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    Honeywell International Inc (HON)

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    Business Description

    Honeywell International Inc. is a diversified technology and manufacturing company that operates through four main business segments, focusing on aerospace, industrial automation, building automation, and energy solutions . The company provides a wide range of products, software, and services, including aircraft components, industrial automation solutions, building safety technologies, and energy transition materials . Honeywell's strategic alignment with global megatrends such as automation and energy transition supports its strong financial performance .

    1. Aerospace Technologies - Supplies products, software, and services for aircraft, including auxiliary power units, propulsion engines, and integrated avionics, with major sales from Commercial Aviation Aftermarket, Defense and Space, and Commercial Aviation Original Equipment .

      • Commercial Aviation Aftermarket - Provides aftermarket services and products for commercial aircraft.
      • Defense and Space - Offers products and services for defense and space applications.
      • Commercial Aviation Original Equipment - Supplies original equipment for commercial aviation.

    2. Industrial Automation - Delivers solutions for intelligent, sustainable, and secure operations across various industries, with key contributions from Process Solutions, Sensing and Safety Technologies, and Warehouse and Workflow Solutions .

      • Process Solutions - Offers automation and control solutions for industrial processes.
      • Sensing and Safety Technologies - Provides sensing and safety products for industrial applications.
      • Warehouse and Workflow Solutions - Supplies solutions for warehouse management and workflow optimization.

    3. Energy and Sustainability Solutions - Focuses on technologies and materials for energy transition, with significant contributions from the UOP business unit and Advanced Materials .

      • UOP - Provides process technology and materials for the energy industry.
      • Advanced Materials - Develops materials for energy efficiency and sustainability.

    4. Building Automation - Offers products and technologies for building safety, energy efficiency, and productivity, with contributions from Products and Building Solutions .

      • Products - Supplies building safety and energy efficiency products.
      • Building Solutions - Provides integrated solutions for building management and productivity.

    Key Metrics

    View all financials →

    Executive Team

    NamePositionStart DateShort Bio
    Vimal KapurChief Executive OfficerJune 1, 2023Vimal Kapur has been the CEO of Honeywell since June 1, 2023. He was elected to the Board in March 2023 and succeeded Darius Adamczyk as CEO. He has been with Honeywell since 1989 .
    Gregory P. LewisSenior Vice President and Chief Financial OfficerAugust 2018Gregory P. Lewis has been serving as the CFO of Honeywell since August 2018. He was previously Vice President of Enterprise Information Management and CFO of Automation and Control Solutions .
    Anne T. MaddenSenior Vice President and General CounselOctober 2017Anne T. Madden has been the General Counsel at Honeywell since October 2017. She was previously the Corporate Secretary and Vice President of Corporate Development and Global Head of M&A .
    Lucian BoldeaPresident and CEO, Industrial AutomationJanuary 1, 2024Lucian Boldea is the CEO of Industrial Automation at Honeywell, effective January 1, 2024. He was previously CEO of Performance Materials and Technologies and worked at Eastman Chemical Company .
    James CurrierPresident and CEO, AerospaceAugust 1, 2023James Currier is the CEO of Aerospace Technologies at Honeywell since August 1, 2023. He previously served as President of Electronic Solutions and held other leadership roles within Honeywell .
    Darius AdamczykExecutive Chairman and Former CEOJune 2023Darius Adamczyk has been with Honeywell since 2008. He served as CEO from March 2017 to June 2023 and will retire on June 7, 2024. He has held various leadership roles within Honeywell .
    Kevin DehoffPresident and CEO, Connected EnterpriseMay 2022Kevin Dehoff has been the CEO of Connected Enterprise at Honeywell since May 2022. He was previously President of Productivity Solutions and Services and a Senior Partner at McKinsey & Company .
    Billal M. HammoudPresident and CEO, Building AutomationJanuary 2024Billal M. Hammoud is the CEO of Building Automation at Honeywell, effective January 2024. He was previously CEO of Honeywell Building Technologies and held leadership roles at Colfax .
    Ken WestPresident and CEO, Energy and Sustainability SolutionsJanuary 2024Ken West is the CEO of Energy and Sustainability Solutions at Honeywell, effective January 2024. He held various leadership positions within Honeywell's Performance Materials and Technologies division .
    Michael StepniakUpcoming Senior Vice President and Chief Financial OfficerFuture DateMichael Stepniak will succeed Greg Lewis as CFO following the announcement of Honeywell's 2024 financial results. He is currently CFO of Honeywell's Aerospace Technologies segment .
    Greg LewisUpcoming Senior Vice President, Honeywell Accelerator and Senior AdvisorFuture DateGreg Lewis will transition to Senior Vice President of Honeywell Accelerator and Senior Advisor following the announcement of Honeywell's 2024 financial results. He has been with Honeywell since 2018 .

    Questions to Ask Management

    1. Could you provide more detail on the specific factors that led to the sales miss in Industrial Automation this quarter, particularly the flat sequential revenues and lower volumes in warehouse and workflow solutions, and what steps are being taken to address these issues?

