Technology
HONEYWELL REAFFIRMS 2026 OUTLOOK AHEAD OF HONEYWELL AEROSPACE SPIN-OFF; INITIATES 2026 OUTLOOK FOR HONEYWELL TECHNOLOGIES
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5 months agoon
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CHARLOTTE, N.C., June 8, 2026 /PRNewswire/ — Honeywell (NASDAQ: HON) today announced it was reaffirming its full-year 2026 guidance ahead of the planned Honeywell Aerospace spin-off on June 29, 2026. The company also provided a preliminary 2026 outlook for the remaining company post spin, which will conduct business under the name Honeywell Technologies. The company will discuss its latest outlook for 2026 during an investor conference call starting at 8:30 a.m. Eastern Daylight Time today, which precedes its 2026 Investor Day on June 11, 2026.
2026 Outlook
Honeywell continues to expect sales of $38.8 billion to $39.8 billion with organic1 sales growth in the range of 3% to 6%. Segment margin2 is expected to be 22.7% to 23.1%, with segment margin2,5 expansion of 20 to 60 basis points. Adjusted earnings per share3 is expected to be $10.35 to $10.65, up 6% to 9%. The company expects operating cash flow of $4.7 billion to $5.0 billion, while free cash flow1,4 is expected to be $5.3 billion to $5.6 billion, representing growth of 4% to 10% for the full year. A summary of the company’s 2026 guidance can be found below in Table 1.
Honeywell Technologies Guidance Framework
The company also provided a preliminary guidance framework for the company that will remain after the Honeywell Aerospace spin-off, which is expected to be completed on June 29, 2026. This framework excludes full-year expected results for the aerospace segment. The outlook incorporates the impact of the planned divestitures of Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions, which the company announced it had reached agreements to sell in the second quarter and expects to close by the fourth quarter. The outlook includes estimated results for the Johnson Matthey Catalyst Technologies acquisition, which it announced in May 2025 and expects to close in the third quarter. Finally, the company announced that it intends to make certain changes to the presentation of its adjusted results, including removing the income stemming from an overfunded pension liability and removing the consolidated results of Quantinuum following the June 4 initial public offering. The company believes these changes provide investors with a better basis for evaluating performance going forward.
Considering these updates, Honeywell Technologies expects 2026 sales of $19.9 billion to $20.2 billion with organic1 sales growth in the range of 2% to 3%. Segment margin2 is expected to be 19.8% to 20.3%, with segment margin2 expansion of 220 to 270 basis points. Adjusted earnings per share3 is expected to be $3.95 to $4.15, up 22% to 28%. Finally, the company expects free cash flow1,4 of approximately $2.0 billion. A summary of Honeywell Technologies’ 2026 guidance can also be found below in Table 1.
Table 1: Full-Year 2026 and 2H 2026 Guidance1
Prior Guidance
(Honeywell International)
2026 Guidance
(Honeywell Technologies)
2H 2026 Guidance
(Honeywell Technologies)
Sales
$38.8B – $39.8B
$19.9B – $20.2B
$10.1B – $10.3B
Organic1 Growth
3% – 6%
2% – 3%
3% – 5%
Segment Margin
22.7% – 23.1%
19.8% – 20.3%
20.9% – 21.6%
Expansion
20 – 60 bps5
220 – 270 bps
310 – 380 bps
Adjusted Earnings Per Share3
$10.35 – $10.65
$3.95 – $4.15
$2.20 – $2.35
Adjusted Earnings Growth3
6% – 9%
22% – 28%
22% – 31%
Operating Cash Flow
$4.7B – $5.0B
~$2.1B
~$2.3B
Free Cash Flow1,4
$5.3B – $5.6B
~$2.0B
~$1.5B
1
See additional information at the end of this release regarding non-GAAP financial measures.
2
Segment margin and adjusted EPS are non-GAAP financial measures. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment margin or adjusted EPS. We therefore, do not present a guidance range, or a reconciliation to, the nearest GAAP financial measures of operating margin or EPS.
3
Adjusted EPS and adjusted EPS V% guidance excludes items identified in the non-GAAP reconciliation of adjusted EPS at the end of this release, and any potential future one-time items that we cannot reliably predict or estimate.
4
With respect to historical periods, free cash flow adjusts for capital expenditures, spin-off and separation-related cost payments, Resideo indemnification and reimbursement agreement termination payment, cash payment for settlement of the divestiture of asbestos liabilities, and cash payment for settlement of Flexjet-related litigation matters. With respect to the company’s outlook for 2026, free cash flow adjusts for capital expenditures, spin-off and separation-related cost payments, and cash payment for settlement of Flexjet-related litigation matters.
5
Segment margin expansion as compared to Adjusted segment margin in 2025.
Conference Call and 2026 Investor Day Details
Honeywell will discuss its 2026 guidance during an investor conference call starting at 8:30 a.m. Eastern Daylight Time today. A live webcast of the investor call as well as related presentation materials will be available through the Investor Relations section of the company’s website (www.honeywell.com/investor). A replay of the webcast will be available for 30 days following the presentation. The company will also host a live video webcast of its investor conference which will take place in New York City on Thursday, June 11, 2026. The event will feature presentations and Q&A panels with the management team. A real-time webcast of this presentation and related presentation materials can also be accessed at the company’s website, and a replay of this webcast will be available for 30 days following the presentation.
About Honeywell
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world’s toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology that help make the world smarter and safer as well as more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.
Honeywell uses our Investor Relations website, www.honeywell.com/investor, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media.
We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including statements related to the proposed separation of Honeywell and Honeywell Aerospace and the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. Forward-looking statements are those that address activities, events, or developments that we or our management intend, expect, project, believe, or anticipate will or may occur in the future. They are based on management’s assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control, including Honeywell’s current expectations, estimates, and projections regarding the proposed separation of Honeywell and Honeywell Aerospace and the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements, including the proposed separation of Honeywell and Honeywell Aerospace and the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and the anticipated benefits of each. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as changes in or application of trade and tax laws and policies, including the impacts of tariffs and other trade barriers and restrictions, lower GDP growth or recession in the U.S. or globally, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, including ongoing conflicts in the Middle East, that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved.
These forward-looking statements should be considered in light of the information included in this release, our Form 10-K, and our other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.
