Group 1: Company Performance - Honeywell International Inc. (HON) is experiencing strong momentum in its Building Automation segment, driven by solid demand for products and solutions, particularly in North America and the Middle East [1][2] - The Building Automation segment's organic sales increased by 8% year over year in Q2 2025, with building products sales growing by 9% and building solutions sales improving by 5% [2][8] - Overall backlog for Honeywell grew by 10% year over year to $36.6 billion, with expectations for overall revenues in 2025 to be in the range of $40.8-$41.3 billion, reflecting a 4-5% organic revenue increase [4] Group 2: Market Trends and Projections - The company anticipates that the Building Automation segment's organic sales will grow in the mid to high-single digits for 2025, supported by software-led new product introductions and customer wins in focused verticals [3][8] - Honeywell's shares have gained 10% over the past year, outperforming the industry's growth of 1.6% [7] Group 3: Peer Comparison - Among peers, Carlisle Companies Incorporated (CSL) reported a 0.6% year-over-year revenue increase in its Construction Materials segment, driven by strong demand for reroofing products [5] - 3M Company (MMM) saw a 2.5% year-over-year organic sales growth in its Safety and Industrial segment, supported by stable demand in various markets [6] Group 4: Valuation and Earnings Estimates - Honeywell is currently trading at a forward price-to-earnings ratio of 19.64X, above the industry average of 16.33X, and carries a Value Score of D [10] - The Zacks Consensus Estimate for Honeywell's 2025 earnings has been on the rise over the past 60 days, with current estimates for the current year at $10.49 and next year at $11.36 [12][13]

Core Insights - Honeywell International Inc. (HON) has seen a stock price increase of 10% over the past year, outperforming the industry growth of 2.5% but lagging behind the S&P 500's increase of 20.5% [1] Stock Performance - The stock closed at $216.37, below its 52-week high of $242.77 and above its 52-week low of $179.36 [3] Factors Driving Performance - The commercial aviation aftermarket business is experiencing strong demand, with a 7% year-over-year sales increase in Q2 2025 [4] - The defense and space business saw a 13% year-over-year sales surge in Q2 2025, supported by stable defense spending and geopolitical demand [4] - The Aerospace Technologies segment is expected to benefit from strong demand in commercial aviation and increased defense spending [5] - The Building Automation segment is driven by solid demand from construction projects, particularly in North America, the Middle East, and India [5] - The Universal Oil Products business is benefiting from higher refining and petrochemicals projects [6] - Overall backlog increased by 10% to $36.6 billion, with projected sales for 2025 between $40.8 billion and $41.3 billion, indicating 4-5% organic growth [8][9] Shareholder Returns - Honeywell paid out $1.48 billion in dividends and repurchased $3.6 billion in shares in the first half of 2025 [10] - The quarterly dividend was increased by approximately 5% to $1.13 per share in September 2024 [10] - Expected free cash flow for 2025 is projected to be between $5.4 billion and $5.8 billion [10] Near-Term Concerns - The Industrial Automation segment faced a 5% year-over-year sales decline in Q2 2025, with expectations of low to mid-single digit organic sales decline for 2025 [11] - Long-term debt increased by 9.3% CAGR over the past five years, reaching $30.2 billion by the end of Q2 2025, primarily due to acquisition funding [12] - Interest expenses rose by 32% year-over-year to $330 million in Q2 2025, raising concerns about profitability [13] Valuation Metrics - Honeywell's forward 12-month P/E ratio is 19.63X, higher than the industry average of 16.33X [14] Earnings Estimates - The Zacks Consensus Estimate for Honeywell's 2025 earnings increased by 1.1% to $10.49 per share, indicating a 6.1% year-over-year growth [18]

PALM BEACH GARDENS, Fla., Aug. 4, 2025 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today announced that it has acquired Blaich Automation GmbH as an Automated Logic field office. Blaich Automation is a German provider of integrated automation solutions for buildings, industrial systems and media technologies. Automated Logic is a leading provider of innovative building-management solutions. The acquisition establishes Automated Logic's ...

