01—Abstract
Summary
Summary of the 10-K filed February 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Honeywell International Inc. reported a strong fiscal year 2024, with net sales increasing by 5% to $38.5 billiona, driven by robust performance in three of its four segments, particularly Aerospace Technologies which saw double-digit growth.
The company demonstrated a commitment to portfolio transformation through significant capital deployment, including four acquisitions totaling $9 billionb and strategic divestitures of non-core businesses. Key acquisitions like Carrier Global Corporation's Global Access Solutions, CAES Systems Holdings LLC, and Air Products' LNG business are expected to bolster growth in their respective segments. Looking ahead, Honeywell announced significant strategic moves, including the planned spin-off of its Advanced Materials business and the separation of its Automation and Aerospace Technologies businesses into independent, publicly traded companies.
These actions aim to create three distinct industry-leading entities focused on core strengths. The company also highlighted a robust backlog of $35.3 billionc as of December 31, 2024, providing a strong foundation for future growth and continued capital deployment, including opportunistic share repurchases and dividend increases.
02—Key points
Key Highlights
- Net sales grew 5% year-over-year to $38.5 billion in 2024.
- Aerospace Technologies segment led growth with double-digit increases.
- Deployed $9 billion in capital for four strategic acquisitions to enhance portfolio.
- Announced significant portfolio restructuring: spin-off of Advanced Materials and separation of Automation and Aerospace Technologies into distinct public companies.
- Maintained a strong backlog of $35.3 billion at year-end 2024, indicating robust future demand.
- Increased quarterly dividend by 5% and continued opportunistic share repurchases.
- Operating cash flow was $6.1 billion, demonstrating strong cash generation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Honeywell International kept $0.16.
- Revenue$34.72B100.0%
- Cost of revenue−$21.36B61.5%
- Gross profit$13.36B38.5%
- Operating costs−$5.69B16.4%
- Operating income$7.67B22.1%
- Interest, other & tax−$1.96B5.7%
- Net income$5.71B16.4%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 14, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $34.72B$33.01B | +5.2% |
| Cost of Revenue | $21.36B$20.64B | +3.5% |
| Gross Profit | $13.36B$12.37B | +8.0% |
| R&D Expenses | $1.45B$1.38B | +5.7% |
| SG&A Expenses | $5.24B$4.89B | +7.1% |
| Operating Income | $7.67B$7.56B | +1.4% |
| Net Income | $5.71B$5.66B | +0.8% |
| EPS (Basic) | $8.76$8.53 | +2.7% |
| EPS (Diluted) | $8.71$8.47 | +2.8% |
| Shares Outstanding (Basic) | 650.90M663.00M | −1.8% |
| Shares Outstanding (Diluted) | 655.30M668.20M | −1.9% |
05—Questions
Frequently Asked Questions
What were Honeywell's key strategic moves announced in 2024 and early 2025?
In 2024, Honeywell announced the intention to spin off its Advanced Materials business, targeted for completion by the end of 2025 or early 2026. In February 2025, the company further announced its intent to separate its Automation and Aerospace Technologies businesses into independent companies. These strategic actions are designed to create three focused, industry-leading public companies, enhancing strategic clarity and value creation.
How did Honeywell's business segments perform in 2024?
Honeywell's net sales increased by 5% to $38.5 billion in 2024. The Aerospace Technologies segment showed strong performance with double-digit growth. Industrial Automation experienced a 7% decline in net sales, primarily due to lower demand in Warehouse and Workflow Solutions and Sensing and Safety Technologies. Building Automation saw an 8% increase in net sales, driven by Building Solutions and supported by the Access Solutions acquisition. Energy and Sustainability Solutions reported a 3% increase in net sales, primarily due to growth in Advanced Materials.
What is the company's capital allocation strategy and financial outlook?
Honeywell deployed $14.6 billion in capital in 2024 towards capital expenditures, dividends, share repurchases, and acquisitions. The company increased its dividend by 5% and plans to continue repurchasing shares opportunistically. With a backlog of $35.3 billion at the end of 2024, Honeywell is well-positioned for sustained capital deployment and future growth.
06—Continue