This release contains financial measures presented on a non-GAAP basis. Honeywell’s non-GAAP financial measures used in this release are as follows:
Adjusted net sales; Adjusted net sales excluding spin-off and divestiture impact;Segment profit, on an overall Honeywell basis; Segment profit excluding spin-off and divestiture impact;Adjusted segment profit, on an overall Honeywell basis; Adjusted segment profit excluding spin-off and divestiture impact;Segment profit margin, on an overall Honeywell basis; Segment profit margin excluding spin-off and divestiture impact;Organic sales growth;Free cash flow; Free cash flow excluding spin-off and divestiture impact; andAdjusted earnings per share; Adjusted earnings per share excluding spin-off and Quantinuum divestiture impact; Adjusted earnings per share excluding spin-off and divestiture impact.
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. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.
Appendix
Non-GAAP Financial Measures
The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release 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. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. 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’s business.
As indicated herein, certain forward-looking non-GAAP financial measures are not reconciled because management cannot reliably predict or estimate certain items for the reasons specified herein with respect to each non-GAAP financial measure.
Honeywell International Inc.
Reconciliation of Operating Income to Segment Profit and Adjusted Segment Profit, Net Sales to Adjusted Net Sales, Calculation of
Segment Profit Margin and Adjusted Segment Profit Margin, on an Overall Honeywell Basis and Excluding Spin-off and Divestiture Impact
(Unaudited)
(Dollars in millions)
Twelve Months Ended December 31, 2025
As Reported
Less: Spin-off and
Divestiture Impact(1)
Excluding Spin-off and
Divestiture Impact
Operating income
$ 5,573
$ 4,268
$ 1,305
Stock compensation expense(4)
196
43
153
Repositioning, Other(2),(3)
675
231
444
Amortization of acquisition-related intangibles(6)
570
62
508
Pension and other postretirement service costs(3)
73
16
57
Acquisition-related costs(5)
2
—
2
Indefinite-lived intangible asset impairment(6)
44
—
44
Impairment of goodwill
724
—
724
Impairment of assets held for sale
270
—
270
Segment profit
$ 8,127
$ 4,620
$ 3,507
Flexjet-related litigation matters
373
373
—
Adjusted segment profit
$ 8,500
$ 4,993
$ 3,507
Net sales
$ 37,442
$ 17,527
$ 19,915
Flexjet-related litigation matters
312
312
—
Adjusted net sales
$ 37,754
$ 17,839
$ 19,915
Adjusted segment profit
$ 8,500
$ 3,507
÷ Adjusted net sales
$ 37,754
$ 19,915
Adjusted segment profit margin
22.5 %
17.6 %
1
Excludes the impacts attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026
2
Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges
3
Included in Cost of products and services sold and Selling, general and administrative expenses
4
Included in Selling, general and administrative expenses
5
Included in Other (income) expense. Includes acquisition-related fair value adjustments to inventory and third-party transaction and integration costs.
6
Included in Cost of products and services sold.
Six Months Ended December 31, 2025
As Reported
Less: Spin-off and
Divestiture Impact(1)
Excluding Spin-off
and Divestiture Impact
Operating income
$ 2,009
$ 1,955
$ 54
Stock compensation expense(4)
82
21
61
Repositioning, Other(2),(3)
574
228
346
Amortization of acquisition-related intangibles(6)
303
23
280
Pension and other postretirement service costs(3)
46
8
38
Acquisition-related costs(5)
9
—
9
Indefinite-lived intangible asset impairment(6)
44
—
44
Impairment of goodwill
724
—
724
Impairment of assets held for sale
255
—
255
Segment profit
$ 4,046
$ 2,235
$ 1,811
Flexjet-related litigation matters
373
373
—
Adjusted segment profit
$ 4,419
$ 2,608
$ 1,811
Net sales
$ 19,196
$ 9,034
$ 10,162
Flexjet-related litigation matters
312
312
—
Adjusted net sales
$ 19,508
$ 9,346
$ 10,162
Adjusted segment profit
$ 4,419
$ 1,811
÷ Adjusted net sales
$ 19,508
$ 10,162
Adjusted segment profit margin
22.7 %
17.8 %
1
Excludes the impacts attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026
2
Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges
3
Included in Cost of products and services sold and Selling, general and administrative expense
4
Included in Selling, general and administrative expenses
5
Included in Other (income) expense. Includes acquisition-related fair value adjustments to inventory and third-party transaction and integration costs.
6
Included in Cost of products and services sold.
We define operating income as net sales less total cost of products and services sold, research and development expenses, selling, general and administrative expenses, impairment of goodwill, and impairment of assets held for sale. We define segment profit, on an overall Honeywell basis, as operating income, excluding stock compensation expense, pension and other postretirement service costs, amortization of acquisition-related intangibles, certain acquisition- and divestiture-related costs and impairments, and repositioning and other charges. We define adjusted segment profit, on an overall Honeywell basis, as segment profit excluding the segment profit impact of the Flexjet-related litigation matters. We define segment profit margin, on an overall Honeywell basis, as segment profit divided by net sales. We define adjusted net sales as net sales less the sales impact of the Flexjet-related litigation matters. Management considers the nature and significance of these litigation matters to be unusual and not indicative of the Company’s ongoing performance. We define adjusted segment profit margin, on an overall Honeywell basis, as adjusted segment profit divided by adjusted net sales. These measures are each shown on an overall Honeywell basis and excluding spin-off and divestiture impacts, which we define as less the respective impacts attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
A quantitative reconciliation of operating income to segment profit, on an overall Honeywell basis, has not been provided for all forward-looking measures of segment profit and segment profit margin included herein. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment profit. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results. To the extent quantitative information becomes available without unreasonable effort in the future, and closer to the period to which the forward-looking measures pertain, a reconciliation of operating income to segment profit will be included within future filings.
Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies.
Honeywell International Inc.
Reconciliation of Earnings per Share to Adjusted Earnings per Share Excluding Spin-off and Quantinuum Divestiture Impact
(Unaudited)
Twelve Months Ended December 31, 2025
As Reported
Less: Spin-off
and
Quantinuum
Divestiture
Impact(1)
Excluding
Spin-off and
Quantinuum
Divestiture
Impact
Earnings per share of common stock from continuing operation – diluted(2)
$ 6.94
$ 5.19
$ 1.75
Pension income(3)
(0.46)
(0.39)
(0.07)
Amortization of acquisition-related intangibles(4)
0.67
0.08
0.59
Acquisition-related costs(5)
0.05
—
0.05
Divestiture-related costs(6)
0.72
0.31
0.41
Indefinite-lived intangible asset impairment(7)
0.07
—
0.07
Impairment of goodwill(8)
1.13
—
1.13
Impairment of assets held for sale(9)
0.32
—
0.32
Loss (gain) on sale of business(10)
0.04
—
0.04
Gain related to Resideo indemnification and reimbursement agreement termination(11)
(1.25)
—
(1.25)
Adjustment to estimated future environmental liabilities(12)
0.25
0.22
0.03
Loss on expected settlement of divestiture of asbestos liabilities(13)
0.17
—
0.17
Flexjet-related litigation matters(14)
0.48
0.48
—
Adjusted earnings per share of common stock from continuing operations – diluted
$ 9.13
5.89
$ 3.24
1
Excludes the impacts attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026.
