Honeywell (HON) FY Conference May 20, 2025 02:05 PM ET Speaker0 Great. I think we'll get started. We're running a little late here, but just for those on the webcast, thanks for joining the Wolf Global Industrials and Transfers Conference. My name is Nigel Coe. I cover the multi industry sector here at Wolfe Research. I also cover Honeywell and Honeywell is the next company on stage. And it's my pleasure to welcome Bill Hamoud, who is the President and CEO of Build Nordvation. And also in the crowd, we've g ...

Core Insights - Morgan Stanley's first quarter 13F filing shows a total market value of $1.37 trillion, up from $1.34 trillion in the previous quarter, indicating a growth of 6.05% in inflows [1][2] - The fund added 605 new stocks, increased holdings in 2,772 stocks, reduced holdings in 3,431 stocks, and completely sold out of 691 stocks, with the top ten holdings accounting for 22.67% of the total market value [1][2] Holdings Overview - The top five holdings include Microsoft (MSFT) with 142 million shares valued at approximately $53.31 billion, Nvidia (NVDA) with 421 million shares valued at about $45.64 billion, Apple (AAPL) with 199 million shares valued at around $44.15 billion, Amazon (AMZN) with 200 million shares valued at approximately $38.10 billion, and Meta (META) with 58 million shares valued at about $33.54 billion [3][4][5] - The top ten holdings also feature SPDR S&P 500 ETF (SPY), Mastercard (MA), Google (GOOG), Broadcom (AVGO), and Vanguard S&P 500 ETF (VOO) [4][5] Trading Activity - The top five purchases by percentage change in the portfolio include Visa (V), Walmart (WMT), Johnson & Johnson (JNJ), Philip Morris (PM), and Meta [6][7] - The top five sales by largest value include Tesla put options, SPDR S&P 500 ETF put options, Taiwan Semiconductor (TSM), SPDR Gold Shares ETF put options, and Honeywell (HON) [6][7]

Honeywell International Inc. (NASDAQ:HON) Bank of America 2025 Industrials, Transportation, and Airlines Key Leaders Conference May 13, 2025 8:00 AM ET Company Participants Mike Stepniak - SVP and CFO Sean Meakim - VP, IR Conference Call Participants Andrew Obin - Bank of America Andrew Obin With that, we're going to kick off right on time. We have Honeywell. We upgraded Honeywell last week. The stock is neglected, for a lack of a better term. And we think there's a lot of good news happening below the surf ...

Honeywell (HON) 2025 Conference May 13, 2025 08:00 AM ET Speaker0 I'm Andrew Obin. I'm BofA's multi industrial analyst. Welcome to our Industrials and Transportation Conference. I think it's year two in revised format. So this year, we're gonna have over 500 investors in attendance. Last year, we had, I think, over 400. So we're moving in the right direction. And, you know, as I said, the goal is to have it large, boring and good. Know, so that's the goal for the conference. And hopefully we're succeeding. ...

