Quantum computing is an exciting yet complex space with much promise. Recent projections estimate the global quantum computing market will grow to $7.6 billion in 2027. This forecast considers factors like the methodical pace of quantum hardware development, competition from other advanced computing technologies, and current economic uncertainties. Analysts expect a gradual expansion as the market matures. Progress will likely come through enhancements in infrastructure, computing platforms, and a wider ran ...

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q3 2023 was $2.27, up 1% year-over-year, or up 7% excluding a $0.14 non-cash pension headwind [49][68] - Third quarter sales grew 2% year-over-year, driven by double-digit growth in commercial aviation, defense and space, and process solutions [35][50] - Free cash flow was $1.6 billion, down 18% year-over-year, due to timing of cash tax payments and higher net working capital [37][52] Business Line Data and Key Metrics Changes - Aerospace sales increased 18% organically, with double-digit growth in both commercial aviation and defense and space [90] - Performance Materials and Technologies (PMT) sales grew 3% organically, led by HPS, which saw double-digit growth for the fourth consecutive quarter [62] - Safety and Productivity Solutions (SPS) sales decreased 25% organically, primarily driven by lower volumes in warehouse and workflow solutions [93] Market Data and Key Metrics Changes - Orders grew double digits in the quarter, with Aero orders up 30% year-over-year [29] - Honeywell Building Technologies (HBT) ended the quarter with flat year-over-year orders, indicating stabilization in short-cycle end markets [29] - The backlog reached a record level of $31.4 billion, up 8% year-over-year, driven by double-digit orders growth across long-cycle businesses [36][50] Company Strategy and Development Direction - The company is focusing on automation, sustainability, and aerospace as core areas for growth [34][116] - A recent portfolio reorganization aligns the business with mega trends such as automation and energy transition, enhancing strategic focus [116][118] - The company aims to expand margins and generate free cash flow margins of mid-teens plus, while continuing to invest in R&D and high-return projects [117][118] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating near-term challenges and meeting performance targets, supported by strength in aerospace and energy markets [18][53] - The company anticipates continued demand in long-cycle businesses, with a focus on new product innovation to drive growth [112][113] - The macroeconomic environment remains challenging, but the company is well-positioned to deliver strong financial performance in 2024 [87][112] Other Important Information - The company deployed $2 billion in capital during the third quarter, including dividends, M&A, and share repurchases [31][98] - Segment margins expanded by 80 basis points year-over-year, achieving the high end of guidance, led by HBT [30][59] - The company expects to see margin expansion in PMT due to a healthy UOP mix and recovery from earlier operational challenges [122] Q&A Session Summary Question: What is the outlook for PMT margins in Q4? - Management expressed high conviction in PMT's ability to deliver margin accretion in Q4, although specific guidance ranges were not provided [5][10] Question: How has government stimulus impacted business? - Management noted benefits from government stimulus programs, particularly in semiconductor activities, and strong infrastructure activity in high-growth regions [13][10] Question: What are the expectations for SPS growth next year? - Management indicated that while top-line growth for SPS could be flattish next year, margin expansion is expected as the business recovers from previous challenges [129][130] Question: How is the geographic market performance? - Management highlighted strength in Asia, particularly India and ASEAN, while noting challenges in Europe and the U.S. due to high interest rates [151][152] Question: What is the outlook for advanced materials? - Management acknowledged weakness in certain areas of advanced materials but noted strong performance in fluorine products, with expectations for recovery aligned with economic conditions [163][164]

Honeywell We describe many of the trends and other factors that drive our business and future results in this presentation. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes or anticipates will or may occur in the future. They are based on management's assumptions a ...

| 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, 2023 | | 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 International Inc. (Exact name ...

Honeywell Non-GAAP Financial Measures | --- | --- | --- | --- | |-----------------------------|--------------------------------------------------------------------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | 2Q 2023 Actual | 2Q 2023 Guidance | 2Q 2023 Highlights | | Adjusted Earnings Per Share | $2.23 $2.38 Excluding Pension Headwind | $2.15 - $2.25 ...