2
For the twelve months ended December 31, 2025, adjusted earnings per share utilizes weighted average shares of approximately $642.8 million.
3
For the twelve ended December 31, 2025, pension income as reported was $293 million, net of tax expense of $88 million. For the twelve months ended December 31, 2025, pension income excluding spin-off and Quantinuum divestiture impact was $44 million, net of tax expense of $24 million.
4
For the twelve months ended December 31, 2025, acquisition-related intangibles amortization as reported was $432 million, net of tax benefit of $138 million. For the twelve months ended December 31, 2025, acquisition-related intangibles amortization excluding spin-off and Quantinuum divestiture impact was $382 million, net of tax benefit of $121 million.
5
For the twelve months ended December 31, 2025, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, is $35 million, net of tax benefit of $10 million.
6
For the twelve months ended December 31, 2025, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction costs, was $460 million as reported, net of tax benefit of approximately $61 million. For the twelve months ended December 31, 2025, divestiture-related costs excluding spin-off and Quantinuum divestiture impact was $261 million, net of tax expense of approximately $31 million.
7
For the twelve months ended December 31, 2025, the impairment charge of indefinite-lived intangible assets associated with the Industrial Automation reportable segment was $44 million, without tax benefit.
8
For the twelve months ended December 31, 2025, the impairment charge of goodwill associated with the Industrial Automation reportable segment was $724 million, without tax benefit.
9
For the twelve months ended December 31, 2025, the impairment charge of assets held for sale was $209 million, net of tax benefit of $61 million.
10
For the twelve months ended December 31, 2025, the adjustment for loss on sale of the personal protective equipment business was $28 million, net of tax benefit of $2 million.
11
For the twelve months ended December 31, 2025, the gain related to the Resideo indemnification and reimbursement agreement termination was $802 million, without tax expense.
12
In the twelve months ended December 31, 2025, the Company enhanced its process for estimating environmental liabilities at sites undergoing active remediation, which led to earlier recognition of the estimated probable liabilities and an increase to estimated environmental liabilities. For the twelve months ended December 31, 2025, the adjustment to increase environmental liabilities as reported was $161 million, net of tax benefit of $50 million. For the twelve months ended December 31, 2025, the adjustment to increase environmental liabilities excluding spin-off and Quantinuum divestiture impact was $22 million, net of tax benefit $7 million.
13
For the twelve months ended December 31, 2025, the adjustment for loss on settlement of divestiture of asbestos liabilities was $112 million, net of tax benefit of $36 million.
14
For the twelve months ended December 31, 2025, the adjustment for the Flexjet-related litigation matters was $302 million, net of tax benefit of $71 million. Management considers the nature and significance of these litigation matters to be unusual and not indicative of the Company’s ongoing performance.
Six Months Ended December 31, 2025
As Reported
Less: Spin-off
and
Quantinuum
Divestiture
Impact(1)
Excluding
Spin-off and
Quantinuum
Divestiture
Impact
Earnings per share of common stock from continuing operation – diluted(2)
$ 2.80
$ 2.11
$ 0.69
Pension income(3)
(0.19)
(0.21)
0.02
Amortization of acquisition-related intangibles(4)
0.36
0.03
0.33
Acquisition-related costs(5)
0.05
—
0.05
Divestiture-related costs(6)
0.61
0.37
0.24
Indefinite-lived intangible asset impairment(7)
0.07
—
0.07
Impairment of goodwill(8)
1.13
—
1.13
Impairment of assets held for sale(9)
0.32
—
0.32
Loss (gain) on sale of business
—
—
—
Gain related to Resideo indemnification and reimbursement agreement termination(10)
(1.25)
—
(1.25)
Adjustment to estimated future environmental liabilities(11)
0.25
0.22
0.03
Loss on expected settlement of divestiture of asbestos liabilities(12)
0.17
—
0.17
Flexjet-related litigation matters(13)
0.48
0.48
0.00
Adjusted earnings per share of common stock from continuing operations – diluted
$ 4.80
$ 3.00
$ 1.80
1
Excludes the impacts attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026
2
For the six months ended December 31, 2025, adjusted earnings per share utilizes weighted average shares of approximately $640.8 million.
3
For the six months ended December 31, 2025, pension income as reported was $120 million, net of tax expense of $36 million. For the six months ended December 31, 2025, pension expense excluding spin-off and Quantinuum divestiture impact was $16 million, net of tax expense of $6 million.
4
For the six months ended December 31, 2025, acquisition-related intangibles amortization as reported was $230 million, net of tax benefit $73 million. For the six months ended December 31, 2025, acquisition-related intangibles amortization excluding spin-off and Quantinuum divestiture impact was $210 million, net of tax benefit $67 million.
5
For the six months ended December 31, 2025, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, is $30 million, net of tax benefit of $9 million.
6
For the six months ended December 31, 2025, divestiture-related costs as reported was $393 million, net of tax benefit of approximately $59 million. For the six months ended December 31, 2025, divestiture-related costs excluding spin-off and Quantinuum divestiture impact was $154 million, net of tax benefit of approximately $28 million.
7
For the six months ended December 31, 2025, the impairment charge of indefinite-lived intangible assets associated with the Industrial Automation reportable segment was $44 million, without tax benefit.
8
For the six months ended December 31, 2025, the impairment charge of goodwill associated with the Industrial Automation reportable segment was $724 million, without tax benefit.
9
For the six months ended December 31, 2025, the impairment charge of assets held for sale was $209 million, net of tax benefit of $61 million.
10
For the six months ended December 31, 2025, the gain related to the Resideo indemnification and reimbursement agreement termination was $802 million, without tax expense.
11
In the six months ended December 31, 2025, the Company enhanced its process for estimating environmental liabilities at sites undergoing active remediation, which led to earlier recognition of the estimated probable liabilities and an increase to estimated environmental liabilities. For the six months ended December 31, 2025, the adjustment to increase environmental liabilities as reported was $161 million, net of tax benefit of $50 million. For the six months ended December 31, 2025, the adjustment to increase environmental liabilities excluding spin-off and Quantinuum divestiture impact was $22 million, net of tax benefit $7 million.
12
For the six months ended December 31, 2025, the adjustment for loss on settlement of divestiture of asbestos liabilities was $112 million, net of tax benefit of $36 million.
