Honeywell International Inc. (HON) Bundle
A Brief History of Honeywell International Inc.
Honeywell International Inc., a multinational conglomerate, has evolved significantly over its long history. As of 2024, the company operates through four key segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions. The company's strategic initiatives and acquisitions have played a critical role in its growth trajectory.
Financial Performance Overview
For the third quarter of 2024, Honeywell reported net sales of $9.728 billion, a 5.6% increase compared to $9.212 billion in Q3 2023. The year-to-date (YTD) net sales for 2024 reached $28.410 billion, up from $27.222 billion in 2023, reflecting a solid year-over-year growth of 4.4%.
| Period | Net Sales (in billions) | Segment Profit (in billions) |
|---|---|---|
| Q3 2024 | $9.728 | $2.296 |
| Q3 2023 | $9.212 | $2.170 |
| YTD 2024 | $28.410 | $6.589 |
| YTD 2023 | $27.222 | $6.298 |
Business Segments Performance
As of September 30, 2024, the performance of Honeywell's business segments was as follows:
| Segment | Q3 2024 Net Sales (in billions) | Q3 2023 Net Sales (in billions) | Segment Profit (Q3 2024, in billions) | Segment Profit (Q3 2023, in billions) |
|---|---|---|---|---|
| Aerospace Technologies | $3.912 | $3.499 | $1.082 | $0.968 |
| Industrial Automation | $2.173 | $2.118 | $0.508 | $0.519 |
| Building Automation | $1.605 | $1.321 | $0.452 | $0.392 |
| Energy and Sustainability Solutions | $1.563 | $1.551 | $0.383 | $0.378 |
Acquisitions and Strategic Movements
In 2024, Honeywell made significant acquisitions, including Access Solutions for $4.9 billion and CAES Systems Holdings LLC for $1.9 billion. Additionally, on September 30, 2024, the company acquired Air Products' liquefied natural gas process technology and equipment business for $1.837 billion, net of cash acquired. These strategic moves are aimed at enhancing Honeywell's capabilities in key markets.
Debt and Capital Management
As of September 30, 2024, Honeywell's long-term debt amounted to $25.934 billion, compared to $16.562 billion in the previous year. The increase in debt is largely attributed to the funding of acquisitions and strategic investments.
| Debt Type | Amount (in billions) |
|---|---|
| Total Long-term Debt | $25.934 |
| Current Maturities of Long-term Debt | $1.760 |
Shareholder Returns and Stock Performance
Honeywell's commitment to returning value to shareholders is evident in its share repurchase program. In the nine months ended September 30, 2024, the company repurchased $1.2 billion of common stock. The total shares outstanding as of September 30, 2024, were 650.2 million, down from 659.3 million in 2023.
Outlook and Future Directions
Honeywell announced plans to spin off its Advanced Materials business into an independent publicly traded company, targeted for completion by early 2026. This strategic move is expected to sharpen Honeywell's focus on its core competencies and enhance shareholder value.
The company's effective tax rate for the third quarter of 2024 was reported at 21.5%, a slight decrease from previous periods, reflecting improved tax efficiencies and benefits from non-U.S. earnings.
A Who Owns Honeywell International Inc. (HON)
Major Shareholders
As of 2024, the ownership structure of Honeywell International Inc. (HON) is characterized by both institutional and individual investors. The following table highlights the major shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| The Vanguard Group, Inc. | 8.25% | Institutional |
| BlackRock, Inc. | 7.90% | Institutional |
| State Street Corporation | 4.85% | Institutional |
| Wellington Management Group LLP | 4.50% | Institutional |
| Invesco Ltd. | 3.45% | Institutional |
| Other Institutional Investors | 40.00% | Institutional |
| Individual Shareholders | 26.05% | Individual |
Stock Performance
Honeywell's stock performance is closely monitored by investors. As of September 30, 2024, the company reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Shares Outstanding | 650.2 million |
| Market Capitalization | $117.8 billion |
| Earnings per Share (EPS) | $6.80 |
| Dividend Yield | 2.15% |
| Annual Dividends Paid | $2.20 per share |
Recent Acquisitions and Divestitures
In 2024, Honeywell has been active in the acquisition space, which may influence its ownership dynamics. Key acquisitions include:
| Acquisition | Date | Amount |
|---|---|---|
| Access Solutions | Completed Q3 2024 | $4.9 billion |
| CAES Systems Holdings LLC | Completed Q3 2024 | $1.9 billion |
| Civitanavi Systems S.p.A. | Completed Q3 2024 | $200 million |
| Air Products' LNG Process Technology | Announced Q4 2024 | $1.8 billion |
Financial Performance Overview
In the nine months ended September 30, 2024, Honeywell reported the following financial figures:
| Financial Metric | Value |
|---|---|
| Net Income Attributable to Honeywell | $4.420 billion |
| Net Sales | $28.410 billion |
| Segment Profit | $6.589 billion |
| Total Assets | $73.492 billion |
| Total Liabilities | $55.518 billion |
Liquidity Position
As of September 30, 2024, Honeywell's liquidity position is as follows:
| Liquidity Metric | Value |
|---|---|
| Cash and Cash Equivalents | $10.644 billion |
| Short-term Investments | $275 million |
| Current Assets | $28.164 billion |
| Current Liabilities | $19.534 billion |
Conclusion on Ownership Dynamics
As of 2024, Honeywell International Inc. is primarily owned by institutional investors, with a significant portion of shares held by the top five shareholders. The active acquisition strategy, combined with a robust financial performance, positions Honeywell for potential shifts in its ownership landscape.
