilities. The Company expects to fund expenditures for these matters from operating cash flows. The timing of cash expenditures depends on a number of factors, including the timing of remedial investigations and feasibility studies, the timing of litigation and settlements of remediation liability, personal injury and property damage claims, regulatory approval of cleanup projects, remedial techniques to be utilized, and agreements with other parties.
The following table summarizes information concerning the Company's recorded liabilities for environmental costs:

  Years Ended December 31,
2025 2024 2023
Beginning of year $ 626   $ 586   $ 569  
Accruals for environmental matters deemed probable and reasonably estimable 443   261   213  
Environmental liability payments ( 175 ) ( 221 ) ( 196 )

End of year $ 894   $ 626   $ 586  

Environmental liabilities are included in the following balance sheet accounts:

  December 31,
2025 2024
Accrued liabilities $ 180   $ 237  
Other liabilities 714   389  
Total environmental liabilities $ 894   $ 626  

In conjunction with the Resideo spin-off, the Company entered into an indemnification and reimbursement agreement with a Resideo subsidiary, pursuant to which Resideo’s subsidiary had an ongoing obligation to make cash payments to Honeywell in amounts equal to 90 % of Honeywell’s annual net spending for environmental matters at certain sites as defined in the agreement. As the Company incurred costs for environmental matters deemed probable and reasonably estimable related to the sites covered by the indemnification and reimbursement agreement, a corresponding receivable from Resideo for 90 % of such costs was also recorded. The receivable amount recorded in 2024 was $ 202 million. As of December 31, 2024, Other current assets and Other assets included $ 140  million and $ 583  million, respectively, for the short-term and long-term portion of the receivable amount due from Resideo under the indemnification and reimbursement agreement.
The amount payable to Honeywell in any given year was subject to a cap of $ 140 million, and the payment obligation was to continue until the earlier of December 31, 2043, or December 31 of the third consecutive year during which the annual payment obligation is less than $ 25 million. Reimbursements associated with this agreement were collected from Resideo quarterly and were $ 105 million and $ 140  million, respectively, in 2025 and 2024 and offset operating cash outflows incurred by the Company.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

In 2025, the Company and Resideo entered into a termination agreement for the accelerated monetization of the indemnification and reimbursement agreement. Upon closing of the transactions contemplated pursuant to the termination agreement, the Company received a one-time cash payment of $ 1,590  million in lieu of all future payments to which the Company was entitled pursuant to the indemnification and reimbursement agreement. The Company applied the one-time cash payment and the third quarter 2025 quarterly reimbursement payment against the outstanding receivable balance due from Resideo. The Company recognized a gain of $ 802  million in Other (income) expense for the cash proceeds received in excess of the receivables due from Resideo.
As a result of the termination agreement, Resideo no longer has any obligation to make cash payments to Honeywell in respect of Honeywell's net spending for environmental matters.
Also in 2025, the Company enhanced its process for estimating environmental liabilities at sites undergoing active remediation. By leveraging improved data availability and refining historical analytics, the Company implemented an improved methodology for estimating environmental liabilities related to actively managed environmental sites, resulting in an increase of the estimated environmental liabilities of $ 211  million. The Company does not currently possess sufficient additional information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation, or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined, although they could be material to the Company's consolidated results of operations and operating cash flows in the periods recognized or paid. However, considering the Company's past experience and existing reserves, the Company does not expect that environmental matters will have a material adverse effect on its consolidated financial position.
ASBESTOS MATTERS
Honeywell is named in asbestos-related personal injury claims related to North American Refractories Company (NARCO), which was sold in 1986, and the Bendix Friction Materials (Bendix) business, which was sold in 2014.
The following tables summarize information concerning NARCO and Bendix asbestos-related balances:
ASBESTOS-RELATED LIABILITIES

Year Ended December 31, 2025 Year Ended December 31, 2024 Year Ended December 31, 2023
Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total
Beginning of year $ 1,482   $ —   $ 1,482   $ 1,644   $ —   $ 1,644   $ 1,291   $ 1,325   $ 2,616  
Accrual for update to estimated liability 42   —   42   41   1   42   43   5   48  
Change in estimated cost of future claims 15   —   15   20   —   20   423   —   423  
Update of expected resolution values for pending claims —   —   —   —   —   —   56   —   56  
Asbestos-related liability payments ( 161 ) —   ( 161 ) ( 223 ) ( 1 ) ( 224 ) ( 169 ) ( 5 ) ( 174 )
Loss on asbestos liabilities divestiture
148   —   148   —   —   —   —   —   —  
Liability divestiture transaction
( 1,526 ) —   ( 1,526 ) —   —   —   —   —   —  
NARCO Buyout —   —   —   —   —   —   —   ( 1,325 ) ( 1,325 )
End of year $ —   $ —   $ —   $ 1,482   $ —   $ 1,482   $ 1,644   $ —   $ 1,644  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

INSURANCE RECOVERIES FOR ASBESTOS-RELATED LIABILITIES

Year Ended December 31, 2025 Year Ended December 31, 2024 Year Ended December 31, 2023
Bendix NARCO Total Bendix NARCO Total Bendix NARCO Total
Beginning of year $ 110   $ 80   $ 190   $ 123   $ 88   $ 211   $ 130   $ 135   $ 265  
Probable insurance recoveries related to estimated liability —   —   —   3   —   3   11   —   11  
Insurance receipts for asbestos-related liabilities ( 12 ) ( 5 ) ( 17 ) ( 16 ) ( 8 ) ( 24 ) ( 18 ) ( 21 ) ( 39 )
Insurance receivables settlements and write-offs —   —   —   —   —   —   —   ( 26 ) ( 26 )

Liability divestiture transaction
( 98 ) —   ( 98 ) —   —   —   —   —   —  
End of year $ —   $ 75   $ 75   $ 110   $ 80   $ 190   $ 123   $ 88   $ 211  

NARCO and Bendix asbestos-related balances are included in the following balance sheet accounts:

  December 31,
2025 2024
Other current assets $ 5   $ 19  
Other assets
70   171  
Total insurance recoveries for asbestos-related liabilities $ 75   $ 190  
Accrued liabilities $ —   $ 157  
Asbestos-related liabilities —   1,325  
Total asbestos-related liabilities $ —   $ 1,482  

