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Yahoo
4 days ago
- Business
- Yahoo
Oversold Honeywell (HON) Could Offer Industrial Strength with Dividend Reliability
Honeywell International Inc. (NASDAQ:HON) is included among the 10 Oversold Dividend Stocks to Buy According to Hedge Funds. A shot of a commercial plane with a blur of color in the background, representing the production of auxiliary power units in the Safety and Productivity Solutions segment. The company has been grabbing investors' attention due to its strong dividend policy and robust balance sheet. In its recently announced earnings for the second quarter of 2025, the company reported revenue of $10.35 billion, which showed an 8.09% growth from the same period last year. The revenue surpassed analysts' estimates by $289.2 million. Honeywell International Inc. (NASDAQ:HON) finalized the $2.2 billion acquisition of Sundyne, announced the £1.8 billion purchase of Johnson Matthey's Catalyst Technologies division, and completed the $1.3 billion sale of its PPE business. Operating income rose by 7%, while segment profit increased by 8% to reach $2.4 billion, driven primarily by growth in the Building Automation segment. Honeywell International Inc. (NASDAQ:HON) reported an operating cash flow of $1.3 billion, and its free cash flow was $1 billion, which showed the company's solid cash position. The company ended the quarter with $10.4 billion available in cash and cash equivalents. HON has raised its payouts for 14 consecutive years and offers a quarterly dividend of $1.13 per share. As of July 25, the stock has a dividend yield of 2.02%. While we acknowledge the potential of HON as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Yahoo
6 days ago
- Business
- Yahoo
HONEYWELL REPORTS SECOND QUARTER RESULTS; UPDATES 2025 GUIDANCE
Sales of $10.4 Billion, Reported Sales Up 8%, Organic1 Sales Up 5%, Exceeding High End of Previous Guidance Earnings Per Share of $2.45 and Adjusted Earnings Per Share1 of $2.75, Exceeding High End of Previous Guidance Company Raises Full-Year Organic Growth and Adjusted Earnings Per Share Guidance Closed $2.2 Billion Acquisition of Sundyne, Announced £1.8 Billion Acquisition of Johnson Matthey's Catalyst Technologies Business, and Completed $1.3 Billion Sale of PPE Business Announced Evaluation of Strategic Alternatives for Productivity Solutions and Services and Warehouse and Workflow Solutions Businesses, Concluding Comprehensive Portfolio Review Initiated in Early 2024 by Chairman and CEO Vimal Kapur Separations Progressing Successfully with Solstice Advanced Materials Spin Date Targeted for Fourth Quarter of 2025 CHARLOTTE, N.C., July 24, 2025 /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced results for the second quarter that met or exceeded the company's guidance. The company also raised its full-year organic growth and adjusted earnings per share guidance ranges and reiterated its free cash flow guidance range. The company reported second-quarter year-over-year sales growth of 8% and organic1 sales growth of 5%, led by double-digit organic sales growth in defense and space and UOP. Operating income increased 7% and segment profit1 increased 8% to $2.4 billion led by growth in Building Automation. Operating margin contracted 30 basis points to 20.4% and segment margin contracted 10 basis points to 22.9%, meeting previous guidance. Earnings per share for the second quarter was $2.45, up 4% year over year, and adjusted earnings per share1 was $2.75, up 10% year over year. Operating cash flow was $1.3 billion, down 4% year over year, and free cash flow1 was $1.0 billion, down 9% year over year. "Honeywell delivered outstanding results in the second quarter with both organic growth and adjusted earnings per share exceeding guidance despite the unpredictable macroeconomic backdrop," said Vimal Kapur, chairman and chief executive officer of Honeywell. "With Building Automation leading the way, three out of four segments grew sales at better than 5% in the quarter, demonstrating the power of our Accelerator operating system to adapt quickly and drive growth even as business conditions change. During the quarter, we also saw promising results from our increased focus on new product innovation, which further supported the growth of our record backlog. In parallel, we continued to take a balanced approach to capital deployment, including selectively pursuing attractive M&A opportunities, such as the bolt-on acquisition of Johnson Matthey's Catalyst Technologies business and the strategic tuck-in of Li-ion Tamer." Kapur added, "With the announcement of our review of strategic alternatives for our Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, this month also marked the conclusion of the in-depth portfolio