What are the top risks for HONEYWELL INTERNATIONAL INC (HON)?

The top risks identified in the 10-Q filing are: Geopolitical and Macroeconomic Risks, Supply Chain Vulnerabilities, Capital Structure and Interest Rate Risk. Honeywell faces significant risks from ongoing geopolitical instability and macroeconomic volatility, which directly impact its supply chains and operational costs. The company is also managing increased debt levels and associated interest expenses related to strategic acquisitions.

HON - Comprehensive Filing Intelligence

Q3 2025•10-Q•Filed Oct 23, 2025

6.0/10

Filing Health:GOOD

Solid fundamentals with minor concerns to monitor

Executive Summary

Despite facing macroeconomic uncertainties and inflationary pressures, the company achieved net sales growth through price increases and higher volumes, supported by acquisitions.. Gross margins experienced a decline, impacted by rising material and labor costs, acquisition-related costs, and environmental liabilities, although pricing actions aimed to offset inflation.. Significant asbestos liabilities of $1.526 billion remain, despite a recent divestiture of legacy liabilities, indicating ongoing exposure.. Aerospace Technologies revenue grew 15.3%

Top Concerns

!Despite facing macroeconomic uncertainties and inflationary pressures, the company achieved net sales growth through price increases and higher volumes, supported by acquisitions.
!Gross margins experienced a decline, impacted by rising material and labor costs, acquisition-related costs, and environmental liabilities, although pricing actions aimed to offset inflation.
!Operating cash flow generation was strong, significantly boosted by a substantial one-time termination payment, though working capital changes, particularly increased accounts receivable, presented a headwind.
!Significant increase in Goodwill due to multiple acquisitions.
!Amortization of intangible assets from acquisitions over varying periods (1-20 years).

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

7.0/10

Management tone is confidently optimistic with focus on increased pricing and price adjustments to offset inflation.

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

7.0/10

Earnings quality shows aggressive accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is moderate with $1.526B (Asbestos Liabilities) + $0.981B (Environmental Liabilities) + Potential Litigation Outcomes in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

4.0/10

Overall risk profile shows geopolitical and macroeconomic risks as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

7.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.