Honeywell International (HON) risk factors, 2026 10-K

Honeywell International's 2026 10-K lists 18 risk factors in 4 groups. Against the prior year's 18: 11 substantially reworded.

Risk factors listed
184 groups
New this year
0vs 18 last year
Dropped
0since the prior 10-K
Substantially reworded
11of those kept
Section length
8k wordsItem 1A

What the changes say

  • The planned separation risk now covers only Aerospace and adds SEC, tax, regulatory, and Board approval conditions.
  • International compliance risk now includes business partners and anti-money-laundering laws.
  • Raw-material disclosures update listed commodities and the supply-contract date to December 31, 2025.

What changed since the prior 10-K

Reworded

  • 71% rewrittenOPERATIONAL RISKS

    The development of technology products and services presents security and safety risks

    No substantive change; the IoT, artificial intelligence, machine-learning, cybersecurity, safety, legal, and financial consequences remain the same.

  • 56% rewrittenOPERATIONAL RISKS

    Concentrations of credit, counterparty, and market risk, and limitations in our ability to access the capital markets may adversely affect our results of operations and financial condition

    No substantive change; the risk continues to cover counterparty creditworthiness, industry and geographic concentration, and collecting or renewing contracts.

    Was: Concentrations of credit, counterparty, and market risk may adversely affect our results of operations and financial condition

  • 55% rewrittenOPERATIONAL RISKS

    We may be unable to successfully execute or effectively integrate acquisitions, and divestitures may not occur as planned

    No substantive change in the shown text; acquisition integration, returns, divestitures, and acquired-business liabilities remain the focus.

  • 45% rewrittenOPERATIONAL RISKS

    The Company is subject to risks related to its plan to separate Honeywell from Honeywell Aerospace, into standalone, publicly traded companies

    The risk now covers only the Aerospace separation; the Advanced Materials spin-off was removed and SEC, tax, regulatory, and Board conditions were added.

    Was: The Company is subject to risks related to its plans to separate Automation and Aerospace Technologies and to spin off its Advanced Materials business into standalone, publicly traded companies

  • 41% rewrittenMACROECONOMIC AND INDUSTRY RISKS

    The Company and each of our businesses is subject to unique industry and economic conditions that may adversely affect the markets and operating conditions of our customers, which in turn can affect demand for our products and services and our results of operations

    No substantive change in the shown Aerospace Technologies text; it still emphasizes air-travel demand, aircraft production, suppliers, and supply-chain capacity.

    Was: Each of our businesses is subject to unique industry and economic conditions that may adversely affect the markets and operating conditions of our customers, which in turn can affect demand for our products and services and our results of operations

  • 36% rewrittenOPERATIONAL RISKS

    Our future growth is largely dependent upon our ability to develop new technologies and introduce new products that achieve market acceptance in increasingly competitive markets with acceptable margins

    The text now expressly adds adequate protection of intellectual property associated with Honeywell’s inventions as a growth requirement.

  • 33% rewrittenOPERATIONAL RISKS

    Raw material price fluctuations, inflation, the ability of key suppliers to meet quality and delivery requirements, or catastrophic events can increase the cost of our products and services, impact our ability to meet commitments to customers, and cause us to incur significant liabilities

    Raw-material examples changed by removing fluorspar, adding aluminum, and updating the supply-base reference from December 31, 2024 to December 31, 2025.

  • 26% rewrittenMACROECONOMIC AND INDUSTRY RISKS

    A significant percentage of our sales and operations is in non-U.S. jurisdictions and is subject to the economic, political, regulatory, foreign exchange, and other risks of international operations

    International compliance risk now covers business partners and anti-money-laundering laws, rather than employees and anti-corruption laws alone.

  • 24% rewrittenLEGAL AND REGULATORY RISKS

    Increased focus and evolving views of lawmakers on climate change and other ESG issues could have a long-term impact on our business and result of operations

  • 24% rewrittenLEGAL AND REGULATORY RISKS

    We cannot predict with certainty the outcome of litigation matters, government proceedings and other contingencies and uncertainties

  • 23% rewrittenOPERATIONAL RISKS

    Failure to increase productivity or enhance operations through sustainable operational improvements, as well as an inability to successfully execute repositioning projects or to effectively manage our workforce, may reduce our profitability or adversely impact our businesses

    Was: Failure to increase productivity through sustainable operational improvements, as well as an inability to successfully execute repositioning projects or to effectively manage our workforce, may reduce our profitability or adversely impact our businesses

All 18 risk factors

Headings as the filing states them, in filing order.

MACROECONOMIC AND INDUSTRY RISKS

  1. 01The Company and each of our businesses is subject to unique industry and economic conditions that may adversely affect the markets and operating conditions of our customers, which in turn can affect demand for our products and services and our results of operations41% rewritten
  2. 02A significant percentage of our sales and operations is in non-U.S. jurisdictions and is subject to the economic, political, regulatory, foreign exchange, and other risks of international operations26% rewritten

OPERATIONAL RISKS

  1. 03Raw material price fluctuations, inflation, the ability of key suppliers to meet quality and delivery requirements, or catastrophic events can increase the cost of our products and services, impact our ability to meet commitments to customers, and cause us to incur significant liabilities33% rewritten
  2. 04We may be unable to successfully execute or effectively integrate acquisitions, and divestitures may not occur as planned55% rewritten
  3. 05The Company is subject to risks related to its plan to separate Honeywell from Honeywell Aerospace, into standalone, publicly traded companies45% rewritten
  4. 06Our future growth is largely dependent upon our ability to develop new technologies and introduce new products that achieve market acceptance in increasingly competitive markets with acceptable margins36% rewritten
  5. 07Failure to increase productivity or enhance operations through sustainable operational improvements, as well as an inability to successfully execute repositioning projects or to effectively manage our workforce, may reduce our profitability or adversely impact our businesses23% rewritten
  6. 08Our operations and the prior operations of predecessor companies expose us to the risk of material environmental liabilities
  7. 09Our business, reputation, and financial performance may be materially impacted by cybersecurity attacks on our IT infrastructure and products
  8. 10The development of technology products and services presents security and safety risks71% rewritten
  9. 11Data privacy, data protection, and information security may require significant resources and present certain risks
  10. 12A material disruption of our operations, particularly at our manufacturing facilities or within our IT infrastructure, could adversely affect our business
  11. 13Concentrations of credit, counterparty, and market risk, and limitations in our ability to access the capital markets may adversely affect our results of operations and financial condition56% rewritten
  12. 14We are impacted by stakeholder interest in public company performance, disclosure, and goal-setting with respect to environmental, social, and governance (ESG) matters
  13. 15Global climate change and related regulations and changes in customer demand could negatively affect our operations and our business

LEGAL AND REGULATORY RISKS

  1. 16Changes in legislation or government regulations or policies can have a significant impact on our results of operations
  2. 17Increased focus and evolving views of lawmakers on climate change and other ESG issues could have a long-term impact on our business and result of operations24% rewritten
  3. 18We cannot predict with certainty the outcome of litigation matters, government proceedings and other contingencies and uncertainties24% rewritten

Other Honeywell International 10-Ks

  • 2025 10-K risk factors

    18 risks. Planned separations of Advanced Materials, Automation, and Aerospace Technologies dominate strategic execution risk this year.

    Filed Feb 14, 2025

About this page

Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.

Honeywell International (HON) Risk Factors: 2026 10-K, What Changed | Gloomberb