Good morning and welcome to Honeywell International 2026 Investor Day. This webcast and the presentation materials, including non-GAAP reconciliations, are available on our Investor Relations website. From time to time, we post new information on this website that may be of interest or material to our investors. Our discussion today includes forward-looking statements that are based on our best view of the world and of our businesses as we see them today and are subject to certain risks and uncertainties, including those described in our recent SEC filings. Some things just have to work. The plant, the pipeline, the hospital, the building down the street, the grid that powers them all. For more than a century, we've operated at the heart of the world's essential systems. The controllers, the sensors, the intelligent networks, running the operations the world depends on. Every second, their systems collect data, decades of it. For a long time, that data was trapped, isolated in tools, equipment, and operating systems. Not anymore. We're connecting it, contextualizing it, putting it to work. Not a leap, a path built step by step, accelerating with the certainty critical industries demand. Tens of thousands of customers, hundreds of thousands of sites, and millions of assets connected, learning, getting smarter every day. The buildings where people work, learn, heal, gather, safe, integrated, sustainable. The sensors and smart devices that form the foundation of autonomy, smart, reliable, secure. The reactors, the chemistry, the lab where life-saving medicines are created. Precise, reliable, efficient. The people, operators, engineers, technicians, working with clarity and confidence, their expertise amplified, never replaced. This is Honeywell International, the intelligence powering the world's most critical operations. When something has to work, we're already there. Honeywell International, at the heart of it. Please welcome Senior Vice President of Investor Relations, Mark Macaluso. Good. Well, good afternoon. Thank you everyone for coming. We finally made it, no one is more excited to be here than this team. We have a packed agenda for you, a ton of great content, plenty of time for Q&A sessions, we hope you all stay and join us for a reception at the end. Quick look at our agenda for today. We'll start with our Chairman and CEO, of course, Vimal Kapur. Just a quick look at our presenters. It's going to be a great day. Thank you for sticking with us the whole afternoon. With that Good day, everyone. I've been privileged to work in Honeywell over the last 35+ years across different sectors of automation, be it buildings, be it process industry, be it industrial sector. Each one of them, I've been highly influenced by the customer voice who talk to us every day on making their business better and solving their complex problems. These customers are in refining, these are in hospitals, these are in data centers, these are in hotels, these are in semiconductor fabs, the list goes on. I thought, what an exciting start to the Investor Day to hear voices, some of these customers, which are shaping the future of Honeywell. Here we go. I've had an interface with Honeywell for over 20 years. One of the biggest opportunities that we've had over the last several years is in the area of process control. Given the complexities, the scale of ExxonMobil, the scale of ExxonMobil's operations, Honeywell is in the majority of those operations all over the world that help to develop and deliver products to our customers. In fact, Honeywell was recognized this year as Supplier Innovator of the Year, that's in large part due to the work that was done in process control. Our relationship goes well beyond the supplier aspects, there's a lot of areas where we're users of your technology, where we've got co-innovation ongoing. From my perspective, there's a bright future in that, the foundations of the relationship are transparency in terms of understanding what we as a customer need in our facilities, aligned with the fact that everything that we do together is science-based. What is the best science? What is the best technology to solve the world's problems, what is the best policy? Since Vimal and I first connected, what I've come to appreciate is how genuine he is and how well he and his team listen. They take the time to understand what we're trying to accomplish here at Equinix, then they show us how Honeywell can help us move faster and serve our customers better. I mean that quite literally. We are each other's customers. Honeywell depends on Equinix's infrastructure, we're proud to call Honeywell our customer, Equinix depends on Honeywell's technology. I believe that the world needs Honeywell more than ever, your innovation will shape the future. Honeywell helps make NXP Semiconductors better. Being a core part of Honeywell's platforms let us deploy truly innovative solutions at scale, systems that are smart, secure, and safe. Just as important, Honeywell is an outstanding partner in early architecture discussions. Their input helps us optimize features and shape our roadmap before products are built. That's a real partnership, a real value for NXP Semiconductors. The next chapter in industrial is AI, it's a big one. The market is suspected to grow almost 10x over the next decade, the real opportunity is AI that operates in the physical world. Together, we can augment existing applications, create new ones, ultimately redefine industrial segments while delivering significant value to Honeywell's customers. At a broader level, partnership like this matter because we share a common belief that technology should make the world smarter, safer, more sustainable. Physical AI enables safer communities, smarter infrastructure, lower environmental impact. We're also proud of deploying Honeywell solution at our own fabs to accelerate our operational sustainability goals. I think our collaboration has been a very progressive collaboration, one of the key strength of Honeywell is that you hardly hear no. I think the decision that I made in canceling a contract with another company to now give you this refinery, I didn't make a mistake. We make a decision very fast. You also run very fast. Without this relationship, we wouldn't have been able to build the largest single train in the world. I think the future between the two of us, between Honeywell and Dangote, is going to be great. I think, with you guys, the sky is the limit. Please welcome Honeywell Chairman and CEO, Vimal Kapur. Good afternoon, everyone, and a warm welcome to everybody to join us on our Investor Day. I thought it's important to start with our customers because if we have to commit you growth, if we have to commit you our bright future, it's not without these people who shape our decisions every day. I really take it very seriously to thinking about customer- first mindset. I'm going to walk through my story and you will hear these messages. I thought I will lay it out in the front what I'm going to hear from me in next 35-40 minutes. The first is about our transformation to a pure-play automation company, something which you have been following up on. More importantly, focusing automation on mission-critical segment. Automation is a very wide market. You can make a lot of choices. We are making a choice to operate in segment where mission criticality matters, where uptime matters. Customers want to use these systems 24/7. Making that choice is a critical decision we have been evolving upon over the last two years since we are reworking our portfolio. Also the point number three, that we as a company are practicing a single business model, which is a bit novel because companies having a business model is not unique about it. Having a business is following a practice is very standard. We are going to follow at Honeywell level a single business model that we build an installed base and we serve our installed base through services and software at scale of the entire company. Moving along to AI, which is going to be a future opportunity for us. You will hear from me and subsequent speakers how our industry of automation will turn towards autonomy. It's real. Some of you had a chance to look at our demos. You can already see that we are pivoting towards our offering, but I believe that as a future optionality of revenue opportunities, it's going to create much bigger than what it's in our numbers today. Of course, our operating system, which gives us an execution certainty, and our team, which knows how to deliver. Jumping onto it, I'm going to tell my story to you in three parts. I'll first walk you through our portfolio transformation, then I'll move towards what's going to drive growth in Honeywell, and finally how we're going to execute it. The three simple chapters. Walking on the portfolio transformation, before that I thought, let me go back to the last Investor Day of Honeywell, which was 11th of May 2023. About three years and one month back. I was not CEO at that time. My chart said Incoming CEO Priorities. I thought I just could go back and see what did I say and did I do what I said, or I just wandered around and chose to do different things. If you see the list of things to what I said, we will accelerate top- line growth, improve our Say-Do on that. We'll execute on Honeywell transformation. We'll accelerate our new product machinery. We'll improve our operating system. We'll pivot towards more corporate responsibility even though priorities have changed there over the last three years. We haven't lost course on that. We deploy capital strategically. I won't say that we've done 100% precisely. The direction of travel has been what I committed. There have been some tweaks. The point being that I stay on course. I don't change my mind. If what we are going to present to you today, you can have a high amount of certainty that me and my team are going to deliver on these commitments in the times ahead. If you look at our portfolio, many of these actions are known. I thought it's good to summarize on a page what we have been able to accomplish since start of January 2024 till about two and a half year of journey. Two spins, successfully executed the advanced material spins last year, aerospace spin happening in about two weeks time from now. We did seven acquisitions in the automation portfolio. There were two additional we did in aerospace. I'm not counting those. We've done three divestitures, one completed, two are under execution, should occur in the Q3 of this year. We also did significant balance sheet simplification so that our business is easier to understand. Finally, we were able to accomplish the IPO of Quantinuum about few days back. Imagine I started as a CEO in June of 2023. I presented you this chart. I'm going to do this. You may think this is a crazy idea to do all this in such a short period of time. We have been able to accomplish this because we are mission-centric. We really want to build an automation-centric portfolio. When you work for a mission, you get the energy and execution speed on which we have delivered on this. That data has really created the new Honeywell. These are 2025 numbers. They are backward-looking. $17 billion, rough numbers, is our revenue of the Honeywell Technologies, divided into three segments: Buildings, Industrial, and Process. 25% of the portfolio is refreshed with all the changes we made of divestitures and acquisitions. 1/4 of the revenue is going to come from the new revenue stream, generally speaking, from higher growth opportunities. Not only have we been able to create a pure-play diversified end markets portfolio, but a lso have positioned it well for growth. If you look at the distribution of the revenue, the center pie chart is, if you pay attention to that, we really start focusing upon this whole notion of growing installed base and mining installed base. 60% of our revenue comes from solutions, 20%, and 40% product. That's when we grow our installed base. We do it every day. That's when we ship a product, or we build a solution, so our installed base keeps growing. If our mindset is that we need to mine installed base, that's 40% of our revenue. 30% comes from services, 10% comes from software. We like both. It's no question that we need more of services and more of software. We want both of them because both are equally profitable. That mindset allows us to really think about our future business models. One of the things we are planning as part of this layout is we want our services and software revenue to grow to 45% because it makes our business more predictable, less cyclical, but also more profitable, because clearly that revenue stream has a higher margin compared to the solution and product stream. That's one of our strategic goals, that we want to treat this business with this mindset of building and mining installed base. If you look at our geographic distribution, as you would expect, business is geographically very distributed. Little over 40% revenue from U.S. and 60% rest of the world. We will benefit from, as the global expansion occurs in different end markets, we'll equally benefit from that. Now, the question will obviously come in that automation is a big market. Where exactly we play and why we made these choices? Important question, because that's the heart and center of the discussion. I put a very simple illustration of automation on the left-hand side. Some of you are familiar, it's called Purdue Model. You start with sensing and measuring something, then you define a control measure on what you want to do, and finally, you can optimize it using software. This is how the industry has evolved since the mid-1970s when this industry got created. As I mentioned, we play in three end markets: Building Automation, Process Solutions, and Discrete Automation. We have made the choice to play in the mission-critical part of these markets. Also, you don't see some other parts of automation. We are not representing because we believe it doesn't fit into either mission criticality or our business model of building and mining installed base doesn't really fit in well. If that's our core principle, we need to be staying true to our principle. If you walk the stack here, in buildings, we play through sensors, controls, and software. In building, the sensors are smoke detectors, cameras, field devices. We have significant position in the control domain, and we have significant position in the software domain. When you go into the process, we have significant position in the solution side, both in the control and software. On Industrial A utomation, we have sensing and measurement play at this point. We want to build a strong sensing and measurement business in Industrial Automation. This is a space we believe in because the thesis is very simple. If the world is going to invest much more in AI, AI i s built upon data, and in the physical world, data comes from sensors. You can't estimate the temperature of a room or a condition in a building or any such asset based on estimate. It's not going to work. Physical sensing is the heart of it. It's a very fragmented industry. We have already built a strong product-based business in buildings, and we want to illustrate that reputation in Industrial Automation. Discrete Automation in the control side, we don't represent today. The question will be why we don't participate in this market. It's an attractive market with the U.S. onshoring occurring. There should be growth here. At this point, we don't have participation in that because that's how our portfolio has evolved over the last many years. It doesn't mean we won't participate in the future. We understand these domains quite well, but today our position is open at this point. We're keeping our optionality open, and near-term, we'll continue to focus on strengthening our sensing and measurement space, but moving forward, we'll keep ourself a room to grow into Discrete Automation on the control side. Very wide portfolio, which jumps in nicely to the next chart. Why do we like all this? Okay, why do you like this combination? First and foremost, we play in a market which is a little over $200 billion between Building, industrial, and Process. Market grows somewhere around 3.5% in a given period. 