Exclusive: Quantinuum unveils its latest system, Helios, inching the industry toward the day the technology will deliver meaningful commercial value https://t.co/LSUtyNwz3c ...

Core Viewpoint - The article argues that the current AI bubble is nearing its breaking point, with significant investments failing to yield substantial returns, and the industry is now pivoting towards quantum computing as the next speculative opportunity [1][4][10]. Investment Trends - Nearly half of global private investment is flowing into AI, which has been a major driver of the recent growth in the S&P 500 index [1]. - Venture capital and investment banks have spent hundreds of billions on AI in recent years, but the technology is reaching its limits and profitability remains elusive [4]. Performance and Utility of AI - A report from MIT indicates that 95% of AI pilot projects have not improved company profits or productivity, with many AI tools actually hindering developer efficiency [3]. - The recent release of ChatGPT-5, which required significantly more resources than its predecessor ChatGPT-4, showed only marginal performance improvements [2]. Financial Viability - OpenAI's subscription model, priced at $200 per month, is reportedly leading to substantial losses, suggesting that a price point closer to $2000 would be necessary for financial sustainability [3]. Market Sentiment and Future Outlook - Major investors, including Goldman Sachs, are warning that the AI bubble is likely to burst soon, which could have widespread repercussions for companies involved in AI infrastructure [4]. - The article suggests that the impending collapse of the AI bubble will impact all stakeholders in the tech and finance sectors [5]. Quantum Computing as a New Trend - Tech giants like Google, Microsoft, and Amazon are developing their own quantum computers, with significant investments flowing into smaller quantum computing firms as well [7]. - There is skepticism about whether quantum computing can genuinely solve the challenges faced by AI, as the necessary algorithms for practical applications are still largely undeveloped [9]. Challenges in Quantum Computing - The hardware for quantum computing is still years away from being fully operational, and the software required to leverage its capabilities is complex and not yet available [8][9]. - The notion that quantum computing could revolutionize AI is questioned, as current scientific understanding suggests that the potential benefits may be overstated [10].

Core Viewpoint - The Trump administration is negotiating with several U.S. quantum computing companies to replicate the investment model used with Intel, seeking equity in exchange for federal funding support [1][4]. Group 1: Government Involvement - Companies involved in discussions include IonQ, Rigetti Computing, D-Wave Quantum, Quantum Computing, and Atom Computing, with some seeking a minimum funding amount of $10 million [4]. - The U.S. government previously invested $8.9 billion in Intel, acquiring 9.9% of its shares, making it one of Intel's largest shareholders [4]. - The U.S. Department of Defense agreed to purchase $400 million in preferred stock from MP Materials, becoming its largest shareholder, which led to a 50% increase in the company's stock price [4]. Group 2: Market Reaction - Following the news, shares of several quantum computing companies surged, with IonQ up over 11%, D-Wave up over 20%, Rigetti up over 13%, and Quantum up over 10% [5]. - Specific stock price changes include D-Wave Quantum at $32.879 (+20.48%), Rigetti Computing at $40.910 (+13.45%), and IonQ at $61.725 (+11.32%) [6]. Group 3: Quantum Computing Landscape - Quantum computing is viewed as a critical next-generation technology capable of performing calculations that would take traditional computers billions of years [8]. - Despite the promising outlook, no company has yet achieved practical, large-scale commercial quantum computing [8]. - Microsoft announced a breakthrough in quantum computing with the creation of the world's first "topological conductor," which is theorized to be highly resistant to interference [8]. - PsiQuantum completed a $1 billion Series E funding round to build the world's first commercially viable fault-tolerant quantum computer [8]. Group 4: Industry Perspectives - NVIDIA CEO Jensen Huang previously expressed skepticism about the timeline for practical quantum computers, stating they may take decades to develop, but later reversed his stance, acknowledging the potential of quantum computing [9].

