Cash conversion efficiency has collapsed, evidenced by an OCF/NI ratio of -0.79 in 2026Q1 and a $1.9 billion working capital outflow that severely impacted liquidity.
| 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 | 5.13B | 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 % | -196.51% | 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 | 4.1B | 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 | 1.32B | 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 | 150M | 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 | -19M | 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 | 2.36B | 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 | -1.39B | -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 | -848M | -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 | -658M | -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 | 584M | 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 | -2.46B | -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 | -958M | -986M | -1.16B | -1.04B | -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 | 2.61% | 2.63% | 3.35% | 3.15% | 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 | -2.2B | -1.02B | -8.88B | -671M | -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 | 580M | -668M | 0 | 0 | 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 | -506M | -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) | -9.97B | 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) | -2.54B | -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 | -3.02B | -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 | -2.9B | -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 | 15.03B | 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 | 2.32B | 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 | 4.17B | 5.39B | 4.93B | 4.3B | 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 % | 11.35% | 14.4% | 14.21% | 13.03% | 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 % | -17.57% | 9.32% | 14.69% | -4.59% | -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 | 6.54 | 8.39 | 7.53 | 6.44 | 6.60 | 7.34 | 7.46 | 8.30 | 7.44 | 6.39 | 5.68 | 5.55 | 4.94 | 4.25 | 3.32 | 2.57 | 4.55 | 4.42 | 3.91 | 4.07 | 3.00 | 2.06 | 1.89 | 1.77 | 2.08 | 1.36 | 1.40 | 1.71 | 0.89 | 1.01 | 0.75 |
| FCF Conversion (FCF/Net Income) | 1.02x | 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 |
Working capital volatility
As reported in recent financial statements, Honeywell's OCF/NI ratio plummeted to -0.79 in 2026Q1, a stark reversal from the 2.34 observed in 2023Q4, indicating that net income is currently failing to translate into meaningful cash generation due to significant operational headwinds and working capital outflows.
The wide divergence between net income and operating cash flow suggests that accounting earnings are currently decoupled from actual cash inflows. Investors should monitor whether this disconnect is a temporary result of supply chain-induced inventory buildup or a more permanent erosion of cash conversion efficiency.
Based on the company's reported figures, FCF margins have experienced extreme volatility, swinging from a peak of 28.0% in 2025Q3 to a negative 9.5% in 2026Q1, highlighting a precarious trajectory that warrants further investigation into the sustainability of the firm's core cash-generating capabilities.
The rapid shift into negative free cash flow territory suggests that the company's capital-intensive business model is struggling to absorb revenue contractions. This trend implies that the firm may face difficulty maintaining its historical dividend and buyback pace if cash generation does not stabilize in upcoming quarters.
According to recent SEC filings, Honeywell recorded a massive $1.9 billion working capital outflow in 2026Q1, which stands in sharp contrast to the $1.3 billion inflow seen in 2023Q4, suggesting that inventory management and receivables collection have become significant hurdles to maintaining positive cash flow.
The erratic nature of these working capital swings indicates potential inefficiencies in managing the supply chain or a buildup of unsold inventory within the SPS segment. Such fluctuations suggest that the company's cash position is highly sensitive to operational timing, which may obscure the underlying health of the business.
As evidenced by financial disclosures, Honeywell continued to deploy $1.78 billion toward dividends and share repurchases in 2026Q1 despite generating negative free cash flow, a strategy that appears to rely on balance sheet reserves rather than current operational cash generation to fund shareholder returns.
This aggressive capital deployment strategy may indicate management's confidence in a near-term recovery, yet it simultaneously increases the risk profile if cash flow remains depressed. Investors should monitor whether this reliance on cash reserves to fund payouts is sustainable if the current industrial downturn persists.
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.