3% growth in Industrial and Process and 4% growth in Building. We want to grow 4%-6%, so why would we grow higher than market? If the market grows about 3.5%, what's our entitlement to grow higher than market? There are two fundamental reasons for that. Before I get to those reasons, automation by itself is a secular growth market for several decades to come. In the critical segment we operate, thinking about critical segment like hospitals, like data center, pharmaceutical facilities, refineries, semiconductor facility, utilities, automation is like oxygen for these facilities. You cannot run these complex facilities without automation. We are not in any fundamental shift which is likely to occur for decades to come. It has five decades of proven history. Secular growth here is highly probable in the times to come. That's a table stakes. The fundamentals of macros are strong, whether infrastructure built out, the energy security, which has become a major challenge due to two wars, the labor scarcity and AI issue, which are interrelated, I'll talk to it, and reshoring. I think these are the foundational growth vectors which are occurring in automation, which support us and support the entire peer group with whom we compete with every day. Question comes in that why would we grow higher than the market? The thesis is built upon two fundamentals. The first is within these markets, there are verticals which are growing at a much higher rate, way greater than 3.5%, like data centers, like semiconductor fabs, and many others like LNG. If we are able to participate in those markets and grow at a higher rate, we are able to change the rate of acceleration of our growth. Part is, how do we make those choices, because we can't be everywhere, how we carefully make the choices and grow those markets at a higher rate while we maintain our share in the core. That's the first change we want to make, and I'll talk more about it. The second, our installed base built over last 50- 75 years in some businesses is significant. You're talking here tens of thousands of plants, millions of buildings, and assets which we own. How do we execute our aftermarket services strategy in this mission-critical segment where service is very important. Uptime is very important. Customers care about these assets work all the time. If we are able to execute our strategy on services and software flawlessly, that gives us an incremental growth opportunity. It's fundamentally grow with the market with these two optionality of growing higher on the high- growth markets and mining your installed base better. Makes a case for us not to grow 3%-4%, but make a case to grow from 4%-6%. In addition to that, the market characteristic of fragmentation in buildings and industrial market, in particular, is very attractive for us, more from future growth and optionality to further do acquisitions. Fragmentation allow us to make choices. The markets are big, as you can see, $200 billion, and we are shy of $20 billion. We have a lot of runway organically, but equally importantly, inorganically. We believe that there's aggregation opportunity selectively where necessary possible in addition to that. There's a lot to like in these markets for us to feel bullish about on how can we deliver in the years ahead. All that really comes together in form of where our position is as a pure-play automation leader. Number one player in Building Automation and number one player in Process Technology. If I was standing here in 2019 and saying we are going to be number one player in Building Automation, mostly most people will not believe that statement because the segment itself did not exist. We have created a segment called Building Automation from scratch after spinning off our residential business in late 2018. From scratch, we built a business which was $5.3 billion, sub- 20% margins, to a business which is trending towards $8 billion and high- 20s% margin. We know how to create pure-play, and we are going to repeat that formula in Industrial Automation and Process Automation. We believe, in honest admission, we are top three, but our ambition is to stay also become number one. It's going to take a while. I'm not saying it's happening next quarter, but that's part of our strategy that how we continue to execute and bring our position. Our foundational strengths is our installed base, our global scale, and our operating system. Our differentiation comes from three points. The first is domain experience. Domain experience matters in mission-critical segments, and our participation in these industries give us a deep understanding on how these sectors work, and more importantly, if we have to mine our installed base, we have to understand the customer needs much more deeply than only at a product level. As an example, if you take care of process industry, which is about 40% of our business, the domain experience there come from understanding the conversion of molecule. These domains really drive a convert a molecule from position A to position B. Not easy to understand domain. It is possessed by very few people who provide technology to asset builder to do that. We own that business. We are number one provider of Process Technology in the whole world, which makes us a uniquely positioned to have deep domain knowledge to play in that segment. By the way, the same argument applies in industrial and buildings too. That give us a unique advantage as we are turning our focus more from automation to autonomy. Domain experience is going to be paramount to do that. Number two, Honeywell Forge, something we have been investing in since 2019. Seven years of journey. This is the foundation of our business model. If we have to mine our installed base, we want to do through Honeywell Forge platform, which is an AI platform which mines our installed base better and creates a higher value for our customers. Pivots the path to autonomy. I will ask you to consider checking how many industrial companies announced a cloud strategy in 2019, and how many companies still have the cloud strategy in 2026. We are one of the few companies who stayed on course because we believed into it, therefore, it has become a competitive differentiator for us after seven or eight years. Finally, our decision to play in innovation across critical control points, the mission criticality. It's a choice we have made. The whole company runs with the mindset of serving customers, which are mission-critical, which positions us differently from others, which want to serve all the segments. That's where we believe is our starting point. Before I go away from my portfolio section, I want to spend a minute on our commitment on ESG. We have stayed on course on that, specifically after separation of aerospace and our specialty chemicals business. We don't have any exposure to nuclear weapons. Some of the shareholders have that as criteria. That obviously was an obstacle in our previous portfolio, not anymore. More importantly for me, 75% of our offerings are sustainability oriented. That number will only go up in terms of how we think about this business. Finally, our own emissions have been reducing. We haven't changed our course just because it became less visible to the outside world. We have been executing on it. We will be carbon neutral by 2035. We'll be half of our emissions since we've started measuring it by 2030. We do it every day, we do it every week, we are going to stay on course on that. That was the first part of the story. We have transformed our portfolio. We believe in every part of our portfolio we have, and we are in a good position. The question is, what do you do with that? Portfolio is just a good starting point. You need to execute and drive a growth pace upon that. Before I jump into our growth strategy, I just want to go back to this interesting chart for you. If you see the left-hand side, I started my first year was 2024. I thought it's good to start from the year one of me being the CEO. We had, I would say, at best, okay year or not so great year, whichever word you want to choose in. Our industrial business, automation business shrank about 4%. Process and building grew both around 2%. Not good performance out of the gate, but that's where we started laying out the strategy, which I'm going to share to you, that how we are going to grow as a company from mid- to- high single-digit. There has to be a consistent way to do it, and that way is consistent across all the three segments. You've seen how the Building Automation performance have changed from low single to consistent high single-digit growth we have delivered over the last six quarters, and I believe that we are well-positioned to do that for rest of the year. The question is that strategy replicable in Industrial Automation and Process Automation? The answer is yes because we have a consistent and the same strategy. We don't have different ways to think about it. We are in a different stage of journey in terms of maturity of our strategy execution in our portfolio and have a very high confidence that what we are committing to you in terms of our growth of mid single-digit growth for Industrial Automation and Process Automation technology, and of Buildings in from mid- to- high single-digit growth, is absolutely going to happen because of the consistency of the strategy. What's our growth strategy? It's built on this whole circle of shared value creation. We start with growing installed base, which is 60% of our revenue. We need to make careful choices on where we go, and I'll talk to that in a minute. Then we really start with the circle of monetizing installed base. Now, if you go back 10 years back, monetizing installed base was all around getting about some parts business, some break-fix services, some service contracts. That changed over the last few years since we started instrumenting our business with the cloud. Now we think about every asset need to get connected, harness the power of Honeywell Forge platform, which creates optimized outcome for the customer, and then as the customer asset gets older, five years, 10 years, we refresh it with our migration software offerings, and the cycle starts all over again. That's a fundamental principle. If we think about it across all our businesses, it changes the mindset on what business you are in because you think your growth strategy around that. With that in mind, this is how we think about our growth strategy. It's a simple triangle. We grow our installed base by selling products and projects. That's 60% of our business. Then we mine that installed base using our Honeywell Forge platform through services and software. To do one and two, I need new products. If I need to participate in high- growth verticals, I need something to sell to them, which is differentiated. If I have to mine my installed base, I need to give them an offering by which customers are willing to pay for. All that converts into three. If I do a good job on new products, that ensures my growth. Simple way to think about Honeywell Technologies is going to be, in a typical year, how much growth came from new products, how much growth came from price? You add the two, subtract from them any market disruption or any churn which happens, that's going to be our growth vector, growth numbers. Relatively simple to do and why it relates this way, because that linked to our strategy. We want to make ourselves so easy to understand that you don't have to do a lot of thinking on how to think about Honeywell in the future. Let me dig into each one of them, how we think about growing installed base, monetizing installed base, and introducing products. Let's talk about growing installed base. On the left-hand side, you see our current construct of revenue. 80% of our revenue come from what we call mature verticals, where the growth happens at GDP rate, around 3% same growth, a typical year. That's our businesses in end markets like commercial real estate, education, airport, refining chemicals. Absolutely important business for us. We want to keep our share in these market and gain some where we have an opportunity through our innovation. That's core part of our strategy. Equally important for us is that it's an end strategy that while we do that, we also make a choice of high- growth verticals, which is 20% of our revenue, and growing them at a higher rate, at a double-digit growth rate. When we do that well, consistently, that 20% becomes 25%. The question will be: How do you choose where you want to grow? Do you randomly pick up what's occurring at this point, or you want to be thoughtful on that? We're really putting bet on four things on a next five or 10-year horizon. The four things should not surprise you. The first is we believe AI is here to stay for a long time. That's why the two end markets of data center and semiconductor are important for us. Number two, if AI is here to stay, you need more energy. LNG and grid infrastructure is important, and those are two end markets we really want to focus upon. Number three, aging population is here to stay for a long time, which means the world need more life sciences, more drugs, and also likely need more hospitals. We're putting bets on those two. Finally, hospitality. As world becomes more richer, consumption increases. People want to spend money on leisure, and therefore the hospitality industry grows. We are not putting random bets on what's in fashion. We are thoughtful on four big vectors of AI, energy, aging, and consumption. If those two are true, which we believe they are, based upon our analysis, that gives us a structured way to keep thinking about where to focus on high-growth verticals. We have proven it already. We have grown nicely in LNG through our inorganic acquisition. We have built a good position in data center from nowhere over the last three to four years. We've built a good position in hospitality with a combination of our actions of organic and inorganic. We're going to continue this journey. Some places we have a lot more runway, some places we have less runway. That's part of one of our strategy, growing our installed base in a very thoughtful manner through our solution and our product. Once we have built our installed base, then we want to mine our installed base, which is upper end of this bar. 40% was, 60% was at the bottom. We need to mine it. We are not selling, as I said, breakfast services. We are selling outcomes. That's a direction we are pivoting towards. Selling skilled labor efficiency, selling asset uptime or operational efficiency, the offering which customers care about consistently across all the segments we operate. That's where the mission criticality matters. If you operate in mission-critical segment, customers care about uptime. They care about operational efficiency. They care about skilled labor. Therefore, our offerings remain highly repeatable because we can work on them across many sectors. If you see the middle chart of our installed base penetration, we have wired our entire installed base, which is a relatively unique feature. If you have time to walk through one of our demos in the room here is we have visibility to our entire installed base of whole of Honeywell. Why it matters? If my business model is to mine installed base, the obvious first question is, do you even know where it is? Looks very pedestrian question, but it's hard for industrial company which has grown over multiple years through multiple acquisition to instrument that. We have that data. We know which customer is under contract. We know the life of the asset, which parts are obsolete, which are not obsolete, which needs renewal, and that gives us the penetration option. You see some businesses are in mid single digits, like Process Technology, 3%. I see there an opportunity of runway. We can grow from 3%- 10s% and 20s%. Every business have a runway to grow. From a theoretical option, if we have to get all the service business in Curie in the planet from our installed base, the theoretical model or umbilical model is roughly $20 billion. Our service business is just $7 billion. That, to me, is an opportunity set. How we should think about it, how to get from $7 billion-$ 7.5 billion-$ 8 billion. Which gives me a confidence that we will get to 45% of revenue mix of services and software because the entitlement is very large and mission criticality drives us towards that. Which nicely puts us the whole story of Honeywell Forge, which is the center of our strategy to monetize our installed base. Forge, as I said, we've invested over $1 billion since 2019 to really build this hardware agnostics AI platform which allow us to build our offerings to mine our installed base through services and software. Suresh Venkatarayalu will