Honeywell International Inc.

Good morning. Thank you for standing by and welcome to the Honeywell Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Please be advised that today's call is being recorded. I would now like to hand the call over to Mark Macaluso, Senior Vice President of Investor Relations. Please go ahead.

Thank you. Good morning and welcome to Honeywell Technologies' second quarter 2026 earnings conference call. Joining me today are Honeywell Technologies Chairman and Chief Executive Officer Vimal Kapur and Senior Vice President and Chief Financial Officer Mike Stepniak. This webcast and the presentation materials, including non-GAAP reconciliations, are available on our Investor Relations website. From time to time, we post new information on the Investor Relations website that may be of interest or material to our investors. Our discussions today include forward-looking statements that are based on our best view of the world and of our businesses as we see them today and are subject to certain risks and uncertainties, including those described in our recent SEC filings. This morning, we will review financial results for Honeywell Technologies for the second quarter of 2026 and discuss our updated guidance. And as always, we'll leave time for your questions at the end. I would also like to take a moment to remind our audience that the 2026 results and guidance we will present today exclude results from Honeywell Aerospace following the spinoff on June 29th. Additionally, our guidance reflects both the completion of the Johnson Matthews Catalyst Technology Acquisition as of July 17th, as well as the anticipated closures of the productivity and warehouse divestitures, which we now expect by early August. Pension income and the results of Continuum have also been removed from our adjusted results in all prior and future periods. Finally, adjusted EPS for Honeywell Technologies now reflects the impact of the one-for-two reverse stock split. You'll find a summary of these changes on slide three. With that, it's my pleasure to turn the call over to Vimal, who will begin on slide four.

