On February 6, 2025, Honeywell announced its intention to separate its Automation and Aerospace Technologies businesses into independent, U.S. publicly traded companies, expected to be completed in the second half of 2026. This strategic move aims to create more focused and agile entities.

On March 4, 2025, the Company agreed to acquire Sundyne in an all-cash transaction for $2,160 million, expected to close in the second quarter of 2025. This acquisition will be included within the Energy and Sustainability Solutions reportable business segment.

On November 22, 2024, the Company announced it reached an agreement to sell its personal protective equipment (PPE) business for $1,325 million in an all-cash transaction. The transaction is expected to be completed in the second quarter of 2025.

The Company recognized gross repositioning charges totaling $36 million, including severance costs of $24 million related to workforce reductions of 713 manufacturing and administrative positions primarily in the Company's Building Automation and Industrial Automation reportable business segments. The workforce reductions related to productivity and ongoing functional transformation initiatives.

The backlog of orders increased 13% to $36.1 billion, as of March 31, 2025, compared to March 31, 2024. This indicates strong future revenue potential.

During the three months ended March 31, 2025, Honeywell repurchased 8.9 million shares of its common stock for $1.9 billion. This reflects management's view that shares are undervalued and demonstrates confidence in future cash flow generation.

The company is closely monitoring evolving macroeconomic conditions and heightened geopolitical risks, including rising trade tensions, global conflicts, and regulations that generate volatility in global markets and can contribute to supply chain vulnerabilities and pricing fluctuations.

The Aerospace Technologies business is impacted by customer buying patterns of aftermarket parts, supplier stability, factory transitions, and global supply chain capacity constraints that may lead to shortages of crucial components.

The Industrial Automation business is impacted by reduced investments in process automation, safety monitoring, and plant capacity utilization initiatives, fluctuations in retail markets, a slowdown in demand for safety products, changes in the competitive landscape.

Aerospace Technologies sales increased due to higher organic sales in Commercial Aviation Aftermarket driven by higher sales volumes in air transport and higher organic sales in Defense and Space driven by higher sales volumes due to increased shipments.

Industrial Automation sales decreased due to lower organic sales in Productivity Solutions and Services driven by a decrease in license and settlement payments, lower organic sales in Sensing and Safety Technologies driven by lower demand for personal protective equipment.

Building Automation sales increased due to higher organic sales in Building Solutions and higher organic sales in Products, both driven by higher demand. The acquisition of Access Solutions contributed to first quarter 2025 sales.

Workforce reductions related to productivity and ongoing functional transformation initiatives resulted in severance costs of $24 million. This indicates a continued focus on improving operational efficiency.

Amounts outstanding related to supply chain financing programs are included in Accounts payable in the Consolidated Balance Sheet. Accounts payable included approximately $1,108 million and $1,150 million as of March 31, 2025, and December 31, 2024, respectively. The impact of these programs is not material to the Company's overall liquidity.

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.

Research and development expenses increased due to increased spending, primarily in our Aerospace Technologies business. This indicates a focus on innovation and technological advancements in this segment.

Through Quantinuum, Honeywell provides a wide range of service offerings of fully integrated quantum computing hardware and software solutions.

Aerospace Technologies products and services include data and software applications, indicating a focus on digital solutions and data-driven insights.

During the three months ended March 31, 2025, Honeywell repurchased 8.9 million shares of its common stock, par value $1 per share. As of March 31, 2025, $3.6 billion remained available under the share repurchase authorization.

Capital expenditures are allocated across business segments, with significant investments in Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions. This demonstrates a balanced approach to capital allocation across the company's various business units.

The Company repurchased $200 million of outstanding Honeywell shares of common stock from the Honeywell U.S. Pension Plan Master Trust during the three months ended March 31, 2025.

The Company is subject to various federal, state, local, and foreign government requirements relating to the protection of the environment. The company continually conducts studies to determine the feasibility of various remedial techniques.

The Company is cooperating with a formal investigation by the Securities and Exchange Commission (SEC) which is primarily focused on certain accounting matters with respect to the Company's former Performance Materials and Technologies segment.

In conjunction with the Resideo Technologies, Inc. (Resideo) spin-off, the Company entered into an indemnification and reimbursement agreement with a Resideo subsidiary, pursuant to which Resideo's subsidiary has 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.

The company is closely monitoring evolving macroeconomic conditions and heightened geopolitical risks, including rising trade tensions, global conflicts, and regulations that generate volatility in global markets and can contribute to supply chain vulnerabilities and pricing fluctuations.

We anticipate a moderation in global growth in 2025 and a higher level of uncertainty with respect to inflation and other macroeconomic trends.

The Company and each of its businesses may continue to be, negatively affected by global macroeconomic conditions, including the impacts of inflation, high interest rates, supply chain and labor disruptions, unemployment rates, geopolitical instability and regional conflicts, the adoption and expansion of trade restrictions and tariffs, quotas, embargoes, and other related actions, and the occurrence or threat of a trade war or other governmental action related to tariffs or trade agreements or policies.