review that I initiated early in my tenure as CEO to simplify and optimize Honeywell's businesses. As we prepare to separate into three industry-leading public companies, we are confident that our efforts to shape our portfolio have positioned Honeywell to deliver significant value for customers, employees, and shareholders." As a result of the company's second-quarter performance and management's outlook for the remainder of the year, Honeywell updated its full-year sales, segment margin2, and adjusted earnings per share2,3 guidance. Full-year sales are now expected to be $40.8 billion to $41.3 billion with organic1 sales growth in the range of 4% to 5%. Segment margin2 is expected to be in the range of 23.0% to 23.2%, with segment margin2 expansion of 40 to 60 basis points year over year. Adjusted earnings per share2,3 is now expected to be in the range of $10.45 to $10.65, up 20 cents at the midpoint from the prior guidance range. Operating cash flow is still expected to be in the range of $6.7 billion to $7.1 billion, with free cash flow1 in the range of $5.4 billion to $5.8 billion. Excluding the impact of the Bombardier agreement signed in the fourth quarter of 2024, the company expects organic sales growth of 3% to 4%, segment margin down 30 to 10 basis points year over year, and adjusted earnings per share up 1% to 3% year over year. Guidance now includes the impact of the Sundyne acquisition, which closed in June, and the sale of the company's Personal Protective Equipment business, which closed in May. A summary of the company's full-year guidance changes can be found in Table 1. Portfolio Transformation In February, Honeywell announced that its Board of Directors concluded its comprehensive portfolio review and decided to pursue a separation of its Automation and Aerospace businesses. The planned separation, coupled with the previously announced plan to spin advanced materials (now expected in the fourth quarter of 2025), will result in three publicly-listed industry leaders and is intended to be fully completed in the second half of 2026. To oversee the transformation processes, Honeywell formed dedicated separation management offices to ensure that its business leaders remain focused on managing day-to-day operations. During the second quarter, Honeywell continued to optimize its portfolio and judiciously deploy shareholder capital ahead of the planned separation, including repurchasing $1.7 billion of its shares. In May, the company closed the sale of its personal protective equipment business for $1.3 billion, and in July it announced a review of strategic alternatives for its productivity solutions and services and warehouse and workflow solutions businesses. In addition, Honeywell announced the acquisition of Johnson Matthey's Catalyst Technologies business in May for £1.8 billion, closed the acquisition of Sundyne in June for $2.2 billion, and completed the strategic tuck-in acquisition of Li-ion Tamer in July. With these latest transactions, Honeywell has now announced $13.5 billion of acquisitions since December 2023 and exceeded its commitment, unveiled at its 2023 Investor Day, to deploy at least $25 billion toward high-return capital expenditures, dividends, opportunistic share repurchases, and accretive acquisitions through 2025. Second-Quarter Performance Honeywell sales for the second quarter were up 8% year over year on a reported basis and 5% on an organic1 basis year over year. The second-quarter financial results can be found in Tables 2 and 3. Aerospace Technologies sales for the second quarter increased 6% organically1 from the prior year, driven by continued strength in both defense and space and commercial aftermarket. Defense and space grew 13% year over year, aided by an elevated global demand environment. Commercial aftermarket sales increased 7%, led by growth in air transport and ongoing supply chain unlock. Backlog grew 16% from the previous year, supported by strong double-digit growth in orders. Segment margin contracted 170 basis points to 25.5% as commercial excellence and productivity actions were more than offset by cost inflation and the impact of acquisitions. Industrial Automation sales for the second quarter were flat on an organic1 basis. Process solutions increased 1% year over year, led by a return to growth in smart energy. Sensing and safety technologies sales increased 4% year over year, driven by a third consecutive quarter of growth in sensing on sustained demand for healthcare sensors. Sales in warehouse and workflow solutions declined 4% year over year due to timing of large project execution. Productivity solutions and services sales decreased 7% year over year, largely as a result of challenging demand in Europe. Segment margin expanded 20 basis points year