Honeywell International Inc.
Honeywell International Inc. engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the United States, Europe, and internationally. The company's Aerospace Technologies segment offers auxiliary power units, propulsion engines, integrated avionics, connectivity services, electric power systems, management and technical services, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; thermal systems; and spare parts; repair, overhaul, and maintenance services. Its Industrial Automation segment provides automation control and instrumentation products and services; smart energy products; sensing technologies with custom-engineered sensors and services; gas detection technologies and personal protective equipment; and system design automation equipment, as well as software and analytics for manufacturing, distribution, and fulfillment operations. Its Building Automation segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrade of systems. The company's Energy and Sustainability Solutions segment, through its UOP business, delivers licensed process technology, equipment, engineering, catalysts, adsorbents, and services for refining, petrochemicals, low-carbon energy, gas and LNG, and industrial solutions; as well as connectivity, data integration and software solutions. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.
What does it do?
Honeywell is a massive American company that makes the systems keeping modern life running behind the scenes. Think of the cockpit controls in a Boeing jet, the thermostats and fire alarms in a skyscraper, or the sensors inside an oil refinery — Honeywell likely made them. They also build software to help factories run more efficiently and are developing technology to capture carbon emissions. If it involves making a building, plane, or industrial facility safer and smarter, Honeywell probably has a product for it.
Honeywell sits at the intersection of two massive spending waves right now: the global push to upgrade aging industrial infrastructure and the race to make buildings and factories more energy-efficient. Airlines are ordering record numbers of new aircraft, which drives demand for Honeywell's aerospace components and services. At the same time, governments and corporations are spending heavily on sustainability upgrades, and Honeywell sells the equipment that makes those upgrades possible.
How does it make money?
Honeywell pulls in $37.4 billion a year across four main divisions. Aerospace Technologies — think jet engine parts, avionics, and cockpit systems — is the biggest earner and benefits from long-term service contracts that keep cash flowing for decades after a sale. Industrial Automation sells sensors, control systems, and software to factories and warehouses. Building Automation handles the HVAC, security, and fire systems in commercial buildings. Energy and Sustainable Solutions sells technology for cleaner energy production and carbon capture. Revenue dipped slightly from $38.5B the prior year, partly due to businesses being spun off.
Why do investors care?
Investors like Honeywell because it sells essential, hard-to-replace equipment and then earns steady recurring revenue servicing it for years — that's a very durable business model. The growth story hinges on three things going right: a continued aerospace upcycle as airlines modernize fleets, industrial companies investing in automation to cut labor costs, and governments funding green energy infrastructure. Activist investor Elliott Management took a large stake in 2024 and pushed for a breakup of the company into focused businesses, which could unlock hidden value for shareholders. Honeywell has already announced plans to spin off its Advanced Materials division, signaling that leaner, more focused businesses may be coming.
Deep Dive
MemberA full investor briefing on Honeywell International Inc. — history, leadership, risks, and outlook.