On July 17, 2026, the Company acquired 100% of the outstanding equity interests of Johnson Matthey’s Catalyst Technologies business segment (Johnson Matthey), for total consideration of $1,750 million, net of cash acquired. The business will be included within the Process Automation and Technology reportable business segment. The Company is in the process of completing its valuation of the acquired assets and assumed liabilities. Therefore, the preliminary purchase price allocation required by ASC 805, Business Combinations, will be disclosed within the financial statements for the period ending September 30, 2026.

On June 6, 2025, the Company acquired 100% of the outstanding equity interests of Sundyne, a leader in the design manufacturing, and aftermarket support of highly-engineered pumps and gas compressors for process industries, for total consideration of $2,160 million, net of cash acquired. The business is part of the Process Automation and Technology reportable business segment. The Company finalized the evaluation for the fair value of all the assets acquired and liabilities assumed with Sundyne during the second quarter of 2026. The following table summarizes the determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Consolidated Balance Sheet as of June 30, 2026:

On June 4, 2026, the Company’s former consolidated subsidiary Quantinuum completed its initial public offering (IPO). Prior to the IPO, the Company consolidated Quantinuum under the Variable Interest Entity consolidation model as it had both the power to direct activities and the obligation to absorb losses of the entity. Upon completion of the IPO, the Company retained a 48% noncontrolling ownership interest in Quantinuum and accounts for its Quantinuum investment as an equity method investment. No cash contributions were made or cash distributions received by the Company as part of the IPO.

The Company recognized a gain of $6,629 million during the three and six months ended June 30, 2026, as a result of the deconsolidation of Quantinuum. The gain was calculated as the difference between (i) the aggregate of the fair value of the retained interest in the former subsidiaries and the carrying value of the non-controlling interest in the former subsidiaries; and (ii) the carrying value of the assets and liabilities of the former subsidiaries.

The initial fair value of the retained investment of $7,525 million at the date of deconsolidation was determined using a market approach based on the observable quoted market price of Quantinuum’s common stock. At the date of deconsolidation, the carrying value of the non-controlling interest in the former subsidiary was $703 million and the carrying value of Quantinuum’s net assets was $1,599 million.

Differences between the carrying amount of the retained equity method investment and the Company’s proportionate share of Quantinuum’s net assets were attributed to identifiable assets and liabilities utilizing purchase accounting principles, with the residual amount recorded as equity method goodwill. The Company identified basis differences related to intangible assets of $1.1 billion and equity method goodwill of $6.1 billion. Basis differences related to intangibles assets will be amortized over their estimated useful lives and are recorded within Equity loss in the Consolidated Statement of Operations. The weighted-average life of the Quantinuum intangible assets is 8 years and will be amortized using a straight-line method. Basis differences related to equity method goodwill will not be amortized.

During the fourth quarter of 2025, the Company concluded the assets and liabilities of each of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, which are part of the Productivity goodwill reporting unit within the Industrial Automation reportable business segment, met the held for sale criteria, and the Company presented the associated assets and liabilities of each business as held for sale beginning December 31, 2025. The disposal groups, consisting of the associated assets and liabilities, are measured at the lower of carrying value or fair value, less costs to sell. The carrying value of any assets, including goodwill, that are part of the disposal groups, but not in the scope of ASC 360-10, Property, Plant, and Equipment, are tested for impairment under the relevant guidance prior to measuring the disposal groups at fair value, less costs to sell. The fair value is based on the use of estimates and is subject to change based on future developments and actual amounts realized upon sale may vary from those recorded as of June 30, 2026.

The Company performed an evaluation as of June 30, 2026, to assess the recoverability of the carrying value of the assets held for sale. The Company recognized a $311 million increase to the valuation allowance during the six months ended June 30, 2026, to write down the disposal groups to fair value, less costs to sell, as applicable. Gains resulting from the fair value, less costs to sell, exceeding the carrying value of the disposal groups are not recognized until realized at the completion of the sale. In April 2026, the Company announced it has reached agreements to sell the businesses in two separate transactions, both of which are expected to close in the third quarter of 2026 and are subject to customary closing conditions, including receipt of certain regulatory approvals.