Core Insights - Automated Logic – Canada, Ltd. (ALC) has acquired Control Solutions, Ltd. (CSL), enhancing its building-automation capabilities in Western Canada [1][2] - The acquisition marks ALC's first company-owned controls field office in Vancouver, expanding its market presence [1][2] - Control Solutions, Ltd. specializes in integrated building automation systems for various sectors, including commercial real estate and education [3] Company Overview - ALC is part of Carrier Global Corporation, a leader in intelligent climate and energy solutions, focusing on maximizing energy efficiency and sustainable building operations [6] - Control Solutions, Ltd. employs over 100 staff, providing advanced automation solutions and multi-year service contracts to optimize energy performance [3][4] - The existing leadership and employees of CSL will continue operations from their Coquitlam office, ensuring continuity for their customers [4]

Core Insights - Honeywell reported strong second-quarter results, with sales growth of 8% year-over-year and organic sales growth of 5%, exceeding guidance [2][3] - The company raised its full-year organic growth and adjusted earnings per share guidance, reflecting confidence in its performance and strategic initiatives [1][3] Financial Performance - Second-quarter sales reached $10.4 billion, with operating income increasing by 7% to $2.1 billion and segment profit rising 8% to $2.4 billion [2][9] - Earnings per share for the quarter was $2.45, a 4% increase year-over-year, while adjusted earnings per share rose 10% to $2.75 [2][9] - Operating cash flow was $1.3 billion, down 4% year-over-year, and free cash flow was $1.0 billion, down 9% year-over-year [2][9] Segment Performance - Aerospace Technologies sales increased 6% organically, driven by a 13% growth in defense and space [7] - Building Automation saw an 8% organic sales increase, with segment margin expanding 90 basis points to 26.2% [10] - Energy and Sustainability Solutions reported a 6% organic sales growth, with UOP growing 16% [11] Strategic Initiatives - Honeywell is pursuing a separation of its Automation and Aerospace businesses, aiming to create three publicly-listed industry leaders by the second half of 2026 [4][5] - The company has been actively optimizing its portfolio, including the acquisition of Johnson Matthey's Catalyst Technologies for £1.8 billion and the acquisition of Sundyne for $2.2 billion [5][9] - A comprehensive portfolio review has concluded, leading to a strategic evaluation of alternatives for its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses [5][9] Updated Guidance - Full-year sales are now expected to be between $40.8 billion and $41.3 billion, with organic sales growth projected at 4% to 5% [3][13] - Adjusted earnings per share guidance has been raised to a range of $10.45 to $10.65, reflecting a 20-cent increase at the midpoint from prior guidance [3][13]

Core Viewpoint - Honeywell International Inc. (HON) is expected to report second-quarter 2025 results on July 24, with projected revenues of $10 billion, reflecting a 4.6% year-over-year growth, and earnings per share (EPS) of $2.64, indicating a 6% increase from the previous year [1][9]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for HON's second-quarter revenues is $10 billion, which represents a 4.6% growth compared to the same quarter last year [1]. - The consensus estimate for earnings is $2.64 per share, which has increased by 1.1% over the past 60 days, indicating a 6% growth from the year-ago quarter [1][9]. - HON has consistently delivered better-than-expected results in the past four quarters, with an average earnings surprise of 6.6% [2]. Group 2: Segment Performance Insights - The Aerospace Technologies segment is anticipated to see a revenue increase of 10.1% year-over-year to $4.28 billion, driven by strong demand in commercial aviation and defense spending [3]. - The Building Automation segment is expected to generate revenues of $1.71 billion, reflecting an 8.8% decline year-over-year, influenced by solid demand but offset by project delays [4]. - The Energy and Sustainability Solutions segment is projected to grow by 1.8% year-over-year to $1.63 billion, supported by the Universal Oil Products business [5]. - The Industrial Automation Solutions segment is expected to decline by 5.7% year-over-year to $2.36 billion, due to ongoing weakness in sensing and safety technologies [6]. Group 3: Cost and Margin Considerations - High costs and expenses have negatively impacted HON's performance, with operating expenses expected to rise due to investments in digital infrastructure and business integration [7]. - The cost of sales is projected to increase by 5.1% year-over-year to $6.1 billion, leading to a decline in operating margin by 180 basis points to 18.8% [7]. Group 4: Earnings Prediction Model - The earnings prediction model indicates a potential earnings beat for HON, supported by a positive Earnings ESP of +0.58% and a Zacks Rank of 3 [8][10].

Core Insights - Honeywell has acquired Nexceris' Li-ion Tamer business, enhancing its fire life safety technologies in the Building Automation segment and addressing lithium-ion battery system safety [1][4] - The acquisition is expected to be immediately accretive to Honeywell's financials and positions the company as a leader in early gas detection and battery fire prevention [1][4] Industry Trends - Demand for lithium-ion batteries is projected to grow over 30% annually through 2030, exceeding $400 billion, making battery safety solutions increasingly critical across various sectors [2] - The risk of fire associated with lithium-ion batteries is rising alongside their usage in data centers, electric vehicle infrastructure, and grid-scale energy storage [4] Technology and Product Details - Li-ion Tamer utilizes early warning technology to detect battery off-gassing, providing up to 30 minutes of advance warning before a potential battery fire [3] - The product portfolio includes over 30 global patents and is trusted by leading battery OEMs worldwide [4][7] Strategic Actions - This acquisition follows Honeywell's planned spin-offs of its Aerospace Technologies and Solstice Advanced Materials businesses, aimed at creating three publicly listed industry leaders with distinct strategies [5] - Since December 2023, Honeywell has engaged in strategic actions totaling $13.5 billion in accretive acquisitions to drive organic growth and simplify its portfolio [5]