over year to 19.2% as productivity actions and commercial excellence more than offset cost pressures. Building Automation sales for the second quarter increased 8% organically year over year. Building products grew 9% with strength across fire, security, and building management systems. Building solutions improved 5% led by growth in the Middle East. Orders grew both year over year and sequentially, led by strength in products. Segment margin expanded 90 basis points from the prior year to 26.2%, driven by volume leverage and benefit from the access solutions acquisition. Energy and Sustainability Solutions sales for the second quarter increased 6% organically year over year. UOP grew 16%, driven by strong petrochemical catalyst shipments, higher licensing sales volumes in gas processing, and strong backlog conversion in sustainability projects. Advanced materials sales increased 1% in the quarter, as strength in specialty chemicals and materials more than offset the continuation of challenging prior year comparisons in fluorine products in the first half of the year. Segment margin contracted 110 basis points to 24.1% as pressure from a customer settlement and cost inflation were partially offset by volume leverage and the margin-accretive LNG acquisition. Conference Call Details Honeywell will discuss its second-quarter results and full-year 2025 guidance during an investor conference call starting at 8:30 a.m. Eastern Daylight Time today. A live webcast of the investor call as well as related presentation materials will be available through the Investor Relations section of the company's website ( A replay of the webcast will be available for 30 days following the presentation. TABLE 1: FULL-YEAR 2025 GUIDANCE2Previous GuidanceCurrent Guidance Sales$39.6B - $40.5B$40.8B - $41.3B Organic1 Growth2% - 5%4% - 5% Segment Margin23.2% - 23.5%23.0% - 23.2% ExpansionUp 60 - 90 bpsUp 40 - 60 bps Adjusted Earnings Per Share3$10.20 - $10.50$10.45 - $10.65 Adjusted Earnings Growth33% - 6%6% - 8% Operating Cash Flow$6.7B - $7.1B$6.7B - $7.1B Free Cash Flow1$5.4B - $5.8B$5.4B - $5.8B TABLE 2: SUMMARY OF HONEYWELL FINANCIAL RESULTS(Dollars in millions, except per share amounts)2Q 20252Q 2024Change Sales$10,352$9,5778 % Organic1 Growth5 % Operating Income$2,114$1,9787 % Operating Income Margin20.4 %20.7 %-30 bps Segment Profit1$2,366$2,1998 % Segment Margin122.9 %23.0 %-10 bps Earnings Per Share$2.45$2.364 % Adjusted Earnings Per Share1$2.75$2.4910 % Operating Cash Flow$1,319$1,371(4 %) Free Cash Flow1$1,016$1,112(9 %) TABLE 3: SUMMARY OF SEGMENT FINANCIAL RESULTS(Dollars in millions)AEROSPACE TECHNOLOGIES2Q 20252Q 2024Change Sales$4,307$3,89111 % Organic1 Growth6 % Segment Profit$1,098$1,0604 % Segment Margin25.5 %27.2 %-170 bps INDUSTRIAL AUTOMATION Sales$2,380$2,506(5 %) Organic1 Growth— % Segment Profit$456$477(4 %) Segment Margin19.2 %19.0 %20 bps BUILDING AUTOMATION Sales$1,826$1,57116 % Organic1 Growth8 % Segment Profit$479$39721 % Segment Margin26.2 %25.3 %90 bps ENERGY AND SUSTAINABILITY SOLUTIONS Sales$1,837$1,60415 % Organic1 Growth6 % Segment Profit$443$4059 % Segment Margin24.1 %25.2 %-110 bps1See additional information at the end of this release regarding non-GAAP financial measures. 2Segment margin and adjusted EPS are non-GAAP financial measures. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment margin or adjusted EPS. We therefore, do not present a guidance range, or a reconciliation to, the nearest GAAP financial measures of operating margin or EPS. 3Adjusted EPS and adjusted EPS V% guidance excludes items identified in the non-GAAP reconciliation of adjusted EPS at the end of this release, and any potential future one-time items that we cannot reliably predict or estimate such as pension mark-to-market. About HoneywellHoneywell is an integrated operating company serving a broad range of industries and geographies around the world. Our business is aligned with three powerful megatrends - automation, the future of aviation, and energy transition - underpinned by our Honeywell Accelerator operating system and Honeywell Connected Enterprise integrated software platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations that help make the world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit Honeywell uses our Investor Relations website, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including statements related to the proposed spin-off of the Company's Advanced Materials business into Solstice Advanced Materials, a standalone, publicly traded company, the proposed separation of Automation and Aerospace Technologies, and the evaluation of strategic alternatives for the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. Forward-looking statements are those that address activities, events, or