13
For the six months ended December 31, 2025, the adjustment for the Flexjet-related litigation matters was $302 million, net of tax benefit of $71 million. Management considers the nature and significance of these litigation matters to be unusual and not indicative of the Company’s ongoing performance.
We define adjusted earnings per share as diluted earnings per share from continuing operations adjusted to exclude various charges as listed above. We define adjusted earnings per share excluding spin-off and Quantinuum divestiture impact as adjusted earnings per share less impact of adjusted earnings per share attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Honeywell International Inc.
Reconciliation of Earnings per Share to Adjusted Earnings per Share Excluding Spin-off and Divestiture Impact
(Unaudited)
Twelve Months Ended December 31, 2026(E)
Six Months
Ended
December 31,
2026(E)
Previous
Guidance
Less: Spin-off
and Divestiture
Impact(1)
Guidance
Excluding Spin-
off and
Divestiture
Impact
Guidance
Earnings per share of common stock from continuing operation – diluted(2)
$8.87 – $9.17
$5.98-$6.08
$2.89 – $3.09
$1.84 – $1.99
Pension income(3)
No Forecast
No Forecast
No Forecast
No Forecast
Amortization of acquisition-related intangibles(4)
0.75
0.11
0.64
0.32
Acquisition-related costs(5)
0.05
—
0.05
0.02
Divestiture-related costs
No Forecast
No Forecast
No Forecast
No Forecast
Debt restructuring costs(6)
0.36
—
0.36
—
ERP implementation costs(7)
0.02
—
0.02
0.02
Impairment of assets held for sale(8)
0.31
0.31
—
—
Loss (gain) on sale of business(9)
(0.01)
—
(0.01)
—
Adjusted earnings per share of common stock from continuing operations – diluted
$10.35 – $10.65
$6.40 – $6.50
$3.95 – $4.15
$2.20 – $2.35
1
Excludes the forecasted earnings attributable to the Aerospace Technologies business, due to the expected spin-off on June 29, 2026, attributable to Quantinuum, due to its initial public offering on June 4, 2026, and attributable to Productivity Solutions and Services and Warehouse and Workflow Solutions 2H26, which is expected to be sold during the second half of 2026.
2
For the twelve and six months ended December 31, 2026, expected earnings per share utilizes weighted average shares of approximately 639 million.
3
Beginning second quarter 2026, we will exclude the full amount of pension income, including the related tax effects, from adjusted earnings per share. Prior to the second quarter 2026, we excluded only pension mark-to-market expense, including the related tax effects, from adjusted earnings per share.
4
For the twelve months ended December 31, 2026, expected acquisition-related intangibles amortization excluding spin and divestiture impact includes approximately $480 million, net of tax benefit of approximately $115 million. For the twelve months ended December 31, 2026, expected adjusted acquisition-related intangibles amortization includes $405 million, net of tax benefit of approximately $95 million. For the six months ended December 31, 2026, expected acquisition-related intangibles amortization includes approximately $205 million, net of tax benefit of approximately $45 million.
5
For the twelve months ended December 31, 2026, the expected adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, is approximately $35 million, net of tax benefit of approximately $10 million. For the six months ended December 31, 2026, the expected adjustment for acquisition-related costs, which is comprised of third-party transaction and integration costs, is approximately $10 million, without tax benefit.
6
For the twelve months ended December 31, 2026, the expected adjustment for debt restructuring costs is $230 million, net of tax benefit of $70 million.
7
For the twelve months ended December 31, 2026, the expected adjustment for ERP implementation costs is approximately $15 million, net of tax benefit of approximately $5 million. For the six months ended December 31, 2026, the expected adjustment for ERP implementation costs is approximately $10 million, without tax benefit.
8
For the twelve months ended December 31, 2026, the expected impairment charge of assets held for sale is $200 million, net of tax benefit of $63 million.
9
For the twelve months ended December 31, 2026, the expected gain on sale of personal protection equipment business is $5 million, net of tax expense of $1 million.
We define adjusted earnings per share as diluted earnings per share from continuing operations adjusted to exclude various charges as listed above. We define adjusted earnings per share excluding spin-off and divestiture impact as adjusted earnings per share less impact of adjusted earnings per share attributable to the Aerospace Technologies business, attributable to Quantinuum, and attributable to the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, which are held for sale. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
For forward-looking information, management cannot reliably predict or estimate, without unreasonable effort, pension income or the divestiture-related costs. Pension income is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. The divestiture-related costs are subject to detailed development and execution of separation restructuring plans for the announced separation of Honeywell from Honeywell Aerospace and sales of Productivity Solutions and Services and Warehouse and Workflow Solutions. We therefore do not include an estimate for pension income or divestiture-related costs. Based on economic and industry conditions, future developments, and other relevant factors, these assumptions are subject to change.
Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies.
We define adjusted income before taxes as income before taxes from continuing operations adjusted for items presented above. We define adjusted income tax expense as income tax expense adjusted for tax impact of items presented above. We define adjusted effective tax rate as adjusted income tax expense divided by adjusted income before taxes.
We believe that adjusted effective tax rate is a non-GAAP measure that is useful to investors and management as an ongoing representation of our tax rate excluding one-off and unusual transactions. This measure can be used to evaluate our tax rate on our recurring operations. For forward looking information, we do not provide effective tax rate guidance on a GAAP basis as management cannot reliably predict or estimate, without unreasonable effort, the pension mark-to-market expenses and other one-off and unusual transactions.
Honeywell International Inc.
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow Excluding Spin-off and Divestiture Impact
(Unaudited)
(Dollars in millions)
Twelve Months Ended December 31, 2026 (E)
Six Months
Ended
December 31,
2026(E)
Previous
Guidance
Less: Spin-
off and
Divestiture
Impact(1)
Guidance
Excluding
Spin-off and
Divestiture
Impact
Guidance
Cash provided by operating activities from continuing operations
~$4.4 – $4.7
~(2.4)
~$2.0 – $2.3
$2.2 – $2.4
Capital expenditures
~(1.3)
~0.7
~(0.6)
~(1.0)
Spin-off and separation-related cost payments
~1.8
~(1.4)
~0.4
~0.2
Settlement of Flexjet-related litigation matters
~0.4
~(0.4)
—
—
Free cash flow
~$5.3 – $5.6
~$3.5
~$1.8 – $2.1
~$1.4 – $1.6
1
The forecasted cash flows attributable to the Aerospace Technologies business are excluded due to the expected spin-off on June 29, 2026. The forecasted cash flows attributable to Productivity Solutions and Services and Warehouse and Workflow Solutions are excluded due to divestitures expected to close during the second half of 2026. The forecasted cash flows attributable to Quantinuum are excluded due to its initial public offering on June 4,2026.
