Honeywell International's global business remains in transition as the manufacturing and technology giant seeks to ride market shifts involving artificial intelligence (AI), automation, aviation and the energy transition.
Among the October 2024 updates to note:
- Financial Results: Honeywell announced weaker-than-expected Q3 revenues and a softer-than-expected sales guidance for Q4 of 2024, MarketWatch reported.
- Sustainability Focus: Honeywell's Energy and Sustainability Solutions business grew 1% on an organic basis in Q3 of 2024 compared to Q3 of 2023.
- Partnerships: Cisco Systems and Honeywell in August 2024 reinforced their smart building partnership to help customers improve energy efficiency while reducing carbon emissions.
- Pending Spin-Off: The company has been evolving its overall revenue mix. For instance, Honeywell plans to spin off its Advanced Materials business into an independent, U.S. publicly traded company. That spin-off is expected to be completed by the end of 2025 or early 2026.
- Acquisitions: Honeywell continues to acquire businesses. Recent examples include buying Civitanavi, CAES Systems, and Air Products' LNG business.
Honeywell Business Focus, Sustainable Technology Opportunity
The overall Honeywell business remains focused on "three powerful megatrends – automation, the future of aviation and energy transition," the company has repeatedly said.
Among the financial targets to keep in mind: Honeywell expects its Sustainable Technology Business to generate $1 billion in revenues "in the next few years," CEO Vimal Kapur (pictured top of page) told Wall Street analysts during Honeywell's Q4 2023 earnings call.
Fast forward to Q3 of 2024, and Kapur offered this prepared statement in October 2024: "Honeywell executed through a challenging environment in the third quarter, delivering segment margin and adjusted earnings per share above the high end of our guidance."
So what's next? Keep an eye on Cisco Partner Summit 2024, which is scheduled for October 28-30 in Los Angeles. The annual conference typically includes various sustainable IT partner announcements. And Honeywell sometimes participates in those announcements.