Financial Performance - Honeywell reported net sales of $9,146 million for the three months ended June 30, 2023, an increase of 2.2% compared to $8,953 million in the same period of 2022[12]. - Net income attributable to Honeywell for the six months ended June 30, 2023, was $2,881 million, representing a 20.3% increase from $2,395 million in the same period of 2022[12]. - Earnings per share (EPS) for Q2 2023 was $2.24, compared to $1.86 in Q2 2022, reflecting a 20.3% increase[12]. - The company reported a comprehensive income of $1,414 million for Q2 2023, compared to $1,165 million in Q2 2022[15]. - Net sales for the six months ended June 30, 2023, were $18,010 million, an increase from $17,329 million in the same period of 2022, representing a growth of approximately 3.9%[97]. - The company reported a net income attributable to Honeywell of $1,487 million for Q2 2023, compared to $1,261 million in Q2 2022, reflecting a 17.9% year-over-year growth[107]. Segment Performance - Aerospace segment net sales were $3,341 million for the three months ended June 30, 2023, up 15.3% from $2,898 million in the same period of 2022[43]. - Honeywell Building Technologies segment net sales were $1,510 million for the three months ended June 30, 2023, slightly down from $1,531 million in the same period of 2022[43]. - Performance Materials and Technologies segment net sales increased to $2,861 million for the three months ended June 30, 2023, compared to $2,694 million in the same period of 2022, reflecting a 6.2% growth[43]. - Safety and Productivity Solutions segment net sales decreased to $1,433 million for the three months ended June 30, 2023, down from $1,829 million in the same period of 2022, a decline of 21.7%[43]. - Total segment profit for the three months ended June 30, 2023, was $2,052 million, up from $1,867 million in 2022, indicating an increase of 9.9%[149]. Assets and Liabilities - Total assets as of June 30, 2023, were $62,337 million, slightly up from $62,275 million at the end of 2022[18]. - Honeywell's total current liabilities decreased to $17,174 million as of June 30, 2023, from $19,938 million at the end of 2022[18]. - Honeywell's long-term debt increased to $17,600 million as of June 30, 2023, from $15,123 million at the end of 2022[18]. - The total long-term debt and current related maturities increased to $18,545 million as of June 30, 2023, from $16,853 million as of December 31, 2022[80]. - Total environmental liabilities increased to $693 million as of June 30, 2023, up from $615 million at the end of 2022[112]. Cash Flow and Investments - Cash flows from operating activities decreased to $576 million in 2023 from $825 million in 2022, reflecting a decline of 30.1%[21]. - The company reported a net cash used for investing activities of $709 million in 2023, compared to a net cash provided of $414 million in 2022[21]. - Honeywell's net cash used for financing activities was $863 million in 2023, a significant decrease from $3,832 million in 2022[21]. - The company repurchased $1,176 million of common stock in the first half of 2023, compared to $2,437 million in the same period of 2022, indicating a decrease of 51.7%[24]. - Honeywell's cash dividends paid in the first half of 2023 totaled $1,378 million, compared to $1,339 million in 2022, marking an increase of 2.9%[24]. Research and Development - The company invested $375 million in research and development during Q2 2023, a decrease of 2.8% from $386 million in Q2 2022[12]. - Research and development expenses remained flat year-over-year for both Q2 and YTD 2023[181][182]. Tax and Regulatory Matters - The effective tax rate for the Company was higher than the U.S. federal statutory rate of 21%, primarily due to increased benefits from taxes on non-U.S. earnings[77]. - The effective tax rate decreased by 470 basis points due to benefits from taxes on non-U.S. earnings and lower repositioning related expenses[189]. - Honeywell reached a comprehensive resolution to investigations by the DOJ and SEC, agreeing to pay $202.7 million in penalties and disgorgement in January 2023[137]. Environmental and Asbestos Liabilities - Honeywell's total asbestos-related liabilities as of June 30, 2023, amounted to $1.249 billion, down from $2.616 billion as of December 31, 2022[117]. - The company reported insurance recoveries for asbestos-related liabilities totaling $244 million as of June 30, 2023, compared to $265 million at the end of 2022[120]. - Honeywell agreed to pay $1.325 billion to the NARCO Trust as part of a buyout agreement, which was completed on January 30, 2023[124]. - As of June 30, 2023, Honeywell recorded a receivable of $103 million from Resideo for environmental costs, with $140 million classified as other current assets and $507 million as other assets[116]. Market and Economic Conditions - The Russia-Ukraine conflict continues to impact global financial and energy markets, contributing to supply chain shortages and inflationary pressures[158]. - The company has implemented strategies to mitigate supply chain constraints and inflationary pressures, including pricing actions and direct engagement with suppliers[157].

