HON · Earnings call · 2026Q3T · Full report
Liquidity and Debt Position
HONEYWELL INTERNATIONAL INC · 2026-10-22 · Importance 73 · Surprise 66 · From source text
Management targeted reducing gross debt from $18 billion in the second quarter to less than $13 billion by year-end 2026, lowering gross leverage to below 3x. The company expected a year-end cash balance of approximately $3 billion and net debt of around $10 billion. Management said continued cash generation and leverage reduction would increase capital-allocation flexibility, while near-term priority remained debt paydown.
Key facts
- Honeywell expects gross debt below $13 billion at year-end 2026, down from $18 billion in Q2 2026, and gross leverage below 3x for 2026.
- Honeywell expects year-end 2026 cash of approximately $3 billion and net debt of around $10 billion.
- Honeywell's highest priority is reducing leverage to 3.0x or below and continuing to reduce it into 2027 as cash is generated.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | positive | committed | — | Honeywell expects gross debt below $13 billion at year-end 2026, down from $18 billion in Q2 2026, and gross leverage below 3x for 2026. |