10-KPeriod: FY2021

HONEYWELL INTERNATIONAL INC Annual Report, Year Ended Dec 31, 2021

Filed February 11, 2022For Securities:HONHONIV

Summary

Honeywell International Inc. reported a solid financial performance for the fiscal year ending December 31, 2021, with net sales increasing by 5% to $34.4 billion, driven by strong demand across key segments like Warehouse and Workflow Solutions, Productivity Solutions and Services, Advanced Materials, and Commercial Aviation. The company successfully navigated challenges posed by the COVID-19 pandemic, demonstrating resilience and market share growth. Honeywell emphasized its commitment to strategic growth through portfolio optimization, innovation, and Environmental, Social, and Governance (ESG) objectives. The company completed four acquisitions and invested significantly in capital expenditures, dividends, and share repurchases, totaling $8.2 billion, exceeding operating cash flow by $2.2 billion. Looking ahead, Honeywell plans to continue deploying capital towards high-return opportunities, particularly in software and services with recurring revenue streams and sustainable technologies, supported by a robust backlog of $27.7 billion.

Financial Highlights

56 data points
Beta

Revenue

$34.39B

35.9% Gross Margin

Net Income

$5.54B

16.1% Net Margin

EPS (Diluted)

$7.91

Total Assets

$64.47B

Cash & Equivalents

$10.96B

Free Cash Flow

$5.14B

Financial Statements
Beta
Revenue$34.39B
Cost of Revenue$22.06B
Gross Profit$12.33B
R&D Expenses$1.33B
SG&A Expenses$4.80B
Net Income$5.54B
EPS (Basic)$8.01
EPS (Diluted)$7.91
Shares Outstanding (Basic)692.30M
Shares Outstanding (Diluted)700.40M

Key Highlights

  • 1Net sales increased by 5% to $34.4 billion in 2021, driven by strong demand in key business areas.
  • 2Diluted Earnings Per Share (EPS) saw a significant increase of 17.7% to $7.91.
  • 3Operating cash flow was $6 billion, indicating strong cash generation from core operations.
  • 4The company deployed $8.2 billion in capital towards capital expenditures, dividends, share repurchases, and acquisitions, demonstrating a commitment to shareholder returns and strategic growth.
  • 5Backlog reached $27.7 billion at the end of 2021, signaling robust future demand.
  • 6Honeywell announced a commitment to become carbon neutral in its operations and facilities by 2035.
  • 7The Aerospace segment saw a 5% increase in segment profit, while Safety and Productivity Solutions experienced a 21% increase in net sales.

Frequently Asked Questions

In 2021, Honeywell reported a 5% increase in net sales to $34.4 billion and a 17.7% increase in diluted EPS to $7.91. Operating cash flow was strong at $6 billion.

Honeywell continued to monitor and adapt to pandemic-related conditions, prioritizing employee health and safety, supporting communities, and innovating to meet customer needs. The company experienced some supply chain constraints and labor shortages but implemented strategies to mitigate their impact and maintained normal production levels at its manufacturing sites.

Honeywell's strategic priorities include driving profitable growth through innovation, expanding its software-industrial capabilities with solutions like Honeywell Forge, optimizing its business portfolio through acquisitions and divestitures, and leading in ESG objectives. The company plans to continue deploying capital towards high-return opportunities, including software, services, and sustainable technologies, while also returning capital to shareholders through dividends and share repurchases.

Honeywell operates through four reportable segments: Aerospace, Honeywell Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. In 2021, Aerospace segment profit increased by 5%, Honeywell Building Technologies saw a 13% increase in segment profit, Performance Materials and Technologies' segment profit grew by 15%, and Safety and Productivity Solutions' segment profit rose by 13% with a significant 21% increase in net sales.