Honeywell International Inc. - HON STOCK NEWS

Honeywell (NASDAQ: HON) reported strong Q2 2024 results, beating earnings guidance and updating its 2024 outlook. Key highlights include:

- Sales of $9.6 billion, up 5% reported and 4% organic
- Earnings per share of $2.36, adjusted EPS of $2.49 (up 8% YoY)
- Orders up 4%, led by building automation and energy solutions
- Deployed $6.4 billion in capital, including $5 billion Access Solutions acquisition
- Updated full-year guidance: Sales $39.1-39.7 billion, organic growth 5-6%, adjusted EPS $10.05-10.25

Strong performance was driven by Aerospace Technologies, with 16% organic growth. The company is aligning with megatrends in automation, aviation, and energy transition.

Honeywell's Industrial AI Insights global research study reveals that AI adoption in the industrial sector is just beginning, with only 17% of AI decision-makers having fully implemented their initial plans. However, 94% of those surveyed plan to expand their AI utilization, indicating strong enthusiasm for the technology. The study highlights key benefits of AI in industrials, including:

- Efficiency and productivity gains (64%)
- Improved cybersecurity and threat detection (60%)
- Better decision-making through real-time data (59%)
- Increased work flexibility (49%)
- Greater job satisfaction (45%)

AI is seen as a solution to address the industrial skills shortage by enabling faster upskilling and reskilling of workers. Despite challenges such as C-Suite understanding and resource justification, the pace of AI adoption is expected to increase as new solutions demonstrate clear benefits to workforce productivity, safety, and reliability.

Honeywell (NASDAQ: HON) has been chosen by United Airlines to supply a comprehensive range of avionics for their new 737 MAX aircraft. This selection includes advanced technologies such as the industry's only 3D weather radar, new 25-hour flight data recorders, and sophisticated safety systems. The agreement expands on a previous 2018 deal, highlighting Honeywell's reliability in delivering top-tier aerospace technology.

Key technologies selected include the IntuVue RDR-4000 3D Weather Radar System, Honeywell Connected Recorder – 25, TPA100B Traffic Alert and Collision Avoidance System, Integrated Multi-Mode Receiver, and the ALA-52B radar altimeter. These systems aim to reduce pilot workload, enhance situational awareness, and support dispatch reliability for United's growing 737 MAX fleet.

Honeywell (Nasdaq: HON) has announced an all-cash acquisition of Air Products' (NYSE: APD) liquefied natural gas (LNG) process technology and equipment business for $1.81 billion. The acquisition is projected to immediately enhance Honeywell's sales growth and segment margin, and be accretive to adjusted EPS in the first full year.

This strategic move aims to expand Honeywell's energy transition solutions, providing a comprehensive offering that includes natural gas pre-treatment and state-of-the-art liquefaction under the Honeywell Forge and Experion platforms. Meanwhile, Air Products will continue focusing on its core industrial gas business and clean hydrogen technology.

The deal will bring approximately 475 employees from Air Products to Honeywell, and includes a 390,000-square-foot manufacturing facility in Florida. Expected to close by the end of the year, the transaction aligns with Honeywell's strategy of high-return acquisitions in automation, aviation, and energy transition.

Honeywell (Nasdaq: HON) is set to acquire Air Products' (NYSE: APD) LNG process technology and equipment business for $1.81 billion in cash. This acquisition aims to bolster Honeywell's energy transition offerings by integrating Air Products' coil-wound heat exchangers (CWHE) and related technologies.

The acquisition is expected to be immediately accretive to Honeywell's sales growth, segment margin, and adjusted EPS in the first year of ownership. Over 475 employees from Air Products' LNG business will join Honeywell, enhancing its capabilities in natural gas pre-treatment and liquefaction.

Air Products will continue to focus on its core industrial gas business and clean hydrogen technology. The deal is anticipated to close by the end of the calendar year, pending regulatory approvals.

Honeywell (NASDAQ: HON) will release its second quarter financial results before the Nasdaq opens on July 25, 2024. The company will also hold a conference call at 8:30 a.m. EDT the same day. The webcast and related materials will be available at Honeywell's Investor Relations website, which also offers a replay for 30 days post-presentation. Honeywell, a global integrated company, operates across diverse industries and focuses on automation, aviation, and energy transition. Investors should monitor Honeywell's Investor Relations website for updates.

Honeywell (NASDAQ: HON) has launched Connected Power, a solution designed to monitor and manage power usage at the plug level in commercial buildings. This system helps reduce energy waste by allowing building managers to control power outlets based on occupancy data and schedules. With more than 80% of employees leaving devices plugged in when not in use, this solution could significantly lower energy consumption and CO2 emissions. It integrates with existing wiring and building management systems, offering centralized control over up to 2,500 outlets. Early results from Accu-Temp, a contractor in Ontario, indicate immediate energy savings. Optional cloud-based integration with Honeywell Forge Suite enables remote monitoring and management, enhancing overall efficiency and safety.

Honeywell (Nasdaq: HON) announced its plan to acquire CAES Systems Holdings from Advent International for $1.9 billion in cash.

The acquisition will bolster Honeywell's defense technologies across multiple domains, including land, sea, air, and space.

CAES' high-reliability radio frequency (RF) technologies are expected to drive long-term growth and diversify revenue streams for Honeywell.

The deal values CAES at approximately 14x its estimated 2024 EBITDA, adjusted for tax.

This acquisition will add about 2,200 employees and advanced engineering talent to Honeywell.

Combined capabilities will enhance Honeywell's position in defense technologies such as electromagnetic defense, radar, and sensing.

The deal is anticipated to close in the second half of 2024, subject to customary closing conditions and regulatory approvals.

Honeywell has launched the Battery Manufacturing Excellence Platform (Battery MXP), an AI-powered solution aimed at optimizing gigafactory operations. The software aims to cut material waste by 60%, reduce production ramp-up times, and improve battery cell yields, addressing key challenges in lithium battery manufacturing. Battery MXP leverages AI and machine learning to detect quality issues early, thus enhancing efficiency and productivity. The platform also offers bidirectional traceability, process controls, and safety features. Honeywell's initiative supports the global energy transition and aims to meet the growing demand for lithium-ion batteries.