walk you through in his section how the journey has evolved over the last few years. Really started with connected services. Connect our installed base and offer our customer a service contract through Forge platform. Why it matters? Customers are able to get better uptime. They have better visibility of the assets. We're able to get better price as a customer, as a company, and also have a lower cost to serve. That's how we started in 2019. We pivoted toward new software applications, the applications which were created with the power of data. You can create new software application to configure our products. You can create application to inspect our product for a license fee. They became a new revenue stream for us. Revenue streams are growing to a point that today approximately $1 billion of revenue is annual recurring revenue for us, only for software. A company like us used to have big software numbers. We have learned our lesson to keep it simple. Just report ARR, which is what we invoice. This should grow about 15%, we believe, if we execute this strategy well. That becomes a growth engine for monetizing installed base. Of course, as I said, our total service and software business is $7 billion. $1 billion of that is from software recurring ARR. Obviously, we will work towards growing that in the future. The last box here of autonomous operation is equally important. As the world is growing, as we are getting more and more data, we clearly see automation industry moving towards autonomy. What does it mean? If you go back to automation industry when it was created in mid-1970s, the whole model was built upon the concept of a rule-based system where human is in the loop. You take an asset, take an hospital, take a semiconductor fab, take a refinery. You instrument it, you put control measure. There are exceptions which happen. Exceptions are managed by humans. Humans will come in and take a control measure to deal with exception. Now at the hindsight, after 50 years, you say, "Wow, there's a problem in that model." The problem in that model is that human, which was running that asset for 10 years, 20 years, acquired a lot of knowledge. Why this system fails, why it doesn't operate the way it operates it. When that human leaves, the knowledge leaves with the human, and that's becoming a problem over the last 10 years as lesser and lesser skilled people were available, are available, knowledge is becoming an issue. AI solves a problem. We are in a world today of agentic systems, where agents are helping human to augment the knowledge they are missing. Our customers are asking for more and more agents to run their facility, run their buildings, run their plants, run their process facilities, and eventually, we will find a pathway towards autonomy. Augmentation itself has a huge opportunity of transforming our industry from automation to working towards autonomy. If you look at it, how we are enabling it, look at some stats on the right-hand side of the chart. We have more than 300,000 customers connected. I would argue that's some scale. 5 million assets which are connected, every day we collect more than 1 trillion TB of data. That's the basis for us to build our autonomy. It's not going to happen just because I want it. It needs a foundational system, and we have created a foundation on which we are going to build an autonomous system in the future. It's a future optionality. Only $1 billion of ARR revenue is in our revenue stream today, I'll argue that there's a lot more runway to come. For us to do moving into verticals and serving our installed base requires new products. One of the decision I made as incoming CEO was to raise our R&D spend. In 2025, if you observed, our R&D spend went up by about 50 basis point. I think it was necessary, because if our thesis is all about growth through new products, we need to spend at median or above median of the market. We need to spend it smartly. We have done that. I don't see a necessity for us to make any more correction. We are at the point we like it to be. Now we need to grow our revenue every year and earn that incremental revenue through our growth while keeping the percentages same. What that has done is our vitality has been progressively growing to mid-40s%. The typical industrial average of vitality is about 20s%. Vitality is defined as products you created over the last three years, so that you can see the health of the business. You're not selling old stuff, you're selling the new stuff, so you're less disruptive to yourself. All that is leading to our organic growth, what you can see on the right. We are slowly progressing from not growing based upon new products to more growing, and we do expect this number to keep going up as we make progress on this. It's less about spending more money. I wish that you can grow by just spending more R&D dollars. It's not that straightforward. We have also invested heavily in refreshing our offering managers. We have 600 of them. Looking at their talent, making sure that we have the right people in the right jobs. That's an important part of our execution. Also looking at underlying systems. Do we have the right systems on how we look at our new product performance? How do we know which is working, what's not working? What's the basis of that? What's the definition of that? Our launch processes. It's because we launch hundreds of products in a year, that's a big opportunity. All that really is a basis for us to think about high confidence in this. I spend a lot of my personal time on this process. Question is why? Because all our growth is linked to new products, and if me and my colleagues as CEOs are not passionate about it, we will not be able to execute the growth we're really talking about. All that really comes back to the story I started about. This whole cycle of shared value creation is in motion. This is not something we are thinking about. It's a strategy. W e're going to do it in the future. 5.2 million assets connected. It'll be 9 million conservatively by 2028, almost double. Which is giving us a high confidence that using Honeywell Forge will continue to propel our services and software revenue from 40%-45%, because we create outcome for our customers. We keep refreshing our installed base and go back to the whole cycle. The cycle of value creation is the whole heart of our growth strategy, which we want to get across. Before we wrap up this section, I thought also spend a minute on our M&A. Our growth is heavily dependent on organic growth. I want to make it very clear. That's majority of our growth. We did six acquisition, and acquisitions were done more around some known growth vectors we strongly believe in. Either in end markets, we believe there's a high growth. We made three acquisition in LNG space, Air Products LNG business, Sundyne business, and CCC business. We also made two acquisitions in the space of security. We believe the world is going to invest more in security, be it physical, be it cyber. We are acquiring in the spaces what we call bolt-on, the spaces we know extremely well. There's a lower risk and higher probability of execution, and Suresh will share with you numbers of all these acquisitions. We want to be absolutely transparent on how we are doing against them. The good news there is we are beating our internal model across all of them, and they are based upon some tough numbers we are committed to ourself. We're going to stay on the same strategy. We're going to stay on the bolt-on strategy in the optimal deal size of $2 billion-$4 billion, with a clear path on commercial synergies, continue to operate in mission-critical segments. We're not going to change our rubric, what has been successful for us. We'll be very selective, we'll be very thoughtful because we are very focused, at least in 2027, to wind down our debt and continue to make our commitments on that front. I thought it important to spend a minute also on Quantinuum, a good success story of completing IPO a few days back. Quantinuum now becomes an optionality for us in future. We own 47% of the company, how do we monetize it will future optionality for us. What excites me about Quantinuum is the quantum story and AI stories goes hand- in- hand. As AI is scaling, the compute power is not able to keep up with that. Compute power is running in differential to the compute power which AI is demanding, and the best way to solve that is quantum. The areas like drug design, optimization, new material discovery, cybersecurity, is where quantum demand is imminent. We believe that at the right time, when these start scaling up, will be the right time for us to monetize our stake. We are in a much better position now because the company being public and will execute at the right point of time. Moving to the last part of the story now, spending my last five minutes on, okay, it's all great. How are you going to execute it? Anybody can say, and it's good to tell the story. Do we have a muscle to execute all of that? I'll first point out to our Honeywell Accelerator, which is our operating system. This has grown over 20 years. I am proud to say that my two predecessors did an excellent job to lay down a strong foundation of this operating system since 2005, when Dave Cote started. We really focused on functional excellence and manufacturing operating system. Under leadership of Darius Adamczyk, we really moved into new products and pricing and to some bit to commercial excellence. Under my leadership, we focused on business models and customer obsession. The point being that this is an ever evolutionary operating system. This is how we make a choice to work by discipline, and it makes our businesses better. It also gave us an assurance that we can execute with certainty versus execute with high variability across businesses. You will hear from different business leaders how they use operating system, not only for running their business, and if we did an acquisition, how we integrate those acquisitions flawlessly as part of our business. Which nicely flows into the next point, that Accelerator is a big part for us to also drive our margin expansion. Margin expansion tools are going to be typical. It's going to be pricing, it's going to be productivity, for sure. Rather than pricing and productivity through not a systemic manner, we use our tools we have created over 15-20 years to drive manufacturing excellence, to drive pricing execution, to drive commercial excellence, to ensure that we can deliver on our margin expansion, but also use our tools to manage our fixed cost. Our fixed cost has come down by almost 600 basis points with all the work we have done. Our job is to keep it at 31%, we have guided. If possible, make it even lower to further expand our margin. Our operating system really drives us to understand what are the optionality and options for our fixed cost management. Finally, as I mentioned before, our revenue mix as it changes is certainly going to be margin accretive. All that gives me high assurance that our margin expansion rubric is very solid because it's built on a back of operating system which we use every day. To do all that, we have a very capable leadership team. You're going to hear from six of them later today, from Mike Lamach, Suresh Venkatarayalu, and four CEOs. I can tell you that this team is super charged up and highly excited about optionality it has in front of them. We have executed, as I mentioned to you, flawlessly over the last two years, delivered to you, hopefully in surprisingly manner on executing our spins, flawlessly acquisition integration, but also continue to deliver our financial commitments. This team is very capable to deliver to future commitments we're really talking about ahead of us. It's also interesting that many of the team players rejoined Honeywell. I thought it's important feature to point out, starting from Mark himself, who rejoined us, but also Anant Maheshwari, who rejoined us from Microsoft, Billal Hammoud, who rejoined us, and Pete Lau, who also rejoined us. The question is why people are excited, not because they are my great friends, but because they believe in the strategy. They believe that we are onto something which creates a new opportunity, we collectively are excited about that. Is also our board. I'm proud to have three of our board members in the room today. Mike Lamach, who hopefully needs no introduction, CEO and Chair of Trane. Mike is going to be our Lead Director. We have Indra Nooyi, who is Chair and CEO of PepsiCo, and Stephen Williamson, who was CFO of Thermo Fisher. They represent our board here today, I'm very proud to have a board which is not only driving governance, but driving us insight, helping us execute this strategy. Like any other purpose-built company, you also get to build a purposeful board so that it's aligned to execution of your strategy. The great team with the right board gives me a high confidence that we're going to execute on it in a flawless manner. I wanted to leave this chart for you, which is a very interesting data point. If you see on the right-hand side, this is an attrition trend of Honeywell since 2019. If you see the numbers, like when the big resignation happened, our numbers went up like everybody else. If you see the chart on the extremely right, in end of 2025, our attrition is lowest in our history, to our data we can ever find in the last 15 years. That sounds very counterintuitive that a company which is going through such a big transformation, spinning stuff, selling companies, why people are not leaving? Because they believe in the future. We are creating a true growth culture. Look at some of the stats on the left-hand side. Our Voice of Employee score is 74, above industry median. Our Glassdoor score is way higher than our peers because we are investing in people, in their training, in customer co-creation. They can see the strategy. I think if no other stat gives you a confidence, I think this stat, it's all facts, that this gives you a confidence that we're on the right trajectory because our employees believe into it. They're insiders. They can see and feel it every day on how we are executing that. With that, in wrap up, I will say that we as a company feel, Mike will talk more about our financial rubric. But I, as a leader of the business, feel highly confident on delivering what we are committing to you today, 4%- 6% organic growth. We do have a contingency built into that. We are absolutely transparent about it. I do believe in today's uncertain time, you do need some contingency to deliver the commitment. We can't build a plan and come back with you to excuses to say, "Here is the reason we can't deliver that." I feel highly confident about our margin expansion and delivering 10%+ adjusted income growth. With that, I'm going to wrap up here my section. I hope the story of building a pure-play automation leader is convincing, that the story of durable- growth margin with our mission criticality focus and business model is convincing, and optionality of future of going from automation to autonomy is real. Our operating system is going to be the backbone, and our team is going to be the backbone which are going to execute it. I look forward to more conversation. I'm going to invite my friend Billal on the stage to talk about his successful story of Building Automation. Billal, over to you. Please welcome President and CEO of Building Automation, Billal Hammoud. Thank you, Vimal, and welcome everyone. Thank you for being here. In Building Automation, we've created an amazing business that's operating in an attractive space, a $120 billion space of pure-play controls growing at 4% annually with strong secular growth trends. Our focus in Building Automation is on the three primary operational control domains of fire life safety, security and access, and energy management. We do all of those while addressing the number one problem facing our customers around the world, which is this shortage of skilled labor. In the next 20 minutes, you will see firsthand how we've transformed this business into one of the fastest-growing businesses in the industry. We've done that really with focusing on three things, one, customer centricity, two, on speed of innovation, and three, having the best empowered talent to do that. On customer centricity, working along with our channel partners, we've really increased our focus on growth verticals. We have made intentional decisions to reorganize our people as well as change our decision rights to