In Q4 2024, the increase in net sales was driven by several key factors. **Organic sales growth** contributed **2%**, propelled by strong double-digit growth in areas such as defense, space, and building solutions. In addition, **acquisitions** played a role, with approximately **$8.9 billion allocated** to acquisitions out of a record **$14.6 billion of capital deployment** in 2024. There was also a notable **backlog increase of 11% to a record $35.3 billion**, signaling strong future demand, and when excluding the impact of the Bombardier agreement, the organic sales growth was even more pronounced at **6%**. These factors collectively contributed to the **7% increase** in net sales compared to the previous year.  **[20250206NY13051:10]** **[0000773840-25-000005_exhibit991-q42024earningsr.htm:0]** 

What drove the increase in net sales in Q4 2024?

Honeywell’s net income was lower in Q3 2024 primarily because the company recorded a **$125 million impairment charge** on assets in the personal protective equipment business, which significantly reduced earnings. Additionally, **higher interest expenses increased to $297 million** in Q3 2024 (compared to $206 million in Q3 2023), further diminishing net income. The decline was also supported by **lower operating income**—with operating income dropping by 4% and the operating margin contracting by 180 basis points to 19.1%—and a high **tax expense of $409 million**. These factors combined led to a net income decline of approximately **$101 million** from Q3 2023 to Q3 2024.  **[0000773840-24-000099_hon-20240930.htm:48]** **[0000773840-24-000099_hon-20240930.htm:47]** **[0000773840-24-000099_hon-20240930.htm:4]** **[0000773840-24-000097_exhibit99-q32024earningsre.htm:0]** **[20241024NY38930:1]** 

Why was net income lower in Q3 2024?

The **EPS decline in Q4 2024** was primarily driven by the **negative impact of the Bombardier agreement**. Specifically, while adjusted EPS grew by **9%** without its effect, including the Bombardier impact led to an **8% decline** year-over-year. In addition, there was an **8% decrease in segment profit** and a **350 basis point contraction in segment margin** (down to **20.9%**), as well as a **27% decline in free cash flow** mainly due to the cash contributions related to the Bombardier agreement.  **[0000773840-25-000005_exhibit991-q42024earningsr.htm:0]** **[20250206NY13051:1]** **[HON_3414625_6]** 

What contributed to the EPS decline in Q4 2024?

Honeywell’s higher interest and financial charges in Q4 2024 were primarily driven by its issuance of long-term debt during the twelve months ended December 31, 2024, which significantly increased the interest expenses from **$202 million** in Q4 2023 to **$291 million** in Q4 2024.  **[0000773840-25-000010_hon-20241231.htm:20]** **[0000773840-25-000005_exhibit991-q42024earningsr.htm:7]** 

What factors led to higher interest and financial charges in Q4 2024?

Honeywell's **R&D expenses increased in Q4 2024** because the company ramped up its investments in innovation and growth. The increase was driven by a **higher R&D spending across its portfolio**, particularly in aerospace electrification, sustainability, and advanced materials, aligning with its strategic focus on advanced technologies. Additionally, the boost in spending supported investments in **electrification and autonomous technologies** to meet global carbon reduction goals, and was part of strategic capital allocation efforts balancing growth initiatives with other priorities.  **[HON_3414625_21]** **[HON_3414625_4]** 

Why did R&D expenses increase in Q4 2024?

aa9482c826331386fead85859594cd3a994946472711dbfd35a4c4b080d23472

The significant turnaround in operating cash flow in Q1 2024 was primarily driven by the absence of a **$1,325 million** NARCO Buyout Payment that impacted Q1 2023, a **$283 million decrease in noncash adjustments** (including a **$222 million reduction in deferred income taxes**), and **improved working capital** changes contributing an additional **$78 million** in benefits.  **[0000773840-24-000051_hon-20240331.htm:38]** **[0000773840-24-000051_hon-20240331.htm:37]** 

What drove the significant turnaround in operating cash flow in Q1 2024?

