Financial Performance - In 2024, Honeywell achieved sales growth of 5%, totaling $38.5 billion, with double-digit growth in the Aerospace Technologies segment[15]. - Operating cash flows for the year were $6.1 billion, reflecting a focus on revenue growth and improved working capital turnover[20]. - Net sales increased by 5% in 2024 compared to 2023, driven by a 2% increase from pricing and a 2% contribution from acquisitions and divestitures[82]. - Gross margin increased by approximately $1.0 billion, with the gross margin percentage rising to 38.1% from 37.3% in 2023[87]. - Segment profit for 2024 was $3,988 million, reflecting a 6% increase from $3,760 million in 2023 and a 16% increase from $3,247 million in 2022[106]. - Net sales for 2024 reached $15,458 million, a 13% increase compared to $13,624 million in 2023, and a 15% increase from $11,827 million in 2022[106]. - The Industrial Automation segment reported full-year revenue of $10,051 million, with significant contributions from Sensing and Safety Technologies and Process Solutions[26]. - The Building Automation segment reported an 8% increase in net sales to $6,540 million, with segment profit rising 10% to $1,681 million[120]. - Energy and Sustainability Solutions net sales increased by 3% to $6,425 million, with segment profit rising 2% to $1,522 million[123]. Strategic Initiatives - The company deployed $9 billion across four acquisitions, including Carrier Global Corporation's Global Access Solutions business and CAES Systems Holdings LLC[16]. - Honeywell announced plans to spin off its Advanced Materials business into an independent, publicly traded company, and separate its Automation and Aerospace Technologies businesses[16]. - Honeywell plans to spin off its Advanced Materials business and separate its Aerospace Technologies segment, which may face delays or unfavorable conditions[144]. - The company plans to separate its Automation and Aerospace Technologies businesses into independent publicly traded companies by February 2025[110]. - Honeywell intends to spin off its Advanced Materials business into an independent publicly traded company by the end of 2025 or early 2026[179]. Shareholder Value - Honeywell increased its dividend for the fifteenth time in the last fourteen years, demonstrating a commitment to returning value to shareholders[18]. - A quarterly dividend rate increase of 5% to $1.13 per share was announced, effective with the fourth quarter 2024 dividend[179]. - The company has $5.5 billion available for share repurchases as of December 31, 2024, to offset stock-based compensation dilution[179]. Government Contracts and Sales - Total sales to the U.S. government reached $3,441 million in 2023, slightly up from $3,432 million in 2022, with a projected increase to $4,346 million in 2024[33]. - Sales to the U.S. Department of Defense were $2,933 million in 2023, compared to $2,886 million in 2022, with an expected rise to $3,830 million in 2024[33]. Sustainability and Environmental Goals - The company aims to achieve carbon neutrality in its facilities and operations by 2035, having exceeded its 10-10-10 commitments in 2023[48]. - The company has committed to reducing U.S. Scope 1 and 2 GHG emissions by 50% from a 2018 baseline as part of its participation in the U.S. Department of Energy's Better Climate Challenge[48]. - The company continues to implement sustainability projects, including energy management systems and renewable energy initiatives, to enhance energy efficiency[48]. - Honeywell has increased its focus on environmental, social, and governance (ESG) practices in response to stakeholder interest, but faces risks related to achieving its ESG goals[159]. Risks and Challenges - Honeywell's operational risks include reliance on single-source suppliers for critical components, which could impact delivery and performance[141]. - The company faces risks from increased tariffs and trade restrictions, particularly on imports from China, which could raise product costs[133]. - Cybersecurity threats pose a critical risk to Honeywell's operations, with potential consequences including financial loss and reputational damage[151]. - Climate change may create financial risks for Honeywell, affecting material availability, supply chain stability, and operational costs[161]. - Regulatory changes aimed at reducing greenhouse gas emissions could impact demand for Honeywell's products that rely on fossil fuels and refrigerants[162]. Financial Position and Cash Flow - As of December 31, 2024, the company held $11.0 billion in cash and cash equivalents, an increase from $8.1 billion in 2023[171]. - Net cash provided by operating activities for 2024 was $6.1 billion, up $757 million from 2023, primarily driven by net income attributable to Honeywell of $5.7 billion[173][176]. - The company used $10.2 billion for investing activities in 2024, a significant increase of $8.9 billion compared to 2023, mainly due to $8.9 billion paid for acquisitions[174][176]. - Total borrowings increased to $31.1 billion as of December 31, 2024, from $20.4 billion in 2023, representing a 52.5% increase[182]. - The weighted average interest rate on commercial paper and other short-term borrowings was 4.22% in 2024, down from 4.29% in 2023[184]. Compliance and Legal Matters - The company incurred operating costs of approximately $124 million in 2024 for compliance with environmental regulations, up from $110 million in 2023[194]. - Payments related to known asbestos matters were $209 million in 2024, with an estimated $157 million expected in 2025[191]. - Accruals for environmental matters were $261 million in 2024, up from $222 million in 2023[194]. - Payments related to known environmental matters were $224 million in 2024, with an estimated $244 million expected in 2025[195].

