Honeywell International, Inc.

Innovation and product development · Intellectual property protection and infringement

Risks related to international operations include differing levels of protection of intellectual property, acts of industrial espionage.

Market position and competition · Pricing pressure and margin compression

Changes in the competitive landscape, including new market entrants and new technologies that may lead to product commoditization, and adverse industry economic conditions, all of which could result in lower market share, reduced selling prices, and lower margins.

Market position and competition · Competitive pressure and market share loss

Operating results may be adversely impacted by reduced investments in process automation, changes in the competitive landscape, including new market entrants and new technologies that may lead to product commoditization, and adverse industry economic conditions, all of which could result in lower market share, reduced selling prices, and lower margins.

Market position and competition · Disruptive competitors and new market entrants

Operating results could also be impacted by changes in overall trends related to end market demand for the product portfolio, as well as new entrants and non-traditional players entering the market. Changes in the competitive landscape, including new market entrants and new technologies.

Market position and competition · Market cyclicality and demand volatility

Periods of increased volatility in oil and natural gas prices may result in less investment by our customers and therefore, lower demand for our products and services. Fluctuations in retail, energy and semiconductor markets.

Market and investment · Market volatility and economic cycles

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.

International and currency · International operations and emerging markets

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. Our international operations, including U.S. exports, represent more than half of the Company's sales.

International and currency · Foreign exchange and currency exposure

Risks related to international operations include exchange control regulations, wage and price controls, fluctuations in foreign currency exchange rates, antitrust regulations, employment regulations, foreign investment laws.

Supply chain and procurement · Raw material availability and cost volatility

Operating results may be adversely impacted by downturns in capacity utilization for chemical, industrial, refining and petrochemical plants, our customers' availability of capital for refinery construction and expansion, raw material demand and supply.

Project and contract management · Government contract dependency

Operating results in our Defense and Space business unit may be affected by the mix of U.S. and foreign government appropriations for defense and space programs and by compliance risks. In addition, delays resulting from a U.S. federal government shutdown may result in us incurring substantial labor or other costs without reimbursement under our customer contracts.

Supply chain and procurement · Supplier operation and dependance

Our Aerospace business is impacted by customer buying patterns of aftermarket parts, supplier stability, factory transitions, and global supply chain capacity constraints that may lead to shortages of crucial components.

Core operations · Capacity utilization and efficiency

Operating results may be adversely impacted by downturns in capacity utilization for chemical, industrial, refining and petrochemical plants, and our ability to maximize our facilities' production capacity and minimize downtime.

Economic and market conditions · Inflation and deflation pressures

The Company and each of its businesses has been, and may continue to be, negatively affected by global macroeconomic conditions, including the impacts of inflation, high interest rates, supply chain and labor disruptions.

Economic and market conditions · Economic recession and downturns

Operating results may be adversely affected by downturns in the global demand for air travel, which may impact new aircraft production or result in the delay or cancellation of new aircraft orders. Operating results may be adversely impacted by downturns in the level of global buildings and infrastructure construction activity and downturns in capacity utilization for chemical, industrial, refining and petrochemical plants.

Geopolitical and trade · International conflicts and tensions

Operating results may also be adversely affected by any decrease in air travel demand due to regional restrictions or suspension of service for events related to public health, safety, the environment, or regional conflicts. Instability and uncertainties arising from the global geopolitical environment and the evolving international and domestic political.

Geopolitical and trade · Trade policies tariffs and sanctions

The adoption and expansion of, and other changes to, trade restrictions and tariffs, quotas, embargoes, and other related actions, and the occurrence or threat of a trade war or other governmental action related to tariffs or trade agreements or policies could adversely impact demand for our products, our costs, our customers, our suppliers, and the world and U.S. economies.

Economic and market conditions · Consumer spending and confidence

Operating results may be adversely affected by any decrease in air travel demand due to regional restrictions or suspension of service for events related to public health, safety, the environment, or regional conflicts.

Geopolitical and trade · Trade policies tariffs and sanctions

Risks related to international operations include import, export, and other trade restrictions and barriers (such as tariffs, sanctions, and embargoes)

Industry regulation · Regulatory compliance and changes

In addition, delays resulting from a U.S. federal government shutdown may result in us incurring substantial labor or other costs without reimbursement under our customer contracts. Results may also be impacted by the potential introduction of counterfeit parts into our global supply chain.

Corporate governance · Ethics and compliance culture

Violations by our employees or business partners of anti-corruption or anti-money-laundering laws (despite our efforts to mitigate such risk), changes in regulations regarding transactions with state-owned enterprises.