allow highly talented, capable people in the regions closest to the customers to make decisions. They understand the customer the best, and they are able to move fastest to make the right decisions. On innovation, multiple years of double-digit increase in our R&D sales led by our focus on Honeywell Forge for Buildings, which has become an important part of our overall growth algorithm. All in all, what this allows us to do in 2025 is to grow our top line by 8% to $7.4 billion and expand our margins by 80 basis points to 26.5%. What you will see here is a well-balanced business with a lot of optionality for growth, both in terms of how we look at products and solutions as well as our strong geographic mix, as well as our exposure to different verticals. Specifically, when you look at these verticals in healthcare, hospitality, and data centers, Vimal touched on them. We see those for Building Automation as three growth verticals globally, and especially when you think about data centers, which couple of years ago was really a negligible part of our sales. In 2025 it became 4% of our sales. As we sit here in 2026, it's operating well above 5%. That's how it's trending. We expect these to continue to grow in the years to come. How do we serve these verticals? It's not enough to show up with end-to-end business teams, but you have to have something worthwhile to sell. Specifically what you can see here is how we position our technologies to deliver things in each vertical that that vertical cares about. We're going to keep going on this, the benefit we get with Honeywell Technologies as a pure-play automation company is now we are able to work across all the businesses in Honeywell to start to bring one Honeywell offerings. Specifically what you see on this chart highlighted in red, data centers, utilities, and life sciences, these are the first verticals that we are tackling from across Honeywell where we believe we can bring one Honeywell offering that will be absolutely unmatched by any other competitor in the world. We're really excited about this. Specifically for Building Automation, how we are serving these customers with these offerings, you heard Vimal talk about the basic of our offering, which is very true for Building Automation. We have sensors, we have controls, we have software that lives in on top of it. We sit at that critical intersection between the physical world and artificial intelligence, we see a lot of value creation potential as we lead the buildings industry into true autonomous building operation. Even within each one of those specific domains, there's a lot of opportunity to differentiate and create value. I'll share with you just one example from each. If I start with fire, some of you may have seen how people walk around literally with a stick that creates smoke. This is part of a, in the U.S., that's an annual compliance test that has to be done. Typically, it takes two people, walkie-talkies, one person walking around with the smoke. Sometimes they need some help with a ladder. Another person standing in the back room next to the fire panel. "I just exposed smoke. Do you see smoke?" Yes or no? Well, all of that is gone now. We have smoke detectors that actually generate and test themselves, so you no longer need two people walking around doing the test. With our Connected Life Safety Services offering, what we are able to do now is run this test completely remotely, and our Connected Life Safety Services generates that report. It's a simple task, but it's one that takes a lot of time and one that you have to do to be in compliance. Not only have we saved the time, but we've done two important things. For our channel partners, this is skilled labor that was not working on new projects that now is able to do that, they are able to grow their business. When they grow their business, they grow our installed base with it. For our end users, think about the hospital and having to walk into different rooms with patients there and having to disrupt that operation. A lot of differentiation being created there with this capability. If I think about security, our OnGuard platform is by far the most scalable platform in access solutions. We are able to serve customers that need to run global operations with hundreds of thousands of devices and users all off of one platform. As we look into what we're doing next, we are taking this into cloud-native authoring that is super scalable and creates unified view for customers around their security and access operations. In building management, we are the very proud owner of Niagara Framework. It is the most commonly spoken language in building controls. There are more independent developers around the world that use Niagara than any other thing in building management systems. Obviously, we'll continue to build on that as we take Niagara as a cloud-native offering, and we layer in Honeywell Forge and then bring in the AI capabilities to that. Our services businesses, no surprise, will benefit greatly from our Honeywell Forge and connected- building capabilities, as we are able to create better outcomes for our customers, and we're able to do things on a more as-need basis as opposed to check the list. Finally, in our projects business, what we do there, we actually take our own products and we go install them for customers. Why do we do that? If you can think about some of our customers being global customers that operate in multiple countries around the world, they benefit from the ability for us to execute consistently around the world no matter where they are located. Also, sometimes you have complex projects that involve multiple control domains, and this is where we do it ourselves. In our projects business, it's about 15% of our business. If in projects we're only installing 15% of our installed base, who else is doing it? This is where the very important and highly differentiated channel partner network that we have around the world comes into play. Our channels represent over 60% of our sales. These tend to be highly capable, very nimble companies that know their customers very well. Our work with them allows us to do two things. Number one, they are able to take our innovation and scale it faster than Honeywell or any of our multinational competitors can. They are able to drive more quickly than anybody, bigger companies can. The other thing they do is they keep us on our toes. They move fast, they expect us to move fast. As you've seen in the last few years, what we've done here in our major regions, we are serving over 80% of the needs of that region locally. Also since 2021, we've done tremendous, almost a 90% decrease in our lead times. From the time the customer tells us they want something to the time we're able to ship it. We did that while significantly improving our Say-Do for these partners. So great partnership works really well for us. Works really well for our partners that allows us to focus on the high-end of the value creation for pure-play controls. We have a balanced portfolio mix with fire and security being over 2/3 of what we sell. The HVAC building management system controls is less than 1/3. So you think you see that the overlap between us and the HVAC layers is less. For one thing we're not doing equipment. We're just doing controls. And then obviously, the global nature of controls as opposed to when you're doing heavy equipment, a lot of that for these layers tends to be more focused on a regional basis. As you can see here, we have leading positions across the worlds and very different countries here. So, what does that do for our growth algorithm? And multiple ways here for us to look at it. If I point the attention to the top right of the chart, when you look at our offerings and then we'll show this as part of our overall Honeywell Accelerator growth algorithm, we have software growing high double digits. We have services growing in the high single digits, low double digits. We have products and projects growing on that mid single-digits range. All of that gives us in segmentation to grow consistently in that high single-digit percentage. Our vertical focus something similar way but different way to come at it. Our high-growth verticals growing double digits. The established verticals growing in mid single digits that gives us into that high single-digit space. Similarly on our regional focus between the high-growth regions and the established regions. And last but not least, multiple years of double-digit increase in R&D investment meant that we are getting a lot more of that revenue now and the New Product Introduction has been a growth accelerator for us. In fact of the 8% that we delivered on 2025, 4.5% came from New Product Introduction. So clearly those choices we are making on R&D investment are paying off and showing up in our financial performance. So how will we continue to do this? We have the number one position in the three critical building control domains: fire, life safety, security and access, and energy management. We will continue to build on that and create more differentiation. Forge Connected Building has reached the scalable philosophy, the flywheel and steering. In fact, we connected more buildings in 2025 than we have since the inception of Forge several years ago. And expect that to continue to elevate and continue to grow very nicely for us. New Product Introduction. New products are the lifeblood of an organization. You heard Vimal talk about it, that we don't delegate New Product Introduction. This is our responsibility as a Honeywell leadership team. In fact, two years ago, Suresh and I started this thing where we do every other week, we sit with our team for the good part of a full day, and we review our new product work that our team is doing. We're very proud of what the team has done in the last couple of years. Our conversations have gone from two years ago, where we were focused on execution, to now our team has execution. We don't need to get involved in it. They do a very good job at it. Our conversations are more about roadmaps, are about thought leadership, all about the vision for the future. We allow individual contributor offering managers to come in, we sit there for a day, we problem solve with them. We talk about different scenarios. We're able to understand our true competitive position, certainly not only from our established competitors, but also for any up-and-coming competitors. It's a great way to stay on top of the business, make sure that capital allocation is going in the right place, it's also an amazing way to develop talent, it's really nice to see how people pick up from these conversations and what they do with it. Certainly, our business model is all about an installed base that we continue to monetize, we will continue to do this. I cannot overemphasize the importance of our highly differentiated network of skilled third-party partners that help us to scale our business as we go. Said another way, our virtual circle of growth, we grow the installed base, we connect the assets, we leverage Forge, we deliver more outcomes, we allow our customers to make the best utilization out of that asset. Buildings are inexpensive assets. Our customers expect us to help them get more out of their building each year, especially when you think about verticals where the building itself is key to the way the customer makes money, whether it's a data center or a hotel or a hospital. Forge will play an outsized role as we move forward, connected building will be very prominent in how we help customers make better utilization and serve the customer better through the building, what the building can do. This is a really good example of that. In this case, this is Vanderbilt University. This is a project that we're working on with one of our channel partners. In fact, in Vanderbilt University, one of the very few, but just so happens that there are no Honeywell controls in that building. We leverage our Niagara Framework, we leverage Forge Connected Building to come in and connect these buildings. When you see on here, clearly, the fact that we've gone from two weeks connected building to a few hours really helps with the return on investment, it's not only about the energy savings, the labor savings, but for Vanderbilt University, their mission is on education, they continue to grow. One of the obstacles for growth was: how do they continue to service those buildings because they cannot find enough trained technicians? Now we take that off the table with Forge Connected Building, we allow the customer to focus on that core mission, we help with making sure that the building does not become an obstacle for that. Another good example here in data centers, you all saw Adaire talk about, she said, literally helping them do things faster. If you think about how you serve the verticals, you show up with end-to-end empowered business teams, you also have to get to a point where you truly understand what it takes for the customers in those verticals to succeed with their own customers. In the case of data centers, it's all about speed of scaling. With Equinix, when you think about the commissioning of that data center, it typically takes five to eight months, and this is where you find the surprises that you don't want to find. We work with Equinix to reduce that commissioning stage by 33%, and in the process, not only make it shorter, but make it more reliable, and again, help Equinix focus on scaling and serving the customers than worry about commissioning a new building. What will this give us for the outlook? We have implemented this business with the focus on verticals with talented, empowered teams in our regions. The investments we're making on New Product Introduction and the acceleration we're getting from Forge Connected Building, we have implemented this business to grow at high single- digits, and we expect no matter what comes at us in the world, we'll be consistent in that mid-single- to- high single- digit space. Some of you in this room, couple of years ago, we had a lot of interesting discussions on margins and Building Automation and why does Building Automation has the highest margins in the industry, and is that sustainable, or are we going to have to trade off between margins and growth? I hope you see now that we can do both. Fundamentally, as you saw from what we just discussed, our margins and the differentiation of margins is because of our differentiated business model. That combination of us focusing in the pure- play controls, the combination of us innovating and having channel partners who can scale that innovation very quickly, and they worry about the most of the time, most of that labor content, and we stay focused on the parts and smarts. That's the fundamental difference here that you see in our margins. The good news here, 26.5% in 2025, we see that going to 29% over the next three years. How's that going to happen? As we were busy transforming the business and transforming good results in 2025 and 2026, we've also been investing in the business. Today, we can serve the volume growth that will come at us without having to build a single factory, and in fact, without having to expand a single building. In fact, we don't even need to put any major capital investments in our factories. We've tooled up our factories to help us deliver the growth for next three years. Not only in our factories, but R&D investments, consecutive years of double-digit growth in R&D, we now have the scale we need to continue innovating effectively and quickly. In our being close to our customers, we've invested hundreds of resources in our regions, in our verticals, focused on demand generation. The business is well-instrumented to be able to continue to grow and benefit from the volume leverage. Our Honeywell Accelerator framework is very proven, and we have a clearly proven formula that talks about pricing and productivity always exceeding inflation and investment. We did that last year. We're going to continue to do it. Last but certainly not least, as we accelerate Honeywell Forge Connected Building and our connected offering and our software- recurring revenue, expect to see that margin mix continue to be favorable as we launch these products. All in all, we have an amazing business. This is one-of-a-kind business that will continue to give as we invest in it. We are super excited about it, and we truly see sky as the limit for this business. Thank you, and with that, I'll turn it over to Pete Lau, my