Core Viewpoint - 3M Company and Honeywell International Inc. are competing in the diversified operations industry, with both companies investing heavily in R&D to drive growth and innovation [1][2] Group 1: 3M Company (MMM) - The strongest driver of 3M's business is the Safety and Industrial segment, with organic sales improving by 2.5% year over year in Q1 2025, supported by demand from data centers and renewable energy projects [3] - The Transportation and Electronics segment is benefiting from growth in the transportation and aerospace markets, with adjusted organic revenues growing 1.1% in Q1 2025 [4] - 3M rewarded shareholders with $396 million in dividends and $1.3 billion in buybacks in Q1 2025, with a total of $2 billion in dividends and $1.8 billion in buybacks in 2024 [5] - The Consumer segment faced a decline of 1.4% in Q1 2025 due to decreased consumer discretionary spending [6] - 3M's long-term debt was $12.3 billion, a 10.8% increase sequentially, with a long-term debt-to-capital ratio of 73.1%, significantly higher than the industry average of 55.2% [7] - Ongoing litigations, including a $6 billion settlement related to earplug lawsuits, pose additional financial concerns [8] Group 2: Honeywell International Inc. (HON) - Honeywell's commercial aviation aftermarket sales increased by 14% year over year in Q1 2025, driven by growth in air transport flight hours and supply-chain improvements [9] - The defense and space business saw a 23% year-over-year sales surge in Q1 2025, benefiting from stable defense spending [9] - The Building Automation segment is expected to benefit from increasing building projects, with an overall backlog growing 8% year over year to $36.1 billion [10] - Honeywell paid out $732 million in dividends and repurchased shares worth $1.9 billion in Q1 2025, with a total of $2.9 billion in dividends and $1.66 billion in buybacks in 2024 [11] - The Industrial Automation segment has faced weakness, particularly in smart energy and thermal solutions [12] - Honeywell's long-term debt was $25.7 billion, with a long-term debt-to-capital ratio of 58.8%, higher than the industry average [13] Group 3: Financial Estimates and Performance - The Zacks Consensus Estimate for 3M's 2025 sales implies a year-over-year decline of 9.8%, while EPS estimates indicate growth of 4.9 [14] - Honeywell's 2025 sales and EPS estimates imply year-over-year growth of 4.4% and 4.5%, respectively [14] - In the past three months, 3M shares have lost 7.4%, while Honeywell stock has gained 2.9% [18] - 3M is trading at a forward P/E ratio of 17.62X, above its three-year median of 12.03X, while Honeywell's forward earnings multiple is at 20.15X, close to its median of 20.05X [19] Group 4: Investment Considerations - 3M's strength in safety and industrial markets is offset by weakness in consumer retail and ongoing legal challenges, leading to cautious sentiment [23] - Honeywell's diversified portfolio and strong market position provide a competitive advantage, making it a more favorable investment despite higher valuation [24]

Core Viewpoint - Honeywell International has demonstrated resilience amid tariff-related uncertainties, raising its earnings guidance for 2025, which positions the stock as a good value for patient investors [1][4][14] Group 1: Honeywell's Guidance - Honeywell raised its 2025 earnings per share (EPS) guidance from a range of $10.10 to $10.50 to a new range of $10.20 to $10.50, reflecting management's estimate of current tariff impacts [4] - Despite the overall positive guidance, Honeywell lowered its full-year sales expectations in industrial automation to a mid-single-digit decline from a prior low-single-digit decline [5] - The company's first-quarter organic sales growth of 4% exceeded internal expectations, particularly in the commercial aerospace aftermarket, and management increased its sales guidance in building automation [6] Group 2: Tariff Management - Honeywell's guidance accounts for a $500 million impact from increased tariffs, but management is implementing pricing actions and seeking alternative sourcing to mitigate this impact [7] - More than 80% of Honeywell's sales in the U.S. and Europe are produced locally, which aids in managing tariff impacts [8] - As a net exporter to China, Honeywell's earnings could benefit from any easing of U.S./China trade tensions, given that the company has already incorporated existing tariffs into its guidance [9] Group 3: Future Growth Catalysts - Honeywell plans to spin off its advanced materials business as Solstice Advanced Materials in late 2025/early 2026, with expected growth improvements in the latter half of 2025 [10] - Honeywell Aerospace is experiencing high-single-digit growth due to ongoing demand in the commercial aftermarket and original equipment sales [11] - The separation into three standalone companies—Solstice Advanced Materials, Honeywell Aerospace, and Honeywell Automation—will likely enhance growth potential, particularly in aerospace and automation sectors [12] Group 4: Investment Appeal - Honeywell's stock is attractive for both near-term and long-term investors, with potential to exceed guidance in 2025 and operational improvements expected from the planned business breakups [14]

Core Insights - Honeywell Inc. experienced a significant stock price increase of 5% following the announcement of better-than-expected quarterly earnings [1] - The company's sales rose by 8% year-over-year, reaching $9.8 billion in the first quarter of 2025, with the Aerospace segment performing particularly well [1] Financial Performance - Honeywell's quarterly earnings exceeded market expectations, contributing to the stock price surge [1] - The Aerospace division was highlighted as a key driver of sales growth, indicating strong performance in this sector [1]