NARCO Products – NARCO manufactured high-grade, heat-resistant, refractory products for various industries. Honeywell’s predecessor, Allied Corporation, owned NARCO from 1979 to 1986. Allied Corporation sold the NARCO business in 1986 and entered into a cross-indemnity agreement which included an obligation to indemnify the purchaser for asbestos claims, arising primarily from alleged occupational exposure to asbestos-containing refractory brick and mortar for high-temperature applications. NARCO ceased manufacturing these products in 1980 and filed for bankruptcy in January 2002, at which point in time all then current and future NARCO asbestos claims were stayed against both NARCO and Honeywell pending the reorganization of NARCO. The Company established its initial liability for NARCO asbestos claims in 2002.
NARCO emerged from bankruptcy in April 2013, at which time a federally authorized 524(g) trust was established to evaluate and resolve all existing NARCO asbestos claims (the Trust). Both Honeywell and NARCO are protected by a permanent channeling injunction barring all present and future individual actions in state or federal courts and requiring all asbestos-related claims based on exposure to NARCO asbestos-containing products to be made against the Trust (Channeling Injunction).
On November 18, 2022, Honeywell entered into a definitive agreement (Buyout Agreement) with the Trust, and on November 20, 2022, in exchange for the NARCO Trust Advisory Committee (TAC) and Lawrence Fitzpatrick, in his capacity as the NARCO Asbestos Future Claimants Representative (FCR), becoming parties to the Buyout Agreement, Honeywell, the Trust, the TAC, and the FCR entered into an Amended and Restated Buyout Agreement (Amended Buyout Agreement).
Pursuant to the terms of the Amended Buyout Agreement, Honeywell agreed to make a one-time, lump sum payment in the amount of $ 1.325  billion to the Trust (Buyout Amount), subject to certain deductions as described in the Amended Buyout Agreement and in exchange for the release by the Trust of Honeywell from all further and future obligations of any kind related to the Trust and/or any claimants who were exposed to asbestos-containing products manufactured, sold, or distributed by NARCO or its predecessors, including Honeywell’s ongoing evergreen obligation to fund (i) claims against the Trust, which comprise Honeywell’s NARCO asbestos-related claims liability, and (ii) the Trust’s annual operating expenses, which are expensed as incurred, including its legal fees (which operating expenses, for reference, were approximately $ 30  million in 2022) (such evergreen obligations referred to in (i) and (ii), Honeywell Obligations) (the NARCO Buyout).
On December 8, 2022, the Bankruptcy Court issued an order that (A) approved the Amended Buyout Agreement, and (B) declared that the NARCO Channeling Injunction (which bars all past, present, and future individual actions in state or federal courts based on exposure to NARCO asbestos-containing products and requires all such claims to be made against the Trust) will remain in full force and effect without modification, dissolution, or termination (Order).
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On December 14, 2022, HWI, the reorganized and renamed entity that emerged from the NARCO bankruptcy, entered into a definitive agreement (Sale Agreement) pursuant to which an affiliate of Platinum Equity, LLC agreed to acquire HWI (HWI Sale) subject to the terms set forth in the Sale Agreement, including customary conditions to closing set forth therein. In accordance with the Amended Buyout Agreement, the economic rights of the Trust in respect of the net proceeds from the HWI Sale inure to the benefit of Honeywell.
On January 30, 2023, the Company paid the Buyout Amount to the Trust, the parties closed the transactions contemplated in the Amended Buyout Agreement (Closing), and Honeywell was released from the Honeywell Obligations. Honeywell continues to have the right to collect proceeds in connection with its NARCO asbestos-related insurance policies.
With the issuance of the Order, the Company derecognized the NARCO asbestos-related liability of $ 688  million from the Consolidated Balance Sheet and recognized a charge of $ 1.325  billion in the Consolidated Statement of Operations and accrued a corresponding liability in the Consolidated Balance Sheet for the Buyout Amount. In addition, the Company recognized a benefit of $ 295  million in the Consolidated Statement of Operations and corresponding asset in Other current assets in the Consolidated Balance Sheet for Honeywell's rights to the proceeds from the HWI Sale. The benefit of $ 295  million offset the charge for the Buyout Amount.
On February 16, 2023, the HWI Sale closed. Pursuant to the Amended Buyout Agreement, during 2025, 2024 and 2023, Honeywell received $ 2  million, $ 3  million and $ 275  million of proceeds from the HWI sale, respectively.
Bendix Products – Bendix manufactured automotive brake linings that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements.
As of December 31, 2024, the Consolidated Financial Statements reflected an estimated liability for resolution of asserted (claims filed as of the financial statement date) and unasserted Bendix-related asbestos claims, which excluded the Company’s ongoing legal fees to defend such asbestos claims which will continue to be expensed as they are incurred.
The Company reflected the inclusion of all years of epidemiological disease projection through 2059 when estimating the liability for unasserted Bendix-related asbestos claims. Such liability for unasserted Bendix-related asbestos claims was based on historic and anticipated claims filing experience and dismissal rates, disease classifications, and average resolution values in the tort system over a defined look-back period. The Company valued Bendix asserted and unasserted claims using average resolution values for the previous two years . The Company reviewed the valuation assumptions and average resolution values used to estimate the cost of Bendix asserted and unasserted claims during the fourth quarter each year.
In 2023, the Company recognized a $ 522  million expense and corresponding adjustment to its estimated liability for Bendix asbestos-related claims. This amount included $ 434  million attributable primarily to shortening the look-back period to the two most recent years, and to a lesser extent to increasing expected resolution values for a subset of asserted claims to adjust for higher claim values in that subset than in the modelled two-year data set.
The Company's insurance receivable corresponding to the liability for settlement of asserted and unasserted Bendix asbestos claims reflects coverage which is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Based on the Company's ongoing analysis of the probable insurance recovery, insurance receivables are recorded in the financial statements simultaneous with the recording of the estimated liability for the underlying asbestos claims. This determination is based on the Company's analysis of the underlying insurance policies, historical experience with insurers, ongoing review of the solvency of insurers, judicial determinations relevant to insurance programs, and consideration of the impacts of any settlements reached with the Company's insurers.
Liability Divestiture Transaction
On September 29, 2025, the Company permanently divested all of its legacy Bendix asbestos liabilities and certain non-Bendix asbestos liabilities, contributing cash and transferring asbestos liabilities to a third party entity. As part of the agreement, the Company will be indemnified from future asbestos claims. Under the terms of the agreement, the Company contributed $ 1,428  million in cash and derecognized $ 1,526  million of asbestos liabilities and $ 98  million of related insurance assets. Included in the Company's 2025 results is a pre-tax loss on settlement of the divestiture of $ 148  million, which was recorded in Cost of products and services sold in the Consolidated Statement of Operations.
SEC MATTER
The Company is cooperating with a formal investigation by the SEC which is focused on certain financial reporting matters, including with respect to the Company's former Performance Materials and Technologies segment. At this time, the Company does not expect the outcome of this matter to have a material adverse effect on the Company's consolidated results of operations, cash flows, or financial position.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

PETROBRAS AND UNAOIL MATTERS
On December 19, 2022, the Company reached a comprehensive resolution to the investigations by the U.S. Department of Justice (DOJ), the SEC, and certain Brazilian authorities (Brazilian Authorities) relating to the Company's use of third parties who previously worked for the Company's UOP business in Brazil in relation to a project awarded in 2010 for Petróleo Brasileiro S.A. (Petrobras). The investigations focused on the Company’s compliance with the U.S. Foreign Corrupt Practices Act and similar Brazilian laws (UOP Matters). The comprehensive resolution also resolves DOJ and SEC investigations relating to a matter involving a foreign subsidiary’s prior contract with Unaoil S.A.M. in Algeria executed in 2011 (the Unaoil Matter).
In connection with the comprehensive resolution, (i) the Company agreed to pay a total equivalent of $ 203  million, which payment occurred in January 2023, to the DOJ, the SEC, and the Brazilian Authorities, collectively, in penalties, disgorgement, and prejudgment interest, (ii) the Company’s subsidiary, UOP, LLC (UOP), entered into a three-year Deferred Prosecution Agreement (DPA) with the DOJ for charges related to the UOP Matters, (iii) UOP entered into leniency agreements with the Brazilian Authorities related to the UOP Matter in Brazil, and (iv) the Company entered into an agreement with the SEC that resolves allegations relating to the UOP Matters and the Unaoil Matter. Pursuant to these agreements, the Company agreed to undertake certain compliance measures and compliance reporting obligations. These agreements entirely resolve the Petrobras and Unaoil investigations. In July 2025, the DOJ filed, and the court granted, a motion for early termination of the DPA, and the deferred charges related to the UOP Matters have been dismissed with prejudice.
LITIGATION MATTERS
Flexjet v. Honeywell International Inc.
Flexjet, LLC (Flexjet) provides private jet services to customers. Honeywell maintains aircraft engine maintenance service contracts with Flexjet. During the COVID-19 pandemic, a customer dispute arose over delayed engine deliveries and specified engine enrollments under these maintenance service contracts. In 2021, the Company notified Flexjet that it was invoking force majeure provisions in response to the pandemic. On March 1, 2023, Flexjet brought suit against the Company, alleging breach of the parties’ aircraft engine maintenance service agreement (the MSA), seeking liquidated damages for delayed engine repairs, and claiming that its liquidated damages continue to accrue related to engines awaiting repair. Additionally, two third-party aircraft repair and services companies, Duncan Aviation, Inc. (Duncan) and StandardAero Business Aviation Services, LLC (StandardAero) each sued Flexjet for amounts allegedly owed for services provided, and Flexjet filed third-party complaints in those cases on January 10, 2025 and June 10, 2025, respectively, purporting to join the Company as a third-party defendant.
The Company recorded accruals in accordance with ASC 450, Contingencies , with respect to the Flexjet-related matters. In December 2025, the Company announced it was in ongoing settlement negotiations with Flexjet and the other parties to the litigation matters. Based on negotiations as of December 22, 2025, the Company increased the accrual for this matter by approximately $ 370  million in the fourth quarter of 2025, which resulted in a reduction to sales and operating income by approximately $ 310  million and $ 370  million, respectively.
On January 16, 2026, the Company completed a comprehensive settlement relating to its lawsuit with Flexjet. As part of this comprehensive settlement, the Company entered into settlement agreements with Duncan, StandardAero, and Flexjet. As of January 21, 2026, each of these cases have been dismissed. These settlements resolve all legal disputes among the parties arising out of the alleged breach of the MSA.
In connection with these settlements, the Company paid $ 59  million in December 2025 associated with the Duncan and StandardAero settlements. The Company paid $ 375  million in the first quarter of 2026 associated with a settlement payment to Flexjet.
Contemporaneous with the Company’s entry into the settlement agreement with Flexjet, Flexjet and Honeywell amended the MSA to extend the term through 2035.
OTHER MATTERS
The Company is subject to a number of other lawsuits, investigations, and claims (some of which involve substantial dollar amounts) arising out of the conduct of the its business operations or those of previously owned entities, including matters relating to commercial transactions, government contracts, product liability, the integration of emerging technologies (such as, but not limited to, artificial intelligence and machine learning), prior acquisitions and divestitures, employment, employee benefit plans, intellectual property, legal, and environmental, health, and safety matters. The Company recognizes liabilities for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments or outcomes in such matters, as well as potential ranges of probable losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