The decline in operating cash flow for Q4 2024 compared to Q4 2023 was primarily due to a combination of factors. **Repositioning and other charges** dropped significantly from **$529 million** in Q4 2023 to **$55 million** in Q4 2024, indicating a reduction in restructuring activities. Changes in **deferred income taxes** also played a role, shifting from a **$15 million expense** in Q4 2023 to a **$187 million benefit** in Q4 2024, which affected the cash flow conversion. Additionally, modifications in **working capital**—with a lower increase in **accounts receivable** (from **$302 million** to **$122 million**), a less negative impact from **inventories** (from **$178 million** to **$71 million**), and a slight decrease in the positive contribution of **accounts payable** (from **$422 million** to **$237 million**)—further contributed to the decline. These combined factors resulted in a **23% drop** in net cash provided by operating activities, from **$2,955 million** in Q4 2023 to **$2,281 million** in Q4 2024.  **[0000773840-25-000005_exhibit991-q42024earningsr.htm:18]** **[0000773840-25-000005_exhibit991-q42024earningsr.htm:9]** 

Why did operating cash flow decline in Q4 2024 compared to Q4 2023?

What factors contributed to the dramatic improvement in free cash flow in Q1 2024?

Why did free cash flow drop in Q4 2024 compared to Q4 2023?

5cadfeacf4990fae19758245bf75a58cb1ac8d3ae8b9d70164efb6e9006d016f

The spike in **cash and cash equivalents** in Q1 2024 was primarily driven by a strong cash inflow from financing activities, especially a **$5,710 million** influx from the issuance of long-term debt to fund the Carrier acquisition. This substantial inflow, combined with **$448 million** generated from operating activities, far outweighed the **$273 million** used for investing activities, leading to a net increase of **$3,831 million** in cash and cash equivalents for the period.  **[0000773840-24-000051_hon-20240331.htm:37]** **[0000773840-24-000045_exhibit99-q12024earningsre.htm:6]** 

Why did Cash and cash equivalents spike in Q1 2024?

The notable increase in **Total assets** in Q4 2024 was driven primarily by a series of strategic acquisitions and portfolio optimizations. **Goodwill** surged from **$18,049 million** in 2023 to **$21,825 million** in 2024, reflecting significant acquisition activity—including the deployment of **$8.9 billion** for acquisitions—as well as an increase in **Other Intangible Assets** from **$3,231 million** to **$6,656 million**. Additionally, there was a rise in **Cash and Cash Equivalents** from **$7,925 million** to **$10,567 million**, supported by robust operating cash flows, and the inclusion of **Assets Held for Sale** amounting to **$1,365 million** in 2024, which further contributed to the overall increase.  **[0000773840-25-000010_hon-20241231.htm:148]** **[0000773840-25-000005_exhibit991-q42024earningsr.htm:0]** **[0000773840-25-000010_hon-20241231.htm:78]** 

What drove the notable increase in Total assets in Q4 2024?

Honeywell’s significant rise in long-term debt in Q3 2024 was primarily driven by the **issuance of several new debt instruments**. The company issued multiple new notes—including **4.65% notes due 2027 for $1,150 million**, **4.875% notes due 2029 for $500 million**, **4.70% notes due 2030 for $1,000 million**, and several others—that collectively increased its debt levels. These new issuances far outweighed the repayments of maturing debt, such as the repayment of **0.00% Euro notes due 2024 ($547 million)** and **2.30% notes due 2024 ($750 million)**, resulting in the long-term debt growing from **$16,562 million** at the end of 2023 to **$25,934 million** by September 30, 2024.  **[0000773840-24-000099_hon-20240930.htm:5]** **[0000773840-24-000099_hon-20240930.htm:26]** **[20241024NY38930:8]** 

What factors led to the significant rise in Long-term debt in Q3 2024?

The jump in **Commercial paper and other short-term borrowings** in Q2 2024 was primarily driven by a substantial increase in proceeds from the issuance of these instruments, which totaled **$6,993 million** during the first six months of 2024. At the same time, the company repaid **$4,489 million**, leading to a net increase of **$2,463 million**. This net increase was likely used to support general corporate purposes, including significant funding for acquisitions, where **$4,913 million** was paid in cash during the first half of 2024.  **[0000773840-24-000081_exhibit99-q22024earningsre.htm:7]** 

Why did Commercial paper and other short-term borrowings jump in Q2 2024?

