Ctrl K
Operating cash flow of $1.3B in 2026Q2 was only 22% of net income, and FCF swung from $2.9B in 2025Q3 to -$873M in 2026Q1, reflecting working capital volatility and a $3.6B cumulative gap between earnings and cash flow over ten quarters.
Honeywell International Inc. (HON) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 5.09B | 6.38B | 6.1B | 5.34B | 5.27B | 6.04B | 6.21B | 6.9B | 6.43B | 5.97B | 5.5B | 5.45B | 5.02B | 4.33B | 3.52B | 2.83B | 4.2B | 3.95B | 3.79B | 3.91B | 3.21B | 2.44B | 2.25B | 2.2B | 2.38B | 2B | 1.99B | 2.37B | 1.2B | 1.31B | 1.2B |
| Operating CF Margin % | - | 17.04% | 17.56% | 16.18% | 14.87% | 17.56% | 19.02% | 18.79% | 15.39% | 14.72% | 13.99% | 14.14% | 12.46% | 11.1% | 9.34% | 7.76% | 12.99% | 12.77% | 10.37% | 11.31% | 10.24% | 8.83% | 8.8% | 9.52% | 10.69% | 8.44% | 7.95% | 10% | 5.07% | 5.8% | 8.56% |
| Operating CF Growth % | -195.98% | 4.63% | 14.18% | 1.25% | -12.65% | -2.74% | -9.99% | 7.2% | 7.84% | 8.51% | 0.81% | 8.56% | 15.89% | 23.26% | 24.14% | -32.6% | 6.51% | 4.09% | -3.07% | 21.8% | 31.49% | 8.39% | 2.46% | -7.61% | 19.24% | 0.35% | -16.22% | 98.66% | -8.5% | 9.2% | -1.64% |
| Net Income | 8.21B | 4.83B | 5.71B | 5.66B | 4.97B | 5.61B | 4.78B | 6.14B | 6.76B | 1.66B | 4.81B | 4.77B | 4.24B | 3.92B | 2.93B | 2.07B | 2.02B | 2.15B | 2.79B | 2.44B | 2.08B | 1.66B | 1.28B | 1.32B | -220M | -99M | 1.66B | 1.54B | 1.33B | 1.17B | 1.02B |
| Depreciation & Amortization | 1.23B | 1.39B | 1.33B | 1.18B | 1.2B | 1.22B | 1B | 1.09B | 1.12B | 1.11B | 1.03B | 883M | 924M | 989M | 926M | 957M | 987M | 957M | 903M | 837M | 794M | 697M | 650M | 595M | 671M | 926M | 995M | 881M | 609M | 609M | 602M |
| Stock-Based Compensation | 144M | 0 | 194M | 202M | 188M | 217M | 168M | 153M | 175M | 176M | 184M | 175M | 187M | 170M | 170M | 168M | 164M | 118M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 1.07B | 79M | -233M | 153M | -180M | 178M | -175M | 179M | -586M | 2.29B | 76M | 315M | 132M | 262M | 84M | -331M | 878M | 371M | 115M | 332M | 450M | 52M | 223M | 344M | -793M | -456M | 414M | -11M | 233M | 138M | 213M |
| Other Non-Cash Items | -3.69B | 429M | -1.14B | -2.21B | -160M | -1.48B | -929M | -710M | -1.32B | 1.29B | -417M | -524M | -694M | -416M | -131M | 100M | 26M | -104M | 653M | -21M | 46M | -340M | -121M | -460M | 2.51B | 1.98B | 45M | 463M | -14M | -31M | -66M |
| Working Capital Changes | -486M | -352M | 237M | 361M | -745M | 288M | 1.36B | 44M | 286M | -563M | -184M | -163M | 236M | -594M | -458M | -128M | 126M | 451M | -37M | 97M | -212M | 378M | 282M | 396M | 210M | -351M | -1.12B | -500M | -964M | -580M | -573M |
| Change in Receivables | -625M | -825M | -96M | -42M | -739M | -8M | 669M | 11M | -236M | -682M | -770M | 211M | -172M | -365M | -119M | -316M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -366M | -636M | -304M | -626M | -440M | -685M | -67M | -100M | -503M | -259M | -18M | 230M | -200M | 41M | 25M | -310M | -310M | 479M | -161M | -183M | -128M | 37M | -84M | 118M | 333M | 168M | -45M | 90M | -57M | -92M | -87M |
