Honeywell, a global technology and manufacturing company, has announced its fourth quarter and full year 2024 results, highlighting a strong performance. The company reported fourth quarter sales of $10.1 billion, representing a 7% increase year-over-year, with organic sales up 2%. Fourth quarter earnings per share were $1.96, exceeding previous guidance, and adjusted earnings per share stood at $2.47, also surpassing previous guidance.
For the full year, sales increased by 5%, and 3% organically (or 4% organically excluding certain impacts), exceeding previous guidance. Operating income grew by 5%, and operating margin remained flat, while segment profit grew by 1% (or 6% excluding certain impacts), with segment margin contraction of 90 basis points (or 20 basis points excluding certain impacts).
Looking ahead to 2025, Honeywell expects adjusted earnings per share to be in the range of $10.10 to $10.50, representing a 2% to 6% increase. The company also anticipates sales of $39.6 billion to $40.6 billion with organic sales growth in the range of 2% to 5%. Operating cash flow is expected to be in the range of $6.7 billion to $7.1 billion, with free cash flow estimated at $5.4 billion to $5.8 billion.
Honeywell's board of directors has decided to pursue a separation of its automation and aerospace businesses, with the planned separation intended to be completed in the second half of 2026 in a manner that is tax-free to Honeywell shareholders.
In terms of segment performance, aerospace technologies sales for the fourth quarter increased 1% on an organic basis year over year, or 11% excluding certain impacts. Industrial automation sales were flat on an organic basis year over year for the fourth quarter, while building automation sales for the same period were up 8% organically year over year.
Honeywell's CEO, Vimal Kapur, expressed confidence in the company's portfolio optimization strategy, operational excellence, and installed base, emphasizing the potential for further value creation for shareholders, customers, and employees.
The company has also announced a comprehensive business portfolio evaluation, with plans to separate automation and aerospace technologies, aiming to create three publicly listed industry leaders with distinct strategies and growth drivers.
These results and strategic decisions underscore Honeywell’s commitment to delivering value and driving growth as it continues to navigate a dynamic operating environment and pursue opportunities for future success. Following these announcements, the company's shares moved -5.3%, and are now trading at a price of $210.63. If you want to know more, read the company's complete 8-K report here.
