HONEYWELL INTERNATIONAL INC
For the period ended Dec 31, 2024. Filed Feb 14, 2025.
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FY2024 · Filed Feb 14, 2025
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Review of Business Segments
TABLE OF CONTENTS
REVIEW OF BUSINESS SEGMENTS
During the first quarter of 2024, the Company realigned certain of its business units, which impacted the composition of its reportable segments. The Company recast historical periods to reflect this change in segment presentation. See Note 22 Segment Financial Data of Notes to Consolidated Financial Statements for further discussion.
We globally manage our business operations through four reportable business segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions.
AEROSPACE TECHNOLOGIES
| 2024 | 2023 | Change2024vs.2023 | 2022 | Change2023vs.2022 | |
|---|---|---|---|---|---|
| Net sales | $15,458 | $13,624 | 13% | $11,827 | 15% |
| Cost of products and services sold | 9,781 | 8,362 | 7,183 | ||
| Selling, general and administrative and other expenses | 1,689 | 1,502 | 1,397 | ||
| Segment profit | $3,988 | $3,760 | 6% | $3,247 | 16% |
| Factors Contributing to Year-Over-Year Change · 2024 vs. 2023 · 2023 vs. 2022 | ||||
|---|---|---|---|---|
| NetSales · SegmentProfit · NetSales · SegmentProfit | ||||
| Organic1 | 11% | 5% | 15% | 16% |
| Foreign currency translation | —% | —% | —% | —% |
| Acquisitions, divestitures, and other, net | 2% | 1% | —% | —% |
| Total % change | 13% | 6% | 15% | 16% |
| 1 | Organic sales percent change, presented for all of our reportable business segments, is defined as the change in Net sales, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date. We believe this non-GAAP measure is useful to investors and management in understanding the ongoing operations and analysis of ongoing operating trends. |
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Sales increased $1,834 million due to higher organic sales of $907 million in Commercial Aviation Aftermarket driven by higher sales volumes in air transport due to an increase in flight hours and higher organic sales of $772 million in Defense and Space driven by higher sales volumes due to increased shipments. Additionally, the acquisitions of CAES and Civitanavi Systems contributed $332 million to 2024 sales.
During the fourth quarter of 2024, our Commercial Aviation Original Equipment business entered into a strategic agreement with Bombardier (the Agreement) to provide advanced technology for current and future Bombardier aircraft in avionics, propulsion, and satellite communications technologies. Sales and segment profit for the twelve months ended December 31, 2024, decreased by approximately $370 million due to the Agreement.
Segment profit increased $228 million and segment margin percentage decreased 180 basis points to 25.8% compared to 27.6% for the same period of 2023.
On February 6, 2025, the Company announced its intention to separate its Automation and Aerospace Technologies businesses into independent, U.S. publicly traded companies.
INDUSTRIAL AUTOMATION
| 2024 | 2023 | Change2024vs.2023 | 2022 | Change2023vs.2022 | |
|---|---|---|---|---|---|
| Net sales | $10,051 | $10,756 | (7)% | $11,638 | (8)% |
| Cost of products and services sold | 5,880 | 6,379 | 7,230 | ||
| Selling, general and administrative and other expenses | 2,209 | 2,168 | 2,256 | ||
| Segment profit | $1,962 | $2,209 | (11)% | $2,152 | 3% |
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| Factors Contributing to Year-Over-Year Change · 2024 vs. 2023 · 2023 vs. 2022 | ||||
|---|---|---|---|---|
| NetSales · SegmentProfit · NetSales · SegmentProfit | ||||
| Organic | (7)% | (11)% | (8)% | 3% |
| Foreign currency translation | (1)% | (1)% | (1)% | (1)% |
| Acquisitions, divestitures, and other, net | 1% | 1% | 1% | 1% |
| Total % change | (7)% | (11)% | (8)% | 3% |
Sales decreased $705 million due to lower organic sales of $527 million in Warehouse and Workflow Solutions driven by lower demand for projects and lower organic sales of $155 million in Sensing and Safety Technologies driven by lower demand for personal protective equipment.