good friend and colleague. Please welcome President and CEO of Industrial Automation, Pete Lau. Incredible job, Billal. Amazing stuff. Good afternoon, everyone, and welcome to our Investor Day. It's good to see a few familiar faces out there. My name is Pete Lau, and I'm the President and CEO of Industrial Automation here at Honeywell. I'm excited to be here with Vimal and our colleagues today, talking about Honeywell Technologies. I am acutely aware that probably the least understood part of our portfolio is Industrial Automation. I am looking forward to explaining IA in more detail. We'll spend this time talking about our customers and our offerings. I'll cover how IA has evolved, where we play, why we win, and why we're a valuable part of Honeywell. Mostly, I'm looking forward to talking about why we're an essential part of our customers' workflows. It's been a bit of a journey for the businesses that make up IA today. These are product-led businesses with attractive and growing software and aftermarket offerings. As Honeywell has evolved, these businesses have had multiple homes. A partial position in Performance Materials technology, a partial position in Safety and Productivity Solutions, and as a part of the previous $10 billion IA that I joined in October. The opportunity here for these businesses is all about focus, focusing on these product-led businesses. Historically, IA was a part of larger entities that were dominated by integrated project-led businesses. Trust me, those businesses take management's time, they take attention, and they take an outsized portion of the investment. The larger entities had critical mass in specific end markets like process and warehouse automation. The product businesses really just existed to further the interest of those entities, which means that the IA businesses did not invest enough in new products for solutions that are tailored to their technology in high-growth verticals. We've lacked a little bit of an identity, we've lacked an operational focus, and we've lacked rigor in these businesses. As a result, these really good businesses have underperformed. In the last four years, the pro forma for these businesses, revenue CAGR was -4%. NPI contribution to revenue was less than 0.5%. Gross R&D investment down 20%. Our on- time to delivery for our customers was 45%. As a result, we lost share. In the new focused portfolio that is IA with all the portfolio work that we've done, that's going to stop, and it's already stopped. We've already started to turn the corner. The new IA is a sensing and measurement business, sensing and measurement forms the foundational technologies for the automation tech stack. For the first time in over a decade, we'll be able to focus on these product-led businesses. We enable Industrial Automation through data collection, we collect a lot of data across a variety of verticals and a lot of different industries and channel to markets. Our offerings are used in basically every single one of Honeywell's businesses. Commonality for IA will be in the technologies and our operational excellence rather than in a singular end market. This setup will allow us to optimize the IA businesses in a way that we've never been able to do in the past and really drive world-class operational efficiency. This is an incredible set of businesses. IA's technologies are engineered for mission-critical environments. Precise accuracy and reliability are absolutely essential for our customers, failure to meet those objectives carries material impact to human life, to safety, to customers' revenue, to their operations, to compliance. We have really high barriers of entry because of those regulations, we have a lot of competitive differentiation. Our offerings make up a small part of the bill of material for automation, that implies a certain amount of price and elasticity. We've built a well-deserved reputation for quality and reliability, our installed base is substantial. A lot of times, it's just too risky for our customers to substitute our solutions, that creates the ability to expand our services and software offerings in a way that we've not been able to focus on in the past. With a highly focused organization and differentiated businesses in highly regulated markets, IA is primed to be a value creation engine for Honeywell over the next couple of years and beyond. Okay. This is a one-page overview of our businesses moving forward. To be clear, this page really reflects Industrial Automation, post the sales of Intelligrated and our PSS business. Today, we're a $6 billion business, but after those divestitures, we'll be about a $4 billion business, and pro forma is about 20% segment margin. As Vimal noted, we operate in a $35 billion space, there is a ton of opportunity for M&A. I want to be really clear that the organic opportunity for these businesses is significant. When I look at this page and this portfolio, I see nothing but opportunity. We're way under-penetrated in our solutions offerings. Our vertical mix is 85% skewed towards mature markets, and that's led to margin contraction. Our new homogeneous business model will allow for focused NPI investments in higher growth verticals and higher margin spaces, sustained focus on offerings and software offerings, and as a result, we expect to expand margins significantly. There's meaningful white space for organic growth, either by expanding on our sensing use cases, becoming more important to our existing customers, or selectively moving up the tech stack and growing our position in instrumentation. Today's IA is positioned to reach its full potential by allowing our businesses to flourish within their target high-growth verticals, and by pooling investments to drive world-class processes in these product-led business models. A little bit about where we play today, and I categorize our offering into three main areas, all directionally about the same size. The first is in industrial measurement. Typically, we are measuring highly toxic gases in mission-critical environments related to human safety. They require reporting to regulatory bodies. The second is in utility measurement. Think about the movement and measurement of resources, and the mission criticality here is all about the measurement. We move billions of dollars of gas, water, and electricity around our world and power the world safely and productively. The third is in sensing. Sensing for the most mission-critical environments that demand the ultimate in reliability. Failure is simply not an option here. Our sensors are designed into a lot of equipment, both OEM equipment and our own, and they cannot fail. I'm going to give you an example of that in just a little bit. The spaces we play in are all highly regulated with significant installed base, an installed base that's not fully mined to its potential, and with the ability to expand our services and software offering set in a meaningful way. About 18% of our revenue is solutions- focused today. Just to give you a feel, we think entitlement is probably closer to 35%. Understanding the technology stack is a really important part of understanding how we've set up IA in the pure-play automation Honeywell. On the left-hand side of the page, I'm showing an overly simplified version of a tech stack for automation. Generally, to achieve automation, a customer first requires equipment at their site. Okay? That equipment generally has measurement or sensing technologies either designed into that equipment or set in a standalone instrument. These are the technologies that collect data, and then they deposit that data into a data lake, in our instance, Forge. The controls and the software consume that data to deliver automation. The new IA is pretty much a slight departure from how we've generally set up the business groups in the past. Normally, in Honeywell, we move vertically. We own the really valuable parts of the tech stack, and then we do critical mass to really drive differentiation, as Billal just described in Building Automation, or what you'll hear from Ken and Jim in Process Automation. What's really cool about IA is that we're unique. We go horizontal. We own the sensing and measurement portion of the tech stack. We collect the data that enables automation, this is a really fragmented but extremely valuable part of the tech stack, especially when you play in highly regulated or highly specified use cases. That's our core business. The horizontal setup will allow us to pursue meaningful white space, both inorganically and organically. Just a reminder, we're a $4 billion business in a $35 billion space. With our new configure of focus, we're free to invest in new products in high-growth end markets, in really attractive spaces with great cash flow margin, and capitalize on our pooled investments that are applicable to these common business models. Just to bring to life our solutions a little bit and where they show up across industries. As a sensing and measurement platform, we're designed into a lot of instruments and a lot of equipment. We tend to show up everywhere. Inherently, we cover a lot of geography. I want to point out a couple of use cases or industries that we'll continue to focus our organic and inorganic efforts towards. We make critical sensing technologies for highly regulated industries. Industries like aerospace, industries like utility, industries in life science, where I partner with Jim in PA to deliver a differentiated offering. We make sensing and measurement technologies for highly regulated use cases in less regulated industries. Semiconductor is a great example. Industrial is a great example. Petrochemical, where we team up with Ken to deliver a differentiated solution, is incredible. These are just a few examples of how our product and solutions drive mission criticality in our markets and across the world. In summary, IA is an extremely differentiated business with many tangible proof points. 90% of our offerings are certified, either to very tight specifications or to regulatory requirements. That makes us competitively advantaged. Our solutions have a high cost of failure and are a small part of the overall bill of material for our customers, which makes our customers reluctant to change. This enables deep domain expertise and customer intimacy that solidifies our relationships across a very vast and growing installed base. That intimacy and that installed base serves as a launch point for more life cycle services and solutions. To give an example, one of the parts of our portfolio that's extremely differentiated is our sensing business. Most of the sensing portfolio is highly engineered solutions that are designed into products, whether they be OEM systems or so many Honeywell instruments. This makes the business extremely sticky and gives us multi-year visibility into revenue tied to our customers' product life cycles. To bring that sensing to story of life a little bit, let's take a look at our ultra high force sensitivity sensors that our customers use to ensure reliable medication delivery for healthcare patients. A good example is Fresenius. Fresenius, along with a lot of other medical device makers, sells millions of infusion and dialysis machines every year. These are regulated devices that are FDA certified. Healthcare facilities use these to really identify potential events that would block a fluid pathway of medication. The solution is mission-critical for patient safety. HSS's sensors can simply touch a fluid delivery line and identify these events, enabling our customers to deliver really reliable solutions. The sensor is mission-critical in the ultimate of high-risk environments. It can mean the difference between life and death for a patient. These customers have been trusting us to design these sensors into their equipment for many decades. The risk of change for them is massive. If I'm on the other side, I'm not trusting anybody else but Honeywell to continue to design these sensors as we have for decades. Plus, these customers get the knowledge that the unique sensing elements are made in our owned and operated wafer fab in Richardson, Texas, which is a competitive advantage in this industry. Last year, we made 200 million unique sensing elements alone in just that fab. Here's another example of IA's highly differentiated capabilities, this time in gas detection in the semiconductor fab. Most of you know that semiconductors use a host of highly toxic and flammable gases to create wafers, right? Monitoring for gas leaks is mission-critical, not just for human safety, but the accuracy of that measurement is so important because uptime in fabs is worth $2 million of productivity an hour. Honeywell's comprehensive gas detection system is the standard for hazardous gas detection. We are the specification in every single semiconductor manufacturer across the world. Again, we benefit from having done this with these folks for multiple decades. That enables us to partner and offer life cycle solutions. It's an OpEx and a CapEx solution. It's the gift that keeps on giving. These are just a few examples of how our products and solutions support mission-critical applications across a wide range of industries. Before I hand it over to Jim and Ken, I want to leave you with a summary of what all this means for IA's future. The opportunity for these businesses to finally be in a home with similar business models is massive. Over the next three years, the revenue of this business is going to grow mid-single digits and will reach 25% operating margin. To tie that back to earlier in the presentation, it's a drastic change in our revenue growth fortunes, but also 500 basis points of segment margin expansion in the next three years. It's not back-end loaded. Feel very bullish about the second half of 2026 and 2027. We're going to do this by focusing on three key revenue levers in the Honeywell growth algorithm that Vimal talked about. First, we're going to increase our exposure to high-growth verticals through a combination of NPI, channel expansion, and go-to-market. As I talked about earlier, only 15% of our business is exposed to high-growth verticals today, but as we shift our mix, we're going to stay true to our core and really expand in highly regulated environments where we have unique differentiation, which means the right to play and the right to win. Second, we're doubling down on investment, full stop. In the last 18 months, we've increased our R&D investment by 13%, and over the next three years, we're going to do another 15%-20%. Like Billal has done with Buildings, we are going to turn this business into New Product Introduction machines. We are going to relentlessly focus on building solutions that really drive customer value and give solutions to our customers that they want. We'll do this in our core, where we know we already have relationships with these customers, and we'll do this in close adjacencies to our core, where our technology has an obvious fit. Third, as we grow that fast installed base through number one and number two, we're going to compound customer value by delivering more solutions and offering set. Look, as a part of these larger businesses, we did not focus enough on solutions, and we talked in our tech demo today about different solutions for aftermarket that we're going to be able to do. We highlighted Honeywell Safety Suite, which is a software service that's based on CLSS. Some of you may not know, but I was the President of the fire business in Building Automation when we launched the CLSS that Billal was talking about. Billal, of course, has supercharged it, Honeywell Safety Suite is based on that CLSS. This is a core competency for Honeywell, one that we know how to do and one that we'll do really well. Last, on the right-hand side of the page, we'll apply Honeywell Accelerator to all that we do. The operational excellence that's not been a focus in these businesses is absolutely fertile ground. We have a clear path to expanding margins through better pricing, productivity, stranded cost reduction through all the portfolio moves that we've done in IA. We'll apply a milestone funding approach to this. We'll responsibly invest, but we'll do it in concert with growth. The productivity that's in these fertile grounds will allow us to not just expand margins, but also simultaneously invest heavily in the growth of this business. When we start growing, look out. The thing that I'm most excited about in this business is the leverage that exists in it. Look, these