Financial Data and Key Metrics Changes - Honeywell's organic sales grew 6% year-over-year in Q3 2025, with earnings per share reaching $2.86, up 32% from the prior year [17][18] - Adjusted earnings per share increased by 9% year-over-year to $2.82, driven by strong segment profit growth and a lower effective tax rate [18] - Free cash flow for Q3 was $1.5 billion, down 16% from the prior year due to capital expenditure timing and higher working capital [18] Business Line Data and Key Metrics Changes - Aerospace technologies saw a 12% organic growth, with a book-to-bill ratio of 1.2, although segment margin decreased to 26.1% due to cost inflation [19] - Industrial automation returned to growth with a 1% organic increase, but segment margin declined to 18.8% due to inflationary pressures [20] - Building automation achieved a 7% organic sales increase, with margin expanding by 80 basis points year-over-year [21] - Energy and sustainability solutions experienced a 2% organic decline, with segment margin flat at 24.5% [22] Market Data and Key Metrics Changes - Orders grew 22% organically to $11.9 billion, with strong performance across all segments [17] - North America and the Middle East led regional growth in building automation, while Europe saw its fourth consecutive quarter of organic growth [21] Company Strategy and Development Direction - Honeywell is planning to separate its Aerospace segment in 2026, aiming for a simpler organizational structure to enhance focus and agility [7][9] - The company is also realigning its automation business segments to better reflect operational strategies and drive long-term growth [11][12] - Honeywell is committed to leveraging data to address enterprise-level challenges and enhance value creation [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and achieve margin expansion in 2026 [35][36] - The company anticipates that pricing strategies will improve in 2026, contributing to margin growth [78] - Management highlighted strong order momentum and a positive outlook for the aerospace sector, expecting continued growth in defense and space [26][51] Other Important Information - Honeywell is set to spin off Solsys Advanced Materials, which is expected to reduce 2025 sales by $700 million and adjusted EPS by approximately $0.21 [22][23] - The company has completed significant transactions to simplify its balance sheet, including divesting liabilities and receiving $1.6 billion in cash [10] Q&A Session Summary Question: What is the expected margin decline for Energy and Sustainability Solutions (ESS) in Q4? - Management indicated that the decline is primarily due to mix issues and expects ESS margins to normalize in 2026 [40][44] Question: Can you provide insights on the Industrial Automation segment's performance? - Management noted that while Q3 saw growth, Q4 is expected to show a decline due to timing variability in large orders [48][50] Question: What is the status of the aerospace destocking? - Management believes that destocking is largely behind them, with expectations for improved growth rates in commercial OE [51] Question: How is the pricing strategy evolving across the organization? - Management emphasized a focus on preserving margins while maintaining volume, with expectations for improved pricing in 2026 [76][78] Question: What are the implications of the Solsys spin-off on the company's financials? - The spin-off is expected to impact sales and EPS, but management remains optimistic about overall growth and margin expansion [22][23]

Financial Data and Key Metrics Changes - Honeywell's organic sales grew 6% year-over-year in Q3 2025, exceeding expectations, with earnings per share (EPS) at $2.86, up 32% from the prior year [17][18] - Adjusted EPS was $2.82, reflecting a 9% year-over-year increase, driven by strong segment profit growth and a lower effective tax rate [18] - Free cash flow for Q3 was $1.5 billion, down 16% from the previous year due to capital expenditure timing and higher working capital [18] Business Line Data and Key Metrics Changes - Aerospace Technologies saw a 12% organic growth, with a book-to-bill ratio of 1.2, although segment margin decreased to 26.1% due to cost inflation [19] - Industrial Automation returned to growth with a 1% organic increase, but segment margin declined to 18.8% due to inflationary pressures [20] - Building Automation achieved a 7% organic sales increase, with margin expanding by 80 basis points year-over-year [21] - Energy and Sustainability Solutions (ESS) experienced a 2% organic decline, with segment margin flat at 24.5% [22] Market Data and Key Metrics Changes - Orders grew 22% organically to $11.9 billion, with strong performance across all segments, indicating a broad-based recovery [17] - North America and the Middle East led regional growth, while Europe saw its fourth consecutive quarter of organic growth [21] Company Strategy and Development Direction - Honeywell is planning to separate its Aerospace segment in 2026, aiming to simplify its structure and enhance operational agility [7][9] - The company is focusing on innovation and R&D investments to drive growth, with a commitment to developing new solutions for customer challenges [5][17] - A new segment structure will be implemented in 2026, reporting four business segments to align with operational strategies [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and maintain growth momentum into 2026 [35][36] - The anticipated spin-off of Solstice Advanced Materials is expected to impact 2025 sales by $700 million but is seen as a strategic move for long-term value creation [22][23] - Management highlighted the importance of leveraging data to address enterprise-level challenges and improve operational efficiencies [36] Other Important Information - Honeywell's recent divestitures, including the Bendix asbestos liability, are expected to simplify the balance sheet and enhance financial flexibility [10] - The company is actively reviewing strategic alternatives for parts of its portfolio that do not fit its business model [97] Q&A Session Summary Question: What is the outlook for ESS margins in Q4? - Management indicated that ESS margins may see a decline due to mix issues but expect normalization in 2026 as project activity improves [40][44] Question: What is the status of the Industrial Automation segment? - Management noted that while Q3 saw growth, Q4 may experience a decline due to timing variability in larger orders, but they are optimistic about margin expansion in 2026 [48][50] Question: How is the Aerospace division performing regarding destocking? - Management believes that destocking is largely behind them, with expectations for improved growth rates in the fourth quarter and beyond [51] Question: What are the expectations for Building Automation margins? - Management expressed confidence in continued margin expansion for Building Automation, attributing recent performance to a favorable mix of projects and products [57][59] Question: What is the company's pricing strategy moving forward? - Management emphasized a focus on preserving margins while maintaining volume, with expectations for improved pricing strategies in 2026 [75][78]