developments that we or our management intend, expect, project, believe, or anticipate will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control, including Honeywell's current expectations, estimates, and projections regarding the proposed spin-off of the Company's Advanced Materials business into Solstice Advanced Materials, a standalone, publicly traded company, the proposed separation of Automation and Aerospace Technologies, and the evaluation of strategic alternatives for the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements, including the consummation of the spin-off of the Advanced Materials business into Solstice Advanced Materials, the proposed separation of Automation and Aerospace Technologies, and the evaluation of strategic alternatives for the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and the anticipated benefits of each. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as changes in or application of trade and tax laws and policies, including the impacts of tariffs and other trade barriers and restrictions, lower GDP growth or recession in the U.S. or globally, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, which can affect our performance in both the near and long term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K, and our other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time. This release contains financial measures presented on a non-GAAP basis. Honeywell's non-GAAP financial measures used in this release are as follows: Segment profit, on an overall Honeywell basis; Segment profit margin, on an overall Honeywell basis; Organic sales growth; Free cash flow; and Adjusted earnings per share. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures. Honeywell International Inc. Consolidated Statement of Operations (Unaudited) (Dollars in millions, except per share amounts) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Product sales $ 7,119$ 6,477$ 13,764$ 12,740 Service sales 3,2333,1006,4105,942 Net sales 10,3529,57720,17418,682 Costs, expenses and otherCost of products sold 4,5484,2478,7998,282 Cost of services sold 1,7811,6093,5673,157 Total Cost of products and services sold 6,3295,85612,36611,439 Research and development expenses 481382920742 Selling, general and administrative expenses 1,4281,3612,7892,663 Impairment of assets held for sale ——15— Other (income) expense (87)(246)(287)(477) Interest and other financial charges 330250616470 Total costs, expenses and other 8,4817,60316,41914,837 Income before taxes 1,8711,9743,7553,845 Tax expense 302414719810 Net income 1,5691,5603,0363,035 Less: Net income attributable to noncontrolling interest (1)161728 Net income attributable to Honeywell $ 1,570$ 1,544$ 3,019$ 3,007 Earnings per share of common stock - basic $ 2.46$ 2.37$ 4.70$ 4.62 Earnings per share of common stock - assuming dilution $ 2.45$ 2.36$ 4.67$ 4.59 Weighted average number of shares outstanding - basic 637.5650.2642.8651.3 Weighted average number of shares outstanding - assuming dilution 640.9654.2646.3655.5 Honeywell International Inc. Segment Data (Unaudited) (Dollars in millions) Three Months Ended June 30,Six Months Ended June 30, Net sales 2025202420252024 Aerospace Technologies $ 4,307$ 3,891$ 8,479$ 7,560 Industrial Automation 2,3802,5064,7584,984 Building Automation 1,8261,5713,5182,997 Energy and Sustainability Solutions 1,8371,6043,3983,129 Corporate and All Other 252112 Total Net sales $ 10,352$ 9,577$ 20,174$ 18,682 Reconciliation of Segment Profit to Income Before Taxes Three Months Ended June 30,Six Months Ended June 30, Segment profit 2025202420252024 Aerospace Technologies $ 1,098$ 1,060$ 2,197$ 2,095 Industrial Automation 456477880951 Building Automation 479397919747 Energy and Sustainability Solutions 443405789708 Corporate and All Other (110)(140)(161)(208) Total Segment profit 2,3662,1994,6244,293 Interest and other financial charges (330)(250)(616)(470) Interest income1 79110169215 Amortization of acquisition-related intangibles2 (133)(85)(269)(155) Impairment of assets held for sale ——(15)— Stock compensation expense3 (57)(55)(118)(108) Pension ongoing income4 85140240285 Pension mark-to-market expense ——(14)— Other postretirement income4 44810 Repositioning and other charges5,6 (39)(44)(84)(137) Other expense7 (104)(45)(170)(88) Income before taxes $ 1,871$ 1,974$ 3,755$ 3,8451Amounts included in Other (income) expense. 2Amounts included in Cost of products and services sold. 3Amounts included in Selling, general and administrative expenses. 4Amounts included in Cost of products and services sold (service cost component), Selling, general and administrative expenses (service cost component), Research and development expenses (service cost component), and Other (income) expense (non-service cost component). 