Honeywell International Inc. (HON) Mission Statement
Current Mission Statement
As of 2024, Honeywell International Inc. aims to create a safer, more sustainable, and more productive world through innovative technologies and solutions. The company focuses on delivering performance that drives value for its customers while fostering a culture of integrity and responsibility.
Core Values
- Innovation: Striving for technological advancements to meet global challenges.
- Integrity: Conducting business in an ethical manner.
- Sustainability: Committing to environmental stewardship and sustainable practices.
- Diversity and Inclusion: Emphasizing a diverse workforce to enhance creativity and performance.
Strategic Objectives
- Customer Focus: Prioritizing customer needs to deliver tailored solutions.
- Operational Excellence: Enhancing efficiency in operations to maximize resource utilization.
- Employee Engagement: Investing in employee development and well-being.
- Global Reach: Expanding presence in emerging markets for growth opportunities.
Financial Performance Overview
In the third quarter of 2024, Honeywell reported net sales of $9.728 billion, a 5.6% increase from $9.212 billion in the same period of the previous year. The company achieved a segment profit of $2.296 billion, compared to $2.170 billion in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Net Sales | $9.728 billion | $9.212 billion | +5.6% |
| Segment Profit | $2.296 billion | $2.170 billion | +5.8% |
| Earnings per Share (Diluted) | $2.16 | $2.27 | -4.8% |
Business Segments
Honeywell operates through several business segments, each contributing to its overarching mission. The segments include:
- Aerospace Technologies: Net sales of $3.912 billion, up 12% from $3.499 billion.
- Industrial Automation: Net sales of $2.501 billion, down 5% from $2.630 billion.
- Building Automation: Net sales of $1.745 billion, up 14% from $1.530 billion.
- Energy and Sustainability Solutions: Net sales of $1.563 billion, up 1% from $1.551 billion.
| Business Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Year-over-Year Change |
|---|---|---|---|
| Aerospace Technologies | $3.912 billion | $3.499 billion | +12% |
| Industrial Automation | $2.501 billion | $2.630 billion | -5% |
| Building Automation | $1.745 billion | $1.530 billion | +14% |
| Energy and Sustainability Solutions | $1.563 billion | $1.551 billion | +1% |
Recent Developments
On October 8, 2024, Honeywell announced its intention to spin off its Advanced Materials business into an independent, publicly traded company. This strategic move is aimed at enhancing shareholder value and streamlining operations.
Cash Position and Liquidity
As of September 30, 2024, Honeywell reported cash and cash equivalents of $10.644 billion, an increase from $7.925 billion at the end of 2023. The company maintains a strong liquidity position to support its operational and strategic initiatives.
| Liquidity Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $10.644 billion | $7.925 billion |
| Short-term Investments | $275 million | $170 million |
| Total Assets | $73.492 billion | $61.525 billion |
Conclusion on Mission Alignment
Honeywell's mission statement reflects its commitment to innovation, sustainability, and operational excellence, driving both financial performance and strategic initiatives in a rapidly changing global landscape.
How Honeywell International Inc. (HON) Works
Company Overview
Honeywell International Inc. operates globally across four primary segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions. As of September 30, 2024, the company reported total assets of $73.492 billion and total liabilities of $55.518 billion.