| Change in Payables | 609M | 724M | 95M | 518M | -155M | 744M | 15M | 118M | 733M | 924M | 254M | -17M | 307M | 352M | -13M | 527M | 625M | -167M | -152M | 397M | 516M | 181M | 408M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.88B | -2.71B | -10.16B | -1.29B | -93M | -1.06B | -987M | -533M | 1.03B | -3.57B | -3.34B | -6.51B | -1.88B | -1.96B | -1.43B | -611M | -2.27B | -1.13B | -2.02B | -1.78B | -614M | -2.01B | -584M | -680M | -870M | -906M | -2.71B | -291M | -1.08B | -1.28B | 273M |
| Capital Expenditures | -970M | -986M | -871M | -741M | -766M | -895M | -906M | -839M | -828M | -1.03B | -1.09B | -1.07B | -1.09B | -947M | -884M | -798M | -651M | -609M | -884M | -767M | -733M | -684M | -629M | -655M | -671M | -876M | -853M | -986M | -684M | -717M | -755M |
| CapEx % of Revenue | 2.68% | 2.63% | 2.51% | 2.24% | 2.16% | 2.6% | 2.78% | 2.29% | 1.98% | 2.54% | 2.79% | 2.78% | 2.71% | 2.42% | 2.35% | 2.18% | 2.01% | 1.97% | 2.42% | 2.22% | 2.34% | 2.47% | 2.46% | 2.84% | 3.01% | 3.7% | 3.41% | 4.15% | 2.9% | 3.19% | 5.4% |
| Acquisitions | -1.85B | -1.02B | -8.88B | -714M | -178M | -1.12B | -261M | -50M | -535M | -82M | -2.28B | -5.23B | 156M | -1.13B | -417M | 183M | -1.3B | -467M | -1.27B | -1.1B | 32M | -2.68B | -384M | -199M | -520M | -122M | -2.52B | -1.31B | -1.21B | -1.22B | -114M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 622M | -668M | -293M | -255M | 438M | 613M | 57M | 145M | 417M | -132M | 303M | -87M | -152M | 216M | 16M | 30M | 19M | -34M | 121M | 98M | 87M | 1.07B | 464M | 174M | 224M | 90M | 85M | 1.14B | -1M | 19M | 8M |
| Cash from Financing | -4.78B | -1.95B | 6.84B | -5.76B | -6.33B | -8.25B | -81M | -6.6B | -5.03B | -3.52B | 346M | 102M | -2.27B | -433M | -1.21B | -1.11B | -2.05B | -2.15B | -1.37B | -1.57B | -2.65B | -2.72B | -1.22B | -895M | -882M | -893M | -70M | -1.11B | -15M | -877M | -544M |
| Debt Issued (Net) | -15.87B | 2.61B | 10.86B | 583M | 317M | -2.4B | 5.89B | -177M | -1.51B | 1.11B | 3.94B | 3.44B | -203M | 456M | -76M | 716M | -1.31B | -1.27B | 733M | 2.49B | -436M | -1.05B | 70M | -267M | -320M | -324M | 399M | 56M | 1.25B | 437M | -20M |
| Equity Issued (Net) | -862M | -3.57B | -1.12B | -3.52B | -4.2B | -3.38B | -3.71B | -4.4B | -3.73B | -2.89B | -2.08B | -1.7B | -659M | -1.07B | 25M | -781M | 195M | 37M | -1.31B | -3.38B | -1.5B | -966M | -650M | 17M | 41M | 49M | 130M | -639M | -873M | -745M | -262M |
| Dividends Paid | -3.07B | -2.98B | -2.9B | -2.85B | -2.72B | -2.63B | -2.59B | -2.44B | -2.27B | -2.12B | -1.92B | -1.73B | -1.51B | -1.35B | -1.21B | -1.09B | -944M | -918M | -811M | -767M | -744M | -700M | -643M | -645M | -614M | -609M | -599M | -527M | -338M | -295M | -262M |
