Summary of Honeywell (HON) FY Conference - May 28, 2025 Industry Overview - The conference focused on the **Advanced Air Mobility (AAM)** market, specifically the **eVTOL (electric Vertical Take-Off and Landing)** segment, which is expected to grow significantly in the coming years [1][3][10]. Key Points and Arguments 1. **Market Potential**: Honeywell estimates a **$31 billion** addressable market for AAM by **2030**, broken down into: - Air taxi: **$20 billion** - Middle mile cargo: **$10 billion** - Local light parcel: **$1 billion** [7]. 2. **Market Evolution**: The initial forecasts for commercial applications were overly optimistic. The focus has shifted towards **emergency services** and **Department of Defense (DoD)** special missions, indicating a pivot in vehicle applications [8][10]. 3. **Geographical Dynamics**: The Eastern Hemisphere is leading in rule-making and early AAM activities, which is expected to catalyze progress in Western markets. The U.S. is also prioritizing AAM as a strategic initiative [30][32]. 4. **Product Development**: Honeywell has developed the **Anthem** integrated cockpit, which is scalable and designed for future operations, including reduced crew scenarios. The first application is expected to be in eVTOL, targeting entry into service by **February 2030** [15][17]. 5. **Technological Integration**: Honeywell's offerings in AAM leverage existing aerospace technologies, with a focus on integrating systems to reduce size, weight, and power requirements. This integration is seen as a significant opportunity for Honeywell [40][41]. 6. **Investment Strategy**: Most technologies for AAM were developed as part of Honeywell's broader aerospace roadmap, with only a modest investment in unique AAM offerings. The company is focused on adapting existing technologies to meet AAM needs [26][28]. 7. **Revenue Generation**: The revenue ramp for AAM is expected to be uneven, with potential for unexpected missions to drive production. Honeywell remains optimistic about the end market despite the variability [44]. 8. **Public Acceptance**: The acceptance of eVTOL vehicles is seen as critical. Honeywell emphasizes the importance of making airspace conspicuous and learning from public feedback on existing technologies like autonomous vehicles and drone deliveries [46][48]. Additional Important Content - **Partnerships and Collaborations**: Honeywell is actively developing partnerships with various companies in the AAM space, with more announcements expected in the future. The company is selective in its collaborations to ensure resource allocation to high-potential projects [49]. - **Future Outlook**: Honeywell is excited about the potential applications of AAM technologies that have not yet been envisioned, similar to the early days of the Internet. The company anticipates significant innovations and economic opportunities as AAM technologies mature [52].