HON: Wolfe Global Transportation & Industrials Conference Abridged Transcript

Research evidence excerpt

HON: Wolfe Global Transportation & Industrials Conference Abridged Transcript

May 19, 2026

Investment Conclusion

Honeywell (HON): Outperform Rating - YE26 Price Target of $281

170 Investment Thesis

160 Aerospace Spin Now on Horizon: Honeywell is set to complete the separation of its

150 Aerospace business in early-July with investor events already in the calendar for June.

140 We view this as a potential upside catalyst in light of premium valuation multiples for

Aero comps, and expectations for post-spin outperforemance consistent with 130

precedent transactions.

Improved Execution Under New Leadersip: It is notable that Honeywell is now more

110 consistently delivering on its financial commitments, with stronger organic sales and

100 order KPIs relative to peers. This is an important step in re-establishing credibility for

90 this new leadership team.

80 Multiple Opportunities for Margin Expansion: We see potential for outsized margin

70 expansion across the majority of portfolio, but Aerospace (OE repricing, supply chain

unlock) and Process Tech (improved mix) standout.

OP Rating: Risk/reward has improved in light of significant re-rate across Aero and Dec-21Feb-22Apr-22Jun-22Aug-22Oct-22Dec-22Feb-23Apr-23Jun-23Aug-23Oct-23Dec-23Feb-24Apr-24Jun-24Aug-24Oct-24Dec-24Feb-25Apr-25Jun-25Aug-25Oct-25Dec-25Feb-26Apr-26 Industrial comp set, and a more bullish perspective on 2027/28e earnings pre-standed

HON EE/MI S&P 500 costs.

Source: Wolfe Research, FactSet

Potential Catalysts Price Target Methodology

Firmly in the Spin Zone: We are now ~4 months from the separation of Aerospace.

Bull Case We would expect folks to increasingly sharpen pencils on SOTP math and this could

Organic Growth (CAGR: '23-'25) 5% size up investor participation into the event.