The surge in **Other intangible assets—net** in Q4 2024 is primarily explained by a combination of factors. First, **acquisitions and divestitures** played a major role, where the net carrying amounts of **$116 million** for customer relationships and **$481 million** for indefinite-life trademarks were excluded since these assets were held for sale. Additionally, an **impairment charge of $48 million** on indefinite-lived intangible assets from the personal protective equipment business further influenced the change. Finally, an **amortization expense of $415 million** on intangible assets contributed to the overall adjustment, resulting in the net carrying amount increasing from **$3,231 million** at the end of 2023 to **$6,656 million** in Q4 2024.  **[0000773840-25-000010_hon-20241231.htm:108]** **[0000773840-25-000010_hon-20241231.htm:78]** 

What explains the surge in Other intangible assets—net in Q4 2024?

167ffed880cb5328117ea107852543efdbf909dd0a43cbe87f46c0320582f304

Product sales (USD, millions)

Service sales (USD, millions)

Net sales (USD, millions)

Cost of products sold (USD, millions)

Cost of services sold (USD, millions)

Total Cost of products and services sold (USD, millions)

Research and development expenses (USD, millions)

Selling, general and administrative expenses (USD, millions)

Impairment of assets held for sale (USD, millions)

Other (income) expense (USD, millions)

Interest and other financial charges (USD, millions)

Total costs, expenses and other (USD, millions)

Income before taxes (USD, millions)

Tax expense (USD, millions)

Net income (USD, millions)

Less: Net income attributable to noncontrolling interest (USD, millions)

Net income attributable to Honeywell (USD, millions)

Earnings per share of common stock—basic (USD)

Earnings per share of common stock—assuming dilution (USD)

3115ba2b4daa1bbb9fa778359f7ea8ed2b7f8bd66959e4f7a193016b95623160

8c4cc048425906a60bd8b7a6c9d23514c4d57a08fccc8eacf3e351f9c95905ef

Cash and cash equivalents (USD, millions)

Short-term investments (USD, millions)

Accounts receivable, less allowances (USD, millions)

Inventories (USD, millions)

Assets held for sale (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Investments and long-term receivables (USD, millions)

Property, plant and equipment—net (USD, millions)

Goodwill (USD, millions)

Other intangible assets—net (USD, millions)

Insurance recoveries for asbestos-related liabilities (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Accounts payable (USD, millions)

Commercial paper and other short-term borrowings (USD, millions)

Current maturities of long-term debt (USD, millions)

Accrued liabilities (USD, millions)

Liabilities held for sale (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Postretirement benefit obligations other than pensions (USD, millions)

Asbestos-related liabilities (USD, millions)

Other liabilities (USD, millions)

Redeemable noncontrolling interest (USD, millions)

Total shareowners’ equity (USD, millions)

Total liabilities, redeemable noncontrolling interest and shareowners’ equity (USD, millions)

a61066779308bc443096447461c23984829d94b3c693630be5f2114d1b129545

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

e6c90df8207280731386776d1c813c6eec05e92990de42c12ee0f7e5bbe13c66

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

c943a67fd3694ce09788255bdf8c1c7a305cc8631e546c23e3ae16a848a13b4d

4a54ace57adee7a1d1bc5ad29a7bd7b28b4efef345590d30d15b9e7b4ac6e055

Remaining performance obligations for Aerospace Technologies (USD millions)

Remaining performance obligations for Industrial Automation (USD millions)

Remaining performance obligations for Building Automation (USD millions)

Remaining performance obligations for Energy and Sustainability Solutions (USD millions)

Remaining performance obligations for Corporate and All Other (USD millions)

Total remaining performance obligations (USD millions)

d6d1553526d28f0db19432c1912618860f537e16502dca4147decea80fc24e41

United States

Europe

Other International

Total Revenue

dd0c69c6d5e2350c5b6da1cdcd51ce8b6a1226da62abd21a7707ecfc280a17be

a928495979a45133237e85e69446535dff9b829c4ea51e6fe10864002db53a97

HONEYWELL INTERNATIONAL (HON)

Financials