Honeywell International Inc. Common Stock Ex Distribution When Issued

Strong Q2 performance; guidance raised (good surprise) - Organic sales +4%; orders +16% organic; ending backlog +9% (and short-cycle orders double digit across all segments). - Segment margins improved +100 bps in Q2 (to 19% overall), helped by productivity/volume leverage and progress on stranded cost removal. - Adjusted EPS $1.95 (+10%); free cash flow ~ $0.5B (benefited from working capital improvements; offset by Middle East collection headwinds).

Full-year 2026 outlook increased across key metrics (forecasts) - Organic sales growth raised to 3%–4% (from 2%–3%); 2H growth now 4%–6% (from 3%–5%). - Full-year segment margin expansion to 250–290 bps (midpoint +25 bps vs prior guide); expects exit year >22% segment margin. - Adjusted EPS raised to $8.20 at midpoint (from $8.10), ~+27% vs prior year. - Free cash flow expected ~ $2B in 2026, with ~95% conversion and “majority in 2H”.

Business momentum expected to accelerate in 2H (what to watch) - Building Automation: mid-single-digit-plus organic growth outlook; strong orders, including data centers, healthcare, hospitality; execution momentum continues. - Process Automation & Technology (PA&T): expects sharp growth inflection in 3Q onward, high single-digit 2H growth as backlog conversion ramps and catalyst shipments increase. - Q2 PA&T had a 1% organic sales decline, but management emphasized it was ahead of expectations and expected to rebound in 2H. - Industrial Automation: expects continued 2H momentum (short-cycle demand resilient; sensing/measurement strong). IA margin and recovery improved faster than initially planned.