Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Honeywell International Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	4,772)	5,740)	5,672)	4,967)	5,610)
Net income from discontinued operations	(304)	—)	—)	—)	—)
Net income from continuing operations	4,468)	5,740)	5,672)	4,967)	5,610)
Depreciation	546)	671)	659)	657)	674)
Amortization	842)	663)	517)	547)	549)
(Gain) loss on sale of non-strategic businesses and assets	18)	1)	(5)	(22)	(102)
Impairment of goodwill	724)	—)	—)	—)	—)
Impairment of assets held for sale	270)	219)	—)	—)	—)
Repositioning and other (gains) charges	(167)	244)	860)	1,266)	569)
Net payments for repositioning and other charges	(378)	(479)	(459)	(512)	(692)
NARCO Buyout payment	—)	—)	(1,325)	—)	—)
Resideo indemnification and reimbursement agreement termination payment	1,590)	—)	—)	—)	—)
Asbestos liabilities divestiture payment	(1,428)	—)	—)	—)	—)
Pension and other postretirement income	(396)	(476)	(406)	(510)	(1,114)
Pension and other postretirement benefit payments	(20)	(32)	(38)	(23)	(43)
Stock compensation expense	196)	194)	202)	188)	217)
Deferred income taxes	18)	(233)	153)	(180)	178)
Other	144)	(652)	(851)	(359)	(96)
Accounts receivable	(825)	(96)	(42)	(739)	(8)
Inventories	(636)	(304)	(626)	(440)	(685)
Other current assets	(233)	371)	17)	232)	(276)
Accounts payable	724)	95)	518)	(155)	744)
Accrued liabilities	1,325)	171)	494)	357)	513)
Income taxes	(707)	—)	—)	—)	—)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures	(352)	237)	361)	(745)	288)
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities	1,607)	357)	(332)	307)	428)
Net cash provided by operating activities	6,075)	6,097)	5,340)	5,274)	6,038)
Capital expenditures	(986)	(1,164)	(1,039)	(766)	(895)
Proceeds from disposals of property, plant and equipment	31)	—)	43)	29)	27)
Increase in investments	(1,503)	(1,077)	(560)	(1,211)	(2,373)
Decrease in investments	1,469)	870)	971)	1,255)	2,525)
Receipts from Garrett Motion Inc.	—)	—)	—)	409)	586)
(Payments) receipts from settlements of derivative contracts	(399)	94)	6)	369)	192)
Cash paid for acquisitions, net of cash acquired	(2,211)	(8,880)	(718)	(178)	(1,326)
Proceeds from sales of businesses, net of fees paid	1,157)	—)	4)	—)	203)
Net cash used for investing activities	(2,442)	(10,157)	(1,293)	(93)	(1,061)
Proceeds from issuance of commercial paper and other short-term borrowings	24,297)	13,838)	12,991)	7,661)	5,194)
Payments of commercial paper and other short-term borrowings	(22,815)	(11,578)	(13,663)	(8,447)	(5,190)
Proceeds from issuance of common stock	237)	537)	196)	320)	229)
Proceeds from issuance of long-term debt	4,035)	10,408)	2,986)	2,953)	2,517)
Payments of long-term debt	(2,909)	(1,812)	(1,731)	(1,850)	(4,917)
Repurchases of common stock	(3,804)	(1,655)	(3,715)	(4,200)	(3,380)
Cash dividends paid	(2,976)	(2,902)	(2,855)	(2,719)	(2,626)
Pre-separation funding	1,962)	—)	—)	—)	—)
Spin-off cash	(449)	—)	—)	—)	—)
Other	469)	3)	28)	(48)	(81)
Net cash provided by (used for) financing activities	(1,953)	6,839)	(5,763)	(6,330)	(8,254)
Net cash provided by operating activities from discontinued operations	333)	—)	—)	—)	—)
Net cash used for investing activities from discontinued operations	(269)	—)	—)	—)	—)
Net cash from discontinued operations	64)	—)	—)	—)	—)
Effect of foreign exchange rate changes on cash and cash equivalents	176)	(137)	14)	(183)	(39)
Net increase (decrease) in cash and cash equivalents	1,920)	2,642)	(1,702)	(1,332)	(3,316)
Cash and cash equivalents at beginning of period	10,567)	7,925)	9,627)	10,959)	14,275)
Cash and cash equivalents at end of period	12,487)	10,567)	7,925)	9,627)	10,959)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Honeywell’s cash flow statement reveals a complex pattern of operating, investing, and financing activities over the five-year period. While operating cash flow generally remains positive, significant fluctuations occur in investing and financing activities, driven by acquisitions, debt management, and shareholder returns. Overall, the company demonstrates a capacity to generate cash from operations, but its cash position is heavily influenced by strategic decisions related to capital allocation and financial structure.

Operating Activities: Net cash provided by operating activities demonstrates relative stability, ranging from approximately US$5.3 billion to US$6.1 billion annually. However, adjustments to reconcile net income to operating cash flow exhibit considerable volatility, particularly in 2023 and 2025. A notable increase in these adjustments in 2025 (US$1,607 million) is partially offset by a decrease in net income from continuing operations, suggesting non-cash items significantly impacted cash flow that year. Accounts receivable and inventories show consistent cash outflows, while accounts payable and accrued liabilities generally provide cash inflows, though with fluctuations. The impact of deferred income taxes varies significantly year to year.
Investing Activities: Investing activities are characterized by substantial cash outflows, primarily related to acquisitions and investments. Cash used for acquisitions is particularly high in 2024 (US$8,880 million) and 2025 (US$2,211 million). Increases in investments represent a consistent drain on cash, though partially offset by decreases in investments in some years. Proceeds from disposals of property, plant, and equipment, and from sales of businesses, provide some cash inflows, but are insufficient to offset the significant outflows from acquisitions and investments. The NARCO Buyout payment in 2023 represents a significant single-year cash outflow.
Financing Activities: Financing activities demonstrate significant volatility. Proceeds from the issuance of commercial paper and other short-term borrowings are substantial in all years, but are largely offset by repayments of the same. Long-term debt issuance and repayment also contribute to fluctuations. Repurchases of common stock and cash dividends paid consistently represent significant cash outflows, totaling billions of dollars annually. In 2024, net cash provided by financing activities is positive (US$6,839 million), largely due to significant debt issuance, while in 2025 it is negative (US$1,953 million) due to substantial debt repayment and shareholder returns. The Resideo indemnification and reimbursement agreement termination payment and the Asbestos liabilities divestiture payment in 2025 represent substantial, unique cash outflows.
Discontinued Operations: Cash flow from discontinued operations is minimal until 2025, where it becomes a noticeable contributor to net cash provided, with US$333 million from operating activities and US$64 million net cash flow overall. However, this is offset by cash used for investing activities related to discontinued operations (US$269 million).
Overall Cash Position: Despite the fluctuations in investing and financing activities, the company maintains a substantial cash balance, increasing from US$10.959 billion in 2022 to US$12.487 billion in 2025. The net increase (decrease) in cash and cash equivalents varies significantly year to year, reflecting the combined impact of operating, investing, and financing activities. Foreign exchange rate changes also have a noticeable, though less substantial, impact on the cash position.

In summary, the company’s cash flow profile is characterized by strong operating cash generation, significant strategic investments and acquisitions, consistent shareholder returns, and active debt management. The large swings in financing and investing cash flows suggest a proactive approach to capital allocation and financial engineering.

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Honeywell International Inc. (NASDAQ:HON)

Cash Flow Statement