Hands-free technology with insights from Honeywell Forge architecture empowers retail associates to increase productivity, reduce errors and create exceptional customer experiences CHARLOTTE, N.C., June 4, 2024 /PRNewswire/ -- Honeywell (Nasdaq: HON) today announced an update to incorporate artificial intelligence (AI) and machine learning into its Guided Work Solutions to help bring greater operational efficiency and better shopper experiences to retailers in today's competitive landscape. Honeywell Guided ...

Acquisition and Strategic Focus - Honeywell completed the acquisition of Carrier Global Corporation's Global Access Solutions business for $4.95 billion, enhancing its position in security solutions [2]. - The acquisition aligns with Honeywell's strategic focus on automation and digitalization, positioning it as a leader in security solutions [4]. - Approximately 1,200 employees from Global Access Solutions have joined Honeywell, enhancing its operational capabilities [3]. Financial Guidance and Performance - Honeywell's updated full-year sales guidance is now $38.5 billion to $39.3 billion, reflecting organic sales growth of 4% to 6% [5]. - Adjusted earnings per share are expected to range from $10.15 to $10.45, indicating a growth of 7% to 10% compared to the previous year [5]. - For the three months ended June 30, 2023, diluted earnings per share was $2.22, with an expected range of $2.21 to $2.31 for the same period in 2024 [33]. - Adjusted earnings per share for the twelve months ended December 31, 2023, is projected to be between $9.65 and $9.95, compared to $9.16 for the previous year [33]. - Free cash flow for the twelve months ending December 31, 2024, is expected to be approximately $5.6 to $6.0 billion, with cash provided by operating activities estimated at $6.7 to $7.1 billion [40]. Segment Performance - Segment margin is projected to be between 23.8% and 24.1%, with an expansion of 30 to 60 basis points [5]. - Second-quarter sales are anticipated to be between $9.3 billion and $9.6 billion, with organic sales growth of 1% to 4% [5]. - Segment margin for the second quarter is expected to be 22.7% to 23.1%, reflecting a decrease of 40 basis points to flat compared to the prior year [5]. Amortization and Adjustments - Honeywell will exclude amortization expense for acquisition-related intangible assets from segment profit and adjusted earnings per share starting in Q2 2024 [5]. - The company will exclude acquisition amortization and related costs from adjusted earnings per share starting in the second quarter of 2024 [32]. - Acquisition-related intangibles amortization for the three months ended June 30, 2024, is expected to be approximately $66 million, increasing from $48 million in the same period of 2023 [39]. - The company anticipates an adjustment of approximately $24 million for acquisition-related costs in the three months ended June 30, 2024, compared to $1 million in the same period of 2023 [39]. Other Financial Adjustments - The pension mark-to-market expense for the twelve months ended December 31, 2023, is estimated at $0.19 per share, with no forecast available for future periods [33]. - The company has changed its valuation methodology for legacy Bendix liabilities, resulting in a $434 million pre-tax adjustment for the twelve months ended December 31, 2023 [39]. - The expected adjustment related to Russian-related charges for the twelve months ended December 31, 2024, is projected to be $17 million [35]. Cash Flow Insights - The company believes that free cash flow is a useful measure for evaluating cash generated by operations for future investments, debt repayment, and dividends [41].

$4.95 Billion Acquisition Bolsters Honeywell's Strategic Alignment to the Automation Megatrend, Underpinned by Digitalization Positions Honeywell as a Leading Provider of Security Solutions in a Digital Age Enhances Honeywell's Building Automation Segment, Adding an Accretive Growth and Margin Business Previous Impact of Acquisition Guidance After the Acquisition Impact of NonGAAPUpdated Guidance Guidance CHARLOTTE, N.C., June 3, 2024 /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced the completion of ...

