Summary of Honeywell International Inc. (NASDAQ:HON) Jefferies eVTOL Summit Conference Transcript Company Overview - **Company**: Honeywell International Inc. - **Division**: Honeywell Aerospace - **CEO**: Mike Madsen - **Sales Contribution**: Aerospace accounts for 40% of Honeywell's sales [2][3] Industry Focus - **Market**: Urban Air Mobility (UAM) - **Market Size**: $7 billion in content wins and a market pipeline exceeding $10 billion [9] - **Growth Projection**: Expected to be a significant market by the end of the decade, with a revenue target of $2 billion [15] Key Points and Arguments 1. **Role in UAM**: Honeywell acts as both a component supplier and a systems integrator, providing certification support and regulatory guidance [4][5] 2. **Technological Offerings**: Honeywell's technologies include cockpit systems (Anthem), actuation systems, cooling systems, electric motors, and fly-by-wire computers [5][10] 3. **Regulatory Engagement**: Honeywell engages with regulatory authorities and participates in industry groups to shape standards for UAM certification [8][39] 4. **Investment Strategy**: Honeywell employs a bifurcated investment approach, focusing on core products while also tailoring applications for specific customers [12][13] 5. **Partnerships**: Collaborations with companies like DENSO for e-motor development and a focus on high-volume manufacturing capabilities [13][18] 6. **Market Entry Timeline**: Anticipated entry into service for UAM vehicles around 2025, with a gradual ramp-up in revenue expected to follow an S-curve pattern [15][16] 7. **Growth Rate Expectations**: Initial slow growth expected, transitioning to strong double-digit growth in the latter half of the decade [20][21] 8. **Geographic Focus**: Adoption is expected to occur simultaneously across developed regions, including the U.S., Europe, and Asia-Pacific [23][24] Additional Insights - **Anthem System**: A new cockpit system that is modular, lightweight, and connected, allowing for enhanced functionality and potential recurring revenue streams from software enhancements [26][31] - **Operational Challenges**: The need for operational regulations to catch up with certification standards, particularly concerning autonomous operations and navigation technologies [41][42] - **Pilot Training Evolution**: The industry is moving towards single-pilot operations, necessitating advanced avionics capable of managing most flight operations autonomously [44][45] - **Infrastructure Development**: Honeywell is exploring its role in UAM infrastructure, focusing on logistics management systems for rapid recharging or battery exchange [50][51] - **Market Drivers**: Growth in e-commerce and the need for efficient urban transport are key factors driving the UAM market [53][54] Conclusion Honeywell is strategically positioned in the emerging UAM market, leveraging its technological expertise and regulatory engagement to capitalize on significant growth opportunities. The company is focused on innovation, partnerships, and addressing operational challenges to ensure successful market entry and expansion.

Summary of Honeywell International Inc. Conference Call Company Overview - **Company**: Honeywell International Inc. (NASDAQ: HON) - **Sector**: Aerospace - **Participants**: - Mike Madsen - President and CEO, Honeywell Aerospace - Sean Meakim - IR - Andrew Obin - Bank of America Key Points Industry Outlook - The aerospace industry is experiencing strong growth, particularly in Original Equipment Manufacturer (OEM) and aftermarket segments for both Air Transport and Business Aviation [4][6] - Defense sector is stabilizing with clear priorities, showing low to mid-single-digit growth [4][6] - Honeywell has seen a significant increase in business wins in advanced air mobility, growing from $3.5 billion to $7 billion in one year [5] Financial Performance - Honeywell's backlog has grown significantly, with $18 billion in business wins over the last two years [11] - Output is up 15% to 20% year-over-year, indicating positive trends in supply chain and production [11] - The company anticipates a growth in retrofit, modification, and upgrade revenue to $1.1 billion for the current year, with a projected 10% CAGR [37] Market Segments - Air transport is seeing double-digit growth, while business aviation is expected to grow at a mid-single-digit rate [6][16] - Wide-body flight hours are recovering faster than narrow-body, with expectations to return to 2019 levels by late 2024 [14] - Business aviation aftermarket is stabilizing at a low single-digit growth rate, particularly strong in fractional and corporate flight departments [17] Supply Chain and Labor - The supply chain remains constrained, primarily due to labor shortages rather than capital capacity [22] - Honeywell is focusing on dual sourcing and selective automation to mitigate supply chain challenges [22] Research and Development - Honeywell is investing in electrification and advanced technologies, including hybrid electric power systems and sustainable aviation fuel [7][52] - The company plans to maintain R&D spending at 5% to 8% of revenue, focusing on efficiency and innovation [47] Defense and Space - The latest President's budget reflects a shift in defense priorities towards the Asia Pacific region and modernization of military capabilities [29][30] - Honeywell is well-positioned to benefit from increased demand for navigation products and systems related to defense [31] Urban Air Mobility - Honeywell is actively involved in urban air mobility, focusing on reducing crew requirements and enhancing operational efficiency [55][56] - The timeline for commercialization of urban air mobility products has shifted to 2025-2026, with regulatory developments progressing positively [62] Conclusion - Honeywell is optimistic about its growth prospects in 2023, with strong demand across various segments and a solid supply chain recovery [69] - The company is well-positioned to capitalize on emerging trends in aerospace, including sustainability and advanced air mobility technologies [69]

