Honeywell International Inc.

What does it do?

Honeywell is a giant industrial company that makes the systems keeping modern life running behind the scenes. Think about the cockpit controls in a Boeing jet, the thermostat system in a large office building, or the safety sensors in an oil refinery — Honeywell likely made those. They operate across four big areas: aerospace technology, factory automation, building controls, and clean energy solutions. If you've ever flown on a commercial plane or worked in a large modern building, you've almost certainly used something Honeywell built.

How does it make money?

Honeywell generated $37.4 billion in revenue in its latest full year, down slightly from $38.5 billion the prior year, which is worth watching. The money comes from four segments: Aerospace Technologies (things like cockpit systems, engines, and avionics for commercial and defense aircraft), Industrial Automation (sensors, software, and controls for factories and warehouses), Building Automation (HVAC controls, fire safety, and security systems for large buildings), and Energy and Sustainable Solutions (technologies that help refineries and chemical plants run cleaner and more efficiently). Crucially, a large portion of Honeywell's revenue is recurring — once a customer installs their systems, they keep paying for software, maintenance, and upgrades, which creates steady, predictable income.

Why do investors care?

The core investment idea is that Honeywell is a high-quality business being undervalued because it's too big and too spread across different industries — and activists are pushing for change. Elliott Investment Management, a powerful activist hedge fund, took a large stake in late 2024 and publicly argued Honeywell should break itself up into focused companies, similar to what GE did successfully. Honeywell responded by announcing plans to spin off its Advanced Materials business and explore separating aerospace from its automation businesses. If those spin-offs unlock hidden value, investors who buy now could benefit. The growth story also depends on a continued global rebound in commercial aerospace, rising defense budgets, and accelerating industrial automation spending.