We define free cash flow as cash provided by operating activities from continuing operations less cash for capital expenditures and excluding spin-off and separation-related cost payments and the cash payment for settlement of Flexjet-related litigation matters. We define free cash flow excluding spin-off and divestiture impact as free cash flow less free cash flow attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, attributable to the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, which are held for sale, and attributable to Quantinuum, due to its initial public offering on June 4, 2026.
We believe that free cash flow and free cash flow excluding spin-off and divestiture impact are non-GAAP measures that are useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. These measures can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity.
Contacts:
Media
Investor Relations
Stacey Jones
Mark Macaluso
(980) 378-6258
(704) 627-6118
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SOURCE Honeywell
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LEO Satellite Market worth $43.37 billion by 2031 – Exclusive Report by MarketsandMarkets™
Published
45 minutes agoon
October 30, 2026By
DELRAY BEACH, Fla., Oct. 30, 2026 /PRNewswire/ — According to MarketsandMarkets™, the LEO satellites market is estimated at USD 12.82 billion in 2026 and is projected to reach USD 43.37 billion by 2031 at a CAGR of 27.6% during the forecast period.
Browse 300 market data Tables and 100 Figures spread through 350 Pages and in-depth TOC on ‘LEO Satellite Market – Global Forecast to 2031’
LEO Satellite Market Size & Forecast:
Market Size Available for Years: 2021–20312026 Market Size: USD 12.82 billion2031 Projected Market Size: USD 43.37 billionCAGR (2026–2031): 27.6%
LEO Satellite Market Trends & Insights:
The LEO satellites market is growing as satellite networks expand for communication, Earth observation, navigation, and defense applications. Developments in small satellite platforms, software-defined payloads, optical communication, and onboard data processing are helping operators improve coverage, reduce latency, and support a wider range of missions in low Earth orbit.By satellite mass, Small satellites are the fastest-growing segment due to the increasing deployment of LEO constellations for broadband communication, Earth observation, and defense applications. Their lower development and launch costs, shorter manufacturing cycles, and ability to be deployed in large constellations are supporting adoption among commercial operators, government agencies, and defense organizations.By application, Navigation satellites are the fastest-growing segment due to the rising demand for more accurate positioning, navigation, and timing services across transportation, defense, aviation, maritime, and autonomous systems. Increasing deployment of LEO-based navigation and PNT augmentation systems, along with the need for lower latency, stronger signal availability, and greater resilience than traditional navigation architectures, is supporting segmental growth.By customer type, Defense is the fastest-growing segment due to the increasing use of LEO satellites for secure communications, ISR, navigation support, and persistent monitoring. Rising defense investment in resilient space architectures, proliferated LEO constellations, and low-latency satellite networks is supporting adoption across military forces and defense agencies.By region, the Middle East is the fastest-growing region in the LEO satellites market, driven by rising investment in satellite communications, Earth observation, defense surveillance, and national space programs. Growing demand for secure connectivity across remote areas, expanding defense and border-monitoring requirements, and new satellite initiatives in countries such as the UAE and Saudi Arabia are supporting regional market growth due to increasing investment in drone detection across military bases, airports, borders, and critical infrastructure. Growing concerns around unauthorized drone activity and continued deployment of radar, RF, EO/IR, and multi-sensor systems are supporting regional growth.
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LEO satellite operators are creating sustained demand through frequent replenishment and replacement of spacecraft. Satellites in low Earth orbit usually have shorter operating lives than larger satellites in higher orbits. Constellations therefore require regular launches to replace aging satellites, to maintain coverage and introduce upgraded payloads. Operators can also refresh technology faster as communication, processing and sensing requirements change. Planned deorbiting and debris mitigation requirements further increase the need for replacement satellites over time. This creates recurring demand for satellite platforms, propulsion systems, power systems, antennas and payloads. Large constellations also support repeat production, which allows manufacturers to maintain continuous assembly lines and improve production efficiency globally.
By customer type, the commercial segment is estimated to hold the second-largest market share in 2026.
The segment is supported by the growing deployment of LEO constellations for broadband, Earth observation, direct-to-device connectivity and data services. Commercial operators are benefiting from the scalable networks that allow capacity to be added as demand grows. Moreover, they also use standardized satellite buses and high-rate production to reduce costs and shorten deployment timelines. Large programs such as SpaceX Starlink and Amazon Project Kuiper are increasing satellite volumes and replacement demand. Earth observation companies are also deploying smaller satellites with shorter refresh cycles. These factors are supporting steady commercial demand across LEO satellite platforms, payloads, and related subsystems.
By frequency band, laser/optical band is expected to be the fastest-growing segment between 2026 and 2031.
The segment is expected to grow rapidly as LEO operators increase the use of optical inter-satellite links for high-capacity data transfer. Laser links allow satellites to exchange data directly in space without routing every transmission through ground stations. This reduces latency and improves network resilience. Optical links also avoid congestion in traditional RF spectrum and support higher data rates. Large constellations are increasingly adopting this architecture to move traffic across the network more efficiently. For instance, SpaceX Starlink is launching newer satellites using laser crosslinks for satellite-to-satellite communication.
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Europe is projected to be the largest LEO satellites industry during the forecast period.
Europe is expected to hold the largest market share due to strong government support, established satellite manufacturing capabilities, as well as growing sovereign connectivity programs. The region has a well-developed space ecosystem which is led by companies like Airbus, Thales Alenia Space, OHB, and Eutelsat OneWeb. Programs such as IRIS² are supporting the development of resilient satellite connectivity across the region. Europe also benefits from strong participation in ESA programs and a mature network of satellite subsystem suppliers. These factors are supporting sustained demand for LEO satellite platforms, payloads, and related subsystems.
Key Players in LEO satellites companies such as SpaceX (US), L3Harris Technologies (US), Lockheed Martin (US), Northrop Grumman (US), and Airbus Defence and Space (Netherlands).
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Technology
General Dynamics Reports Third-Quarter 2026 Financial Results
Published
45 minutes agoon
October 30, 2026By
Revenue $14.6 billion, up 12.9% versus prior yearDiluted EPS $4.49, up 15.7% versus prior year$1.7 billion cash from operating activities, 139% of net earnings6.8-to-1 book-to-bill, $220 billion backlog
RESTON, Va., Oct. 30, 2026 /PRNewswire/ — General Dynamics (NYSE: GD) today reported third-quarter 2026 operating earnings of $1.5 billion, and $4.49 per diluted share (EPS), on revenue of $14.6 billion. Compared with the year-ago quarter, revenue increased 12.9%, operating earnings increased 14.7%, and diluted EPS increased 15.7%. Operating margin of 10.5% was a 20-basis-point expansion from the year-ago quarter.