	June 30, 2026		December 31, 2025
Assets held for sale
Accounts receivable	$	476	$	489
Inventories	477		394
Other current assets	61		47
Equity method investments	14		15
Long-term receivables and other investments	14		14
Property, plant and equipment—net	165		153
Goodwill	1,139		1,138
Other intangible assets—net	259		262
Deferred income taxes	217		136
Other assets	110		99
Valuation allowance on assets held for sale	(566)		(255)
Total Assets held for sale	$	2,366	$	2,492
Liabilities held for sale
Accounts payable	$	646	$	532
Accrued liabilities	444		484


Other liabilities	185		182
Total Liabilities held for sale	$	1,275	$	1,198

On October 30, 2025, the Company completed the spin-off of its Advanced Materials business into an independent, publicly traded company named Solstice Advanced Materials Inc. (Solstice). In connection with the spin-off of the Advanced Materials business into Solstice, the results of operations, financial position, and cash flows for the Advanced Materials business are reported as discontinued operations for all periods presented in the consolidated financial statements. The following table summarizes the key components of net income from discontinued operations:


	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
Product Sales	$	942	$	1,780
Service Sales	88		147
Net Sales	1,030		1,927
Costs, expenses and other
Cost of products sold	601		1,129
Cost of services sold	71		116
Total Cost of products and services sold	672		1,245
Research and development expenses	23		45
Selling, general and administrative expenses	65		117
Interest and other financial charges	1		2
Other (income) expense	25		55
Income from discontinued operations before taxes	244		463
Tax expense	58		106
Net income from discontinued operations	$	186	$	357

In the third quarter on June 29, 2026, the Company completed the previously announced separation of its Aerospace Technologies business (the Aerospace Spin-Off) into an independent, publicly traded company named Honeywell Aerospace Inc. (Honeywell Aerospace). The Company completed the Aerospace Spin-off, through a pro rata distribution of all of the issued and outstanding shares of common stock of Honeywell Aerospace to the holders of common stock of the Company. Each Honeywell Technologies shareowner received one share of Honeywell Aerospace common stock for every two shares of Honeywell Technologies common stock held of record as of the close of business on June 15, 2026, except that they received cash in lieu of any fractional shares of Aerospace common stock that they would have received after application of such distribution ratio. The Aerospace Spin-Off is intended to be a tax-free separation to Honeywell Technologies for U.S. federal income tax purposes. Honeywell Aerospace is now an independent publicly-traded company under the symbol “HONA” on the Nasdaq Stock Market LLC.

After the date of the Aerospace Spin-Off, Honeywell Technologies no longer consolidates Honeywell Aerospace into its financial results. The historical financial results of Honeywell Aerospace will be reflected in Honeywell Technologies’ consolidated financial statements as discontinued operations under generally accepted accounting principles in the United States of America (GAAP) beginning in the third quarter of 2026.

Pursuant to the trademark license agreement, Honeywell Technologies granted to Honeywell Aerospace an exclusive license to use “Honeywell Aerospace” and other trademarks, subject to certain restrictions and exceptions. The trademark license agreement includes customary quality control provisions to protect and preserve the goodwill associated with “Honeywell” and the other licensed marks. In exchange, Honeywell Aerospace will pay Honeywell Technologies an aggregate amount of $1.125 billion over a period of less than five years, with an initial payment of $18.75 million due within five days of the distribution date followed by 59 equal monthly payments of $18.75 million. The initial term of the trademark license agreement will end on the 6th anniversary of the distribution date, with additional renewal options totaling a maximum of 69 additional years following the initial six-year term, unless otherwise terminated in accordance with the terms of the trademark license agreement. If Honeywell Aerospace elects not to renew the trademark license agreement for any remaining renewal period of the agreement, Honeywell Technologies is obligated to reimburse Honeywell Aerospace $50 million unless certain exceptions apply. Honeywell Technologies may unilaterally terminate the trademark license agreement under certain conditions, including, without limitation, (1) on the 6th anniversary of the distribution date, in which case Honeywell Technologies is obligated to reimburse Honeywell Aerospace $250 million of the license fees Honeywell Aerospace paid to Honeywell Technologies during the first five years of the license term, or (2) in connection with certain uncured breach events or following a change of control to which Honeywell Technologies has not provided prior consent.