Honeywell Intl Inc Stock Price, News & Analysis

Elliott Investment Management has disclosed a more than $5 billion investment in Honeywell International (NYSE: HON) and is calling for the company to separate into two independent entities. Elliott proposes splitting Honeywell into Honeywell Aerospace and Honeywell Automation, arguing this separation could drive share-price gains of 51-75% over the next two years. The investment firm cites uneven execution, inconsistent financial results, and underperforming share price over the last five years as key reasons for the proposed restructuring. Elliott believes the conglomerate structure no longer suits Honeywell and that separation would benefit both entities through simplified strategies, focused management, and improved capital allocation.

Honeywell (NASDAQ: HON) has announced its participation in three major investor conferences in Q4 2024. Ken West, President and CEO of Energy and Sustainability Solutions, will present at the Baird Global Industrials Conference in Chicago on November 12. Billal Hammoud, President and CEO of Building Automation, will speak at the Goldman Sachs Industrials Conference in New York on December 5. Vimal Kapur, Chairman and CEO, will attend the Melius Research Conference in New York on December 11.

Real-time audio webcasts will be available at honeywell.com/investor, with materials posted before presentations and replay access for 30 days. Honeywell operates globally, focusing on automation, aviation future, and energy transition, supported by their Accelerator operating system and Connected Enterprise platform.

Honeywell (HON) reported Q3 2024 results with sales of $9.7 billion, up 6% year-over-year, and organic sales growth of 3%. Operating margin was 19.1%, while segment margin reached 23.6%. Earnings per share was $2.16, and adjusted EPS was $2.58, up 8% year-over-year. The company closed $1.9B CAES Systems and $1.8B Air Products' LNG business acquisitions.

Honeywell updated its full-year 2024 guidance, now expecting sales of $38.6-38.8B with organic growth of 3-4%. The company announced plans to spin off its Advanced Materials business and exit the PPE business, recognizing a $125M valuation allowance for the latter.

Honeywell (NASDAQ: HON) and Google Cloud have announced a collaboration to accelerate autonomous operations in the industrial sector using AI agents. The partnership will combine Google Cloud's Gemini on Vertex AI with Honeywell Forge, an IoT platform for industrials, to provide enterprise-wide insights across various use cases. This collaboration aims to reduce maintenance costs, increase operational productivity, and upskill employees.

The first solutions built with Google Cloud AI will be available to Honeywell's customers in 2025. The partnership will focus on developing purpose-built industrial AI agents, enhancing cybersecurity, and exploring on-the-edge device advances. This initiative aligns with Honeywell's strategy to address labor and skills shortages in the industrial sector, with AI serving as a revenue generator rather than a job eliminator.

Honeywell's 33rd annual Global Business Aviation Outlook forecasts 8,500 new business jet deliveries valued at $280 billion over the next decade, indicating increased demand and stable growth. Key findings include:

- New business jet deliveries in 2025 expected to be 12% higher than in 2024
- Five-year purchase plans equivalent to 18% of the current fleet
- Over 90% of surveyed operators expect to fly more or the same in 2025
- Large jets to account for about two-thirds of all expenditures in the next five years
- North America to see 66% of five-year new jet deliveries

The outlook also highlights sustainability trends, with fuel-efficient aircraft recognized as the most effective method for improving environmental impact in business aviation.

Honeywell (Nasdaq: HON) has been awarded a $103 million contract by the U.S. Army to provide its Next-Generation APN-209 Radar Altimeter system for various Army aircraft. This modernized system replaces the legacy APN-209, offering key enhancements such as:

• Higher reliability and environmental performance
• Advanced common-core architecture
• Flexible integration options

The contract aligns with Honeywell's focus on the future of aviation. Matt Milas, President of Defense and Space at Honeywell Aerospace Technologies, emphasized the company's commitment to providing cutting-edge technology for military aircraft. Honeywell has delivered over 150,000 altimeters to the U.S. Department of Defense in the past 60 years and plans to introduce the Next Gen APN-209 to international markets in the future.

Honeywell (Nasdaq: HON) and Qualcomm Technologies, Inc. have expanded their collaboration to develop new AI-enabled solutions for the energy sector. This initiative aligns with Honeywell's focus on automation megatrends. The collaboration aims to integrate Qualcomm's connectivity and AI capabilities into Honeywell's existing AI-powered applications, such as the Field Process Knowledge System (PKS).

The partnership will combine Qualcomm's low power AI-enabled processors with Honeywell's sensing technologies to create a family of industrial sensors for monitoring various parameters. These advancements are expected to provide faster and more accurate information to field and service technicians.

The collaboration also includes the development of an AI-enabled Multi-Modal Intelligent Agent for distribution centers and retail industries, with plans to integrate computer vision capabilities into Honeywell's Field PKS by 2025.

Honeywell (Nasdaq: HON) has announced plans to spin off its Advanced Materials business into an independent, publicly traded company. The spin-off is expected to be completed by the end of 2025 or early 2026 in a tax-free manner to shareowners. The Advanced Materials business, with an estimated FY24 revenue of $3.7-$3.9 billion and an EBITDA margin over 25%, will focus on sustainability-focused specialty chemicals and materials.

This move is part of Honeywell's strategy to simplify and optimize its portfolio around three megatrends: automation, the future of aviation, and energy transition. The spin-off aims to create value for stakeholders by allowing both Honeywell and the new company to have greater strategic focus and financial flexibility. Following the spin-off, Honeywell expects to improve its organic sales growth, reduce cyclicality, and enhance free cash flow generation.

Honeywell (NASDAQ: HON) and Chevron (NYSE: CVX) have announced a strategic collaboration to develop advanced AI-Assisted solutions for refining processes. The partnership aims to enhance efficiency, safety, and reliability in industrial automation.

Key aspects of the collaboration include:

• Development of a new generation of AI-Assisted alarm management solutions
• Creation of an Alarm Guidance application to help operators respond effectively to alarms and operational events
• Integration of AI into Honeywell's Experion® distributed control system (DCS)

This collaboration aligns with Honeywell's focus on automation as one of its three powerful megatrends. The partnership aims to address industry challenges, including workforce shortages, through institutional knowledge capture and workflow digitalization.