| Share Repurchases | -1.2B | -3.8B | -1.66B | -3.71B | -4.2B | -3.38B | -3.71B | -4.4B | -4B | -2.89B | -2.08B | -1.88B | -924M | -1.07B | -317M | -1.08B | 0 | 0 | -1.46B | -3.99B | -1.9B | -1.13B | -724M | -37M | 0 | -30M | -166M | -1.06B | -1.09B | -940M | -409M |
| Other Financing | 15.02B | 1.98B | 3M | 28M | 272M | 148M | 334M | 419M | 2.48B | 377M | 398M | 81M | 100M | 1.54B | 56M | 42M | 13M | 1M | 21M | 86M | 31M | 0 | 0 | 0 | -39M | -9M | 0 | 0 | 93M | -43M | 0 |
| Net Change in Cash | -1.6B | 1.92B | 2.64B | -1.7B | -1.33B | -3.32B | 5.21B | -220M | 2.23B | -784M | 2.39B | -1.5B | 537M | 1.79B | 936M | 1.05B | -151M | 736M | 236M | 605M | -10M | -2.35B | 636M | 929M | 628M | 197M | -795M | 973M | 101M | -854M | 925M |
| Free Cash Flow | 4.12B | 5.39B | 5.23B | 4.6B | 4.51B | 5.14B | 5.3B | 6.06B | 5.61B | 4.93B | 4.4B | 4.38B | 3.93B | 3.39B | 2.63B | 2.04B | 3.55B | 3.34B | 2.91B | 3.14B | 2.48B | 1.76B | 1.62B | 1.54B | 1.71B | 1.12B | 1.14B | 1.39B | 511M | 589M | 441M |
| FCF Margin % | 11.4% | 14.4% | 15.05% | 13.93% | 12.71% | 14.95% | 16.25% | 16.5% | 13.41% | 12.17% | 11.2% | 11.36% | 9.75% | 8.67% | 6.99% | 5.57% | 10.98% | 10.8% | 7.95% | 9.09% | 7.9% | 6.36% | 6.35% | 6.68% | 7.67% | 4.74% | 4.54% | 5.85% | 2.17% | 2.62% | 3.16% |
| FCF Growth % | -20.79% | 3.2% | 13.63% | 2.02% | -12.35% | -3% | -12.48% | 8.06% | 13.6% | 12.08% | 0.5% | 11.48% | 16% | 28.67% | 29.39% | -42.71% | 6.44% | 14.79% | -7.54% | 26.88% | 40.96% | 8.25% | 5.18% | -9.65% | 52.59% | -1.41% | -18.16% | 171.62% | -13.24% | 33.56% | -6.17% |
| FCF per Share | 12.91 | 16.78 | 15.95 | 13.77 | 13.20 | 14.69 | 14.91 | 16.59 | 14.89 | 12.78 | 11.36 | 11.10 | 9.88 | 8.50 | 6.65 | 5.14 | 9.10 | 8.84 | 7.82 | 8.13 | 6.00 | 4.12 | 3.78 | 3.55 | 4.17 | 2.72 | 2.81 | 3.42 | 1.78 | 2.03 | 1.50 |
| FCF Conversion (FCF/Net Income) | 0.50x | 1.35x | 1.07x | 0.94x | 1.06x | 1.09x | 1.30x | 1.12x | 0.95x | 3.86x | 1.14x | 1.14x | 1.19x | 1.10x | 1.20x | 1.37x | 2.08x | 2.55x | 1.36x | 1.60x | 1.54x | 1.49x | 1.81x | 1.66x | -10.82x | -20.16x | 1.20x | 1.54x | 0.63x | 0.80x | 1.17x |
| Interest Paid | 0 | 0 | 869M | 649M | 375M | 339M | 329M | 344M | 353M | 306M | 329M | 310M | 312M | 330M | 344M | 378M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 1.69B | 1.58B | 1.32B | 1.2B | 1.17B | 1.56B | 1.57B | 1.75B | 1.14B | 1.19B | 1.14B | 1.27B | 919M | 578M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying HON stock.
Honeywell International Inc. (HON) generated $6.38B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Honeywell International Inc. (HON) generated $5.39B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Honeywell International Inc. (HON) spent $986.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Honeywell International Inc. (HON) returned $2.98B to shareholders via cash dividends and spent $3.80B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Post-separation cash flow volatility
Metrics are mathematically derived from official filings.