5Amounts included in Cost of products and services sold, Selling, general and administrative expenses, and Other (income) expense. 6Includes repositioning, asbestos, and environmental expenses. 7Amounts include the other components of Other (income) expense not included within other categories in this reconciliation. Equity income of affiliated companies is included in segment profit. Honeywell International Inc. Consolidated Balance Sheet (Unaudited) (Dollars in millions) June 30, 2025December 31, 2024 ASSETSCurrent assetsCash and cash equivalents $ 10,349$ 10,567 Short-term investments 328386 Accounts receivable, less allowances of $331 and $314, respectively 8,8237,819 Inventories 7,0136,442 Assets held for sale —1,365 Other current assets 1,4541,329 Total current assets 27,96727,908 Investments and long-term receivables 1,4271,394 Property, plant and equipment—net 6,4056,194 Goodwill 23,80421,825 Other intangible assets—net 7,3566,656 Insurance recoveries for asbestos-related liabilities 166171 Deferred income taxes 229238 Other assets 11,06510,810 Total assets $ 78,419$ 75,196 LIABILITIESCurrent liabilitiesAccounts payable $ 7,111$ 6,880 Commercial paper and other short-term borrowings 6,2714,273 Current maturities of long-term debt 741,347 Accrued liabilities 8,1638,348 Liabilities held for sale —408 Total current liabilities 21,61921,256 Long-term debt 30,16725,479 Deferred income taxes 1,8941,787 Postretirement benefit obligations other than pensions 109112 Asbestos-related liabilities 1,2431,325 Other liabilities 6,7336,076 Redeemable noncontrolling interest 77 Shareowners' equity 16,64719,154 Total liabilities, redeemable noncontrolling interest and shareowners' equity $ 78,419$ 75,196 Honeywell International Inc. Consolidated Statement of Cash Flows (Unaudited) (Dollars in millions) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Cash flows from operating activitiesNet income $ 1,569$ 1,560$ 3,036$ 3,035 Less: Net income attributable to noncontrolling interest (1)161728 Net income attributable to Honeywell 1,5701,5443,0193,007 Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activitiesDepreciation 198163372329 Amortization 206146406271 Loss on sale of non-strategic businesses and assets 30—14— Impairment of assets held for sale ——15— Repositioning and other charges 394484137 Net payments for repositioning and other charges (91)(87)(195)(211) Pension and other postretirement income (89)(144)(234)(295) Pension and other postretirement benefit payments (7)(7)(12)(15) Stock compensation expense 5755118108 Deferred income taxes (12)(39)(31)(36) Other (113)(28)(309)(186) Changes in assets and liabilities, net of the effects of acquisitions and divestituresAccounts receivable (494)(202)(918)(149) Inventories (323)63(504)(77) Other current assets (185)(113)(150)(50) Accounts payable 353(42)204(423) Accrued liabilities 553227430(338) Income taxes (373)(209)(393)(253) Net cash provided by operating activities 1,3191,3711,9161,819 Cash flows from investing activitiesCapital expenditures (303)(259)(554)(492) Proceeds from disposals of property, plant and equipment ——23— Increase in investments (330)(230)(681)(468) Decrease in investments 415237753392 (Payments) receipts from settlements of derivative contracts (290)33(415)76 Cash paid for acquisitions, net of cash acquired (2,158)(4,913)(2,163)(4,913) Proceeds from sale of business, net of cash transferred 1,157—1,157— Net cash used for investing activities (1,509)(5,132)(1,880)(5,405) Cash flows from financing activitiesProceeds from issuance of commercial paper and other short-term borrowings 7,0084,77011,8636,993 Payments of commercial paper and other short-term borrowings (6,577)(2,019)(9,990)(4,489) Proceeds from issuance of common stock 5616598309 Proceeds from issuance of long-term debt 3,989—4,0355,710 Payments of long-term debt (1,265)(32)(1,309)(605) Repurchases of common stock (1,702)(529)(3,604)(1,200) Cash dividends paid (747)(743)(1,479)(1,446) Other (3)(10)(35)26 Net cash (used for) provided by financing activities 7591,602(421)5,298 Effect of foreign exchange rate changes on cash and cash equivalents 123(21)167(61) Net (decrease) increase in cash and cash equivalents 692(2,180)(218)1,651 Cash and cash equivalents at beginning of period 9,65711,75610,5677,925 Cash and cash equivalents at end of period $ 10,349$ 9,576$ 10,349$ 9,576 Appendix Non-GAAP Financial Measures The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Honeywell's business. Honeywell International Inc. Reconciliation of Organic Sales Percent Change (Unaudited) Three Months Ended June 30, 2025 HoneywellReported sales percent change 8 % Less: Foreign currency translation — % Less: Acquisitions, divestitures and other, net 3 % Organic sales percent change 5 % Aerospace