Dear Fellow Shareowner,
Without a doubt, 2026 is poised to be the most important year in Honeywell's history — and the most exciting moment of my more than three-decade career with the company. We are approaching a historic milestone: the completion of our transformation into three independent, industry-leading companies. Following the separation, which we expect to complete in the third quarter of this year, each company will have sharper focus, stronger strategic advantages and greater potential to deliver sustained value creation for shareowners and customers over the long term.
Reflecting back, 2025 was a year of tremendous achievements, continued growth and strong momentum, defined by two themes that will shape Honeywell's next chapter: Acceleration and Separation.
ACCELERATION: AI TAKES CENTER STAGE ACROSS THE WORLD
Last year, artificial intelligence moved to the foreground across industries and geographies. As adoption grew, the world focused increasingly on the immense opportunities Al can unlock, but also on how to responsibly navigate the hype and scrutiny that surround it.
2025 also marked a tipping point in the industrial sector: from Al to cloud to 5G, we saw a major acceleration as companies moved beyond pilots to scaled, real-world deployments that will drive measurable outcomes. While many industrial companies are still in the early innings of unlocking Al's full potential, today more than ever, I am confident it will spark a change in the automation industry, steering it toward autonomy, creating new economic value for our customers and driving new opportunities across Honeywell as we transform into a pure-play automation leader.
DELIVERING ON OUR IMPACT COMMITMENTS
Honeywell's purposeful approach to helping make the world safer, smarter as well as more secure and sustainable remains central to how we operate. While our technologies are helping customers to improve energy efficiency, reduce emissions and enhance safety across critical infrastructure, we also made meaningful progress in 2025 toward our internal goal of achieving carbon neutrality in our operations and facilities by 2035.2
Within our communities across the globe, we continue to invest in the next generation of leaders. We welcomed nearly 1,700 interns and co-op students into our Honeywell Futureshapers Academy in 2025, a more than 40% increase from 2024. Additionally, we made a $10 million investment in UNC Charlotte to establish the Honeywell Innovation Hub, strengthening collaboration between academia and industry and building an enduring pipeline of local talent and innovation.
As a responsible and engaged community partner, we expanded our support for humanitarian and disaster relief, standing with communities and employees when they needed it most. Our commitment to doing what's right for our people and the world around us earned us recognition this year, as Ethisphere named Honeywell as one of the World's Most Ethical Companies. This achievement reflects our unwavering focus on operating with both ethics and accountability.
LOOKING FORWARD TO WHAT'S AHEAD
As we approach the separation, there is no doubt in my mind we are on the path to creating two best-in-class large-cap companies in Aerospace and Automation, each with strong long-term growth trajectories that will serve shareowners, customers and employees for decades to come, and I am honored to have the opportunity to lead Honeywell forward in this next chapter.
Heading into a milestone year in Honeywell's storied history, I am deeply grateful to our more than 100,000 Futureshapers around the world for their hard work and commitment, and to you, our shareowners, for your continued confidence and support.
I would also be remiss not to thank our Board of Directors, including our newest members Indra Nooyi, Marc Steinberg and Craig Arnold, who will serve as Aerospace Board Chair, as well as Mike Lamach who will serve as our next Lead Director. Throughout the separation process, each of our Board members played an essential role, and their experience and guidance remain invaluable as we enter this transformational year.
I appreciate your continued ownership of Honeywell.
Vimal Kapur
Chairman and Chief Executive Officer
Xavier analysis
The CEO expresses clear confidence in the company's strategic transformations and future prospects, using words like 'historic milestone,' 'tremendous achievements,' 'strong momentum,' 'immense opportunities,' and 'confident' about future growth and value creation.
Strategic themes by emphasis
#1Company Transformation & Separation
#2Artificial Intelligence & Industrial Autonomy
#3ESG & Societal Impact
#4Stakeholder Gratitude & Leadership Acknowledgement
7 named projects & initiatives
Honeywell Aerospace, Honeywell (Automation business), Honeywell Futureshapers Academy, Honeywell Innovation Hub, Ethisphere, World's Most Ethical Companies +1 more
3 other, 2 restructuring, 1 facility, 1 partnership
Forward-looking statements
4 total: 0 quantified, 4 directional, 0 vague
Key quotes
“We are approaching a historic milestone: the completion of our transformation into three independent, industry-leading companies. Following the separation, which we expect to complete in the third qua”
This quote highlights the core strategic initiative of the company – the separation into independent entities – and the expected benefits of this transformation for stakeholders.
“While many industrial companies are still in the early innings of unlocking Al's full potential, today more than ever, I am confident it will spark a change in the automation industry, steering it tow”
This quote underscores the company's strong belief in Artificial Intelligence as a transformative force for its industrial automation business and its role in leading this shift towards autonomy.