Financial Data and Key Metrics Changes - Honeywell's organic sales grew 6% year-over-year in Q3 2025, exceeding expectations, with earnings per share at $2.86, up 32% from the prior year [16][17] - Adjusted earnings per share increased by 9% year-over-year to $2.82, driven by strong segment profit growth and a lower effective tax rate [17] - Free cash flow for Q3 was $1.5 billion, down 16% from the prior year due to capital expenditure timing and higher working capital [17] Business Line Data and Key Metrics Changes - Aerospace Technologies segment grew 12% organically, with a book-to-bill ratio of 1.2, although segment margin decreased to 26.1% due to cost inflation [18] - Industrial Automation sales increased 1% organically, with a segment margin decline to 18.8% due to inflationary pressures [19] - Building Automation achieved 7% organic sales growth, with margin expansion of 80 basis points year-over-year [19] - Energy and Sustainability Solutions segment saw a 2% organic sales decline, with a flat segment margin at 24.5% [20] Market Data and Key Metrics Changes - Orders grew 22% organically to $11.9 billion, with strong performance across all segments [16] - North America and the Middle East led regional growth in Building Automation, while Europe experienced its fourth consecutive quarter of organic growth [19] Company Strategy and Development Direction - Honeywell is planning to separate its Aerospace segment in the second half of 2026, aiming to simplify its structure and enhance operational focus [7][10] - The company is proactively realigning its automation business segments to better position for future growth and margin expansion [10][12] - Honeywell is focusing on innovation and R&D investments to drive growth and improve its product offerings [16][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and highlighted the importance of agility in operations [34] - The company anticipates a return to margin expansion in 2026, driven by improved pricing strategies and operational efficiencies [36][64] - Management noted that the upcoming separation of Solsys Advanced Materials is expected to impact sales and adjusted EPS but remains optimistic about overall growth [20][31] Other Important Information - Honeywell is set to distribute shares of Solsys to its shareholders, marking a significant milestone in its portfolio transformation [6][9] - The company is actively reviewing strategic alternatives for parts of its portfolio that do not align with its core business model [81] Q&A Session Summary Question: What is the expected margin decline for Energy and Sustainability Solutions in Q4? - Management indicated that the margin decline is primarily due to mix issues and expects normalization in 2026 as project activity improves [39][40] Question: What are the dynamics affecting Industrial Automation's growth? - Management noted that while orders were strong in Q3, there is variability in larger orders, and they expect margin expansion in 2026 [45][46] Question: How is the Aerospace division managing destocking? - Management believes that destocking is largely behind them and expects sequential improvements in margins going into 2026 [47] Question: What is the outlook for Building Automation margins? - Management expressed confidence in continued margin expansion for Building Automation, attributing recent performance to a favorable mix of projects and products [49][50] Question: What is the pricing strategy moving forward? - Management emphasized a focus on preserving margins while maintaining volume, with expectations for improved pricing strategies in 2026 [63][64]

Financial Performance - Honeywell's Q3 2025 adjusted earnings per share was $2.82, exceeding the guidance range of $2.50-$2.60[20] - Organic sales grew by 6% in Q3 2025, driven by double-digit growth in commercial aftermarket and defense and space[20] - Orders increased by 22% year-over-year, resulting in a book-to-bill ratio of 1.1x[20] - The company is raising its full-year organic growth and EPS guidance, including the effect of the Solstice spin-off in October[4] - Free cash flow for Q3 2025 was $1.5 billion[20] Portfolio Transformation - The spin-off of Solstice Advanced Materials was completed in October 2025, with Honeywell receiving a $1.5 billion dividend[10] - Honeywell expects to spin off Honeywell Aerospace in the second half of 2026[7] - Quantinuum raised over $600 million in a fundraising round in September, valuing the company at $10 billion pre-money, which is 2x prior 2024 valuation[15,19] Segment Results - Aerospace Technologies sales were up 12% organically in Q3 2025[23] - Building Automation sales were up 7% organically in Q3 2025, with segment margin up 80 bps[23] - Energy and Sustainability Solutions sales were down (2%) organically in Q3 2025[23]