Summary of Honeywell International, Inc. Conference Call Company Overview - **Company**: Honeywell International, Inc. (NASDAQ: HON) - **Date**: March 14, 2023 - **Participants**: Darius Adamczyk (Chairman & CEO), Vimal Kapur (COO & President), Charles Tusa (JPMorgan Chase & Co. Analyst) Key Points Leadership Transition - Darius Adamczyk announced his transition from CEO after 7 years, citing the readiness of his successor, Vimal Kapur, and the company's strong position as key factors for the timing of his departure [4][5][6] - Adamczyk emphasized that he is leaving the company in a strong financial position and is not being pushed out by the Board [5][6] Company Performance and Strategy - Honeywell has undergone significant transformation under Adamczyk, focusing on digitization, innovation, and operational optimization [7][8] - The company aims to enhance its growth algorithm, targeting 4% to 7% top-line growth and 40 to 60 basis points margin expansion [20][42] - Honeywell has a strong balance sheet with approximately $25 billion available for deployment, with $15 billion earmarked for future investments [11][12] Market Outlook - The company is optimistic about its performance in 2023, with guidance for Q1 and the full year remaining on track [32][35] - Honeywell's backlog coverage is over 80%, indicating strong demand and order growth [36] - The company anticipates a recovery in the aerospace sector, with double-digit growth expected in the first two months of the year [37] Focus Areas - Vimal Kapur highlighted two macro trends for future growth: sustainability and digitization, with a focus on automation [14][15] - Honeywell is committed to enhancing margin expansion through its operating system, Honeywell Accelerator, which has been in place for 15 years [15][16] - The company is actively pursuing bolt-on acquisitions that align with its strategic goals [9][65] Challenges and Risks - There is some softness in the PSS segment, which is the shortest cycle in Honeywell's portfolio, but the company expects a recovery [48][49] - Geopolitical factors and supply chain challenges remain concerns, particularly regarding the Chinese market [34][37] Innovation and Sustainability - Honeywell is well-positioned in the sustainability sector, with ongoing projects in carbon capture and sustainable aviation fuel (SAF) [60][63] - The company has seen increased licensing activity in petrochemicals and is optimistic about future growth in this area [60][61] Pricing Strategy - Honeywell is focused on maintaining pricing discipline and offsetting inflation through productivity improvements [51][52] - The company has a robust pricing model that allows for adjustments based on market conditions [51][52] M&A Activity - The company is actively exploring acquisition opportunities, particularly in technology and sustainability sectors, while maintaining a disciplined approach to valuation [65][69] Conclusion Honeywell International, Inc. is positioned for continued growth under new leadership, with a strong focus on sustainability, digitization, and operational efficiency. The company is optimistic about its market outlook for 2023, despite some challenges in specific segments. The leadership transition appears to be well-planned, with a clear strategy for future growth and innovation.