Financial Performance
For the third quarter of 2024, Honeywell reported net sales of $9.728 billion, an increase from $9.212 billion in Q3 2023. The total segment profit for the same period was $2.296 billion, compared to $2.170 billion in the prior year.
| Segment | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | Segment Profit (in millions) | Segment Profit (Q3 2023 in millions) |
|---|---|---|---|---|
| Aerospace Technologies | $3,912 | $3,499 | $1,082 | $968 |
| Industrial Automation | $2,501 | $2,630 | $508 | $519 |
| Building Automation | $1,745 | $1,530 | $452 | $392 |
| Energy and Sustainability Solutions | $1,563 | $1,551 | $383 | $378 |
Cash Flow Analysis
As of September 30, 2024, Honeywell held $10.644 billion in cash and cash equivalents, an increase from $7.925 billion at the end of 2023. The net cash provided by operating activities for the nine months ended September 30, 2024, was $3.816 billion.
| Cash Flow Item | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $3,816 | $2,385 |
| Net Cash Used for Investing Activities | ($8,202) | ($754) |
| Net Cash Provided by Financing Activities | $7,058 | ($3,427) |
Segment Analysis
The Aerospace Technologies segment saw a 12% increase in net sales to $3.912 billion for Q3 2024, driven by higher demand in commercial aviation. The Industrial Automation segment experienced a decline of 5% in net sales to $2.501 billion, while Building Automation grew by 14%.
Debt and Equity Structure
As of September 30, 2024, Honeywell's long-term debt was recorded at $25.934 billion, an increase from $16.562 billion at the end of 2023. The total shareowners’ equity stood at $17.974 billion.
| Balance Sheet Item | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Total Assets | $73,492 | $61,525 |
| Total Liabilities | $55,518 | $45,091 |
| Total Shareowners’ Equity | $17,974 | $16,434 |
Strategic Acquisitions and Divestitures
In 2024, Honeywell made significant acquisitions, including Access Solutions for $4.9 billion and CAES Systems Holdings for $1.9 billion. The company also announced plans to spin off its Advanced Materials business into a separate publicly traded entity.
Research and Development
Research and development expenses were largely unchanged year-over-year, indicating a steady investment strategy in innovation and new product development.
How Honeywell International Inc. (HON) Makes Money
Overview of Business Segments
Honeywell operates through four primary reportable business segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions. Each segment contributes significantly to the company's overall revenue and profitability.
| Business Segment | Net Sales (Q3 2024) | Segment Profit (Q3 2024) | Net Sales (YTD 2024) | Segment Profit (YTD 2024) |
|---|---|---|---|---|
| Aerospace Technologies | $3,912 million | $1,082 million | $11,472 million | $3,177 million |
| Industrial Automation | $2,501 million | $508 million | $7,485 million | $1,459 million |
| Building Automation | $1,745 million | $452 million | $4,742 million | $1,199 million |
| Energy and Sustainability Solutions | $1,563 million | $383 million | $4,692 million | $1,091 million |
| Corporate and All Other | $7 million | ($129 million) | $19 million | ($337 million) |
| Total | $9,728 million | $2,296 million | $28,410 million | $6,589 million |
Aerospace Technologies
The Aerospace segment includes products and services for air transport, regional, business, and general aviation aircraft. In Q3 2024, net sales increased by 12% compared to Q3 2023, primarily due to increased demand in the aftermarket services and new sales in propulsion and avionics systems. The segment's profit margin is strong at 27.7%.
Industrial Automation
Honeywell's Industrial Automation segment focuses on providing automation solutions across various industries, including oil and gas, petrochemicals, and life sciences. In Q3 2024, net sales fell to $2,501 million, a decrease of 5% from the previous year, driven by lower demand in Warehouse and Workflow Solutions.
Building Automation
This segment is dedicated to solutions that enhance the safety and efficiency of buildings. In Q3 2024, Building Automation's net sales rose 14% year-over-year to $1,745 million, benefiting from increased demand for building projects and services. Segment profit also increased by 15% to $452 million.
Energy and Sustainability Solutions
This segment focuses on energy efficiency and sustainability products. In Q3 2024, net sales increased by 1% to $1,563 million, with a segment profit of $383 million. The growth was attributed to higher demand for specialty chemicals and materials in Advanced Materials.
Financial Performance
For the nine months ended September 30, 2024, Honeywell reported a net income of $4,450 million, compared to $4,424 million for the same period in 2023. Earnings per share (diluted) were $6.75, an increase from $6.56 the previous year.
Cash Flow and Liquidity
Operating cash flows for the nine months ended September 30, 2024, were $3,816 million, up from $2,385 million in the prior year. The company has maintained a strong liquidity position, with cash and cash equivalents totaling $10.9 billion as of September 30, 2024.
Recent Developments
On October 8, 2024, Honeywell announced plans to spin off its Advanced Materials business into an independent publicly traded company, which is expected to be completed by the end of 2025 or early 2026. This strategic decision is aimed at unlocking shareholder value.
Honeywell International Inc. (HON) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Honeywell International Inc. (HON) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Honeywell International Inc. (HON)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Honeywell International Inc. (HON)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.