Given the uncertainty inherent in litigation and investigations, including those discussed in this Note 19, the Company cannot predict when or how these matters will be resolved and does not believe it is possible to develop estimates of reasonably possible loss (or a range of possible loss) in excess of current accruals for commitment and contingency matters. Considering the Company's past experience and existing accruals, the Company does not expect the outcome of such matters, either individually or in the aggregate, to have a material adverse effect on the Company's consolidated financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments (including new discovery of facts, changes in legislation, and outcomes of similar cases through the judicial system), changes in assumptions or changes in settlement strategy, which could cause the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company's consolidated results of operations or operating cash flows in the periods recognized or paid.
WARRANTIES AND GUARANTEES
In the normal course of business, the Company issues product warranties and product performance guarantees. The Company accrues for the estimated cost of product warranties and performance guarantees based on contract terms and historical experience at the time of sale. Adjustments to initial obligations for warranties and guarantees are made as changes to the obligations become reasonably estimable. The following table summarizes information concerning the Company's recorded obligations for product warranties and product performance guarantees:

  Years Ended December 31,
2025 2024 2023
Beginning of year $ 237   $ 219   $ 213  
Accruals for warranties/guarantees issued during the year 144   186   139  
Adjustment of pre-existing warranties/guarantees 6   3   ( 27 )
Settlement of warranty/guarantee claims ( 148 ) ( 171 ) ( 106 )
Reclassifications to Liabilities held for sale ( 19 ) —   —  
End of year $ 220   $ 237   $ 219  

Product warranties and product performance guarantees are included in the following balance sheet accounts:

  December 31,
2025 2024
Accrued liabilities $ 180   $ 202  
Other liabilities 40   35  
Total obligations for product warranties and product performance guarantees $ 220   $ 237  

NOTE 20. PENSION AND OTHER POSTRETIREMENT BENEFITS
The Company sponsors a number of both funded and unfunded U.S. and non-U.S. defined benefit pension plans. Pension benefits for many of the Company's U.S. employees are provided through non-contributory, qualified, and non-qualified defined benefit plans. All non-union hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell’s U.S. defined benefit pension plans. The Company also sponsors defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Germany, and Canada. Other pension plans outside of the U.S. are not material to the Company either individually or in the aggregate.
The Company sponsors postretirement benefit plans that provide health care benefits and life insurance coverage mainly to U.S. eligible retirees. None of Honeywell’s U.S. employees are eligible for a retiree medical subsidy from the Company. In addition, the vast majority of Honeywell’s U.S. retirees either have no Company subsidy or have a fixed-dollar subsidy amount. This significantly limits the Company's exposure to the impact of future health care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are paid from the Company's cash flows from operations.
In connection with the completion of the October 30, 2025 spin-off of the Advanced Materials business, approximately $ 177  million of pension benefit obligations and $ 150  million of plan assets for certain pension plans were transferred to Solstice, which is treated as a discontinued operation. These are reflected as "Transfers to Solstice" in the table below.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The following tables summarize the balance sheet impact, including the benefit obligations, assets, and funded status associated with the Company's significant pension and other postretirement benefit plans:

  Pension Benefits
U.S. Plans Non-U.S. Plans
2025 2024 2025 2024
Change in benefit obligation        
Benefit obligation at beginning of year $ 11,772   $ 12,792   $ 4,161   $ 4,718  
Service cost 27   28   4   12  
Interest cost 576   599   179   191  
Plan amendments —   —   —   14  
Actuarial (gains) losses 1
624   ( 579 ) 45   ( 393 )
Benefits paid ( 1,114 ) ( 1,069 ) ( 254 ) ( 262 )
Settlements and curtailments —   —   ( 786 ) ( 14 )
Foreign currency translation —   —   341   ( 106 )
Other —   1   —   1  
Transfers to Solstice
( 110 ) —   ( 67 ) —  
Benefit obligation at end of year 11,775   11,772   3,623   4,161  
Less: Discontinued operations
—   106   —   55  
Benefit obligation - continuing operations
11,775   11,666   3,623   4,106  
Change in plan assets
Fair value of plan assets at beginning of year 16,565   16,594   5,105   5,549  
Actual return on plan assets 842   1,008   104   ( 111 )
Company contributions 30   31   21   29  
Benefits paid ( 1,114 ) ( 1,069 ) ( 254 ) ( 262 )
Settlements and curtailments —   —   ( 786 ) —  
Foreign currency translation —   —   380   ( 101 )
Other —   1   ( 1 ) 1  
Transfers to Solstice ( 150 ) —   —   —  
Fair value of plan assets at end of year 16,173   16,565   4,569   5,105  
Less: Discontinued operations
—   149   —   1  
Fair value of plan assets at end of year - continuing operations
16,173   16,416   4,569   5,104  
Funded status of plans - continuing operations
$ 4,398   $ 4,750   $ 946   $ 998  
Assets (liabilities) recognized in the Consolidated Balance Sheet consist of

Prepaid pension benefit cost 2
$ 4,621   $ 4,983   $ 1,321   $ 1,430  
Accrued pension liabilities—current 3
( 27 ) ( 28 ) ( 12 ) ( 15 )
Accrued pension liabilities—noncurrent 4
( 196 ) ( 205 ) ( 363 ) ( 417 )
Net amount recognized - continuing operations
$ 4,398   $ 4,750   $ 946   $ 998  
Net amount recognized - discontinued operations
$ —   $ 43   $ —   $ ( 54 )

1 The actuarial losses incurred in 2025 related to the Company's U.S. plans are primarily the result of a decrease in the discount rate assumption, as well as changes in the lump sum calculation basis and experience losses used to estimate the benefit obligations as of December 31, 2025, compared to December 31, 2024. Actuarial losses incurred in 2025 related to the Company's non-U.S. plans are primarily the result of the Netherlands plan settlement, as well as experience losses and changes in demographic assumptions, partially offset by an increase in discount rate assumption and inflation related assumptions used to estimate the benefit obligations as of December 31, 2025, compared to December 31, 2024. Actuarial gains incurred in 2024 related to the Company's U.S. plans are primarily the result of an increase in the discount rate assumption, as well as changes in demographic assumptions, partially offset by changes in demographic experience used to estimate the benefit obligations as of December 31, 2024, compared to December 31, 2023. Actuarial gains incurred in 2024 related to the Company's non-U.S. plans are primarily the result of an increase in the discount rate assumption, as well as changes in demographic assumptions, partially offset by inflation related assumptions and changes in demographic experience used to estimate the benefit obligations as of December 31, 2024, compared to December 31, 2023.

2 Included in Other assets in the Consolidated Balance Sheet.

3 Included in Accrued liabilities in the Consolidated Balance Sheet.

4 Included in Other liabilities in the Consolidated Balance Sheet.

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  Other
Postretirement
Benefits
2025 2024
Change in benefit obligation
Benefit obligation at beginning of year $ 98   $ 116  

Interest cost 5   5  

Actuarial (gains) losses 9   ( 7 )
Benefits paid ( 16 ) ( 16 )
Benefit obligation at end of year 96   98  
Change in plan assets
Fair value of plan assets at beginning of year —   —  
Actual return on plan assets —   —  
Company contributions —   —  
Benefits paid —   —  
Fair value of plan assets at end of year —   —  
Funded status of plans $ ( 96 ) $ ( 98 )
Amounts recognized in the Consolidated Balance Sheet consist of
Accrued liabilities $ ( 11 ) $ ( 11 )
Postretirement benefit obligations other than pensions 1
( 85 ) ( 87 )
Net amount recognized $ ( 96 ) $ ( 98 )

1 Excludes non-U.S. plan of $ 24 million and $ 25 million as of December 31, 2025, and 2024, respectively.

Amounts recognized in Accumulated other comprehensive loss associated with the Company's significant pension and other postretirement benefit plans at December 31, 2025, and 2024, are as follows:

  Pension Benefits
U.S. Plans Non-U.S. Plans
2025 2024 2025 2024
Prior service (credit) cost $ —   $ —   $ 35   $ 34  
Net actuarial (gain) loss 1,613   729   364   315  
Net amount recognized $ 1,613   $ 729   $ 399   $ 349  

  Other
Postretirement
Benefits
2025 2024
Prior service (credit) cost $ ( 7 ) $ ( 18 )
Net actuarial (gain) loss ( 46 ) ( 64 )
Net amount recognized $ ( 53 ) $ ( 82 )

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

Net periodic benefit (income) cost and other amounts recognized in Other comprehensive (income) loss for the Company's significant pension and other postretirement benefit plans include the following components:

Pension Benefits
U.S. Plans Non-U.S. Plans
2025 2024 2023 2025 2024 2023
Service cost $ 27   $ 28   $ 29   $ 4   $ 12   $ 11  
Interest cost 576   599   645   179   191   200  
Expected return on plan assets ( 1,153 ) ( 1,125 ) ( 1,111 ) ( 279 ) ( 301 ) ( 274 )
Amortization of prior service (credit) cost —   ( 7 ) ( 42 ) 2   1   —  
Recognition of actuarial (gains) losses 39   —   —   124   126   153  
Settlements and curtailments —   —   —   68   ( 17 ) —  
Net periodic benefit (income) cost $ ( 511 ) $ ( 505 ) $ ( 479 ) $ 98   $ 12   $ 90  
Net periodic benefit (income) cost - discontinued operations
$ ( 4 ) $ ( 5 ) $ ( 5 ) $ 2   $ 2   $ 2  
Net periodic benefit (income) cost - continuing operations
( 507 ) ( 500 ) ( 474 ) 96   10   88  

U.S. Plans Non-U.S. Plans
2025 2024 2023 2025 2024 2023
Actuarial (gains) losses $ 935   $ ( 462 ) $ 378   $ 220   $ 19   $ 198  
Prior service (credit) cost —   —   —   —   14   —  
Prior service credit recognized during year —   7   42   ( 2 ) 2   —  
Actuarial (gains) losses recognized during year ( 52 ) —   —   ( 199 ) ( 126 ) ( 153 )
Foreign currency translation loss (gain)
—   —   —   31   ( 1 ) 17  
Total recognized in Other comprehensive (income) loss $ 883   $ ( 455 ) $ 420   $ 50   $ ( 92 ) $ 62  
Total recognized in net periodic benefit (income) cost and Other comprehensive (income) loss $ 372   $ ( 960 ) $ ( 59 ) $ 148   $ ( 80 ) $ 152  

Other Postretirement Benefits
Years Ended December 31,
2025 2024 2023

Interest cost $ 5   $ 5   $ 6  
Amortization of prior service (credit) cost ( 11 ) ( 12 ) ( 20 )
Recognition of actuarial (gains) losses ( 10 ) ( 11 ) ( 13 )
Net periodic benefit (income) cost $ ( 16 ) $ ( 18 ) $ ( 27 )

Years Ended December 31,
2025 2024 2023
Actuarial (gains) losses $ 9   $ ( 7 ) $ 3  

Prior service credit recognized during year 11   12   20  
Actuarial (gains) losses recognized during year 10   11   13  
Total recognized in other comprehensive (income) loss 30   16   36  
Total recognized in net periodic benefit (income) cost and Other comprehensive (income) loss $ 14   $ ( 2 ) $ 9  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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Major actuarial assumptions used in determining the benefit obligations and net periodic benefit (income) cost for the Company's significant benefit plans are presented in the following table as weighted averages:

  Pension Benefits
U.S. Plans Non-U.S. Plans
2025 2024 2023 2025 2024 2023
Actuarial assumptions used to determine benefit obligations as of December 31
Discount rate 5.25   % 5.57   % 4.97   % 5.22   % 4.80   % 4.15   %
Expected annual rate of compensation increase 3.25   % 3.25   % 3.25   % 2.77   % 1.68   % 2.68   %
Actuarial assumptions used to determine net periodic benefit (income) cost for years ended December 31
Discount rate—benefit obligation 5.57   % 4.97   % 5.17   % 5.09   % 4.13   % 4.49   %
Discount rate—service cost 5.55   % 5.06   % 5.26   % 3.75   % 3.38   % 3.81   %
Discount rate—interest cost 5.28   % 4.89   % 5.07   % 4.86   % 4.12   % 4.56   %
Expected rate of return on plan assets 7.25   % 7.00   % 6.75   % 6.06   % 5.48   % 5.15   %
Expected annual rate of compensation increase 3.25   % 3.25   % 3.25   % 2.90   % 2.68   % 2.68   %

  Other Postretirement Benefits
2025 2024 2023
Actuarial assumptions used to determine benefit obligations as of December 31
Discount rate 5.04   % 5.42   % 5.00   %
Actuarial assumptions used to determine net periodic benefit cost for years ended December 31
Discount rate 5.42   % 5.00   % 5.32   %

The discount rate for the Company's U.S. pension and other postretirement benefit plans reflects the current rate at which the associated liabilities could be settled at the measurement date of December 31. To determine discount rates for the Company's U.S. pension and other postretirement benefit plans, the Company uses a modeling process that involves matching the expected cash outflows of the Company's benefit plans to a yield curve constructed from a portfolio of high-quality, fixed income debt instruments. The Company uses the single weighted average yield of this hypothetical portfolio as a discount rate benchmark. The Company utilizes a full yield curve approach in the estimation of the service and interest cost components of net periodic pension benefit (income) for the Company's significant pension plans. This approach applies the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. For the Company's U.S. pension plans, the single weighted average spot rates used to determine service and interest costs for 2026 are 5.24 % and 4.70 %, respectively. The discount rate used to determine the other postretirement benefit obligation is higher principally due to a shorter expected duration of other postretirement plan obligations as compared to pension plan obligations.
The Company plans to use an expected rate of return on U.S. plan assets of 7.25 % for 2026, which is the same assumption used for 2025. The Company's asset return assumption is based on historical plan asset returns over varying long-term periods combined with current market conditions and broad asset mix considerations with a focus on long-term trends rather than short-term market conditions. The Company reviews the expected rate of return on an annual basis and revises it as appropriate.
For non-U.S. benefit plans, actuarial assumptions reflect economic and market factors relevant to each country.
In July 2024, the UK Court of Appeal upheld a ruling in the matter of Virgin Media Limited versus NTL Pension Trustees II Limited, that certain historical amendments for contracted out defined benefit schemes were invalid if they were not accompanied by the correct actuarial confirmation, a decision that the Company was not a party to or involved in and could impact the Company's non-U.S. pension plan in the UK. In June 2025, the UK Department for Work and Pensions announced that the government will introduce legislation to give affected pension schemes the ability to retrospectively obtain written actuarial confirmation that historic benefit changes met the necessary standards. The Company and its UK pension scheme trustee are reviewing this development, along with our actuaries, and considering whether this decision has any implications for its UK pension plan.
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HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

PENSION BENEFITS
The following amounts relate to the Company's significant pension plans with accumulated benefit obligations exceeding the fair value of plan assets:

  December 31,
U.S. Plans Non-U.S. Plans
2025 2024 2025 2024
Projected benefit obligation $ 223   $ 236   $ 651   $ 709  
Accumulated benefit obligation 217   228   640   695  
Fair value of plan assets —   —   275   222  

The accumulated benefit obligation for the Company's U.S. defined benefit pension plans was $ 11.8 billion and $ 11.8 billion and for the Company's non-U.S. defined benefit pension plans was $ 3.6 billion and $ 4.1 billion as of December 31, 2025, and 2024, respectively.
The Company's asset investment strategy for its U.S. pension plans focuses on maintaining a diversified portfolio using various asset classes in order to achieve the Company's long-term investment objectives on a risk adjusted basis. The Company's long-term target allocations are as follows: 45 %- 65 % fixed income securities and cash, 25 %- 40 % equity securities, 5 %- 10 % real estate investments, and 10 %- 20 % other types of investments. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, and U.S. Treasuries. Equity securities include publicly traded stock of companies and/or broad equity index exposures with exchange traded funds (ETFs) located inside the United States. Real estate investments include direct investments in commercial properties and investments in real estate funds. Other types of investments include investments in private equity that follow several different strategies. The Company reviews its assets on a regular basis to ensure that the Company is within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations.
The Company's non-U.S. pension assets are typically managed by decentralized fiduciary committees with the Honeywell Corporate Investments group providing investment guidance. The Company's non-U.S. investment policies are different for each country as local regulations and financial and tax considerations are part of the funding and investment allocation process in each country.
In accordance with ASC Topic 820, Fair Value Measurement , certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the following tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The fair values of both the Company's U.S. and non-U.S. pension plans assets by asset category are as follows:

  U.S. Plans
December 31, 2025
Total Level 1 Level 2 Level 3
Equities
Honeywell common stock $ 2,400   $ 2,400   $ —   $ —  
U.S. equities 973   973   —   —  

Fixed income
Short-term investments 871   110   761   —  
Government securities 2,054   —   2,054   —  
Corporate bonds 5,434   383   5,051   —  
Mortgage/Asset-backed securities 722   —   722   —  
Insurance contracts 7   —   7   —  
Direct investments
Direct private investments 1,478   —   —   1,478  
Real estate properties 1,001   —   —   1,001  
Total $ 14,940   $ 3,866   $ 8,595   $ 2,479  
Investments measured at NAV
Private funds 1,228  
Real estate funds 5  

Total assets at fair value $ 16,173  

  U.S. Plans
December 31, 2024
Total Level 1 Level 2 Level 3
Equities
Honeywell common stock $ 3,283   $ 3,283   $ —   $ —  
U.S. equities 819   819   —   —  

Fixed income
Short-term investments 776   83   693   —  
Government securities 2,142   —   2,142   —  
Corporate bonds 5,104   230   4,874   —  
Mortgage/Asset-backed securities 790   —   790   —  
Insurance contracts 7   —   7   —  
Direct investments
Direct private investments 1,337   —   —   1,337  
Real estate properties 972   —   —   972  
Total $ 15,230   $ 4,415   $ 8,506   $ 2,309  
Investments measured at NAV
Private funds 1,327  
Real estate funds 8  

Total assets at fair value $ 16,565  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

  Non-U.S. Plans
December 31, 2025
Total Level 1 Level 2 Level 3
Equities

Non-U.S. equities 442   —   442   —  
Fixed income
Short-term investments 325   51   274   —  
Government securities 986   —   986   —  
Corporate bonds 584   —   584   —  
Mortgage/Asset-backed securities 9   —   9   —  
Insurance contracts 92   —   92   —  
Insurance buy-in contracts 1,976   —   —   1,976  
Investments in private funds
Private funds 154   —   —   154  

Total $ 4,568   $ 51   $ 2,387   $ 2,130  
Investments measured at NAV
Private funds 1  

Total assets at fair value $ 4,569  

  Non-U.S. Plans
December 31, 2024
Total Level 1 Level 2 Level 3
Equities
U.S. equities $ 209   $ —   $ 209   $ —  
Non-U.S. equities 436   —   436   —  
Fixed income
Short-term investments 385   68   317   —  
Government securities 1,317   —   1,317   —  
Corporate bonds 1,144   —   1,144   —  
Mortgage/Asset-backed securities 18   —   18   —  
Insurance contracts 90   —   90   —  
Insurance buy-in contracts 1,390   —   —   1,390  
Investments in private funds
Private funds 112   —   34   78  
Real estate funds 2   —   —   2  
Total $ 5,103   $ 68   $ 3,565   $ 1,470  
Investments measured at NAV
Private funds 1  
Real estate funds 1  
Total assets at fair value $ 5,105  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

The following table summarizes changes in the fair value of level 3 assets for both U.S. and non-U.S. plans:

  U.S. Plans Non-U.S. Plans
Direct Private Investments Real Estate Properties Private Funds Real Estate Funds Insurance Buy-in Contracts
Balance at December 31, 2023 $ 1,293   $ 977   $ 74   $ 16   $ 1,605  
Actual return on plan assets
Relating to assets still held at year-end 16   ( 14 ) 7   —   ( 215 )
Relating to assets sold during the year 61   —   ( 7 ) —   —  
Purchases 101   10   19   —   —  
Sales and settlements ( 134 ) ( 1 ) ( 15 ) ( 14 ) —  
Balance at December 31, 2024 1,337   972   78   2   1,390  
Actual return on plan assets
Relating to assets still held at year-end 41   7   8   —   20  
Relating to assets sold during the year 2   6   —   —   —  
Purchases 296   46   84   —   566  
Sales and settlements ( 198 ) ( 30 ) ( 16 ) ( 2 ) —  
Balance at December 31, 2025 $ 1,478   $ 1,001   $ 154   $ —   $ 1,976  

The Company enters into futures contracts to gain exposure to certain markets. Sufficient cash or cash equivalents are held by the Company's pension plans to cover the notional value of the futures contracts. As of December 31, 2025, and 2024, the Company's U.S. plans had contracts with notional amounts of $ 1,958 million and $ 1,991 million, respectively. As of December 31, 2025, and 2024, the Company's non-U.S. plans had contracts with notional amounts of $ 227 million and $ 195 million, respectively. In both the Company's U.S. and non-U.S. pension plans, the notional derivative exposure is related to outstanding equity and fixed income futures contracts.
Common stocks, preferred stocks, broad index exposures with ETFs, real estate investment trusts, and short-term investments are valued at the closing price reported in the active market in which the individual securities are traded. Corporate bonds, mortgage/asset-backed securities, and government securities are valued either by using pricing models, bids provided by brokers or dealers, quoted prices of securities with similar characteristics, or discounted cash flows, and as such, include adjustments for certain risks that may not be observable such as credit and liquidity risks. Certain securities are held in collective trust funds which are valued using net asset values provided by the administrators of the funds. Investments in private equity, debt, real estate and hedge funds, and direct private investments are valued at estimated fair value based on quarterly financial information received from the investment advisor and/or general partner. Investments in real estate properties are valued on a quarterly basis using the income approach. Valuation estimates are periodically supplemented by third party appraisals. The insurance buy-in contracts represent policies held by the Honeywell UK Pension Scheme, whereby the cost of providing pension benefits to plan participants is funded by the policies. The cash flows from the policies are intended to match the pension benefits. The fair value of these policies is based on an estimate of the policies' exit price.
The Company's funding policy for qualified defined benefit pension plans is to contribute amounts at least sufficient to satisfy regulatory funding standards. In 2025, 2024, and 2023, the Company was not required to make contributions to the U.S. pension plans and no contributions were made. The Company is not required to make any contributions to the U.S. pension plans in 2026. In 2025, contributions of $ 7 million were made to the non-U.S. pension plans to satisfy regulatory funding requirements. In 2026, the Company expects to make contributions of cash and/or marketable securities of approximately $ 6 million to the non-U.S. pension plans to satisfy regulatory funding standards. Contributions for both the U.S. and non-U.S. pension plans do not reflect benefits paid directly from Company assets.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid as follows:

U.S. Plans Non-U.S. Plans
2026 $ 1,261   $ 254  
2027 1,191   262  
2028 1,135   267  
2029 1,085   268  
2030 1,043   269  
2031-2035 4,543   1,373  

During the year ended December 31, 2025, the Company repurchased $ 500  million of outstanding Honeywell shares of common stock from the Honeywell U.S. Pension Plan Master Trust. During the year ended December 31, 2024, the Company completed no repurchases of outstanding Honeywell shares of common stock from the Honeywell U.S. Pension Plan Master Trust.
OTHER POSTRETIREMENT BENEFITS

  December 31,
2025 2024
Assumed health care cost trend rate
Health care cost trend rate assumed for next year 6.50   % 6.50   %
Rate that the cost trend rate gradually declines to 5.00   % 5.00   %
Year that the rate reaches the rate it is assumed to remain at 2031   2031  

Benefit payments reflecting expected future service, as appropriate, are expected to be paid as follows:

Without Impact of
Medicare Subsidy Net of
Medicare Subsidy
2026 $ 11   $ 11  
2027 11   10  
2028 10   10  
2029 10   9  
2030 9   9  
2031-2035 39   37  

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HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 21. OTHER (INCOME) EXPENSE

  Years Ended December 31,
2025 2024 2023
Interest income $ ( 369 ) $ ( 430 ) $ ( 321 )
Pension ongoing income—non-service ( 454 ) ( 526 ) ( 435 )
Other postretirement income—non-service ( 15 ) ( 11 ) ( 29 )
Equity income of affiliated companies ( 44 ) ( 47 ) ( 82 )
Gain on Resideo indemnification and reimbursement agreement termination ( 802 ) —   —  
Loss (gain) on sale of non-strategic businesses and assets 31   1   ( 5 )
Foreign exchange (income) loss
( 48 ) 45   ( 1 )

Divestiture-related costs 1
415   —   —  
Acquisition-related costs 43   44   7  
Expense (benefit) related to Russia-Ukraine conflict —   17   ( 3 )

Net expense related to the NARCO Buyout and HWI Sale —   —   11  
Other, net ( 4 ) 64   28  
Total Other (income) expense $ ( 1,247 ) $ ( 843 ) $ ( 830 )

1 Includes divestiture, spin-off, and separation costs.

See Note 19 Commitments and Contingencies for more information on the gain related to the Resideo indemnification and reimbursement agreement termination. See Note 4 Repositioning and Other Charges for further discussion of the expense related to the Russia-Ukraine conflict.