Honeywell International Inc. (NASDAQ:HON) Barclays Industrial Select Conference February 22, 2023 8:00 AM ET Company Participants Greg Lewis - CFO Conference Call Participants Julian Mitchell - Barclays Julian Mitchell Well, I think, we’ll get underway. Thanks very much, everyone, for attending. My name is Julian Mitchell, and thank you for coming to the 40th Barclays Select Industrial Conference here in Miami. It's my pleasure to open the event formally with Greg Lewis, Chief Financial Officer of Honeywell ...

Honeywell International Inc. (NASDAQ:HON) Citi’s 2023 Global Industrial Tech and Mobility Conference February 21, 2023 8:00 AM ET Company Participants Greg Lewis - SVP and CFO Conference Call Participants Andy Kaplowitz - Citigroup Andy Kaplowitz All right. I think we're going to get started. Very happy for you all to be here. Again, most of you know me. I'm Andy Kaplowitz from Citigroup. Very excited to welcome you to the Citigroup Industrial Tech & Mobility Conference. We've got a great lineup for you guy ...

(1) Included in Selling, general and administrative expenses. (2) Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. For the twelve months ended December 31, 2022, other charges include an expense of $250 million related to reserves against outstanding accounts receivables, contract assets, and inventory, as well as the write-down of other assets and employee severance related to the initial suspension and wind down of our businesses and operations in Russ ...

Financial Performance - In 2022, Honeywell achieved a sales growth of 3%, with 6% organic growth and 7% organic growth excluding lost Russian sales, driven by strong demand in Commercial Aviation, Advanced Materials, and Building Products segments [12]. - Honeywell's operating cash flows for the year were $5.3 billion, with a record backlog of $29.6 billion as of December 31, 2022, indicating strong demand in end markets [14]. - The company deployed $7.9 billion to capital expenditures, dividends, share repurchases, and mergers and acquisitions, which was approximately $2.6 billion in excess of operating cash flow for the year [12]. - Net sales increased by 3% in 2022 compared to 2021, driven by a 10% increase in pricing, partially offset by a 4% decline in volume and a 3% unfavorable impact from foreign currency translation [90]. - Organic sales growth, excluding the impact of lost Russian sales, was 7% in 2022, compared to 4% in 2021 [91]. - Gross margin increased by approximately $0.6 billion, with the gross margin percentage rising to 32.8% in 2022 from 32.0% in 2021 [94]. - The effective tax rate for 2022 was higher than the U.S. federal statutory rate of 21%, primarily due to a 320 basis-point increase from restructuring and state taxes [103]. - Net income attributable to Honeywell decreased primarily due to higher repositioning charges impacting earnings per share by $0.86 after tax [105]. Segment Performance - Honeywell Building Technologies generated $6,000 million in revenue for 2022, with $3,638 million from products and $2,362 million from building solutions [22]. - The Performance Materials and Technologies segment reported a full-year revenue of $10,727 million, with $2,404 million from UOP, $4,731 million from Process Solutions, and $3,592 million from Advanced Materials [24]. - Safety and Productivity Solutions achieved a revenue of $6,907 million in 2022, with $2,952 million from Sensing and Safety Technologies, $1,619 million from Productivity Solutions and Services, and $2,336 million from Warehouse and Workflow Solutions [25]. - Aerospace segment net sales increased by $801 million, with organic sales growth of 8% [108]. - Honeywell Building Technologies segment net sales increased by $461 million, with organic sales growth of 14% [113]. - Performance Materials and Technologies segment net sales increased by $714 million, with organic sales growth of 11% [117]. - Safety and Productivity Solutions segment sales decreased by $907 million, primarily due to lower organic sales of 9% [121]. Capital and Investment - The company expects to spend approximately $1.0 billion on capital expenditures in 2023 for growth and capacity expansion [180]. - A quarterly dividend rate increase of 5% to $1.03 per share was effective in Q4 2022, with intentions to continue dividends in 2023 [180]. - Cash used for investing activities decreased by $968 million, mainly due to a reduction in cash paid for acquisitions [175]. - Cash used for financing activities decreased by $1.9 billion, driven by a $3.1 billion reduction in long-term debt payments [176]. - As of December 31, 2022, the company held $10.1 billion in cash and cash equivalents, down from $11.5 billion in 2021 [165]. - Total borrowings as of December 31, 2022, were $19.6 billion, with fixed rate notes comprising $17.1 billion of this total [168]. Strategic Focus and Future Outlook - Honeywell plans to continue deploying capital to high-return opportunities, including software and services and sustainable technologies, to position the business for future growth [13]. - The company expects macroeconomic factors to remain turbulent in 2023 but is well-positioned with a robust backlog for future growth [13]. - Backlog was $29,558 million at December 31, 2022, an increase from $27,682 million in 2021, with an expectation to recognize approximately 62% as revenue in 2023 [27]. - The company is focused on driving profitable growth through innovative products, expanding margins, and executing disciplined portfolio management [16]. - Future growth is dependent on the ability to develop new technologies and products that achieve market acceptance in competitive markets [143]. Sustainability and Corporate Responsibility - Honeywell aims to be carbon neutral by 2035, having implemented over 6,300 sustainability projects since 2010 [43]. - The company has developed a strategy to electrify its global fleet of over 7,500 vehicles by 2035, with the first fully electric light-duty vehicles delivered in 2022 [43]. - Honeywell's Performance Materials and Technologies segment is focused on developing solutions for a lower carbon economy, including renewable fuels and carbon capture [45]. - Honeywell maintains a commitment to uphold environmental, social, and governance principles as part of its corporate citizenship strategy [16]. - Stakeholder interest in environmental, social, and governance (ESG) practices is increasing, prompting the company to enhance its ESG reporting and set new goals [155]. Risks and Challenges - Supply chain constraints for certain raw materials are expected to continue into 2023, but the company believes its mitigation strategies will reduce the impact [33]. - The company faces risks related to foreign exchange fluctuations, which could expose it to financial loss despite hedging activities [135]. - The company may face challenges in executing or integrating acquisitions, which could impact expected returns and operational performance [142]. - Cybersecurity incidents could potentially result in financial loss, reputational damage, and increased costs due to the sophistication of threats [149]. - The company faces risks from climate change that could disrupt operations and increase costs for materials and insurance [157]. - Changes in government regulations can significantly impact the company's sales and margins across its business segments [160]. Employee Engagement and Diversity - Honeywell's commitment to human capital management is reflected in its diverse hiring practices and talent acquisition strategies [53]. - The company has established a Global Inclusion and Diversity Steering Committee to enhance its commitment to diversity, with a diverse Board of Directors and executive leadership team [62]. - The company has implemented a Voice of the Employee feedback survey to improve employee engagement and workplace culture [54]. - Employee well-being initiatives include comprehensive mental health benefits and Employee Assistance Programs available globally [55].

