Honeywell Aerospace · Earnings release

HONEYWELL AEROSPACE INC.

(Dollars in millions)

Condensed Combined Statements of Operations

(Unaudited)

Product Sales

$

$

$

$

$

Service Sales

Total Net sales

Costs, expenses and other

Cost of products sold

Cost of services sold

Total cost of products and services sold

Research and development expenses

Selling, general and administrative expenses

Other expense, net

6

Total costs, expenses and other

Income before taxes

Income tax expenses

Net income

Less: Net income attributable to noncontrolling interest

9

8

8

Net income attributable to Honeywell Aerospace

$

$

$

$

$

Product Sales

$

$

$

$

$

Service Sales

Total Net sales

Costs, expenses and other

Cost of products sold

Cost of services sold

Total cost of products and services sold

Research and development expenses

Selling, general and administrative expenses

Other expense, net

Total costs, expenses and other

Income before taxes

Income tax expenses

Net income

Less: Net income attributable to noncontrolling interest

7

8

7

Net income attributable to Honeywell Aerospace

$

$

$

$

$

HONEYWELL AEROSPACE INC.

(Dollars in millions)

Supplemental Quarterly Segment Information

(Unaudited)

Net Sales by Reportable Segment

Electronic Solutions

$

$

$

$

$

Engines and Power Systems(1)

Control Systems

Total Net sales

$

$

$

$

$

Net Sales by End Market

Commercial Original Equipment

$

$

$

$

$

Commercial Aftermarket(1)

Defense and Space

Total Net sales

$

$

$

$

$

Net Income

$

$

$

$

$

Segment Profit

Electronic Solutions

$

$

$

$

$

Engines and Power Systems(1)

Control Systems

Corporate and All Other

Total segment profit*

$

$

$

$

$

Adjusted EBIT*

Electronic Solutions

$

$

$

$

$

Engines and Power Systems

Control Systems

Corporate and All Other

Adjusted EBIT*

$

$

$

$

$

* Total segment profit, Adjusted EBIT, and Segment adjusted EBIT are non-GAAP measures. Refer to the appendix for reconciliation of non-GAAP measures.

1 Reflects a reduction to Net sales and Segment profit by $312 million and $373 million, respectively, as a result of the settlement of the Flexjet-related litigation matters in the fourth quarter of 2025.

Net Sales by Reportable Segment

Electronic Solutions

$

$

$

$

$

Engines and Power Systems(2)

Control Systems

Total Net sales

$

$

$

$

$

Net Sales by End Market

Commercial Original Equipment(2)

$

$

$

$

$

Commercial Aftermarket

Defense and Space

Total Net sales

$

$

$

$

$

Net Income

$

$

$

$

$

Segment Profit/Adjusted EBIT

Electronic Solutions

$

$

$

$

$

Engines and Power Systems(2)

Control Systems

Corporate and All Other

Total segment profit/adjusted EBIT*

$

$

$

$

$

* Total segment profit, Adjusted EBIT, and Segment adjusted EBIT are non-GAAP measures. Refer to the appendix for reconciliation of non-GAAP measures.

2 Reflects a reduction to Net sales, Segment profit, and Adjusted EBIT of $372 million as a result of a strategic agreement with Bombardier in the fourth quarter 2024.

APPENDIX

Non-GAAP Financial Measures

The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this schedule to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP).

Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Honeywell Aerospace’s business.

HONEYWELL AEROSPACE INC.

Reconciliation of Organic Sales % Change

(Unaudited)

Honeywell Aerospace

Reported sales percent change

Less: Foreign currency translation

—%

—%

—%

—%

—%

Less: Acquisitions

5%

5%

3%

—%

3%

Less: Other(1)

—%

—%

—%

(8)%

(2)%

Organic sales percent change

5%

7%

Electronic Solutions

Reported sales percent change

8%

Less: Foreign currency translation

—%

—%

—%

1%

—%

Less: Acquisitions

7%

—%

8%

Less: Other

—%

—%

—%

—%

—%

Organic sales percent change

(1)%

6%

8%

7%

5%

Engines & Power Systems

Reported sales percent change

6%

7%

Less: Foreign currency translation

—%

1%

—%

1%

—%

Less: Acquisitions

—%

—%

—%

—%

—%

Less: Other(1)

—%

—%

—%

(7)%

Organic sales percent change

6%

6%

Control Systems

Reported sales percent change

8%

4%

Less: Foreign currency translation

—%

—%

—%

1%

—%

Less: Acquisitions

—%

—%

—%

—%

—%

Less: Other

—%

—%

—%

—%

—%

Organic sales percent change

8%

3%

1 Includes the fourth quarter 2025 Flexjet-related litigation matters considered to be unusual, infrequent, and not indicative of the Company’s ongoing performance.