Honeywell International Inc. Conference Call Summary Company Overview - **Company**: Honeywell International Inc. (NASDAQ: HON) - **Event**: Bank of America Securities 2023 Financial Services Conference - **Date**: June 14, 2023 - **Participants**: Greg Lewis (CFO), Joe O'Dea (Wells Fargo) Key Points Financial Outlook - Honeywell reaffirmed a growth algorithm of **4% to 7%** and margin expansion of **40 to 60 basis points** [2] - Gross margin target set at **40% or more**, currently at **37%** [2] - Recurring revenue base is about **one-third** of the portfolio, with a target to grow it over **35%** [3] - Capital deployment expected to exceed **$25 billion** over the next three years [3] - Upgraded margin expectations for HPT to **27%** and SPS to **20%** [3] Demand and Market Trends - Strong demand in aerospace and defense, with an upgraded outlook to low-double-digits growth [4] - China’s market is improving, with low-single-digit growth in Q1 accelerating in Q2 [7] - Aerospace demand remains solid despite supply chain challenges, with normalization expected in short-cycle businesses [8] - Past due backlogs in aerospace continue to grow due to strong demand [12] Supply Chain and Pricing - Supply chain issues are bifurcated: semiconductor shortages are more concentrated, while aerospace faces skilled labor shortages [14][15] - Improvement in supplier commitments and reduced decommit rates, leading to better output [16] - Honeywell achieved **10% price increase** in 2022, with a more nuanced pricing strategy for 2023 [18][19] - Confidence in maintaining positive price-cost dynamics across the portfolio [20][24] M&A Strategy - Honeywell is focusing on M&A with a target of **two to four deals annually** [45] - The current capital markets environment is favorable for Honeywell due to a strong balance sheet [44] - Increased bandwidth for M&A activities as integration efforts from previous transformations are winding down [42] Segment Insights - **Aerospace**: Expected mid-single-digit organic revenue growth, with strong demand for commercial aerospace and defense [46][48] - **HBT (Honeywell Building Technologies)**: New construction represents about **10%** of total demand, with a focus on institutional customers [50] - **PMT (Performance Materials and Technologies)**: Targeting sustainable technologies, aiming to grow this segment to a **$1 billion** business [56] - **SPS (Safety and Productivity Solutions)**: E-commerce trends remain strong, with expectations of a bottoming out in revenue trends by the end of 2023 [61][62] Digital Transformation - Honeywell is reducing ERP systems from **150 to 10**, enhancing operational efficiency and data integration [36][39] - Focus on creating a digital infrastructure that supports various business models, improving customer experience and operational metrics [29][33] Conclusion - Honeywell is positioned for growth with a robust financial outlook, strong demand across key segments, and a strategic focus on M&A and digital transformation initiatives. The company is navigating supply chain challenges while maintaining pricing power and exploring sustainable technology opportunities.

Honeywell International Inc. (NASDAQ:HON) Company Conference Call May 23, 2023 8:00 AM ET Company Participants Greg Lewis - Senior Vice President, Chief Financial Officer Conference Call Participants Moderator - Wolfe Research Moderator Okay, so with me I’ve got Greg Lewis, SVP and CFO of Honeywell. Thanks for being here. Greg Lewis Thank you. Moderator Greg, I know you’ve got some opening slides, so over to you. Greg Lewis Yes, just really quickly--oh, thank you very much, appreciate that. While that’ ...

Honeywell International, Inc. (NASDAQ:HON) Goldman Sachs Industrials & Materials Conference Call May 10, 2023 8:00 AM ET Company Participants Lucian Boldea - President and CEO Conference Call Participants Joe Ritchie - Goldman Sachs Group Joe Ritchie All right. Good morning, everybody. Welcome to Day 2 of the Goldman Sachs Industrials and Materials Conference. My name is Joe Ritchie, head of our Industrials and Materials team. I also cover the multi-industry sector. Before we get going with our first presen ...

MSD Specialty Chemicals • Reduced investment in warehouse automation capacity leads to demand trough in 2023 • Short-cycle softness impacting sensing and safety technologies and productivity solutions and services, particularly in the first half (HSD) e-Commerce • Mix shift and operational improvements driving another strong year of margin expansion Overall Favorable End Market Outlook in 2023 1Q 2023 Earnings - April 27, 2023 13 ADDITIONAL 2023 INPUTS | --- | --- | --- | --- | --- | |---------------------- ...