Earnings Quality Deteriorates Sharply
In 2026Q2, operating cash flow of $1.3B was only 22% of net income of $5.7B, a stark contrast to the 1.8x coverage in 2025Q3, suggesting significant non-cash or one-time earnings components.
The OCF/NI ratio swung from 1.80 in 2025Q3 to 0.22 in 2026Q2, and even turned negative in 2026Q1 at -0.79. This indicates that reported net income is not being converted into cash at a sustainable rate, likely due to the Aerospace separation and potential one-time gains. Investors should monitor whether this gap narrows as the new automation-focused entity stabilizes.
Free Cash Flow Volatility Post-Separation
Free cash flow swung from $2.9B in 2025Q3 to -$873M in 2026Q1, with FCF margin dropping from 28.0% to -9.5%, reflecting the disruptive impact of the Aerospace separation on cash generation.
The FCF trajectory is highly erratic, with 2026Q2 recovering to $961M but still below the $2.2B seen in 2024Q4. The negative FCF in 2026Q1 was driven by a massive working capital outflow of -$1.9B, suggesting that the separation has disrupted normal cash conversion cycles. This volatility may persist as the company recalibrates its capital base.
Capital Intensity Remains Moderate
CapEx as a percentage of revenue averaged 2.6% over the last ten quarters, with 2026Q2 at 3.2%, indicating a relatively asset-light model that supports strong FCF conversion once working capital normalizes.
CapEx has been consistently low, ranging from 0.8% to 3.6% of revenue, which is typical for a technology-enabled industrial. This suggests that maintenance capex is modest, and the company is not heavily investing in growth capex, possibly due to the post-separation focus on automation. The low capital intensity may support margin expansion if revenue stabilizes.
Working Capital Swings Signal Disruption
Working capital changes swung from a $985M inflow in 2025Q4 to a -$1.9B outflow in 2026Q1, indicating significant cash absorption that may be tied to the Aerospace separation and inventory adjustments.
The volatility in working capital is extreme, with 2026Q1 showing a -$1.9B change, which was the primary driver of the negative operating cash flow. This suggests that the company is experiencing disruptions in collections, payables, or inventory management as it separates its aerospace business. Investors should monitor whether working capital normalizes in coming quarters.
Capital Returns Outpace Cash Generation
Dividends and buybacks totaled $795M and $0 in 2026Q2, respectively, while operating cash flow was only $1.3B, indicating that shareholder returns are consuming a large portion of cash flow, leaving limited room for other uses.
Over the last ten quarters, dividends have been consistently around $700-800M per quarter, while buybacks have been sporadic, with a notable $1.9B in 2025Q1. In 2026Q2, dividends alone consumed 61% of operating cash flow, which may be unsustainable if cash generation remains weak. The company also spent $646M on acquisitions in 2026Q2, further straining cash resources.
Cumulative Earnings Exceed Cash Flow
Over the last ten quarters, cumulative net income of $16.5B exceeded cumulative operating cash flow of $12.9B, a $3.6B gap that suggests earnings quality is weaker than reported, possibly due to non-cash items or working capital drag.
The cumulative OCF/NI ratio is approximately 0.78, indicating that for every dollar of net income, only $0.78 was generated in operating cash flow. This divergence may be attributed to the Aerospace separation, which likely involved non-cash gains or charges, and the volatile working capital changes. Investors should assess whether this gap narrows as the company stabilizes.
What Could Invalidate the Base Case
The 2026Q2 EPS of $17.81 versus consensus of $2.15 suggests potential one-time gains that may not recur, and the negative OCF/NI in 2026Q1 indicates cash flow may not support the reported earnings trajectory.
The massive earnings beat in 2026Q2, with net income of $5.7B, appears to include non-operating items that may not be sustainable, as operating cash flow was only $1.3B. Additionally, the company's elevated leverage (Debt/Equity of 2.24) and the post-separation working capital swings could pressure future cash generation. Investors should monitor whether the gap between net income and operating cash flow narrows, as a persistent divergence would undermine the quality of reported earnings.