“Our business had exceptional third quarter results, with revenue growth across all four segments, robust bookings and solid operational performance,” said Phebe Novakovic, chairman and chief executive officer. “With the consistent growth in our backlog and our significant investment in our businesses over the last decade, we are poised to drive continued performance in the years to come.”
Cash and Capital Deployment
Cash provided by operating activities in the quarter totaled $1.7 billion, or 139% of net earnings. During the quarter, the company paid $429 million in dividends, invested $481 million in capital expenditures, and reduced total debt by $500 million. The company ended the quarter with $7 billion in total debt and $4.4 billion in cash and equivalents on hand.
Orders and Backlog
Orders received in the quarter totaled $93.8 billion in the defense segments, driven by large orders in the Marine Systems segment for Virginia- and Columbia-class submarines, and $5 billion in the Aerospace segment, for a total of $98.8 billion. Book-to-bill ratio, defined as orders divided by revenue, was 8.5-to-1 for the quarter for the defense segments, 1.4-to-1 for the Aerospace segment, and 6.8-to-1 on a company-wide basis.
Backlog at the end of the quarter was $220.3 billion. Estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $50.4 billion. Total estimated contract value, the sum of backlog plus estimated potential contract value, was $270.7 billion.
About General Dynamics
Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapon systems and munitions; and technology products and services. General Dynamics employs more than 120,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at www.gd.com.
WEBCAST INFORMATION: General Dynamics’ financial results conference call will be held on Friday, October 30, 2026, at 9:00 a.m. EDT. A link to the live webcast will be available at www.gd.com and will be available for replay following the call. Corresponding presentation slides will be available for download prior to the call.
This press release may contain forward-looking statements (FLS), including statements about the company’s future operational and financial performance, which are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “forecasts,” “scheduled,” “outlook,” “estimates,” “should” and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company’s filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release may contain some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While we believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and our calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to our non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com.
EXHIBIT A
CONSOLIDATED STATEMENT OF EARNINGS – (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Three Months Ended
Variance
October 4, 2026
September 28, 2025
$
%
Revenue
$ 14,566
$ 12,907
$ 1,659
12.9 %
Operating costs and expenses
(13,039)
(11,576)
(1,463)
Operating earnings
1,527
1,331
196
14.7 %
Other, net
4
15
(11)
Interest, net
(45)
(74)
29
Earnings before income tax
1,486
1,272
214
16.8 %
Provision for income tax, net
(257)
(213)
(44)
Net earnings
$ 1,229
$ 1,059
$ 170
16.1 %
Earnings per share—basic
$ 4.55
$ 3.93
$ 0.62
15.8 %
Basic weighted average shares outstanding
270.2
269.2
Earnings per share—diluted
$ 4.49
$ 3.88
$ 0.61
15.7 %
Diluted weighted average shares outstanding
273.8
272.6
EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS – (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Nine Months Ended
Variance
October 4, 2026
September 28, 2025
$
%
Revenue
$ 42,141
$ 38,171
$ 3,970
10.4 %
Operating costs and expenses
(37,734)
(34,267)
(3,467)
Operating earnings
4,407
3,904
503
12.9 %
Other, net
18
51
(33)
Interest, net
(163)
(251)
88
Earnings before income tax
4,262
3,704
558
15.1 %
Provision for income tax, net
(748)
(637)
(111)
Net earnings
$ 3,514
$ 3,067
$ 447
14.6 %
Earnings per share—basic
$ 13.01
$ 11.41
$ 1.60
14.0 %
Basic weighted average shares outstanding
270.2
268.8
Earnings per share—diluted
$ 12.83
$ 11.29
$ 1.54
13.6 %
Diluted weighted average shares outstanding
273.8
271.8
EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT – (UNAUDITED)
DOLLARS IN MILLIONS
Three Months Ended
Variance
October 4, 2026
September 28, 2025
$
%
Revenue:
Aerospace
$ 3,536
$ 3,234
$ 302
9.3 %
Marine Systems
4,960
4,096
864
21.1 %
Combat Systems
2,386
2,252
134
6.0 %
Technologies
3,684
3,325
359
10.8 %
Total
$ 14,566
$ 12,907
$ 1,659
12.9 %
Operating earnings:
Aerospace
$ 513
$ 430
$ 83
19.3 %
Marine Systems
391
291
100
34.4 %
Combat Systems
330
335
(5)
(1.5) %
Technologies
346
327
19
5.8 %
Corporate
(53)
(52)
(1)
(1.9) %
Total
$ 1,527
$ 1,331
$ 196
14.7 %
Operating margin:
Aerospace
14.5 %
13.3 %
Marine Systems
7.9 %
7.1 %
Combat Systems
13.8 %
14.9 %
Technologies
9.4 %
9.8 %
Total
10.5 %
10.3 %
EXHIBIT D
REVENUE AND OPERATING EARNINGS BY SEGMENT – (UNAUDITED)
DOLLARS IN MILLIONS
Nine Months Ended
Variance
October 4, 2026
September 28, 2025
$
%
Revenue:
Aerospace
$ 10,340
$ 9,322
$ 1,018
10.9 %
Marine Systems
13,963
11,905
2,058
17.3 %
Combat Systems
6,959
6,711
248
3.7 %
Technologies
10,879
10,233
646
6.3 %
Total
$ 42,141
$ 38,171
$ 3,970
10.4 %
Operating earnings:
Aerospace
$ 1,516
$ 1,265
$ 251
19.8 %
Marine Systems
1,049
832
217
26.1 %
Combat Systems
958
950
8
0.8 %
Technologies
1,024
987
37
3.7 %
Corporate
(140)
(130)
(10)
(7.7) %
Total
$ 4,407
$ 3,904
$ 503
12.9 %
Operating margin:
Aerospace
14.7 %
13.6 %
Marine Systems
7.5 %
7.0 %
Combat Systems
13.8 %
14.2 %
Technologies
9.4 %
9.6 %
Total
10.5 %
10.2 %
EXHIBIT E
CONSOLIDATED BALANCE SHEET
DOLLARS IN MILLIONS
(Unaudited)
October 4, 2026
December 31, 2025
ASSETS
Current assets:
Cash and equivalents
$ 4,388
$ 2,333
Accounts receivable
2,529
2,406
Unbilled receivables
8,906
8,380
Inventories
9,124
9,232
Other current assets
1,926
1,897
Total current assets
26,873
24,248
Noncurrent assets:
Property, plant and equipment, net
7,853
7,525
Intangible assets, net
1,231
1,375
Goodwill
20,849
21,009
Other assets
3,399
3,092
Total noncurrent assets
33,332
33,001
Total assets
$ 60,205
$ 57,249
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt
$ 756
$ 1,006
Accounts payable
3,166
2,678