Financial Data and Key Metrics Changes - The company reported net sales of $1.2 billion for Q3 2025, an increase of $211 million or 22% year-over-year [21] - Adjusted operating profit rose to $222 million, up $55 million or 33% from the previous year, with an adjusted operating profit margin of 18.8%, an increase of 150 basis points [22] - Adjusted diluted earnings per share increased to $5.12, up $0.97 or 23% compared to the prior year [22] Business Line Data and Key Metrics Changes - ABL (Acuity Brands Lighting) generated sales of $923 million, a $25 million or 3% increase year-over-year, driven by growth in independent sales and direct sales networks [22] - Acuity Intelligent Spaces (AIS) reported sales of $264 million, an increase of $188 million, with Atrius and Distech combined growing 21% during the quarter [25] - QSC, part of AIS, grew over 20% year-over-year on a pro forma basis [25] Market Data and Key Metrics Changes - The company experienced accelerated orders in Q3 due to strategic pricing actions in response to evolving tariff policies, which contributed to building backlog [6][21] - The independent sales network and direct sales showed strong growth, while corporate accounts faced declines due to timing of renovations at a large retailer [22][24] Company Strategy and Development Direction - The company is focused on product vitality, elevating service levels, and using technology to improve operations and drive productivity [19] - Acuity is prioritizing investments in verticals where it has historically been underpenetrated, such as healthcare and sports lighting [9][100] - The strategy includes consolidating data management through Distech and Atrius, and enhancing user experiences with QSC [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage outcomes amid uncertainties from tariff policies and geopolitical instability [18][19] - The expectation is that the combination of Q3 and Q4 performance will yield the results anticipated for the second half of fiscal 2025 [18][59] - Management plans to approach future planning conservatively while remaining prepared to capitalize on market opportunities [39][90] Other Important Information - The company generated approximately $400 million in cash flow from operations year-to-date and allocated capital effectively, including a 13% increase in dividends and share repurchases [27][28] - A special charge of $30 million was taken in Q3 related to productivity efforts, which will yield benefits in future quarters [24][87] Q&A Session Summary Question: QSC margin performance - Management noted that QSC's margin improved significantly due to strong top-line growth and the adoption of productivity tools [33][35] Question: Impact of accelerated orders and pricing actions - Management confirmed that there was evidence of order acceleration in Q3, with expectations for normalized performance in Q4 [37][39] Question: Expectations for gross margin in Q4 - Management indicated that gross margin would likely be impacted by tariff costs in Q4, but they are confident in their ability to cover these costs [53][55] Question: Progress on shifting to Design Select - Management stated that progress on Design Select is strong, but it is a long-term project [71] Question: Demand environment and customer behavior - Management observed that customers are behaving rationally in response to pricing actions and tariff uncertainties, seeking stability in the marketplace [90]

Core Insights - Honeywell has launched Honeywell Connected Solutions, an AI-powered platform designed to integrate critical building software and technologies into a single interface for more efficient operations [1][2] - Early adopters of this platform include Verizon Communications Inc. and Vanderbilt University, both of which are utilizing the solution to enhance building management and operational efficiency [1][4] Group 1: Platform Features and Benefits - Honeywell Connected Solutions allows building operators to manage various systems and devices through one integrated interface, providing real-time visibility and actionable insights [2][3] - The platform features an AI-enabled installation process that can be completed in hours, significantly reducing labor time and costs compared to traditional systems [3] - Key capabilities of the platform address challenges such as aging buildings, rising downtime costs, skilled labor shortages, and compliance with growing cyber guidelines [3] Group 2: Adoption and Impact - Verizon is using the platform to predict critical building and system issues before they escalate, thereby reducing potential costs [4] - Vanderbilt University has adopted the technology in nearly 10% of its buildings, aiming to enhance system efficiency, reduce energy consumption, and improve user experience, especially in older facilities [4][5] Group 3: Additional Features - The platform includes advanced encryption for cybersecurity, remote monitoring and diagnostics to lower labor costs, predictive maintenance prompts, and energy-management solutions to support decarbonization efforts [7]

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 ...