NOTE 22. SEGMENT FINANCIAL DATA
Honeywell globally manages its business operations through four reportable business segments. Segment information is consistent with how the Chairman and Chief Executive Officer, who is the Company's chief operating decision maker, and management reviews the businesses, makes investing and resource allocation decisions, and assesses operating performance.
Honeywell’s senior management evaluates segment performance based on segment profit. Each segment’s profit is measured as segment income (loss) before taxes excluding general corporate unallocated expense, interest and other financial charges, interest income, amortization of acquisition-related intangibles, certain acquisition- and divestiture-related costs, impairment of goodwill, impairment of assets held for sale, stock compensation expense, pension and other postretirement income (expense), repositioning and other (gains) charges, and other items within Other (income) expense.
In October 2025, the Company announced a planned realignment, expected to be effective in the first quarter of 2026, of its business units comprising its Industrial Automation and Energy and Sustainability Solutions reportable business segments. This realignment will form a new reportable business segment, Process Automation and Technology, and result in a new composition of its Industrial Automation reportable business segment. Process Automation and Technology will be comprised of UOP, which is currently in Energy and Sustainability Solutions, and the core portion of the Process Solutions business, which is currently in Industrial Automation. The new composition of Industrial Automation will continue to include the smart energy, thermal solutions, and process measurement and control businesses, currently included in the Process Solutions business, as well as the Sensing and Safety Technologies, Warehouse and Workflow Solutions, and Productivity Solutions and Services businesses. Following the realignment, the Company’s reportable business segments will be Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation. The realignment will not impact the Company’s historical consolidated financial position, results of operations, or cash flows. The Company expects to report its financial performance based on this realignment effective with the first quarter of 2026.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

Year Ended December 31, 2025 Aerospace Technologies Industrial Automation Building Automation Energy and Sustainability Solutions Corporate and All Other Total Honeywell
Net sales
Products $ 9,943   $ 6,389   $ 5,357   $ 2,826   $ —   $ 24,515  
Services 7,567   3,012   2,010   308   30   12,927  
Total Net sales 17,510   9,401   7,367   3,134   30   37,442  
Less
Cost of products and services sold 11,282   5,492   3,832   1,873  

Selling, general and administrative expenses 737   1,335   1,110   357  

Other segment items 1
1,207   831   472   212  
Total Segment profit $ 4,284   $ 1,743   $ 1,953   $ 692   $ ( 545 ) $ 8,127  

Depreciation and amortization $ 380   $ 343   $ 242   $ 226   $ 197   $ 1,388  
Capital expenditures 404   201   108   146   127   986  

1 For each reportable segment, the other segment items category includes research and development expenses, equity income of affiliated companies and certain allocated overhead expenses, which are comprised of salaries and fringe benefits, professional & purchased services, and other indirect spend across core corporate functions such as central IT, corporate finance, human resources, supply chain, legal, government relations, and other corporate functions.

Year Ended December 31, 2024 Aerospace Technologies Industrial Automation Building Automation Energy and Sustainability Solutions Corporate and All Other Total Honeywell
Net sales
Products $ 8,509   $ 7,175   $ 4,800   $ 2,357   $ —   $ 22,841  
Services 6,949   2,876   1,740   287   24   11,876  
Total Net sales 15,458   10,051   6,540   2,644   24   34,717  
Less
Cost of products and services sold 9,781   5,880   3,482   1,562  

Selling, general and administrative expenses 645   1,392   954   270  

Other segment items 1,044   817   423   197  
Total Segment profit $ 3,988   $ 1,962   $ 1,681   $ 615   $ ( 579 ) $ 7,667  

Depreciation and amortization $ 299   $ 362   $ 198   $ 104   $ 190   $ 1,153  
Capital expenditures 371   214   78   80   128   871  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

Year Ended December 31, 2023 Aerospace Technologies Industrial Automation Building Automation Energy and Sustainability Solutions Corporate and All Other Total Honeywell
Net sales
Products $ 7,316   $ 8,176   $ 4,599   $ 2,254   $ —   $ 22,345  
Services 6,308   2,580   1,432   332   12   10,664  
Total Net sales 13,624   10,756   6,031   2,586   12   33,009  
Less
Cost of products and services sold 8,362   6,379   3,240   1,599  

Selling, general and administrative expenses 538   1,361   884   231  

Other segment items 964   807   378   187  
Total Segment profit $ 3,760   $ 2,209   $ 1,529   $ 569   $ ( 504 ) $ 7,563  

Depreciation and amortization $ 267   $ 386   $ 107   $ 81   $ 163   $ 1,004  
Capital expenditures 310   194   79   76   82   741  

December 31, 2025 December 31, 2024

Aerospace Technologies $ 17,920   $ 16,966  
Industrial Automation 20,351   21,035  
Building Automation 10,883   11,438  
Energy and Sustainability Solutions 7,933   5,351  
Corporate and All Other 16,594   15,375  
Total assets $ 73,681   $ 70,165  

A reconciliation of segment profit to consolidated income before taxes are as follows:

Years Ended December 31,
2025 2024 2023
Segment profit $ 8,127   $ 7,667   $ 7,563  
Interest and other financial charges ( 1,344 ) ( 1,048 ) ( 749 )
Interest income 1
369   430   321  
Amortization of acquisition-related intangibles 2
( 570 ) ( 411 ) ( 290 )
Impairment of goodwill
( 724 ) —   —  
Impairment of assets held for sale ( 270 ) ( 219 ) —  
Stock compensation expense 3
( 196 ) ( 189 ) ( 197 )
Pension ongoing income 4
544   591   532  
Pension mark-to-market expense 4
( 163 ) ( 126 ) ( 153 )
Other postretirement income 4
15   11   29  
Repositioning and other gains (charges) 5
167   ( 239 ) ( 844 )
Other expense 6
( 479 ) ( 223 ) ( 21 )
Income before taxes $ 5,476   $ 6,244   $ 6,191  

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, and Other (income) expense.

6 Amounts include the other components of Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies is included in segment profit.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 23. GEOGRAPHIC AREAS—FINANCIAL DATA

  Net Sales 1
Long-lived Assets 2

Years Ended December 31, Years Ended December 31,
  2025 2024 2023 2025 2024 2023
United States $ 21,784   $ 19,531   $ 18,697   $ 3,192   $ 3,139   $ 2,660  
Europe 8,112   7,963   7,265   484   415   439  
Other international 7,546   7,223   7,047   952   903   932  
Total 3
$ 37,442   $ 34,717   $ 33,009   $ 4,628   $ 4,457   $ 4,031  

1 Sales between geographic areas approximate market value and are not significant. Net sales are classified according to their country of origin. Included in United States Net sales are export sales of $ 7,895 million, $ 4,760 million, and $ 4,134 million for the years ended December 31, 2025, 2024, and 2023, respectively.

2 Long-lived assets consists of Property, plant and equipment—net.

3 As of December 31, 2025 and 2024, total long-lived assets excludes $ 153 million and $ 155 million, respectively, that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations .

NOTE 24. SUPPLEMENTAL CASH FLOW INFORMATION

  Years Ended December 31,
2025 2024 2023
Net payments for repositioning and other charges
Severance and exit cost payments $ ( 153 ) $ ( 189 ) $ ( 280 )
Environmental payments ( 175 ) ( 221 ) ( 196 )
Reimbursement receipts 105   140   140  
Insurance receipts for asbestos-related liabilities 17   24   39  
Insurance receivables settlements, write-offs, and other —   9   26  
Asbestos-related liability payments ( 172 ) ( 233 ) ( 174 )
Total net payments for repositioning and other charges $ ( 378 ) $ ( 470 ) $ ( 445 )
Interest paid, net of amounts capitalized 1
$ 1,300   $ 869   $ 649  
Income taxes paid, net of refunds 1
1,798   1,689   1,581  
Non-cash investing and financing activities
Common stock contributed to savings plans 1
276   225   216  

1 Amounts include both continuing and discontinued operations.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars in tables in millions, except per share amounts)

NOTE 25. UNAUDITED QUARTERLY FINANCIAL INFORMATION
  2025
March 31 June 30 September 30 December 31
Net sales $ 8,925   $ 9,322   $ 9,437   $ 9,758  
Gross profit 3,462   3,664   3,233   3,470  
Net income (loss) from continuing operations
1,296   1,383   1,895   ( 106 )
Net income (loss) from discontinued operations
171   186   ( 36 ) ( 17 )
Net income (loss) attributable to Honeywell
$ 1,449   $ 1,570   $ 1,825   $ ( 115 )

Earnings (loss) per common share from continuing operations—basic 1
$ 1.99   $ 2.17   $ 2.97   $ ( 0.15 )
Earnings (loss) per common share from discontinued operations—basic 1
0.25   0.29   ( 0.10 ) ( 0.03 )
Earnings (loss) per common share—basic
$ 2.24   $ 2.46   $ 2.87   $ ( 0.18 )

Earnings (loss) per common share from continuing operations—assuming dilution 1
$ 1.97   $ 2.16   $ 2.96   $ ( 0.15 )
Earnings (loss) per common share from discontinued operations—assuming dilution 1
0.25   0.29   ( 0.10 ) ( 0.03 )
Earnings (loss) per common share—assuming dilution 1
$ 2.22   $ 2.45   $ 2.86   $ ( 0.18 )
Cash dividends per common share $ 1.13   $ 1.13   $ 1.13   $ 1.19  

  2024
March 31 June 30 September 30 December 31
Net sales $ 8,157   $ 8,572   $ 8,819   $ 9,169  
Gross profit 3,222   3,351   3,419   3,365  
Net income from continuing operations
1,290   1,336   1,226   1,143  
Net income from discontinued operations
185   224   189   147  
Net income attributable to Honeywell
$ 1,462   $ 1,545   $ 1,413   $ 1,285  

Earnings per common share from continuing operations—basic 1
$ 1.96   $ 2.04   $ 1.87   $ 1.76  
Earnings per common share from discontinued operations—basic 1
0.28   0.33   0.30   0.22  
Earnings per common share—basic 1
$ 2.24   $ 2.37   $ 2.17   $ 1.98  

Earnings per common share from continuing operations—assuming dilution 1
$ 1.95   $ 2.03   $ 1.86   $ 1.74  
Earnings per common share from discontinued operations—assuming dilution 1
0.28   0.33   0.30   0.22  
Earnings per common share—assuming dilution 1
$ 2.23   $ 2.36   $ 2.16   $ 1.96  
Cash dividends per common share $ 1.08   $ 1.08   $ 1.08   $ 1.13  

1 Total for the full year may differ from the sum of the individual quarters due to the requirement to use weighted average shares each quarter, which may fluctuate with share repurchases and share issuances, and due to the impact of losses in a quarter.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareowners and the Board of Directors of Honeywell International Inc.
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Honeywell International Inc. and subsidiaries (the "Company" or “Honeywell”) as of December 31, 2025 and 2024, and the related consolidated statements of operations, comprehensive income, shareowners’ equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
As described in Management’s Report on Internal Control Over Financial Reporting, management excluded from its assessment the internal control over financial reporting at Sundyne, which was acquired on June 6, 2025. The total revenues and net income of Sundyne represent less than 1% each of the related consolidated financial statement amounts as of December 31, 2025, and net and total assets of Sundyne represent 12% and 3%, respectively, of the related consolidated financial statement amounts as of December 31, 2025. Accordingly, our audit did not include the internal control over financial reporting at Sundyne.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
Basis for Opinions
The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Revenue Recognition and Contracts with Customers – Long-Term Contracts – Refer to Note 1 and Note 3 to the financial statements
Critical Audit Matter Description
The Company has several businesses which enter into long-term contracts whereby revenue is recognized over the contract term (“over time”) as the work progresses and control of the goods and services are continuously transferred to the customer. Revenue for these contracts is recognized based on the extent of progress towards completion, generally measured by using a cost-to-cost input method.
Accounting for long-term contracts requires management’s judgment in estimating total contract costs. Contract costs, which can be incurred over several years, are largely determined based on negotiated or estimated purchase contract terms and consider factors such as historical performance trends, inflationary trends, technical and schedule risk, internal and subcontractor performance trends, business volume assumptions, asset utilization and anticipated labor agreements.
Given the significance of the judgments necessary to estimate costs associated with these long-term contracts (which vary upon the length of the contract), auditing long-term contracts requires a high degree of auditor judgment.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to long-term contracts included the following, among others:
• We tested the effectiveness of internal controls over the recognition of revenue and the determination of estimated contract costs including controls over the review of management’s assumptions and key inputs used to recognize revenue and costs on long-term contracts using the cost-to-cost input method.
• We evaluated the appropriateness and consistency of management’s methods and assumptions used to recognize revenue and costs on long-term contracts using the cost-to-cost input method to recognize revenue over time.
• We tested recorded revenue using a combination of analytical procedures and detailed contract testing.

/S/ DELOITTE & TOUCHE LLP

Charlotte, North Carolina
February 17, 2026
We have served as the Company's auditor since 2014.
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CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Not applicable.

CONTROLS AND PROCEDURES
Honeywell management maintains disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized, and reported within the specified time periods and accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. There have been no changes that have materially affected, or are reasonably likely to materially affect, Honeywell’s internal control over financial reporting that have occurred during the quarter ended December 31, 2025.
Our management, with the participation of our CEO and CFO, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Exchange Act) as of December 31, 2025. Based on these evaluations, our CEO and CFO concluded that our disclosure controls and procedures were effective as of December 31, 2025.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Honeywell management is responsible for establishing and maintaining adequate internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Honeywell’s internal control over financial reporting is a process designed to provide reasonable assurance to our management and Board of Directors regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Management assessed the effectiveness of Honeywell’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013) .
Based on this assessment, management determined that Honeywell maintained effective internal control over financial reporting as of December 31, 2025.
In accordance with guidance issued by the Securities and Exchange Commission, companies are allowed to exclude acquisitions from their assessment of internal control over financial reporting during the first year in which the acquisition occurred. Management’s assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025 excluded Sundyne, which was acquired by the Company on June 6, 2025. The total revenues and net income of Sundyne represent less than 1% each of the related consolidated financial amounts as of December 31, 2025, and net and total assets of Sundyne represent 12% and 3%, respectively, of the related consolidated financial amounts as of December 31, 2025.
The effectiveness of Honeywell’s internal control over financial reporting as of December 31, 2025, has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which is included in the section titled Financial Statements and Supplementary Data .
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OTHER INFORMATION
EQUITY TRADING ARRANGEMENTS ELECTIONS
Certain executive officers and directors of the Company may execute purchases and sales of the Company's common stock through Rule 10b5-1 and non-Rule 10b5-1 equity trading arrangements. The following table describes 10b5-1 trading arrangements adopted or modified by our executive officers and directors during the three months ended December 31, 2025:

Name and title Action Plan Type Date of adoption of Rule 10b5-1 trading plan Scheduled expiration of Rule 10b5-1 trading plan Aggregate number of securities to be purchased or sold
Robert D. Mailloux
Vice President and Controller
Modification
Rule 10b5-1
8/26/2025 8/31/2026 21,097 stock options and associated sale of shares to cover option exercise costs and tax obligations.

Grace Lieblein
Board Member
Adoption Rule 10b5-1 11/24/2025 7/7/2026 7,777 stock options and associated sale of shares to cover option exercise costs and tax obligations.

Ken West
President and Chief Executive Officer, ESS
Adoption Rule 10b5-1 11/24/2025 3/31/2027 3,264 restricted stock units and associated sale of shares to cover tax obligations.

During the three months ended December 31, 2025, none of our executive officers or directors terminated a "Rule 10b5-1 trading arrangement," or adopted, terminated, or modified any "non-Rule 10b5-1 trading arrangement" (each as defined in Item 408(c) of Regulation S-K).
OTHER INFORMATION
Adjustment of certain items in our unaudited consolidated financial statements as of and for the year ended December 31, 2025 included within our earnings release for the fourth quarter and full year 2025.
In connection with the ongoing sale process of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, the Company continually evaluates information relevant to the financial analysis associated with the sale as it becomes available. Subsequent to the Company's fourth quarter earnings release on January 29, 2026 (the Earnings Release), the Company received incremental information that resulted in additional impairments to goodwill of $436 million and assets held for sale of $35 million, with an offsetting tax benefit of $61 million, in its consolidated financial statements for the year ended December 31, 2025. Therefore, Honeywell’s full-year reported earnings per share from continuing operations was revised to $6.94, net income from continuing operations was revised to $4,468 million, operating income was revised to $5,573 million, and operating margin was revised to 14.9%.