Honeywell International Inc. (NASDAQ:HON) Q4 2022 Earnings Conference Call February 2, 2023 8:30 AM ET Company Participants Sean Meakim - Vice President of Investor Relations Darius Adamczyk - Chairman & Chief Executive Officer Vimal Kapur - President & Chief Operating Officer Greg Lewis - Senior Vice President & Chief Financial Officer Anne Madden - Senior Vice President, General Counsel Conference Call Participants Julian Mitchell - Barclays Steve Tusa - JPMorgan Scott Davis - Melius Research Sheila Kahy ...

| United States | | | --- | --- | | Securities and Exchange Commission | | | Washington, D.C. 20549 | | | Form 10-Q | | | __________________ | | | ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) | | | OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For the quarterly period ended September 30, 2022 | | | OR | | | ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) | | | OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For the transition period from ______ to _____ Commission file number 1-8974 | | | Honeywell In ...

Honeywell International Inc. (NASDAQ:HON) Q2 2022 Results Conference Call July 28, 2022 8:30 AM ET Company Participants Sean Meakim - VP, IR Darius Adamczyk - Chairman and CEO Greg Lewis - SVP and CFO Conference Call Participants Steve Tusa - JPMorgan Julian Mitchell - Barclays Scott Davis - Melius Research Sheila Kahyaoglu - Jefferies Andrew Obin - Bank of America Nigel Coe - Wolfe Research Joe Ritchie - Goldman Sachs Andy Kaplowitz - Citigroup Josh Pokrzywinski - Morgan Stanley Deane Dray - RBC Capital Ma ...