Honeywell International (HON) Q4 2024 earnings summary

Executive summary

• Exceeded or met high end of guidance for organic sales and adjusted earnings growth in Q4 2024, with orders growth in all four segments and sales reaching $10.1B, up 7% year-over-year.

• Deployed $14.6B in capital in 2024, including $8.9B–$9B for four acquisitions, and executed planned spin-off of Advanced Materials and sale of PPE business.

• Announced plan to separate Automation and Aerospace, resulting in three standalone public companies by 2H 2026.

• 2025 outlook reflects cautious optimism amid macroeconomic and geopolitical uncertainty, with growth led by Aerospace and Building Automation.

• Backlog increased 11% to a record $35.3B despite macroeconomic challenges.

Financial highlights

• FY 2024 organic sales up 3% (4% ex-Bombardier); Q4 organic sales up 2% (6% ex-Bombardier).

• FY 2024 adjusted EPS $9.89 ($10.34 ex-Bombardier), up 4% (9% ex-Bombardier); Q4 adjusted EPS $2.47 ($2.93 ex-Bombardier).

• Full-year 2024 free cash flow $4.9B ($5.5B ex-Bombardier), at high end of guidance.

• Segment margin for FY 2024 at 23.3% (down 90 bps YoY), with margin expansion in Building Automation.

• Record backlog of $35.3B, up 11% YoY.

Outlook and guidance

• 2025 sales guidance: $39.6–$40.6B, organic growth 2–5% (1–4% ex-Bombardier).

• 2025 adjusted EPS guidance: $10.10–$10.50, up 2–6% YoY (down 2% to up 2% ex-Bombardier).

• Free cash flow expected at $5.4–$5.8B, down 2% to up 5% ex-Bombardier.

• Segment margin expected up 60–100 bps to 23.2–23.6%; Automation to lead margin expansion.

• Guidance assumes no recovery in short-cycle demand and no impact from new tariffs; PPE sale expected mid-2025.