    2. With the reduction in your full-year sales guidance due to the slower recovery in Industrial Automation and tempered expectations in Aerospace and Energy markets, how confident are you in achieving your organic growth targets next year, and what are the main risks that could impede this growth?

    3. Given the challenges in working capital management impacting free cash flow, especially the lower progress in Aerospace inventory and slowing payment cycles in certain high-growth regions, what initiatives are you implementing to improve cash flow generation moving forward?

    4. Could you elaborate on the rationale behind reclassifying the PPE business as assets held for sale and spinning off Advanced Materials, and how these divestitures will enhance your portfolio optimization efforts and financial performance?

    5. With the anticipated modest margin contraction in Aerospace due to mix headwinds from original equipment activity and the integration of CAES, how do you plan to mitigate these pressures and return to margin expansion in this segment in 2025?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateApril 24, 2023
    End Date/DurationNo expiration date
    Total additional amount$10 billion
    Remaining authorization$5.9 billion
    DetailsOffset dilution and reduce share count

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2024400 4.85% Notes4.85 1.3% = (400 / 30,800) * 100
    20251,250 1.35% Notes1.35 4.1% = (1,250 / 30,800) * 100
    20261,500 2.50% Notes2.50 4.9% = (1,500 / 30,800) * 100
    20274,718 1.10% Notes, 3.50% Euro Notes, 4.65% Notes, 4.37% Term Loan1.10 - 4.65 15.3% = (4,718 / 30,800) * 100
    20282,541 4.95% Notes, 2.25% Euro Notes, 6.625% Debentures2.25 - 6.625 8.2% = (2,541 / 30,800) * 100
    20292,000 4.25% Notes, 2.70% Notes, 4.875% Notes2.70 - 4.875 6.5% = (2,000 / 30,800) * 100
    20302,840 4.70% Notes, 3.375% Euro Notes, 1.95% Notes1.95 - 4.70 9.2% = (2,840 / 30,800) * 100
    20312,000 4.95% Notes, 1.75% Notes1.75 - 4.95 6.5% = (2,000 / 30,800) * 100
    20321,770 4.75% Notes, 0.75% Euro Notes, 3.75% Euro Notes0.75 - 4.75 5.7% = (1,770 / 30,800) * 100
    20331,501 5.00% Notes, 9.065% Debentures5.00 - 9.065 4.9% = (1,501 / 30,800) * 100
    20342,119 4.50% Notes, 4.125% Euro Notes4.125 - 4.50 6.9% = (2,119 / 30,800) * 100
    20351,450 5.00% Notes5.00 4.7% = (1,450 / 30,800) * 100
    20361,281 3.75% Euro Notes, 5.70% Notes3.75 - 5.70 4.2% = (1,281 / 30,800) * 100
    2037462 5.70% Notes5.70 1.5% = (462 / 30,800) * 100
    2041417 5.375% Notes5.375 1.4% = (417 / 30,800) * 100
    2047442 3.812% Notes3.812 1.4% = (442 / 30,800) * 100
    2050750 2.80% Notes2.80 2.4% = (750 / 30,800) * 100
    20541,750 5.25% Notes5.25 5.7% = (1,750 / 30,800) * 100
    2064650 5.35% Notes5.35 2.1% = (650 / 30,800) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Garmin - Competitor in Aerospace
    • L3 Harris - Competitor in Aerospace
    • Northrop Grumman - Competitor in Aerospace
    • RTX Corporation - Competitor in Aerospace
    • Safran - Competitor in Aerospace
    • Thales - Competitor in Aerospace
    • Carrier Global - Competitor in Honeywell Building Technologies
    • Johnson Controls - Competitor in Honeywell Building Technologies
    • Schneider Electric - Competitor in Honeywell Building Technologies and Performance Materials and Technologies
    • Siemens - Competitor in Honeywell Building Technologies
    • ABB - Competitor in Performance Materials and Technologies
    • Arkema - Competitor in Performance Materials and Technologies
    • Axens - Competitor in Performance Materials and Technologies
    • Chemours - Competitor in Performance Materials and Technologies
    • Emerson Electric - Competitor in Performance Materials and Technologies
    • Haldor Topsoe - Competitor in Performance Materials and Technologies
    • Rockwell Automation - Competitor in Performance Materials and Technologies
    • 3M - Competitor in Safety and Productivity Solutions
    • Kion Group - Competitor in Safety and Productivity Solutions
    • MSA Safety Incorporated - Competitor in Safety and Productivity Solutions
    • TE Connectivity - Competitor in Safety and Productivity Solutions
    • Zebra Technologies - Competitor in Safety and Productivity Solutions

    Customer Concentration

    CustomerRelationshipSegmentDetails
    U.S. Government
    Long-term sales of products and services (primarily defense and aerospace)
    Aerospace
    $3,441 million in 2023 representing 9.4% of $36,662 million total revenue.

    Auditor

    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLPJuly 29, 2014 PresentCurrent auditor.
    PricewaterhouseCoopers LLPN/ADecember 31, 2014 The Audit Committee conducted a comprehensive, competitive process to determine the independent registered public accounting firm for the fiscal year ended December 31, 2015, and decided to engage a new auditor.