are extremely high variable contribution margin businesses. As the revenue starts to turn, the operating leverage that exists in this business is incredible. The refocused IA as a sensing and measurement business is primed to reach its full potential. To my 20,000-ish IA colleagues around the world that are sitting in watch parties right now in Shanghai, in Pune, in Dubai, in Mainz, Raleigh, Charlotte, Muncie, Houston, in Richardson, Texas, I can't wait to create value with you guys. Thanks so much for your time, and I'm going to hand it over to my dear friends Jim and Ken to talk about PA&T. Please welcome President and CEO of Process Automation, Jim Masso, and President and CEO of Process Technology, Ken West. To start, something a little bit different with this presentation. There's two of us on stage, Ken West, who leads our Process Technology business, and myself, Jim Masso, who leads the Process Automation business. In my almost one year with Honeywell, I knew before coming in how incredible the technology of this business was, and I was excited to be a part of the transformation. Nothing has been more amazing to me than the transformation I've seen over the last almost 12 months. At the intersection of the deep domain knowledge and intellectual property informed by 141 years of innovation in Process Technology, paired with the unique and leading software and automation capabilities in Process Automation, where we're at the heart of every one of our customers' operations. This was clearly illustrated to me earlier this week at the Honeywell Users Group in Phoenix that I just got here from, where we had a little over 600 of our customers and a number of our partners, NVIDIA, Google, Cisco, all excited to partner with us. The enthusiasm was incredible. The value we're unlocking by bringing these capabilities together is amazing. The transformation is having a direct impact on our customers' operation every day. I can say, Jim, having been here at Honeywell over the last seven years, I've been a part of that evolution as we've gone from Performance Materials and Technologies to Energy and Sustainability Solutions, and now to Process Automation and Technology. You're absolutely right, it is different. It feels different today as we really unlock the value of the cross-sell opportunity through our combined offerings. We are driving differentiation through that distinct domain expertise. Thanks, Ken. There's a lot of things I wanted you to take away today, here's four to start. The first is this is an incredible market opportunity 30% of that market opportunity, we're in these high-growing verticals where we have deep domain expertise in LNG, in life sciences, in low carbon solutions, and grid infrastructure. We're systematically cross-selling across all of Honeywell Technologies, enabling end-to-end life cycle value in a way that no other company can. Our installed base is massive, and we're continuing to create value across over 28,000 assets and monetizing that even further with Honeywell's unique Forge infrastructure. Furthermore, we're expanding margin through the Honeywell operating system, both in operational excellence as well as adding additional service capabilities across the long tail of life on these assets. Now let's talk about the business, the $6.4 billion business with, again, end-to-end life cycle solutions across both physical and digital applications. We served last year over 4,197 customers in 72 countries with, again, software and automation capabilities that are defining their operation with differentiated domain expertise in the critical verticals we play. Amplifying that value with connected solutions, with AI, and a platform enabling enterprise-level impact across these critical verticals where we have these unique capabilities. Jim, that's actually where the real power unlock comes in PA&T. It really comes from that deep domain expertise you mentioned at the beginning. When I think about the other solutions that are out there in the marketplace, this is where we truly are unmatched. No one else in the industry can bring together the capabilities of truly physical twins. I mean, hundreds of pilot plants behind the scenes getting true data, merging that into our operating system. Yeah, Ken, I completely agree. Now let's talk about where we play. These are some of the markets we're in as PA&T. One thing you should see immediately on this slide, these are critical industries. The risk of loss is massive. Customers have to look at safety, resiliency, and ensuring when they make these massive investments, they've got the right strategic partner to bring it through. Our services and expertise is amplifying that value for every one of our customers. Then we're connecting it with digital solutions that further enable value. Not to mention, we have over a quarter-century of cybersecurity experience. What we're able to do is take our unique process knowledge and direct telemetry to do things in cybersecurity no one else can, using AI and other advanced solutions to keep ahead of the curve and keep our customers' OT infrastructure safe. Not to mention, a lot of companies are talking about autonomous operations, we're already doing it, embedding critical intellectual property and years of data directly into our customers' control systems, allowing them to improve outcomes, improve yield, and operate with a lot more certainty. Now I'm going to pick two, although there's many, where we're cross-selling across all of the reported segments in Honeywell. The first is life sciences, and I'll talk a little bit more about this today, but our Building Automation, Industrial Automation, and Process Automation businesses all play a critical role in this end market. Grid infrastructure is another one where we're seeing a lot of growth, we're across the entire energy value chain of the grid, from creating energy to our control systems being on over 50 GW of installed base of power to our grid management capabilities with our smart meter business that sits in Industrial Automation. Not to mention in Process Automation, we do behind and in front of the meter energy storage with energy management systems that enable microgrids as well as on-grid automation. Furthermore, we pair that capability with our Building Automation business, enabling virtual power plants and more scale and impact to a number of these energy management solutions. Let's talk a little bit about the portfolio and what makes it up. The first, intellectual property, unique domain expertise in our Process Technology business, where we have unique knowledge of our customer system all the way from inception through the end of life. Not to mention a robust and durable services business with catalysts and adsorbents, constantly increasing our customers' profitability and yield. Not to mention aftermarket services that spans across the entire portfolio. Again, life cycle relationships with these customers, constantly moving them to the upper quartile of operations. Then our automation and control systems. Again, extensive industry experience, unique software capabilities, and we take our domain knowledge and directly embed it into some of the most reliable solutions in the world. You then pair that with digital and cybersecurity, where we maximize and elevate the customer value. These solutions allow us to unlock more incrementally and just Process Automation alone, when you take our services and software, we've got around $1 billion of ARR. Again, differentiated solutions that stick with our customers throughout the life cycle. All right. Well, one of the exciting things in Process Automation and Technology is truly how we go to market and what we deliver to the customer. You heard a lot of great things about our domain expertise and how we go with customers, but what does that customer journey look like? Many of you know the value of Honeywell UOP. This is 112-year-old legacy of technology, engineering, and expertise. This gets our foot in the door many times two to three years before a project, whether it's a refinery, a petrochemical plant, a new renewable fuels plant, or an LNG plant, is even starting with construction. Once our foot's in the door, we have the start. We bring on top of that, right at the very beginnings of the project, the capabilities of merging all of that data that we have, the analytics and the know-how behind the scenes, the domain expertise. We merge that with our automation capabilities. We commission the construction, sometimes in a modular basis in challenging countries around the world, it doesn't stop there. Now we take that installed base, as Jim said, over 28,000 units around the world, that installed base, we monetize it for ARR, recurring revenue, out into the future. We have the benefit of not only building these plants, but we provide consumables, things like catalyst and adsorbents to the plants that are going to provide that life cycle. This really feeds into and builds out the growth algorithm that Vimal spoke about in the beginning of the presentation and why this growth is so powerful. Just a few proof points of how we win when we're out there. Well, today, about 70% of all the fuels anywhere around the world in gasoline are actually produced on Honeywell UOP technology. We're, in fact, in more than 2/3 of LNG installations. When you think about why we did some of the acquisitions that we did, the process technology business from Air Products or the Sundyne business that we brought together to build that end-to-end solution, we were already in 40% of LNG trains with our pretreatment technology. We added this together, we get end-to-end solutions. Not only that, all of these installed solutions around the world give us a capability to automate that installed base. We're automated in more than 700 of those customers. In fact, that includes not just energy, but it also includes high-growth industries like life sciences when we're in eight out of the top 10 med tech companies. How does the growth really come together? Well, when we take a look at it, this has been an industry that we recognize has been somewhat lower growth, low single digit, and cyclical over the history. When we bring together these new capabilities that are unlocked in PA&T, we are moving into higher growth verticals. Verticals like LNG, low carbon energy, and life sciences. We are going out and monetizing that installed base that we talked about, providing an avenue for new connected solutions for driving recurring revenue as we go forward. The thing I'm most excited about is we're driving true cross-sell synergies. When we do this, these synergies allow us to be in at the beginning. We're not getting into a price war as we go down and we drive that application and we broaden the scope later in the project. Yeah. One of the things, I get really excited when I see this slide because I know the impact it's having on our customers. We're unlocking outsized margin for Honeywell, but major impact for our customers. Absolutely. There's no better place to think about that than within LNG. As we've expanded our capabilities in LNG, we take a look at this broader offering. The broader offering brings together, as I said, not only over 40 years of experience in UOP pretreatment and developing LNG capabilities, it also brings the acquisition we did of Compressor Controls in our automation business. It brings together the acquisition of the Air Products liquefaction technology, and it brings together the Sundyne technology. Now we have an integrated end-to-end solution that is turnkey. It takes away the risk and mitigates the risk of budget. It takes away the risk of schedule. We can provide a one-stop shop for our customers to come in and do the project with us. I think what's important as you look at the verticals to the right is we remain focused in this business on a balanced approach and on the 70% that's core when you take a look over to the focus on the left as well. Yes, we're going into high-growth verticals. Yes, that's adding to our growth, but we're remaining focused on the core of the business. I also think that separates us a little bit from where our competition has been because we have not moved up and down through the different cycles. Another high-growth vertical where we're having a huge impact, where we've quietly become the largest life sciences business in the markets we serve at around $600 million of revenue. This one's really interesting. We're serving both biopharma and medical devices with over 1 million users just of our quality software alone. To kind of bring this to life, I was talking with one of our large biopharma customers last month. They have over 300 treatments they want to bring to market. Some of these treatments are life-saving. With AI used in drug discovery and all of the advancements in research, they're looking to bring these technologies to life. Challenge number one, speed matters. Bringing these treatments to life in a predictable way is essential. When you bring Building Automation, looking at the facility they're going to be manufactured in, Process Automation, enabling the actual process to run with Industrial Automation, actually measuring the process, you're able to bring these treatments to market faster, building a new facility in a way that no other company can enable. Quality. Two reasons why this is so important. First is we're talking about more challenging manufacturing operations. In biopharma, we're talking about culturing treatments in human cells. Small variations can have a major impact to the predictability of the operation. Not to mention the second, ensuring that when you make this large investment, and we're talking about almost $300 billion of onshoring of life sciences manufacturing in this country alone over the next five years. These are big investments, and when you make them, they need to work. Bringing environmental control together with Process Automation and then our quality software that ties this all together and allows continuous improvement, enables these offerings to have certainty on their operation and enabling a quality that no other company can unlock with these combined solutions. Lastly, energy optimization. I talked about grid infrastructure. These have an environmental footprint. They need energy. They need water. Looking at our Building Automation business and our Process Automation business, as well as our ability to manage energy in and out of the facility with our Industrial Automation business, we're able to scale these operations in a sustainable way. This isn't just changing one facility. This is fundamentally changing our customer's business model and enabling a revolution in life sciences. We need to talk about our installed base, a massive installed base of over 28,000 systems. As I mentioned before, more than half of our business is in the aftermarket. We have a large services installed base, that's growing. When I add that, we're also adding connected, which is growing at a rapid rate. You'll see in Process Automation, only 14% of our systems are connecting, but that is growing quick. Same thing in Process Technology, around 13%. What we're able to do as we connect what is an increasingly robust model, we're able to unlock incremental value. The first I'll mention is resilience. OT cybersecurity, these are critical assets. Honeywell's OT cybersecurity solution is unique. Again, we're using proactive solutions to help monitor a scaling threat. Furthermore, we're enabling outcomes, unlocking enterprise insights that are critical to our customers' operations. A critical thread at every single site: workforce. Every scaling process facility is struggling to fill the talent gap. These systems unlock incremental understanding and capability with each of these systems. With Process Technology, directly embedding intellectual property with our connected plant offerings, engineering services, understanding catalysts. Ensuring resilient operations, enabling our customers to do things better. This is a long-term impact. Let me hand it over to Ken to talk a little bit more about this. Yeah, actually, Jim, even on this slide, I'll say this. What's exciting to me, this is where this starts to get to be exponential growth. If you looked at these numbers, that 1,075 of connected plants for Process Technology, just a couple of years ago, what would that have been? It would've been zero. We wouldn't have had any. You see how many of those are getting recurring revenue contracts. This is where we've taken