net of cash acquired. The business is part of the Process Automation and Technology reportable business segment. 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 September 30, 2026:

The Johnson Matthey's Catalyst Technologies business' identifiable intangible assets primarily include customer relationships and technology which will amortize over their estimated useful lives ranging from two to 15 years using straight-line and accelerated amortization methods. The goodwill is not deductible for tax purposes. As of the end of the third quarter of 2026, the purchase accounting is subject to final adjustment, primarily for the valuation of long-lived and intangible assets, amounts allocated to goodwill, working capital adjustments, and tax balances.

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 September 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 second quarter of 2026 as a result of the deconsolidation of Quantinuum. The gain was calculated as the difference between (i) the aggregate fair value of the retained interests in the former subsidiaries and (ii) the carrying value of the assets and liabilities of the former subsidiaries, less the carrying value of the non-controlling interest in 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 Quantinuum’s net assets was $1,599 million and the carrying value of the noncontrolling interest was $703 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 intangible 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.

As of December 31, 2025, the Company concluded the assets and liabilities of each of the Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) businesses, which were a 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. On July 27, 2026, the Company completed the sale of its WWS business in exchange for total consideration of $157 million, net of cash transferred. On August 3, 2026, the Company completed the sale of its PSS business for total consideration of $1,370 million, net of cash transferred.

During the third quarter, the Company recognized a pre-tax gain on the sale of the businesses of $339 million, primarily attributed to a gain on the sale of the PSS business, which was recorded in Other (income) expense in the Consolidated Statement of Operations. During the nine months ended September 30, 2026, the Company recognized a $311 million increase to the valuation allowance to write down the WWS disposal group to fair value, less costs to sell.


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


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

Our former Aerospace Technologies and Advanced Materials businesses are included in discontinued operations. Results of operations, financial position, and cash flows are reported as discontinued operations for all periods presented and the notes to the consolidated financial statements have been adjusted on a retrospective basis.

In the third quarter on June 29, 2026 (the Distribution Date), 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 Honeywell Aerospace common stock that they would have received after application of such distribution ratio. The Company structured the transaction 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, the Company no longer consolidates Honeywell Aerospace into its financial results.

We have continuing involvement with Honeywell Aerospace primarily through a transition services agreement, through which Honeywell Technologies and Honeywell Aerospace will continue to provide certain services to each other for a period of time following the separation, a tax matters agreement, and a trademark license agreement, among others.

Pursuant to the trademark license agreement, the Company 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 approximately five years, including 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 term of the license agreement is 75 years, including an initial term of six years and additional renewal options totaling a maximum of 69 additional years. If Honeywell Aerospace elects not to renew the trademark license agreement, the Company 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 the Company 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.

On October 30, 2025, the Company completed the spin-off of its Advanced Materials business into an independent, publicly traded company named Solstice. The Company structured the transaction as a tax-free separation for U.S. federal income tax purposes, providing shareowners of record with one share of Solstice stock for every four shares of Honeywell common stock.


	Three months ended September 30,
	2026		2025
	Aerospace Technologies			Aerospace Technologies		Advanced Materials		Total
Product sales	$	—		$	2,606	$	907	$	3,513
Service sales	—			1,902		64		1,966
Net Sales	—			4,508		971		5,479
Costs, expenses and other
Cost of products sold	—			2,081		612		2,693
Cost of services sold	—			968		45		1,013
Total Cost of products and services sold	—			3,049		657		3,706
Research and development expenses	(28)			204		25		229
Selling, general and administrative expenses	11			184		19		203
Interest and other financial charges	—			90		1		91
Other (income) expense	117			53		82		135
Income from discontinued operations before taxes	(100)			928		187		1,115
Tax expense	3			(13)		223		210
Net (loss) income from discontinued operations	$	(103)		$	941	$	(36)	$	905


	Nine months ended September 30,
	2026		2025
	Aerospace Technologies			Aerospace Technologies		Advanced Materials		Total
Product sales	$	5,013		$	7,439	$	2,687	$	10,126
Service sales	3,839			5,542		211		5,753
Net sales	8,852			12,981		2,898		15,879
Costs, expenses and other
Cost of products sold	3,773			5,613		1,741		7,354
Cost of services sold	1,857			2,784		161		2,945
Total Cost of products and services sold	5,630			8,397		1,902		10,299
Research and development expenses	402			573		70		643
Selling, general and administrative expenses	625			576		137		713
Interest and other financial charges	283			252		3		255
Other (income) expense	497			(122)		137		15
Income from discontinued operations before taxes	1,415			3,305		649		3,954
Tax expense	354			326		329		655
Net income from discontinued operations	$	1,061		$	2,979	$	320	$	3,299


	December 31, 2025
Assets
Cash and cash equivalents	$	214
Accounts receivable	3,192
Inventories	4,485
Other current assets	341
Current assets of discontinued operations	8,232
Equity method investments	11
Long-term receivables and other investments	85
Property, plant and equipment—net	2,163
Goodwill	3,025
Other intangible assets—net	1,575
Deferred income taxes	43
Other assets	4,710
Total assets of discontinued operations	$	19,844
Liabilities
Accounts payable	$	2,881
Current maturities of long-term debt	5
Accrued liabilities	3,399
Current liabilities of discontinued operations	6,285
Long-term debt	4
Deferred income taxes	762
Other liabilities	2,422
Total liabilities of discontinued operations	$	9,473