The information set forth below is included for the purpose of providing disclosure under Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers of Form 8-K.
On February 13, 2026, the Board of Directors of Honeywell International Inc. (the Company) approved the appointment of James Currier, age 59, as President and Chief Executive Officer of Honeywell Aerospace Inc., which will become an independent, publicly traded company following its planned spin-off (the Spin-Off) from the Company expected to be completed in the third quarter of 2026. In connection with this appointment, Mr. Currier entered into an offer letter (the Offer Letter) with the Company on February 17, 2026. Effective upon completion of the Spin-Off, Mr. Currier will resign from his position as President and Chief Executive Officer for the Aerospace Technologies segment of the Company to assume his role as President and Chief Executive Officer of Honeywell Aerospace Inc. and will thereafter cease to be an executive officer of the Company.
Mr. Currier has served as the President and CEO of the Company’s Aerospace Technologies business since 2023. Previously, he spent nearly two decades in senior roles across the globe at the Company, including as President of the Electronic Solutions business, President of the Company’s Aftermarket organization across Europe, Middle East, Africa and India, and Vice President of Airlines, North America. Mr. Currier holds a Bachelor of Science degree in Mechanical Engineering from the University of Miami.
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Under the terms of the Offer Letter, effective upon completion of the Spin-Off, Mr. Currier’s base salary will be adjusted to $1,400,000; his target annual incentive compensation opportunity will be 175% of base salary applied to his earnings after the Spin-Off; and he will be eligible for annual long-term incentive awards with a target grant date value of $13,000,000, which in 2026 will entitle him to receive the difference between this target amount and the value of any long-term incentives granted to him by the Company prior to the completion of the Spin-Off.
The description of the offer letter contained herein is subject to and qualified in its entirety by reference to Exhibit 10.66 to this Annual Report on Form 10-K and is incorporated herein by reference.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.

DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
Information relating to the Directors of Honeywell, as well as information relating to Honeywell's insider trading policies and practices and compliance with Section 16(a) of the Securities Exchange Act of 1934, will be contained in the Proxy Statement, which will be filed with the SEC pursuant to Regulation 14A not later than 120 days after December 31, 2025, and such information is incorporated herein by reference. Certain information relating to the Executive Officers of Honeywell appears in this Form 10-K in the section titled Information about Our Executive Officers .
The members of the Audit Committee of our Board of Directors are: Michael W. Lamach (Chair), William S. Ayer, Kevin Burke, D. Scott Davis, Marc Steinberg, Robin Watson, and Stephen Williamson. The Board has determined that Mr. Davis and Mr. Williamson are Audit Committee financial experts as defined by applicable SEC rules and that each member of the Audit Committee satisfies the financial sophistication criteria established by the Nasdaq. All members of the Audit Committee are independent as that term is defined in applicable SEC rules and Nasdaq listing standards.
Honeywell’s corporate governance policies and procedures, including the Code of Business Conduct, Corporate Governance Guidelines, Insider Trading Policy , and Charters of the Committees of the Board are available, free of charge, on our Investor Relations website (investor.honeywell.com) under the heading Governance (see Governance Overview), or by writing to Honeywell, 855 South Mint Street, Charlotte, North Carolina 28202, c/o Senior Vice President, General Counsel and Corporate Secretary. Honeywell’s Code of Business Conduct applies to all Honeywell directors, officers (including the Chief Executive Officer, Chief Financial Officer, and Controller), and employees. Amendments to or waivers of the Code of Business Conduct granted to any of Honeywell’s directors or executive officers will be published on our website within four business days of such amendment or waiver.

EXECUTIVE COMPENSATION
Information relating to executive compensation, including the Management Development and Compensation Committee Report and disclosures regarding compensation committee interlocks and insider participation will be contained in the Proxy Statement, and such information is incorporated herein by reference.
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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Information relating to security ownership of certain beneficial owners and management and related stockholder matters will be contained in the Proxy Statement, and such information is incorporated herein by reference.
EQUITY COMPENSATION PLANS
As of December 31, 2025, information about our equity compensation plans was as follows:

Plan category Number of Securities
to be Issued
Upon Exercise of
Outstanding Options,
Warrants, and Rights Weighted Average
Exercise Price of
Outstanding
Options, Warrants,
and Rights Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation
Plans (Excluding
Securities Reflected in
Column (a))
(a) (b) (c)
Equity compensation plans approved by security holders 12,997,866  1
$ 172.59  2
27,733,434  3

Equity compensation plans not approved by security holders 143,508  4
N/A 5
N/A 6

Total 13,141,374     $ 172.59     27,733,434    

1 Equity compensation plans approved by shareowners which are included in column (a) of the table are the 2016 Stock Incentive Plan and the 2011 Stock Incentive Plan (including 10,057,556 shares of Common Stock to be issued for options, 2,167,360 RSUs subject to continued employment, 443,778 RSUs subject to performance and continued employment; and 170,233 deferred RSUs), and the 2016 Stock Plan for Non-Employee Directors and the 2006 Stock Plan for Non-Employee Directors (including 122,093 shares of Common Stock to be issued for options, 6,456 RSUs subject to continued services, and 3,649 deferred RSUs). RSUs included in column (a) of the table represent the full number of RSUs awarded and outstanding whereas the number of shares of Common Stock to be issued upon vesting will be lower than what is reflected on the table because the value of shares required to meet employee tax withholding requirements are not issued.
Because the number of future shares that may be distributed to employees participating in the Honeywell Global Stock Plan is unknown, no shares attributable to that plan are included in column (a) of the table above.

2 Column (b) relates to stock options and does not include any exercise price for RSUs because an RSU’s value is dependent upon attainment of certain performance goals and/or continued employment or service and they are settled for shares of Common Stock on a one-for-one basis.

3 The number of shares that may be issued under the 2016 Stock Incentive Plan as of December 31, 2025, is 25,300,077, which includes the following additional shares that may again be available for issuance: shares that are settled for cash, expire, are canceled, or under similar prior plans, are tendered as option exercise price or tax withholding obligations, are reacquired with cash option exercise price or with monies attributable to any tax deduction to Honeywell upon the exercise of an option, or are under any outstanding awards assumed under any equity compensation plan of an entity acquired by Honeywell. No securities are available for future issuance under the 2011 Stock Incentive Plan.
The number of shares that may be issued under the Honeywell Global Stock Plan as of December 31, 2025, is 1,664,759. This plan is an umbrella plan for three plans described below maintained solely for eligible employees of participating non-U.S. countries.
• The UK Sharebuilder Plan allows an eligible UK employee to invest taxable earnings in Common Stock. The Company matches those shares and dividends paid are used to purchase additional shares of Common Stock. For the year ended December 31, 2025, 25,860 shares were credited to participants’ accounts under the UK Sharebuilder Plan.
• The Honeywell Aerospace Ireland Share Participation Plan allows eligible Irish employees to contribute a percentage of base pay and/or bonus that is invested in Common Stock. For the year ended December 31, 2025, 881 shares of Common Stock were credited to participants’ accounts under these plans.
• The remaining 768,598 shares included in column (c) are shares remaining under the 2016 Stock Plan for Non-Employee Directors.

4 Equity compensation plans not approved by shareowners included in the table refer to the Honeywell Excess Benefit Plan and Supplemental Savings Plan.
The Honeywell Excess Benefit Plan and Supplemental Savings Plan for certain highly compensated employees is an unfunded, non-tax qualified plan that provides benefits equal to the employee deferrals and Company matching allocations that would have been provided under Honeywell’s U.S. tax-qualified savings plan if the Internal Revenue Code limitations on compensation and contributions did not apply. The Company matching contribution is credited to participants’ accounts in the form of notional shares of Common Stock. The notional shares are distributed in the form of actual shares of Common Stock. The number of shares to be issued under this plan based on the value of the notional shares as of December 31, 2025, is 143,508.

5 Column (b) does not include any exercise price for notional shares allocated to employees under Honeywell’s equity compensation plans not approved by shareowners because all of these shares are only settled for shares of Common Stock on a one-for-one basis.