that investment that we've made within Honeywell Forge. We've unlocked that with our capabilities with Process Automation, and we've really built a combined offering. When you ask what makes it different, that's what makes it different. I'll go into just maybe a brief story. We saw the customer testimonials early, because we can come up all day and say how much we have an offering that works together, but are the customers seeing it? They really are. I had the opportunity about 18 months ago to meet Mr. Dangote, who you saw in the customer testimonial. I met him in Italy for dinner, and we talked through some of the expansions that he was doing within his refinery. He knew Honeywell UOP very well, and we were a hook that got us in to help with the expansion of his refinery, one of the largest in the world. What I can tell you is this. Once we got through that conversation and he understood the data we were collecting on other facilities around the world, he understood the 100 process plants we had in our R&D centers that were literally mock-ups running 24/7 of almost every refinery in the world, and the fact that we were bringing 3.5 billion data points a day off of these. All of a sudden, it clicked on him, the value was there, and he said, "Look, I really want to go with Honeywell." Not only that, he took contracts away from others for the automation side of the business and brought this as a combined offering. That's when it clicked for me and I realized, wow, we have something powerful here. As we take a look at what this means for us as we go, we talked a lot about the growth levers here over the last few minutes between Jim and I. We're unlocking that incremental growth through high-growth verticals like LNG and low-carbon energy, life sciences. We're monetizing this broader installed base, and we're also going and managing that cross-sell with folks just like Mr. Dangote and what we were able to do there. What we really are driving more than that is scalability, leverage, and margin improvement. Our capabilities, when we go into these higher-growth industries, we have a differentiated position. Our position at coming together with an end-to-end solution no one can match, that provides us the lever to be able to drive the margin that's there. I can tell you firsthand, this is working as I stand in front of you. We shared in some of our public earnings releases a little bit about the order rates, particularly within Honeywell Process Technology. We have very good line of sight into the future in this long-cycle business. We are seeing order rates that are there and predicting that they will drive future growth. We've been driving higher than 1.2 book-to-bills over the past few quarters, and this is going to drive a very good result and very good growth in this business in the second half of 2026 and beyond. I'm incredibly excited to be here. Thank you so much for a few minutes to listen. With that, I am going to invite Mark and my other colleagues up to the stage to do our first Q&A session with all of us. Thank you. Great job, buddy. How we doing, buddy? That was nice. That was awesome. Yeah, man. Okay. All right. Good? Okay, great. We're going to spend the first 10 minutes or so addressing some key questions we get from investors with each of the segments, I promise you, we're going to open it up to Q&A as promised. Billal, maybe we'll start with you. Every investor meeting we have, one of the first questions we get on Building Automation is the how. How does this business grow 7%, 8%, 9% every quarter? The second question immediately goes to, is it sustainable? Maybe we'd start there. Yeah. Thanks, Mark. It's no secret, a couple of years ago, Building Automation was not performing like this. It's really about the transformation the last couple of years around customer centricity, speed, and effectiveness of innovation, then having the absolute best talent empowered to do what they do best, to get it done, that has really allowed us to do this. We've implemented this business to continue to do that for the years to come. Excellent. Maybe sticking with buildings, maybe we just talk about the levers to grow margins. Obviously, issued some pretty- Yeah pretty good targets for segment margin. Yeah. I mentioned a little bit about this. In fact, a couple of years ago, we walked into the factories and everybody was talking about, "We need to knock this wall down and expand if you're really going to be driving the growth," and so on. We challenged our team and said, "Let's think about how we reuse the space." In fact, a couple of weeks ago, was visiting one of those factories, and it's helping us. This is one of the factories that's driving the highest growth right now, close to double digits. When you walk into that factory, you'd think that business is slow because they have taped off all these empty areas. They said, "You challenged us to, through lean and continuous improvement and Kaizen projects, to reduce our footprint. We've done it. Tell us what else is going to come. Keep growing this business." That's just one example. Obviously, in the rest of the business, in R&D, and in demand generation capabilities, we've made all those investments. We are where we need to be to deliver our commitments for the next three years. When the volume comes in, it's going to have a really great leverage for us, along with the acceleration of our Forge Connected offerings and the margin favorability that those will bring. Excellent. Great. Pete, on IA, you've talked about IA being a bit of a turnaround story. Maybe as you step back, how can we help investors get comfortable that this business is going to sharply inflect to mid-single-digit and obviously strong margin expansion as well? Yeah, I think I wouldn't disagree with any skepticism because over the last couple of years, it has been a negative 4% CAGR story. The portfolio moves that we made, the focus is really important. If I was just going to go back to the basics for a second, Vimal talked about our markets growing at 3%. I told you that our on-time delivery was 45%. When that happens, you don't participate in market growth. Just really fixing our operations, I truly believe the market's going to grow at 3%. Feel really good about that. I feel good about our ability to fix our operations and participate in the market growth. When you do that, you can actually get a couple points of price. That should be a flywheel, right? We get a couple of points of price a year on top of that market growth. That's before we even start talking about the growth algorithm that we talked about, the move to higher- growth verticals, the investment in new products, and the services and the software. I feel really confident about the growth. On the margin expansion of 500 basis points, I'd go as far as to guarantee it. I feel really good about where we are, where we sit right now, and the opportunity ahead for the businesses, then the operational leverage. Feel really good about it. Excellent. Yeah. Great. Maybe quickly move into Process Automation for Jim and Ken. Ken, as you noted, we've spoken a lot about the orders and backlog growth in your business. That we expect a sharp inflection in the back half to high single- digit growth from your business. Obviously, it's somewhat tough maybe for investors to underwrite that, especially with what's going on in the Middle East. Yeah. Maybe just take a minute, talk about what you're seeing, why the confidence in that growth inflection. First, just given the events even in the last few days, my thoughts are with all of our partners that are in the Middle East operating in the Middle East every day. It's become a very challenging place. I've been over there over the last few weeks. I'll be back over there next week. What I can say is this, the nice thing about energy is the demand profile behind it, the fact the world needs more energy tomorrow than it has today. When there's a disruption in one area, we see upticks in other areas around the world. That is absolutely occurring. We've seen refurbishments, catalyst reloads that may not have happened. We're seeing a return to that activity. Very unfortunate, there's many facilities across the Middle East that are our technology and our equipment that have been impacted, we're going to be brought in to help do the refurbishment and the rebuilds. That's already getting started. We're already partnering with many of those. We see that as a tailwind for us. Great. Okay. Jim, starting with Vimal's presentation, we talked a lot about the enhanced focus on some of these higher- growth verticals. Maybe just dive a little deeper for everyone into the life sciences example. Yeah. When you think about unlocking the power of focus and the partnerships we've been able to have across all the businesses here represented on stage, it's amazing, right? You think about the problems our customers are trying to solve, right? They have to have absolute assurance when a facility is built, it's going to do what it was designed to do. That, again, environmental control with the ability to directly measure the system, then run that process with a quality thread with our TrackWise quality Again, allowing this feedback loop to keep improving and scaling operations. This is going to be one of the backbones that the life sciences industry's built on for decades to come. This cross-sell is doing something where we're all using a lot of the same tools, we're all on similar software, we're all connected into this Forge platform. Again, these businesses together are having a real impact in how our customers do business. Excellent. Maybe just on the high-growth verticals, Billal, maybe you can talk a bit about, you mentioned data centers going from next to nothing to 4%-5% of revenue. What is it that BA does in that space? It's about how you show up, you have to have end-to-end teams focused on it that understand that space. You have to make sure that you position your offering in a good way. If I think about data centers, we have the number one solution for advanced fire detection in data center, and we added Li-ion Tamer for lithium-ion battery fire detection to that. In building management systems, we're leveraging Niagara to help our customers drive through the integration within the building domain control. On the access control side, we have some of the most complex global networks of access control that our OnGuard platform does. Showing up, understanding what it takes for your customer to succeed, and then making sure that we position our offerings to help them deliver what they need to deliver to their customers. Excellent. Great. Before we open it up for Q&A with everyone, just maybe one last question we often get asked, even after all the work we've done in spin, why do these businesses still belong together? I think from our perspective, one of the things that binds them is the cross-sell opportunity. Maybe just in 30 seconds from each of you, one tangible example on the cross-sell opportunity in your business. Maybe start at the end, Ken? Sure. For me in Process Technology, it's domain expertise. What makes us differentiated is the fact that we truly have the technology, the models behind the scenes that are going to augment the pure- play automation of Honeywell Technologies. Yeah, I look at the certainty we can provide. Again, the domain expertise of Process Technology coming in, it has been fantastic to work with customers. Not to mention bringing our capabilities with the Building Automation business to data centers, with Pete's business to semiconductor fab, right? These are just incredible impacts that no other company can do. Yeah, I'd just say in a word, everywhere. We're a sensing and measurement business. We're embedded in all of these businesses. If I had to pick one, I'd choose semiconductor. Since we've become really intentional about showing up as one Honeywell, our business leads in semiconductor because we are the specification for gas detection. Just last week, had a great conversation with a major semiconductor player who a lot of equipment runs on simply batteries in the fab, and had a really great conversation about Li-ion Tamer, which is off-gas detection in Billal 's business, there's a lot there. Well, everything is a building and factories are buildings. In the case of Ken's business in Process Technologies, what we do in some cases is very hard for other people to do. We leverage that high differentiation to bring in Building Automation along with we do Process Technologies. Data centers as an example, liquid cooling requires a lot of new sensing capabilities that did not exist, and Pete and his team are developing some really compelling solutions there. We're able to bring those, and then in Jim's business, we're able to bring that high-level control system of systems and bring that approach along with PLC controls into the data center space. Excellent. Great. Let's move to the live Q&A, and I'd just ask that everyone introduce themselves when they're handed the mic. Maybe we can start with Julian Mitchell of Barclays. Thank you. Julian Mitchell at Barclays. Pete, start with you. If you think about the operational side of things in IA, you mentioned the OTIF's very bad. Maybe help us understand on some of those operating KPIs, what should we expect as the rate of improvement? Also, you had that page 52, which had some maroon boxes, but masses of white space around it. When we look at that, is the assumption that the white space will be filled in through M&A coming up, and that block will be very kind of fully covered in a few years' time? Lastly, who are the main peers that we should think about comparing you with in the segment, whether aspirational or just who you fight with day- to- day? Okay. Yeah, cool. I'll take those in order, Julian. I think the first one is really just about customer satisfaction. With Vimal leading Honeywell, he's made it and he said it at the outset, everything that we do and we talk about is customers, and customer obsession is a real thing. If that means putting in $20 million of extra inventory on a bet that we're going to make that up in second margin that flows to cash flow, that's what we're going to do, and we have the latitude to make those sorts of decisions. The big things we'll look at is customer sat, we'll look at delivery. Actually, time to resolve our quality cases is probably a bigger deal than our quality metric right now. There's a lot of things that feed into that, but ultimately, we're going to judge ourselves on free cash flow margin, operating profit, and revenue growth. The second question I forgot. The white space. The white space, yeah. Look, we're going to do both, organically and inorganically. Where we see an opportunity and together we make the decision to go inorganically, we're going to go inorganically. Organically, we're probably going to stay a little closer to our core than we otherwise would, become more important to our existing customers. We've got still a lot of places that we can go in aerospace and in data centers, solutions that we don't have today where the customer uses, or we've got a spoon today. We're going to offer the fork and the knife, and the salad fork, too, right? We have that opportunity to do that, and that's a higher right to play and a right to win, a higher probability win. We'll probably do that, and then, of course, we've got some work on paying down debt, reducing the interest expense. Once we get through that, Mike and Vimal will say we're ready to go, we're working a list of high-value targets. In terms of competition and peers, we're a pretty broad space. We've got point competitors everywhere, I think of us more as like a, if you think about a peer business, an AMETEK, a Teledyne, an IDEX. Those are the kind of quality of businesses that we have, the cash flow that I think that we can put off, or the [audio distortion] business, for example. Those are the kind of people that I would say the best way to look at us is think about it from a peer perspective and not competitive, because there's no one company that we compete with in every place that we play. Great. Let's leave it there. We'll go to Scott Davis right on the end. Thank you, guys. Pete, to what extent will you integrate these assets? They're very different, you also seem to have a lot of confidence that there's some synergies. To what extent will they stay decentralized versus having some level of command and control centralized? Yeah. We're going to follow the