Customer advances and deposits
11,083
9,824
Other current liabilities
3,821
3,288
Total current liabilities
18,826
16,796
Noncurrent liabilities:
Long-term debt
6,260
7,007
Other liabilities
7,827
7,824
Total noncurrent liabilities
14,087
14,831
Shareholders’ equity:
Common stock
482
482
Surplus
4,646
4,403
Retained earnings
46,299
44,080
Treasury stock
(23,403)
(22,860)
Accumulated other comprehensive loss
(732)
(483)
Total shareholders’ equity
27,292
25,622
Total liabilities and shareholders’ equity
$ 60,205
$ 57,249
EXHIBIT F
CONSOLIDATED STATEMENT OF CASH FLOWS – (UNAUDITED)
DOLLARS IN MILLIONS
Nine Months Ended
October 4, 2026
September 28, 2025
Cash flows from operating activities—continuing operations:
Net earnings
$ 3,514
$ 3,067
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment
525
490
Amortization of intangible and finance lease right-of-use assets
173
182
Equity-based compensation expense
169
146
Deferred income tax provision
335
151
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable
(123)
(314)
Unbilled receivables
(480)
(415)
Inventories
108
(131)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable
488
119
Customer advances and deposits
1,232
45
Other, net
(196)
219
Net cash provided by operating activities
5,745
3,559
Cash flows from investing activities:
Capital expenditures
(918)
(552)
Other, net
18
130
Net cash used by investing activities
(900)
(422)
Cash flows from financing activities:
Dividends paid
(1,263)
(1,188)
Repayment of fixed-rate notes
(1,000)
(1,500)
Purchases of common stock
(604)
(600)
Proceeds from fixed-rate notes
—
747
Other, net
87
235
Net cash used by financing activities
(2,780)
(2,306)
Net cash used by discontinued operations
(10)
(8)
Net increase in cash and equivalents
2,055
823
Cash and equivalents at beginning of period
2,333
1,697
Cash and equivalents at end of period
$ 4,388
$ 2,520
EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION – (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Non-GAAP Financial Measures:
Third Quarter
Nine Months
2026
2025
2026
2025
Free cash flow:
Net cash provided by operating activities
$ 1,710
$ 2,109
$ 5,745
$ 3,559
Capital expenditures
(481)
(212)
(918)
(552)
Free cash flow (a)
$ 1,229
$ 1,897
$ 4,827
$ 3,007
October 4, 2026
December 31, 2025
Net debt:
Total debt
$ 7,016
$ 8,013
Less cash and equivalents
4,388
2,333
Net debt (b)
$ 2,628
$ 5,680
Supplemental Aerospace Data:
Third Quarter
Nine Months
2026
2025
2026
2025
Gulfstream Aircraft Deliveries (units):
Large-cabin aircraft
35
33
101
95
Mid-cabin aircraft
5
6
18
18
Total
40
39
119
113
Aerospace Book-to-Bill:
Orders (c)
$ 4,970
$ 4,053
$ 14,091
$ 10,417
Revenue
3,536
3,234
10,340
9,322
Book-to-Bill Ratio
1.4x
1.3x
1.4x
1.1x
(a)
We define free cash flow as net cash from operating activities less capital expenditures. We believe free cash flow is a useful measure
for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business
acquisitions, paying dividends and repurchasing our common stock to cover dilution. We use free cash flow to assess the quality of our
earnings and as a key performance measure in evaluating management.
(b)
We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net debt is a useful measure for
investors because it reflects the borrowings that support our operations and capital deployment strategy. We use net debt as an
important indicator of liquidity and financial position.
(c)
Excludes customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments.
EXHIBIT H
BACKLOG – (UNAUDITED)
DOLLARS IN MILLIONS
Funded
Unfunded
Total
Backlog
Estimated
Potential
Contract Value*
Total
Estimated
Contract Value
Third Quarter 2026:
Aerospace
$ 24,460
$ 925
$ 25,385
$ 1,374
$ 26,759
Marine Systems
47,289
99,576
146,865
7,644
154,509
Combat Systems
26,983
1,701
28,684
9,588
38,272
Technologies
13,064
6,341
19,405
31,724
51,129
Total
$ 111,796
$ 108,543
$ 220,339
$ 50,330
$ 270,669
Second Quarter 2026:
Aerospace
$ 22,992
$ 985
$ 23,977
$ 1,170
$ 25,147
Marine Systems
42,356
22,826
65,182
7,442
72,624
Combat Systems
27,507
1,843
29,350
10,847
40,197
Technologies
11,256
6,733
17,989
30,945
48,934
Total
$ 104,111
$ 32,387
$ 136,498
$ 50,404
$ 186,902
Third Quarter 2025:
Aerospace
$ 19,476
$ 1,131
$ 20,607
$ 1,147
$ 21,754
Marine Systems
38,757
14,854
53,611
14,839
68,450
Combat Systems
17,232
1,470
18,702
9,553
28,255
Technologies
10,269
6,668
16,937
32,341
49,278
Total
$ 85,734
$ 24,123
$ 109,857
$ 57,880
$ 167,737
*
The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and
unexercised options associated with existing firm contracts, including options and other agreements with existing customers to purchase
new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and establishes a firm order.
For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract
value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value.
EXHIBIT H-1
BACKLOG – (UNAUDITED)
DOLLARS IN MILLIONS
https://mmx.prnewswire.com/media/MS2023592/ExhibitH1.jpg?id=OA3047375
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SOURCE General Dynamics
Technology
Delta Electronics Hosts Inaugural Future Industry Summit in Singapore and Inks Collaboration with the College of Design and Engineering at NUS to Advance Sustainable Data Center Innovation
Published
45 minutes agoon
October 30, 2026By
SINGAPORE, Oct. 30, 2026 /PRNewswire/ — Today, Delta Electronics, a global leader in power management and smart green solutions, hosted the annual Delta SEAO Future Industry Summit 2026 for the first time in Singapore, after seven consecutive editions in Thailand. Held under the theme “Advancing Regional Infrastructure for AI and Energy Transformation Evolution”, the Summit brought together over 200 prominent government officials, industry executives, academics, and media stakeholders to discuss solutions that accelerate the adoption of sustainable digital and energy infrastructure. This is aimed at supporting AI-driven growth across the Southeast Asia and Oceania (SEAO) region. At the Summit, Delta also deepened its collaboration with National University of Singapore (NUS) College of Design and Engineering (CDE) by joining the Sustainable Tropical Data Center Testbed (STDCT) Phase 2.0 Consortium to foster sustainable AI data center innovation.
