10-KPeriod: FY2022

HONEYWELL INTERNATIONAL INC Annual Report, Year Ended Dec 31, 2022

Filed February 10, 2023For Securities:HONHONIV

Summary

Honeywell International Inc. reported solid performance in 2022, navigating macroeconomic challenges like supply chain disruptions and inflation through strategic pricing and operational adjustments. The company achieved a 3% reported sales growth (6% organically), reaching $35.5 billion in backlog, which bodes well for future revenue conversion. Key strategic objectives include driving profitable growth through innovation, expanding its software-industrial capabilities with Honeywell Forge, and optimizing operational performance. The company demonstrated financial discipline by deploying $7.9 billion in capital towards expenditures, dividends, and share repurchases, exceeding operating cash flow. Looking ahead, Honeywell anticipates continued market turbulence but remains confident in its robust backlog and diversified business segments to deliver future growth, with a focus on high-return opportunities in software and sustainable technologies.

Financial Highlights

57 data points
Beta

Revenue

$35.47B

37.0% Gross Margin

Net Income

$4.97B

14.0% Net Margin

EPS (Diluted)

$7.27

Total Assets

$62.27B

Cash & Equivalents

$9.63B

Free Cash Flow

$4.51B

Financial Statements
Beta
Revenue$35.47B
Cost of Revenue$22.35B
Gross Profit$13.12B
R&D Expenses$1.48B
SG&A Expenses$5.21B
Operating Income$8.02B
Net Income$4.97B
EPS (Basic)$7.33
EPS (Diluted)$7.27
Shares Outstanding (Basic)677.10M
Shares Outstanding (Diluted)683.10M

Key Highlights

  • 1Total sales increased by 3% to $35.466 billion, with organic sales up 6% (or 7% excluding lost Russian sales).
  • 2Record backlog of $29.6 billion at the end of 2022, indicating strong future demand across key end markets.
  • 3Aerospace segment saw sales increase by 7% year-over-year, driven by commercial aviation aftermarket and original equipment.
  • 4Honeywell Building Technologies achieved 8% sales growth, benefiting from increased pricing and higher volumes in its products and building solutions.
  • 5Performance Materials and Technologies reported a 7% sales increase, primarily due to pricing actions in Advanced Materials and Process Solutions.
  • 6Safety and Productivity Solutions experienced a 12% sales decline, largely attributed to reduced demand for warehouse automation and personal protective equipment.
  • 7The company deployed $7.9 billion in capital for expenditures, dividends, and share repurchases, underscoring a commitment to shareholder returns.

Frequently Asked Questions

Honeywell reported a 3% increase in net sales to $35.466 billion, with organic sales growing by 6% (or 7% excluding lost Russian sales). The company also ended the year with a record backlog of $29.6 billion, signaling strong future demand.

The Aerospace segment showed strong performance with a 7% sales increase, driven by commercial aviation. Honeywell Building Technologies also performed well, with an 8% sales growth. The Safety and Productivity Solutions segment, however, saw a 12% decrease in sales due to lower demand in specific product lines.

Honeywell implemented strategies such as strategic pricing actions, enhanced demand forecasting, closer supplier engagement for larger orders, and product re-engineering to mitigate the impact of inflation and supply chain constraints. These measures helped protect profitability.

The company anticipates continued macroeconomic turbulence in 2023 but is confident in its ability to grow, supported by its substantial backlog and diversified business model. Honeywell plans to continue investing in software and sustainable technologies for future growth.