accelerator playbook, right? For me, world-class processes across engineering where it makes sense, operations, supply chain where it makes sense, productivity on variable costs, and supplier negotiations. To an extent, our pricing processes, right, will do that. Offering specific R&D. We want to be very close to the customers for those business units, so we won't touch that. It'll be more on the operational processes, and that's how we're going to drive the margin expansion. I'm just curious, if just each one of you can give a 10-second answer so we can keep this flowing. Why is price so much easier to get today than three years ago? It can't just be new products. There has to be more to it than that. I can start. The price is ultimately about the value that you deliver, and the ease with which you're able to do pricing has to do with how much value you're delivering. Value delivery, new products is a big part of it, but how you do your job every single day. When your customer asks you a question, when you deliver something to a customer, the speed of innovation, all of those come into the value creation that you do for customers. Specifically in Building Automation, that's true for some of the other businesses. What we sell into our channel is less than 20% of the cost of our channel to go do something. To the extent that 80% is sitting in the labor and design and engineering, to the extent that we are able to go and tap into that 80% and help them make that 80% lower, that gives us a lot of opportunity to create value. I could add maybe as well. We have different tools today than we had then. If I think about it, three years ago, we were developing the tools we're using today. We have some of the best tools I've seen out in the industry in terms of real-time looks at what our raw materials are at a SKU level, at a base raw material. We saw very quickly, we had built out a model as the impact of tariffs came on. These real-world models that we have and the skills give us the tools behind the scenes as we're running our pricing reviews to know exactly where we need to be. I just think the speed of decision-making has increased with the tools we have behind the scenes. This thing around mission-critical matters. We are in really high-impact environments across all these businesses. You think about some of the lower end of the spectrum of automation. We're in these critical facilities where, again, everything we do has to work. It has to deliver an outcome. When I look at what we've been able to do with price, I completely agree with what was said. I think we talk a lot about our operating model, how we get effective scale. The markets we're in, we're having a real impact. When we talk about this cross-selling, we really are doing things that others can't, that directly correlates to how we position in the market. One point. I just wanted to. Oh, sorry Scott, brought to your point on how much of commonalities in Industrial Automation businesses, and what processes will be made common. I want to draw a parallel to Building Automation business. While Billal 's business serves same end market, our channels in fire, security, and BMS are unique. We don't share any channel partner. Billal has unique offerings for each one and each channel, but back end is common. Factory, pricing process. We are replicating the same model. It's exactly the copying the same model. It appears everything is same, but in reality, it is not. In fact, we do not share channel partners for the reasons we'll appreciate. That scale is highly replicable in Industrial Automation. I want to clarify that this is not a new invention. We're basically copying what we always been very successful. Yeah. Great. Let's go to Deane Dray of RBC. Thank you. Appreciate all the color here today and what you all did to put this together. I'd love to hear a bit more about the statistic that Vimal gave on new product vitality. The mid-40s% is an extraordinarily high number for an organization. I'd love to hear just briefly from the team, how do you manage it within your business incentives, and is there any concern about cannibalization as you maintain such a high level of New Product Introduction s? Thank you. Why don't we start with Billal? Yeah. Okay. Sure. Vimal touched on it, the importance of our offering management. We've put a lot into our offering management community. At Honeywell, when we think about innovation, we can engineer anything. I've grew up at Honeywell. I first started at Honeywell 22 years ago. We never fail because we cannot come up engineer the solution. The trick for us and the challenge for us is to make sure that we are working on the right thing. That's why we spend so much time with our offering management team. To your question about the incentives and so on, they are running their many businesses within the larger ecosystem, and they're getting compensated just like a GM would on top line and bottom line free cash flow growth. That allows us. That focus we've done on the offering management in the last couple of years has really helped us to turn the corner on the effectiveness of our new product offerings. Your question about cannibalization and so on, our core is very strong. As we work on new exciting ideas like Forge Connected Building, which is completely new, and some of the other things we talked about today, we make sure that we keep an eye on our core because that core is so crucial to keep going. This is how we make sure that the vitality, and that's where the vitality comes in, that people will want to continue to buy these traditional products as we layer in new solutions on top of them. Yeah, I would say on that one too, we measure it not just in vitality, but in net new, right? It's a net NPI number. Vitality is always then going to be a little bit bigger because your core is shrinking and you're intentionally shrinking that core to get new products. It's not just the one metric, but they work in concert with each other. You said it. Great. Yeah. Yeah. I think as well, in the long lifecycle businesses, we have put in a distinct investment in some of the longer cycle research as well as new product innovation that's going to come out in the one to two years. We monitor our investment very closely, and we have a very strong feedback loop to say, "When is a project working and when is it not working?" We can make fast decisions and be nimble with that spending. We've seen that, and that's reviewed even on a monthly basis at every level of our organization. Excellent. Let's go to Jeff Sprague of Vertical Research Partners. Right in front, Jeff. Great. Thank you. Good afternoon, everyone. We can all probably clearly understand that connected is good and connected with ARR is even better, right? As long as I've been doing this, Honeywell's been an installed base, harvesting installed base play, right? We've had all this technology innovation. We've got Honeywell Forge, et cetera. We heard a lot of good stuff about the customer outcome, the outcome to Honeywell is obviously embedded in the guide that you're sharing with us, but I'm wondering if you could give us some context on that, right? A piece of installed base that goes to something you're servicing, regular way, old way to now connected, now with ARR. Some way to think about the context around that, whether it's points of organic growth or something along those lines. Separately, just Ken or Jim, can you just give us a little bit more color on the energy cycle that might be unfolding in front of us, and whether that gets you to the promised land on your organic growth all alone without everything else you've talked about? Yeah, both are good, Jeff, and I can give you a little bit on both. First off, a great example is one, I don't know if you happened to see it in our demonstration over here or not, but as we're connecting to each of these process units, we're learning a lot more about it. One example where we're changing the customer outcome is on digital imaging of catalyst. As many of you know, catalyst is something that a customer puts into a refinery every sometimes one or two years, sometimes three to five years, depending on the product. It's a very nice cycle for us because it provides a revenue stream. In the past, what customers had to do is they had to go pull a sample out of the bottom of that catalyst unit, send it to a lab, analyze it. Many times, by the time they realized the catalyst was bad, the refinery's already losing efficiency. It's already starting to go down and it has a problem. We're now, through our connected solution, able to do that every day, let the customer know exactly when they should change the catalyst or if they have a plug somewhere in the system and let them know they should be proactive. We have another customer that's running a PDH unit. This is a unit that provides plastics from crude oil. They were having all kinds of problems. In fact, both Vimal and I were down to meet with them. There's a big challenge with it. We've been connected to that unit, put our engineers down there, been able to fix the problem and shown that we can bring that up. Those are the kind of examples that I can share with folks like Mr. Dangote to be able to drive this integrated growth. That's kind of the first piece of where we're seeing the customer outcome. I'd say it is an exciting time to be in the energy industry right now. We're seeing really almost unprecedented growth in certain areas. The time that we put the investments in place to do LNG, we had done the strategic research ahead of time to understand it was an attractive play. I don't even think we realized how attractive that was going to be with the need for more power and now particularly with the need to move power between continents. That's going to continue to unlock that growth and provide better results here second half and beyond. Yeah. It's important to mention, a lot of businesses are being disrupted by a lot of the new software capabilities that are coming out, AI, right. If you think about where we're unlocking this massive value, there's domain depth across all of these businesses. Very uniquely, our cognition demo's over there, if you haven't seen it, come see me after, where we're putting that domain depth directly into our control systems, directly into our automation, whether it be a building, process facility, doesn't matter. The impact we're able to have on our customers' operations, depending on the industry, it's a wide range, but we're often talking tens of millions of dollars of immediate incremental difference for some of our automation solutions that are augmented by this domain depth. Again, because of that position, a lot of these new compute capabilities are really augmenting our capability and actually allowing us to get into markets in a way that no one else can. It's kind of interesting, this cycle of disruption, and I knew this coming into Honeywell, but it's been pretty incredible to see it play out over the last 11 months. It's driving a lot of value direct to our customers, which is where we're focused. Okay, maybe we squeeze in two quick ones. Go to Nicole and then end with Kat. Yeah, thanks. Nicole DeBlase from Deutsche Bank. Maybe just following on from Jeff's question. You shared that within Process Automation and technology, the connected systems percentage is kind of around 14%. I think ARR was- Yeah similar, 13%, 14%. That struck me as a little bit low versus what the potential could be. Could you talk about that opportunity? Same segment, second question is just how often do you guys work together today when it comes to cross-selling with your customer base, and how often could you work together in the future? Thank you. I think I speak to Ken more than anybody in my family. My wife's probably watching and like, yeah. It's constant. It is absolutely constant. I think Ken can talk a little bit more about how quickly we've been driving these solutions across the business. Yeah, absolutely. I think the nice thing here is, as Jim came on, we were really developing out this kind of joint offering, and it came right at the right time where we were getting the pull on the connected capabilities. We were pulled in almost immediately with key customers. Many times, we'll travel to the customers together. There's times that we'll kind of divide and conquer with the customers as we can kind of show both sides of that. I do think from a customer point of view and a customer space, it's a single offering. Now, the backbones behind that are very different between the two businesses, and that's why both of us are up here. It's a little bit different how you develop molecules and process technologies versus how you develop the new automation systems. I think we have the best of both worlds as we bring that together. Guys, on that, fair to say that the time spent together, the pipeline, but the real benefit is still on the come because you guys are working really well together right now, but the benefit is? It is. That really gets into the first part of the question. You're right. That's really low. We connected our 1,000th plant, I think it was on December 17th. We're now at 1,075 as you saw. We're connecting plants almost every day. We're just starting to see that ARR ramp up. Customers are now starting to see that benefit. This has very much changed. A couple of years ago, many customers didn't recognize what that was or what the value really was. They're starting to now. I do believe this will be exponential. As more and more customers start to see it, we're also playing into a couple really important kind of macro trends across the industry. One is labor shortage. Many of our customers just don't have the experienced control room operators to continue to run, and they're losing some of their engineering expertise and talent to retirement. We're coming in and helping augment that existing workforce with these capabilities. You're dead on. It's going to be a lot of opportunity in the future coming off of that low base, and we're going to be able to solve it together. Okay, great. Maybe we'll end with Andy Kaplowitz of Citi. Hey, guys. Pete, you talked about 500 basis points of margin improvement in three years. As you know, that's not a lot of time. Do you need some of these bigger initiatives to kick in, NPI sort of accelerating or focus on high- growth markets, or can you just get it from operating leverage? Is it backend load or not? Maybe just quickly for Billal, you talked about the high- growth regions, 25% of the business. It feels like you kind of talk about it like it's the 2010s, but as you know, the world has changed a bit, right? China may be not the growth driver that it was before, but it's doing well for you. Have you shifted at all in what high- growth regions mean, or is it still kind of the same? We'll start with you. I'll just start on the operating expansion. It's all within our control, and this is why I feel so highly confident about it. I think we can get there low single digits to almost no growth just on some of the self-help stuff. Growth will obviously supersize that, or be a part of that, or we would take some of that and reinvest it as we're growing. Obviously, on the growth side, there's more that's out of your control. I feel pretty in control on the margin expansion and feel like we could do that at low single-digit growth. On the regions, the good news is with the new organization we have and the regional focus, all of our regions are growing. China and Europe has long been slow, but for us, they're growing quite nicely. In fact, Europe is showing up in the mid-single digits, and we expect that to continue. Your question about how things change, I think the fact that we have capable teams empowered to make their own choices in the regions will help us to do that. If I take the example of our Middle East and Africa region, couple of years ago when we talk about growth in that region, it was all about the investments happening in Egypt. Last year, it was all about Saudi Arabia and more than Northwest Africa. Our teams anticipate the growth, they have the capability and the empowerment to go and make sure that they are ready for it when it happens. We see that dynamism in how our team approaches it through across all of our regions, and the customer centricity help them continue to deliver on that. Excellent. Great. Let's leave it there. We're going to take a quick 15-minute break. We'll get back here right around 3:35 P.M. to kick off with Suresh. Thanks. Thanks, Mark.