Core Viewpoint - Honeywell is positioning itself as a key player in the advanced air mobility (AAM) market, focusing on developing technologies and solutions that cater to this emerging sector, with significant revenue potential expected by the end of the decade [3][8][29]. Company Overview - Honeywell established a dedicated business unit for AAM in 2020, recognizing the need for tailored solutions distinct from traditional aerospace offerings [3][4]. - The company provides essential systems for AAM vehicles, including avionics, flight controls, propulsion systems, and cooling systems, positioning itself as a partner in the industry rather than just a supplier [5][6]. Market Potential - The total addressable market (TAM) for AAM is projected to be in the tens of billions, with specific opportunities identified: air taxis at $20 billion, middle-mile cargo at $10 billion, and local light parcel delivery at $1 billion [8][10][11]. - Regulatory frameworks in regions like China and the UAE are advancing, which may facilitate earlier revenue generation compared to the US and Europe [9][11]. Product Offerings - Honeywell's Anthem is an integrated cockpit solution designed for future aviation needs, with commitments from several AAM platforms for its implementation [17][18]. - The company is also focusing on cooling systems, which are critical for the performance of electric and hybrid electric aircraft, indicating a significant growth area [22][23]. Competitive Landscape - Honeywell claims a strong market share in AAM compared to in-house solutions, emphasizing the importance of selecting the right customers for successful integration and certification [20][22]. - The company is leveraging partnerships, particularly in electric propulsion with DENSO, to enhance its competitive edge in the market [24][27]. Revenue Trajectory - Honeywell anticipates that AAM will become a material contributor to its aerospace P&L by the end of the decade, with significant revenue expected in the 2030s [29][30]. - The company estimates that the dollar content per vehicle for its systems ranges from $200,000 to $1.5 million, depending on the complexity of the systems integrated [30][31]. Strategic Insights - The company highlights that the initial launch applications for air taxis are unlikely to occur in the US or Europe due to regulatory challenges, suggesting a need for investors to look beyond traditional markets [35][36]. - There is a noted shift in defense procurement behaviors aligning more closely with AAM, indicating potential cross-industry opportunities [36].

JHVEPhoto Investment Thesis I last covered Honeywell International (NASDAQ:HON) in October last year with a buy rating. While the stock has given a total return of ~10% since then, I continue to see further upside. Honeywell is well positioned to deliver good growth in the near term as well as in the long term. The company's revenue should benefit from a healthy backlog level of $32 billion exiting Q1 2024, and strong demand in the long-cycle Aerospace business. In addition, good backlog conversion thanks t ...

Core Viewpoint - Innovative Solutions and Support, Inc. (IS&S) is being added to coverage as a potential aerospace investment opportunity with significant growth potential despite current integration challenges from recent acquisitions [2][17]. Company Overview - IS&S is a systems integrator specializing in cost-effective flight navigation systems and precision flight instrumentation equipment, including integrated flat panel display systems and flight management systems [3][4]. - The company has exposure to both commercial and defense platforms, including equipment for various Boeing models and Lockheed Martin's C-130 [4]. Financial Performance - IS&S reported annual revenues of $34.9 million, with a 15% compound annual growth rate (CAGR) and a 37% growth in operating income, indicating strong operating margin improvement [6]. - For the second quarter, revenues increased by 46.3%, driven by customer service revenues from the Honeywell product line acquisition, while product sales decreased by 17.7% [10]. - Gross margins fell to 52% from 64.6% year-over-year due to integration inefficiencies from the Honeywell acquisition [11]. Acquisition Impact - The acquisition of Honeywell product lines is seen as essential for revenue growth, with the company expecting 75% EBITDA growth from this integration, although this has been delayed by one year in projections [12][15]. - The integration process is currently pressuring margins, and the company has incurred $171,470 in interest expenses from a $20 million term loan taken to finance the acquisition [12][13]. Future Outlook - Despite current challenges, there is significant upside potential for IS&S as integration progresses and margins improve, leading to a strong buy recommendation for the stock [15][17].

Honeywell International Inc. (HON) has been benefiting from strength in its commercial aviation original equipment and aftermarket businesses, driven by solid demand in the aviation market. Also, solid momentum in the company's defense and space business owing to stable U.S. and international defense spend volumes has been driving its Aerospace segment. The company's Building Automation segment has been gaining from strong demand for building solutions and a robust backlog level. Strength in advanced materi ...

Organizations can now help ensure grid stability and increase operational efficiency by automating demand response within their facilities HOUSTON, May 16, 2024 /PRNewswire/ -- Honeywell (Nasdaq: HON) today announced its partnership with Enel North America ("Enel") to enhance building automation and demand response solutions for commercial and industrial organizations by using automation to control and regulate energy loads to help stabilize the power grid. Honeywell and Enel North America team up to help o ...

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ATLANTA, April 30, 2024 /PRNewswire/ -- Honeywell (NASDAQ: HON) today released its 2024 USB Threat Report, which provides new insight into how "silent residency" is an increasing cyber threat for industrial and critical infrastructure facilities. In the report, Honeywell highlighted the growing risk of "living off the land" ("LotL") attacks in which adversaries use USB devices to gain access to industrial control systems in order to hide and observe operations before launching attacks that evade detection a ...