Shan-Shan Guo, Delta’s Chief Brand Officer, said, “The energy transition is essential to addressing climate change. The rise of electrification and AI infrastructure is making the need for resilient, energy-efficient power infrastructure increasingly urgent. Since its founding 55 years ago, Delta has been committed to driving sustainability through innovation and energy conservation. We are honored to share at the Delta SEAO Future Industry Summit some of Delta’s key sustainability endeavors, including the acceleration of the energy transition with our microgrid solutions, helping customers move toward net zero carbon emissions with our ESG consulting services, and our coral restoration journey in Singapore and other regions. Together with our customers and partners, we are building a smarter, greener tomorrow.”
“Southeast Asia’s infrastructure needs are evolving rapidly as AI and electrification reshape the region. With its long-term development in power and thermal management, Delta brings deep expertise across power, cooling, automation and energy management,” said Jason Yuan, President of Delta Electronics Southeast Asia & Oceania. “Our strength lies in bringing these capabilities together to help build future-ready infrastructure that is reliable, scalable, efficient and adaptable to the region’s needs. That is the conversation we want to advance by bringing our annual SEAO Summit to Singapore.”
The program included executive keynotes and two panel discussions focused on energy infrastructure readiness for the region’s data centers and the role of industrial and building automation in sustainable manufacturing. The Singapore edition builds on Delta’s growing engagement across Southeast Asia, following the opening of its new Johor Bahru office and the Solutions Day forum in Kuala Lumpur in July. Together, these initiatives reflect Delta’s continued investment in the region and its focus on supporting the infrastructure demands created by AI, electrification and industrial transformation.
The Summit arrives as Southeast Asia’s data center power demand grows faster than any other region in the world. According to an IDC study commissioned by Delta (*), surveyed Southeast Asian operators reported 26-50% year-on-year growth in power demand, against 11-20% in the United States and Europe. 60% here are also already deploying, planning, or evaluating direct liquid cooling, the highest adoption rate of the three regions surveyed. The same study found that 24-26% of Southeast Asian operators cite cluster around power, grid, cooling capacity and equipment lead-time risks as their single biggest constraint on scaling.
Singapore is also investing in the infrastructure and research capabilities needed to support the next generation of data centers. The country is developing new approaches to tropical data center design and testing, including through the STDCT, hosted at the NUS CDE.
Collaboration with NUS to Advance Sustainable Data Center Innovation
Against this backdrop, Delta formalized today, at the Delta SEAO Future Industry Summit 2026, its deepening collaboration with NUS CDE through its participation in the Sustainable Tropical Data Centre Testbed Phase 2.0 (STDCT 2.0) Consortium. As part of the collaboration, Delta will provide NUS CDE with an AI Containerized Data Center and related equipment, to support research and testing of data center technologies suited to tropical conditions. The collaboration brings together Delta’s expertise in power, cooling, and data center infrastructure with NUS CDE’s research capabilities in tropical data center design and testing.
“AI is fundamentally changing the design envelope for data centers, with much higher power densities and thermal loads placing new demands on power, cooling and infrastructure efficiency,” said Professor Lee Poh Seng, Programme Director of STDCT 2.0 and Head of the Department of Mechanical Engineering at NUS CDE. “STDCT 2.0 is designed to bridge the gap between innovation and real-world deployment by providing a live environment in which next-generation technologies can be integrated, tested and validated under tropical operating conditions. Delta brings deep capabilities across power electronics, thermal management and data center infrastructure, and this collaboration will enable us to explore these technologies at system level and demonstrate measurable improvements in energy efficiency, water efficiency, reliability and climate resilience. Our goal is to generate solutions and evidence that can accelerate the deployment of more sustainable AI infrastructure in Singapore and across the wider region.”
As AI and electrification reshape infrastructure needs across Southeast Asia, the Delta SEAO Future Industry Summit 2026, held at Pan Pacific Orchard, brings these stakeholders together to fulfil the region’s infrastructure needs.
ABOUT DELTA ELECTRONICS INT’L (Singapore)
The company is a wholly owned subsidiary of Delta Electronics, Inc.
ABOUT DELTA
Delta, founded in 1971, and listed on the Taiwan Stock Exchange (code:2308), is a global leader in switching power supplies and thermal management products with a thriving portfolio of IoT-based smart energy-saving systems and solutions in the fields of industrial automation, building automation, telecom power, data center infrastructure, EV charging, renewable energy, energy storage and display, to nurture the development of smart manufacturing and sustainable cities. As a world-class corporate citizen guided by its mission statement, “To provide innovative, clean and energy-efficient solutions for a better tomorrow,” Delta leverages its core competence in high-efficiency power electronics and its ESG-embedded business model to address key environmental issues, such as climate change. Delta serves customers through its sales offices, R&D centers and manufacturing facilities spread over close to 200 locations across 5 continents.
Throughout its history, Delta has received various global awards and recognition for its business achievements, innovative technologies and dedication to ESG. Since 2011, Delta has been listed on the Dow Jones Best-in-Class World Index (formerly the DJSI World Index of Dow Jones Sustainability™ Indices) for 15 consecutive years. Delta has also won CDP with double A List for 4 times for its substantial contribution to climate change and water security issues and has been named Supplier Engagement Leader for its continuous development of a sustainable value chain for 8 consecutive years.
For detailed information about Delta, please visit: www.deltaww.com
About the Sustainable Tropical Data Centre Testbed (STDCT 2.0)
The Sustainable Tropical Data Centre Testbed (STDCT) is a joint research initiative led by the National University of Singapore (NUS) and hosted by its College of Design and Engineering, in collaboration with leading industry partners.
STDCT 2.0 focuses on developing energy-efficient data centre designs that can operate reliably in tropical climates. The programme serves as a live testbed to evaluate, validate, and deploy sustainable innovations that reduce energy and water consumption while supporting dense, AI-driven operations.
For more information, visit https://cde.nus.edu.sg/stdct/
*IDC InfoBrief, sponsored by Delta, Powering AI Growth: From Grid Constraints to Rack Readiness, #AP242570-IB, September 2026
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SOURCE Delta Electronics
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Delta Electronics Hosts Inaugural Future Industry Summit in Singapore and Inks Collaboration with the College of Design and Engineering at NUS to Advance Sustainable Data Center Innovation
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