During the second quarter of 2022, our Productivity Solutions and Services business entered into a license and settlement agreement (the Agreement). Under the Agreement, we received $360 million, paid in equal quarterly installments over eight quarters, beginning with the second quarter of 2022 and ending with the first quarter of 2024. The Agreement provides each party a license to its existing patent portfolio for use by the other party’s existing products and resolved the patent-related litigation between the parties.
Segment profit decreased $247 million and segment margin percentage decreased 100 basis points to 19.5% compared to 20.5% for the same period in 2023.
On November 22, 2024, we announced an agreement to sell our PPE business for $1.3 billion, with the assets and liabilities of the business classified as held for sale until the closing date of the sale. The transaction is expected to be completed in the first half of 2025.
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BUILDING AUTOMATION
| 2024 | 2023 | Change2024vs.2023 | 2022 | Change2023vs.2022 | |
|---|---|---|---|---|---|
| Net sales | $6,540 | $6,031 | 8% | $6,000 | 1% |
| Cost of products and services sold | 3,482 | 3,240 | 3,250 | ||
| Selling, general and administrative and other expenses | 1,377 | 1,262 | 1,286 | ||
| Segment profit | $1,681 | $1,529 | 10% | $1,464 | 4% |
| Factors Contributing to Year-Over-Year Change · 2024 vs. 2023 · 2023 vs. 2022 | ||||
|---|---|---|---|---|
| NetSales · SegmentProfit · NetSales · SegmentProfit | ||||
| Organic | 2% | —% | 2% | 4% |
| Foreign currency translation | (1)% | —% | (1)% | —% |
| Acquisitions, divestitures, and other, net | 7% | 10% | —% | —% |
| Total % change | 8% | 10% | 1% | 4% |
Sales increased $509 million due to higher organic sales of $245 million in Building Solutions driven by higher demand for building projects and services, partially offset by lower organic sales of $124 million in Products driven by lower demand. The acquisition of Access Solutions contributed $424 million to 2024 sales.
Segment profit increased $152 million and segment margin percentage increased 30 basis points to 25.7% compared to 25.4% for the same period of 2023.
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ENERGY AND SUSTAINABILITY SOLUTIONS
| 2024 | 2023 | Change2024vs.2023 | 2022 | Change2023vs.2022 | |
|---|---|---|---|---|---|
| Net sales | $6,425 | $6,239 | 3% | $5,996 | 4% |
| Cost of products and services sold | 4,030 | 3,950 | 3,673 | ||
| Selling, general and administrative and other expenses | 873 | 802 | 768 | ||
| Segment profit | $1,522 | $1,487 | 2% | $1,555 | (4)% |
| Factors Contributing to Year-Over-Year Change · 2024 vs. 2023 · 2023 vs. 2022 | ||||
|---|---|---|---|---|
| NetSales · SegmentProfit · NetSales · SegmentProfit | ||||
| Organic | 2% | —% | 4% | (3)% |
| Foreign currency translation | —% | —% | —% | (1)% |
| Acquisitions, divestitures, and other, net | 1% | 2% | —% | —% |
| Total % change | 3% | 2% | 4% | (4)% |
Sales increased $186 milliondue to higher organic sales of $144 million in Advanced Materials driven by higher demand for fluorine products. Additionally, the acquisition of LNG contributed $64 million to sales in 2024.
Segment profit increased $35 million and segment margin percentage decreased 10 basis points to 23.7% compared to 23.8% for the same period of 2023.
On October 8, 2024, the Company announced its intention to spin off its Advanced Materials business into an independent, U.S. publicly traded company.
CORPORATE AND ALL OTHER
Corporate and All Other primarily includes unallocated corporate costs, interest expense on holding-company debt, and the controlling majority-owned interest in Quantinuum. Corporate and All Other is not a separate reportable business segment as segment reporting criteria is not met. The Company continues to monitor the activities in Corporate and All Other to determine the need for further reportable business segment disaggregation.
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REPOSITIONING CHARGES
See Note 4 Repositioning and Other Charges of Notes to Consolidated Financial Statements for a discussion of our repositioning actions and related charges incurred in 2024, 2023, and 2022. Cash spending related to our repositioning actions was $195 million, $294 million, and $275 million in 2024, 2023, and 2022, respectively, and was funded through operating cash flows.
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