We define organic sales growth as the year-over-year change in reported Net sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date, and other items that are unusual and non-recurring in nature (e.g., impact of comprehensive settlement related to Flexjet litigation). We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

HONEYWELL AEROSPACE INC.

(Dollars in millions)

Reconciliation of Net Income to Total Segment Profit and Adjusted EBIT and Reconciliation of Segment Profit to Segment Adjusted EBIT

(Unaudited)

Net Income

$

$

$

$

$

Income tax expense

Amortization of acquisition-related intangibles(1)

3

Stock compensation expense(2)

Environmental remediation expense(3)

Transaction costs(4)

—

Other, net(5)

Total segment profit

$

$

$

$

$

Flexjet-related litigation settlement(6)

—

—

—

Adjusted EBIT

$

$

$

$

$

Electronic Solutions

Engines & Power Systems

Control Systems

Segment profit

$

$

$

Flexjet-related litigation settlement

—

—

—

Segment Adjusted EBIT

$

$

$

Electronic Solutions

Engines & Power Systems

Control Systems

Segment profit

$

$

$

Flexjet-related litigation settlement

—

—

—

Segment Adjusted EBIT

$

$

$

Electronic Solutions

Engines & Power Systems

Control Systems

Segment profit

$

$

$

Flexjet-related litigation settlement

—

—

—

Segment Adjusted EBIT

$

$

$

Electronic Solutions

Engines & Power Systems

Control Systems

Segment profit

$

$

$

Flexjet-related litigation settlement6

—

—

Segment Adjusted EBIT

$

$

$

Electronic Solutions

Engines & Power Systems

Control Systems

Segment profit

$

$

$

Flexjet-related litigation settlement6

—

—

Segment Adjusted EBIT

$

$

$

1 Amounts included in Cost of products and services sold and Selling, general and administrative.

2 Amounts included in Selling, general and administrative expenses.

3 Amounts included in Cost of products and services sold and Other expense, net.

4 Amounts included in Selling, general and administrative expenses and Other expense, net.

5 Amounts include pension (income) expense and repositioning and other charges.

6 Amounts included in Net sales and Cost of services sold of $312 million and $61 million, respectively.

HONEYWELL AEROSPACE INC.

(Dollars in millions)

Reconciliation of Net Income to Total Segment Profit and Adjusted EBIT and Reconciliation of Segment Profit to Segment Adjusted EBIT

(Unaudited)

Net Income

$

$

$

$

$

Income tax expense

Amortization of acquisition-related intangibles(1)

8

8

8

Stock compensation expense(2)

Environmental remediation expense(3)

Other, net(4)

4

(2)

(3)

Total segment profit/adjusted EBIT

$

$

$

$

$

Electronic Solutions

Engines & Power Systems

Control Systems

Segment profit/Segment adjusted EBIT

$

$

$

Electronic Solutions

Engines & Power Systems

Control Systems

Segment profit/Segment adjusted EBIT

$

$

$

Electronic Solutions

Engines & Power Systems

Control Systems

Segment profit/Segment adjusted EBIT

$

$

$

Electronic Solutions

Engines & Power Systems

Control Systems

Segment profit/Segment adjusted EBIT

$

$

$

Electronic Solutions

Engines & Power Systems

Control Systems

Segment profit/Segment adjusted EBIT

$

$

$

1 Amounts included in Cost of products and services sold and Selling, general and administrative.

2 Amounts included in Selling, general and administrative expenses.

3 Amounts included in Cost of products and services sold and Other expense, net.

4 Amounts include pension (income) expense and repositioning and other charges.

We define Total segment profit as Net income, excluding taxes, interest, amortization of acquisition-related intangibles, stock compensation expense, environmental remediation expense, pension income (expense), repositioning and other charges, transaction costs, expenses associated with the Honeywell trademark license, and other items within Other expense, net. We define Adjusted EBIT as Net income excluding taxes, interest, amortization of acquisition-related intangibles, stock compensation expense, environmental remediation expense, pension income (expense), repositioning and other charges, transaction costs, expenses associated with the Honeywell trademark license, other items within Other expense, net, and other items that are unusual or non-recurring in nature, including but not limited to impairment charges and litigation charges (e.g., comprehensive settlement related to Flexjet litigation).

We define Segment Adjusted EBIT as Income before taxes excluding interest, amortization of acquisition-related intangibles, stock compensation expense, environmental remediation expense, pension income (expense), repositioning and other charges, transaction costs, expenses associated with the Honeywell trademark license, other items within Other expense, net, and other items that are otherwise of an unusual or non-recurring in nature, including but not limited to impairment charges and litigation charges (e.g., comprehensive settlement related to Flexjet litigation). We believe these measures are useful to investors as they provide greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as understanding ongoing operating trends.