Cybersecurity, predictive maintenance and operational efficiency identified as most valuable uses of AI for the energy industryThis builds on analysis from Bloomberg that shows overall global energy demand will increase 32% by 2050CHARLOTTE, N.C., April 30, 2025 /PRNewswire/ -- Honeywell (Nasdaq: HON) today released its AI in the Energy Industry pulse survey, which reveals the majority of participating U.S. energy executives believe artificial intelligence (AI) has the near-term potential to improve and enh ...

Core Insights - Honeywell reported Q1 2025 sales of $9.8 billion, representing an 8% year-over-year increase [1] - Earnings per share (EPS) stood at $2.22, unchanged from the same period last year, while adjusted EPS was $2.51, reflecting a 7% increase [1] - Operating cash flow reached $600 million, and free cash flow was $300 million, marking a 61% year-over-year growth [1]

Financial Data and Key Metrics Changes - Honeywell exceeded the high end of its guidance on all metrics in the first quarter, with organic sales growth of 4% year over year [4][18] - Adjusted earnings per share (EPS) was $2.51, up 7% year over year, while earnings per share remained flat at $2.22 [20][21] - First quarter cash flow exceeded $300 million, over $100 million above the prior year, driven by better adjusted earnings [20] Business Line Data and Key Metrics Changes - Aerospace Technologies saw a 9% organic sales increase, with commercial aftermarket sales growing 15% due to robust demand [22] - Industrial Automation sales declined 2% organically, primarily due to lower demand in personal protective equipment [23] - Building Automation grew 8% organically, driven by strong demand in both Building Solutions and Building Products [25] - Energy and Sustainability Solutions sales declined 2% organically, while Advanced Materials sales decreased by 4% [26] Market Data and Key Metrics Changes - Orders for the first quarter were $10.6 billion, up 3% year over year, with a record organic backlog growth of 8% [20] - Aerospace industry demand continues to outpace supply, supporting orders growth of 9% and a book-to-bill ratio of 1.1 [22] Company Strategy and Development Direction - Honeywell is focused on separating into three standalone public companies to unlock significant value and position each for long-term growth [9][10] - The company is actively pursuing acquisitions, with the recent acquisition of Sundyne being part of its portfolio transformation strategy [12][14] - Honeywell's local for local strategy aims to mitigate the impact of tariffs and geopolitical tensions by serving local markets [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increasing economic uncertainty and shifting global trade patterns but remains confident in achieving its 2025 outlook [4][5] - The company is maintaining its full-year organic growth guidance while raising its adjusted EPS guidance [5][29] - Management emphasized the importance of ongoing mitigation efforts and a strong operational framework to navigate current challenges [16][28] Other Important Information - Honeywell has repurchased approximately $3 billion of its shares in 2025, with plans to continue opportunistic buybacks [11][33] - The company expects free cash flow for the year to be between $5.4 billion and $5.8 billion, down 2% to up 5% excluding the Bombardier impact [32] Q&A Session Summary Question: Details on tariffs and offset strategies - Management confirmed that the estimated tariff impact is approximately $500 million, with strategies including pricing adjustments and productivity measures to mitigate this impact [47][48] Question: Volume assumptions and contingency - Management indicated a conservative approach to guidance, assuming a volume decline of 1% to 2% and a price increase of about 3% [60] Question: Impact of tariffs by segment - The largest tariff exposure is in Industrial Automation and Aerospace, with Building Automation being largely protected due to its local strategy [87] Question: Aerospace aftermarket performance - The commercial aftermarket grew 15%, driven by strong demand and a positive backlog, with no significant changes in pricing expectations [108][109] Question: Supply chain exposure to China - Management noted that while there is tariff pressure, they do not foresee a shortage of parts, focusing instead on demand destruction due to tariffs [102][105]