Group 1: Quantum Computing Advantages - Quantum computing offers exponential growth in computational power compared to classical computing, which faces linear growth limitations [2][3] - Quantum tunneling in superconducting quantum computing avoids the bottlenecks faced by classical electronics at the nanoscale [4] - Quantum computing can address heat dissipation issues inherent in classical computing, allowing for more efficient processing [5] Group 2: Current Focus on Quantum Computing - Global investments in quantum computing have surged, with countries viewing it as a strategic priority [7] - The U.S. has identified quantum computing as a top research priority, marking 2027 as a critical turning point for industrial applications [8] - Recent export controls on quantum technology by developed nations indicate a significant shift in the industry [10] Group 3: Major Investments and Developments - NVIDIA has made substantial investments in leading quantum companies, signaling a shift towards commercialization in the quantum computing sector [12][14] - Quantinuum, backed by Honeywell, achieved a valuation of $10 billion after a $600 million funding round, indicating strong market confidence [14][52] - Bluefors has secured a significant order for helium-3, essential for quantum computing equipment, highlighting the growing demand for quantum technologies [14] Group 4: Quantum Computing Technology Paths - The six main technology paths in quantum computing include superconducting, trapped ions, photonic, neutral atoms, spin, and topological qubits, each with unique advantages and challenges [15][18] - Photonic quantum computing utilizes photons for information processing, offering long coherence times and room temperature operation, which reduces costs [21][23] - Neutral atom quantum computing has demonstrated rapid scalability, with Atom Computing announcing a prototype with 1,225 atoms, the first to exceed 1,000 qubits [29] Group 5: Major Players in Quantum Computing - IBM leads in superconducting qubits, with plans for a 2000-qubit system by 2033, focusing on error correction and high-performance computing integration [37][39] - Google is advancing in quantum error correction, achieving significant milestones with its Willow chip, aiming for a million physical qubit processor by 2030 [41] - Microsoft is pursuing a high-risk, high-reward strategy with topological quantum computing, recently releasing the Majorana 1 chip [42][44] - D-Wave has successfully commercialized quantum annealing, showing strong revenue growth and profitability potential [48][50]

Core Insights - Honeywell International Inc. is recognized as one of the best quantum computing stocks to buy and hold for five years, reflecting its strong position in the evolving defense and space industry [1] - The U.S. Department of Energy's Office of Technology Commercialization announced an expansion of the Quantum-in-Space Collaboration, which includes Honeywell, focusing on quantum-secured communications and quantum sensing [2] - Honeywell raised approximately $600 million in equity capital for Quantinuum, valuing it at $10 billion, to support advancements in quantum computing at scale [3] - Madison Investments highlighted Honeywell as a high-quality relative yield investment in the industrial sector, emphasizing its leading positions across various markets and sustainable competitive advantages [4] Company Overview - Honeywell operates in multiple sectors: Aerospace (40% of revenues), Industrial Automation (26%), Building Automation (17%), and Safety and Productivity Solutions (17%) [4] - The company embeds its products into customer operations, generating long-term recurring revenue from aftermarket products and services [4] - Honeywell's competitive advantages include scale, high customer switching costs, intangible assets, and a long history of innovation [4] Industry Context - The defense and space industry is rapidly evolving, with a focus on security and resiliency, which aligns with Honeywell's strategic initiatives in quantum technology [1][2] - The collaboration with the U.S. Department of Energy aims to leverage Honeywell's expertise in satellite communications and onboard quantum computing [2]

Core Viewpoint - The article highlights the IPO of Benyuan Quantum, China's first quantum computing company, marking a significant step in the commercialization of quantum technology and reflecting the growing interest and investment in the quantum computing sector globally [1][3][23]. Group 1: Company Overview - Benyuan Quantum, founded in 2017 in Hefei, is leveraging technology from the Chinese Academy of Sciences and aims to launch its "Benyuan Wukong" superconducting quantum computer on the Sci-Tech Innovation Board [3][10]. - The company is the third quantum technology firm in Hefei to initiate an IPO, following GuoDun Quantum and GuoYi Quantum, indicating a burgeoning quantum industry in the region [3][19]. Group 2: Industry Dynamics - Recent investments by NVIDIA in various quantum technology companies, including a $600 million investment in Quantinuum, demonstrate a strategic push into the quantum computing space, indicating that quantum computing is becoming a competitive field [5][6][8]. - The global quantum computing financing reached over $5 billion in 2024, tripling since 2020, showcasing the increasing commercialization and application of quantum technologies across sectors [12]. Group 3: Hefei's Quantum Ecosystem - Hefei has established a robust quantum industry ecosystem, with 71 quantum enterprises covering the entire supply chain, from chip production to application development, making it a leader in the national quantum landscape [18][19]. - The city benefits from a strong research foundation, with half of the nation's top quantum talent located there, and has created a supportive policy environment that fosters innovation and industry growth [14][19][20]. Group 4: Future Outlook - The article suggests that Hefei's unique combination of research, industry, and policy support has created a competitive advantage in the quantum computing field, positioning it as a key player in the global quantum race [23][25]. - As global tech giants invest heavily in quantum technologies, Hefei's developments, such as the successful deployment of the "Benyuan Wukong" quantum computer, signal a significant shift towards practical applications of quantum computing [10][21].