Thank you, Mark, and good morning. The second quarter marked an important milestone for Honeywell Technologies as we began our next chapter as a pure-play automation company. At Investor Day, we laid out our go-forward strategy of growing and monetizing our install base through outcome-based services, software, and new product innovations. We also introduce long-term targets for Honeywell Technologies, which will be our roadmap for the next three plus years. And as you can see, we are laying the foundation today to deliver on our commitments. Our results this quarter have demonstrated the strength of the new Honeywell Technologies portfolio. We delivered 4% organic sales growth driven by continued strength in building automation and a better-than-anticipated performance in both process automation and technology and industrial automation businesses. Orders grew 16% organically with broad-based demand across all segments, resulting in 9% increase in ending backlog. Notably, short-cycle orders grew double-digit across all segments. In P&T orders were up 24% organically led by roughly 50% orders growth in process technology, providing even greater confidence in their expected second half growth inflection. We also expanded segment margin by 100 basis point, overcoming significant cost inflation headwinds and unfavorable mix through a combination of productivity and volume leverage. This drove earnings in the second quarter above our expectation from early June with increased confidence heading into the second half of the year. As a result, today we are raising our full year outlook for organic growth, segment margin, and adjusted earnings per share. We continue to expect a sharp growth inflection in process automation and technology and continued momentum in industrial automation in the second half of 2026. A mind with a sustained Thank you very much. We also took important action this quarter to strengthen the portfolio to support long-term growth. On the portfolio, we closed the acquisition of Johnson Smithy's Catalyst Technologies business on July 17. With this business, we add a differentiated technology portfolio that will expand our install base and strengthen B&T's portfolio across refining, petrochemicals, and renewable fuels. Ken and his leadership team are already fully engaged with our new colleagues, meeting with over 90% of employees globally at key sites in just the first week. They have been involved in all aspects of the transaction and are prepared to hit the ground running to deliver for our customers and our shareholders. I could not be more excited to welcome the JM Catalyst Technologies team to Honeywell Technologies. As part of the final stage of our portfolio transformation, we completed the separation of Honeywell Aerospace and also supported the Continuum team in their successful initial public offering in June. On Continuum, we expect to provide more color on our plans of our 47% ownership stake by early next year. We remain strong supporters of Raj and his team and are excited to be shareholders in such groundbreaking quantum computing company. Thanks to the great work of our team, we also now expect to close the debentures of both productivity solution and services and warehouse and workforce solution business by early August. This is approximately two months ahead of our initial planning assumption, which has reduced our 2026 revenue expectation by approximately $400 million. We're also confident this will drive greater focus and further simplification of industrial automation portfolio. which is already beginning to see improved financial performance. We wish both these businesses and their team continued success as they embark upon next chapter. A transformed and simplified portfolio is well positioned to outperform with momentum in both long-term and short-cycle orders, ramping activity in pipeline, and meaningful macro tailwinds for the next several years. Let's turn to slide 5 to recap our recent Investor Day where I had the pleasure of spending time with many of you in New York City last month. On June 11th, we hosted investors, sell-side analysts, media, and others at our Investor Day for the new Honeywell Technologies. We kicked off the day laying out our revamp and focus strategy that would drive value-enhancing solutions for customers and drive out performance in our focus markets. Each business leader walked through their differentiated offering, connected strategy, growth framework, and three-year targets. Guests also heard directly from our leading customers and partners, including Exxon, Tengote, Google, Equinix, Duke Energy, and others about the differentiated outcome we are delivering and the long-standing relationship we have built over many decades. My team and I are highly confident in our ability to deliver on our three-year commitments. We have a strong position in key end markets, differentiated technologies, a global footprint, and a clear competitive advantage in high growth verticals. Our team is comprised of Honeywell veterans, talented new additions, and even some folks that rejoined us after successful careers elsewhere. All of this coupled with a proven Honeywell Technologies accelerated operating system positions us for a new chapter of growth and profitability as Honeywell Technologies. They even concluded with us delivering our new three-year target, which you can see on slide six. Over the last three years, we transformed our portfolio through acquisitions, spin-offs, and divestitures into a pure-play automation company focused on innovating in mission-critical environments where uptime, safety, productivity, and efficiency are paramount. This has set us up to deliver on these commitments. Our strategy focuses on two key pillars. Growing our install base and then monetizing this vast install base through innovative software, services, and outcome-based solutions. While maintaining our leading position in core verticals, we are also increasing our exposure to higher growth verticals like data centers, LNG, great infrastructure, and life sciences as examples, which are all linked to compelling megatrends. Our projected top line growth and margin expansion is also underpinned by more meaningful shift towards services and software, annual recurring revenue. On margin, we have over 200 basis point of margin expansion coming quickly from stranded cost removal, portfolio actions in industrial automation, and benefit of aerospace trademark agreement. On top of that, we expect to drive 60 basis point a year of operational margin expansion through price Improving Mix, New Product Introduction, and Productivity As you heard from our CFO in June, we are confident that the 24% target is achievable and provides meaningful upside as we execute our strategy. Collectively, this will drive approximately $12 of adjusted EPS representing more than 10% growth annually. The important point here is that we will generate these returns right out of the gate, given all the actions we took to prepare the organization ahead of aerospace spin. And finally, on cash, we expect to improve our conversion to over 90% and have line of sight already in the second half of this year to hitting 95%. I want to talk more about acquisition of Johnson & Matty's Catalyst Technology business, which will become part of our process automation and technology segment. This addition to process technology will unlock strategic growth by increasing our existing install base and creating a more integrated offering across catalysts and process technology. It also expands Honeywell UOP's capability across refining, petrochemicals, and renewable fuels with complementary offerings and capability, which you can see on slide seven. What makes this acquisition specifically attractive is its strategic fit with our existing business. We are already on many of the same customers with complementary process units and the business perfectly aligns to our core verticals. The acquisition also enhances our end-to-end solutions by combining catalyst process technology and digital capabilities powered by Honeywell Technologies Forge. We have clear visibility to both commercial and cost synergies and our long-term outlook for this business as part of Honeywell Technologies has not changed. Let's now turn to slide A to discuss our orders trend in each business. As you can see, our orders growth has been accelerating across the company driven by strong demand generation, NPI, and continued share gains. This resulted in 16% organic orders growth in second quarter with broad-based growth across all short-cycle businesses driving considerable momentum on the LTM basis as a result. P&T had incredibly strong quarters of orders growing nearly 25%, leading to a book-to-bill for P&T above 1.2. Our refreshed portfolio with the addition of GM's catalyst technology business is set up well to benefit from energy upcycle, particularly as customer capex forecasts support the ongoing transition to LNG and renewable fuel as priority. Strengths across both long and short cycle orders growth, including increased pipeline activity from refurbishment and rebuilds in Middle East, will provide meaningful macro tailwinds for the next several years. In industrial automation, we saw strong demand across Europe, Middle East, and China. For the core business that remains after the divestitures, order grew 11% or 7% sequentially with sensing and industrial management orders up over 20%. Pete and his team continue to execute the turnaround strategy in IA to win back share and grow the core business. Finally, in building automation, the team continues to drive innovative NPI that is driving share gain while growing our position in a high growth vertical. This quarter, We drove over 50% orders growth and 30% organic sales growth in high growth verticals while maintaining our strong position in the core with approximately 30% orders growth in our fire business. Orders in Middle East grew over 50% this quarter by our process technology business. Regarding the conflict, We are assuming the situation remains as it is today with no improvement from the current station, but also no significant escalation in the war or further disruption to the supply chain. This is, of course, a very fluid situation, but our teams in the region have done a tremendous job minimizing impact to our business while ensuring our employees are safe and we're able to continue to support our customers. Finally, book to bill for the total company was 1.1 and our ending backlog was up 9%. This and continued momentum we see in all segments supports 4-6% growth outlook in the second half and over media term. It's been our pleasure speaking with you this morning, and let me now turn it over to Mike to discuss our second quarter results and 2026 outlook in more detail.