Core Viewpoint - Honeywell plans to split into three companies to enhance stock returns, following pressure from activist investor Elliott Investment Management, despite a recent 10% drop in share price due to mixed financial performance and guidance [2][4][5]. Group 1: Company Strategy and Financial Performance - Honeywell's share price has underperformed the market, increasing only 8.3% over the past year compared to a 22.6% rise in the S&P 500 [4]. - The company reported Q4 2024 net sales of $10.09 billion, a 6.9% increase year-over-year, and net income of $1.29 billion, up 2.4% from the previous year [8]. - Q4 2024 adjusted earnings per share were $2.47, down 8.4%, while free cash flow decreased by 27% to $1.9 billion [8]. - The 2025 revenue forecast is $40.1 billion, which is $1.2 billion below the FactSet sales consensus, and the adjusted earnings per share forecast is $10.30, 62 cents below the average [8]. Group 2: Market Expectations and Analyst Insights - Elliott Investment Management estimates that the breakup could increase Honeywell's stock price by 51% to 75% over the next two years [5][3]. - Analysts project a potential rise of about 19.4% in Honeywell's stock price, with an average target of $245.31 [16]. - The aerospace technologies business, which accounted for 40% of Honeywell's revenue and grew 13% in 2024, could be valued at approximately $104 billion as an independent entity [18][19]. Group 3: Industry Context and Comparisons - The trend of conglomerate breakups is noted, with companies like DuPont and Aptiv also pursuing similar strategies [7]. - Historical data indicates that while some conglomerate breakups have led to increased shareholder value, a Bain & Co. study found that 50% of public spinoffs from 2000 to 2020 did not create additional value within two years [15]. - GE's successful breakup has set a precedent, with its aerospace unit now valued at around $215 billion, significantly higher than pre-breakup levels [11].

A Honeywell sign is displayed June 28, 2001 outside their offices in Murray Hill, NJ. (Photo by ... [+] Spencer Platt/Getty Images)Getty ImagesOn February 6, Honeywell announced it would be splitting its operations in aerospace and home automation. It had previously indicated it would be spinning out its advanced materials business. The total split was prompted by an activist position taken by Elliott Investment Management in November of last year.The breakup completes a string of similar splits by such not ...

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CANADA - 2025/01/24: In this photo illustration, the Honeywell logo is seen displayed on a ... [+] smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesHoneywell (NYSE: HON) recently released its Q4 results, with revenues and earnings exceeding the street estimates. It reported sales of $10.1 billion and adjusted earnings of $2.47 per share, compared to the consensus estimates of $9.9 billion and $2.32, respectively. The com ...

Honeywell International Inc. (HON) reported fourth-quarter 2024 adjusted earnings of $2.47 per share, which surpassed the Zacks Consensus Estimate of $2.31. The bottom line decreased 8% year over year on an adjusted basis. On a reported basis, the company’s earnings were $1.96 per share, up 3%.Total revenues of $10.09 billion beat the consensus estimate of $9.86 billion. The top line increased 7% from the year-ago quarter, driven by strength in the Aerospace Technologies segment. Organic sales increased 2% ...

FOURTH QUARTER 2024 EARNINGS AND 2025 OUTLOOK FEBRUARY 6, 2025 FORWARD LOOKING STATEMENTS 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 anticipa ...

Honeywell International Inc. (NASDAQ:HON) Q4 2024 Earnings Conference Call February 6, 2025 8:30 AM ET Company Participants Sean Meakim - Vice President of Investor Relations Vimal Kapur - Chairman and Chief Executive Officer Greg Lewis - Senior Vice President and Chief Financial Officer Mike Stepniak - Incoming CFO Conference Call Participants Julian Mitchell - Barclays Scott Davis - Melius Research Sheila Kahyaoglu - Jefferies Stephen Tusa - JPMorgan Nigel Coe - Wolfe Research Christopher Snyder - Morgan ...

Honeywell International reported earnings surpassing expectations, highlighting strong performance and strategic shifts.Honeywell International (HON -6.45%), a diversified technology and manufacturing company, released its fourth-quarter 2024 earnings on Feb. 6, 2025. The company reported an adjusted EPS of $2.47, surpassing analyst estimates of $2.32. Revenue for the quarter stood at $10.1 billion, higher than the projected $9.835 billion. Operating margin reached 17.3%, showing improvement over the previo ...

For the quarter ended December 2024, Honeywell International Inc. (HON) reported revenue of $10.09 billion, up 6.9% over the same period last year. EPS came in at $2.47, compared to $2.60 in the year-ago quarter.The reported revenue represents a surprise of +2.30% over the Zacks Consensus Estimate of $9.86 billion. With the consensus EPS estimate being $2.31, the EPS surprise was +6.93%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare t ...