TechnologiesReported sales percent change 11 % Less: Foreign currency translation — % Less: Acquisitions, divestitures and other, net 5 % Organic sales percent change 6 % Industrial AutomationReported sales percent change (5) % Less: Foreign currency translation 1 % Less: Acquisitions, divestitures and other, net (6) % Organic sales percent change — % Building AutomationReported sales percent change 16 % Less: Foreign currency translation — % Less: Acquisitions, divestitures and other, net 8 % Organic sales percent change 8 % Energy and Sustainability SolutionsReported sales percent change 15 % Less: Foreign currency translation 2 % Less: Acquisitions, divestitures and other, net 7 % Organic sales percent change 6 % We define organic sales percentage as the year-over-year change in reported sales relative to the comparable period, 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 measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. A quantitative reconciliation of reported sales percent change to organic sales percent change has not been provided for the forward-looking measure of organic sales percent change because management cannot reliably predict or estimate, without unreasonable effort, the fluctuations in global currency markets that impact foreign currency translation, nor is it reasonable for management to predict the timing, occurrence and impact of acquisition and divestiture transactions, all of which could significantly impact our reported sales percent change. Honeywell International Inc. Reconciliation of Operating Income to Segment Profit, Calculation of Operating Income and Segment Profit Margins (Unaudited) (Dollars in millions) Three Months Ended June 30,Twelve Months Ended December 31,202520242024 Operating income $ 2,114$ 1,978$ 7,441 Stock compensation expense1 5755194 Repositioning, Other2,3 5458292 Pension and other postretirement service costs4 151665 Amortization of acquisition-related intangibles5 13385415 Acquisition-related costs6 (7)725 Indefinite-lived intangible asset impairment1 ——48 Impairment of assets held for sale ——219 Segment profit $ 2,366$ 2,199$ 8,699 Operating income $ 2,114$ 1,978$ 7,441 ÷ Net sales $ 10,352$ 9,577$ 38,498 Operating income margin % 20.4 %20.7 %19.3 % Segment profit $ 2,366$ 2,199$ 8,699 ÷ Net sales $ 10,352$ 9,577$ 38,498 Segment profit margin % 22.9 %23.0 %22.6 %1Included in Selling, general and administrative expenses. 2Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. 3Included in Cost of products and services sold and Selling, general and administrative expenses. 4Included in Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses. 5Included in Cost of products and services sold. 6Included in Other (income) expense. Includes acquisition-related fair value adjustments to inventory and third-party transaction and integration costs. We define operating income as net sales less total cost of products and services sold, research and development expenses, impairment of assets held for sale, and selling, general and administrative expenses. We define segment profit, on an overall Honeywell basis, as operating income, excluding stock compensation expense, pension and other postretirement service costs, amortization of acquisition-related intangibles, certain acquisition- and divestiture-related costs and impairments, and repositioning and other charges. We define segment profit margin, on an overall Honeywell basis, as segment profit divided by net sales. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. A quantitative reconciliation of operating income to segment profit, on an overall Honeywell basis, has not been provided for all forward-looking measures of segment profit and segment profit margin included herein. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment profit, particularly pension mark-to-market expense as it is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results. To the extent quantitative information becomes available without unreasonable effort in the future, and closer to the period to which the forward-looking measures pertain, a reconciliation of operating income to segment profit will be included within future filings. Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies. Honeywell International Inc. Reconciliation of Earnings per Share to Adjusted Earnings per Share (Unaudited) Three Months Ended June 30,Twelve Months Ended December 31,2025202420242025(E) Earnings per share of common stock - diluted1 $ 2.45$ 2.36$ 8.71$9.62 - $9.82 Pension mark-to-market expense2 ——0.14No Forecast Amortization of acquisition-related intangibles3 0.160.100.490.75 Acquisition-related costs4 —0.030.090.02 Divestiture-related costs5 0.10—0.04No Forecast Russian-related charges6 ——0.03— Indefinite-lived intangible asset impairment7 ——0.06— Impairment of assets held for sale8 ——0.330.02 Loss on sale of business9 0.04——0.04 Adjusted earnings per share of common stock - diluted $ 2.75$ 2.49$ 9.89$10.45 - $10.651For the three months ended June 30, 2025, and 2024, adjusted earnings per share utilizes weighted average shares of approximately 640.9 million and 654.2 million, respectively. For the twelve months ended December 31, 2024, adjusted earnings per share utilizes weighted average shares of approximately 655.3 million. For the twelve months ended December 31, 2025, expected earnings per share utilizes weighted average shares of approximately 643 million. 2For the twelve months ended December 31, 2024, pension mark-to-market expense was $95 million, net of tax benefit of $31 million. 3For the three months ended June 30, 2025, and 2024, acquisition-related intangibles amortization includes approximately $101 million and $66 million, net of tax benefit of approximately $32 million and $19 million, respectively. For the twelve months ended December 31, 2024, acquisition-related intangibles amortization includes $324 million, net of tax benefit of approximately $91 million. For the twelve months ended December 31, 2025, expected acquisition-related intangibles amortization includes approximately $480 million, net of tax benefit of approximately $120 million. 4For the three months ended June 30, 2025, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, was approximately a $1 million benefit, net of tax expense of approximately $1 million. For the three months ended June 30, 2024, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, was approximately $22 million, net of tax benefit of approximately $7 million. For the twelve months ended December 31, 2024, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, was approximately $59 million, net of tax benefit of approximately $16 million. For the twelve months ended December 31, 2025, the expected adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, is approximately $10 million, net of tax benefit of approximately $5 million. 5For the three months ended June 30, 2025, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction and separation costs, was approximately $62 million, net of tax benefit of approximately $19 million. For the twelve months ended December 31, 2024, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction costs, was approximately $23 million, net of tax benefit of approximately $6 million. 6For the twelve months ended December 31, 2024, the adjustment for Russian-related charges was a $17 million expense, without tax benefit, due to the settlement of a contractual dispute with a Russian entity associated with the Company's suspension and wind down activities in Russia. 7For the twelve months ended December 31, 2024, the impairment charge of indefinite-lived intangible assets associated with the personal protective equipment business was $37 million, net of tax benefit of $11 million. 8For the twelve months ended December 31, 2024, the impairment charge of assets held for sale was $219 million, without tax benefit. For the twelve months ended December 31, 2025, the expected impairment charge of assets held for sale is $15 million, without tax benefit. 9For the three months ended June 30, 2025, the adjustment for loss on sale of the personal protective equipment business was $28 million, net of tax benefit of $2 million, due to the loss on sale of the personal protective equipment business. For the twelve months ended December 31, 2025, the expected adjustment for loss on sale of the personal protective equipment business is $28 million, net of tax benefit of $2 million, due to the loss on sale of the personal protective equipment business. We define adjusted earnings per share as diluted earnings per share adjusted to exclude various charges as listed above. We believe adjusted earnings per share is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. For forward-looking information, management cannot reliably predict or estimate, without unreasonable effort, the pension mark-to-market expense or the divestiture-related costs. The pension mark-to-market expense is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. The divestiture-related costs are subject to detailed development and execution of separation restructuring plans for the announced separation of Automation and Aerospace Technologies. We therefore do not include an estimate for the pension mark-to-market expense or divestiture-related costs. Based on economic and industry conditions, future developments, and other relevant factors, these assumptions are subject to change. Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies. Honeywell International Inc. Reconciliation of Cash Provided by Operating Activities to Free Cash Flow (Unaudited) (Dollars in millions) Three Months Ended June 30, 2025Three Months Ended June 30, 2024 Cash provided by operating activities $ 1,319$ 1,371 Capital expenditures (303)(259) Free cash flow $ 1,016$ 1,112 We define free cash flow as cash provided by operating activities less cash for capital expenditures. We believe that free cash flow is a non-GAAP measure that is useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity. Honeywell International Inc. Reconciliation of Expected Cash Provided by Operating Activities to Expected Free Cash Flow (Unaudited) (Dollars in billions) Twelve Months Ended December 31, 2025(E) Cash provided by operating activities ~$6.7 - $7.1 Capital expenditures ~(1.3) Free cash flow ~$5.4 - $5.8 We define free cash flow as cash provided by operating activities less cash for capital expenditures. We believe that free cash flow is a non-GAAP measure that is useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity. Contacts:Media Investor Relations Stacey Jones Sean Meakim (980) 378-6258 (704) 627-6200 View original content to download multimedia: SOURCE Honeywell Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Johnson Matthey Plc's (LON:JMAT) Stock Is Going Strong: Is the Market Following Fundamentals?
Johnson Matthey's (LON:JMAT) stock is up by a considerable 56% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Specifically, we decided to study Johnson Matthey's ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. How Is ROE Calculated? ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Johnson Matthey is: 16% = UK£373m ÷ UK£2.3b (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. That means that for every £1 worth of shareholders' equity, the company generated £0.16 in profit. See our latest analysis for Johnson Matthey What Has ROE Got To Do With Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. A Side By Side comparison of Johnson Matthey's Earnings Growth And 16% ROE To begin with, Johnson Matthey seems to have a respectable ROE. Especially when compared to the industry average of 6.6% the company's ROE looks pretty impressive. This probably laid the ground for Johnson Matthey's moderate 18% net income growth seen over the past five years. Given that the industry shrunk its earnings at a rate of 1.0% over the last few years, the net income growth of the company is quite impressive. Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is JMAT fairly valued? This infographic on the company's intrinsic value has everything you need to know. Is Johnson Matthey Using Its Retained Earnings Effectively? While Johnson Matthey has a three-year median payout ratio of 53% (which means it retains 47% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow. Besides, Johnson Matthey has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 62%. However, Johnson Matthey's future ROE is expected to decline to 11% despite there being not much change anticipated in the company's payout ratio. Summary On the whole, we feel that Johnson Matthey's performance has been quite good. In particular, its high ROE is quite noteworthy and also the probable explanation behind its considerable earnings growth. Yet, the company is retaining a small portion of its profits. Which means that the company has been able to grow its earnings in spite of it, so that's not too bad. Having said that, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
18-07-2025
- Business
- Business Times
Ultra-rare metal rides AI boom as star performer among commodities
[SINGAPORE] Thanks to the boom in artificial intelligence (AI), an ultra-rare element that you've probably never heard of is one of this year's best-performing raw materials. Ruthenium, a silvery grey mineral, has eclipsed the headline-grabbing rallies in other commodities such as gold and silver by nearly doubling in price over the past year to US$800 an ounce, according to metals refiner Johnson Matthey. That matches its peak in 2021 and is not far off the all-time high of US$870 hit 18 years ago. The platinum group metal is prized for its exceptional hardness, as well as its versatility across electronics, energy storage, and chemicals manufacturing. But it's the AI revolution, particularly in hard disks, that has driven recent gains, according to SFA (Oxford), a critical minerals consultancy. 'As AI rolls out, as data storage requirements increase, you need a technology which is still cheap, cost-effective and can store large quantities of data,' said analyst Sandeep Kaler. She added that technology that leans on other elements is still very expensive, which means demand for ruthenium will keep rising unless cheaper alternatives can be found. The metal is very hard to come by, and it is not traded on any exchanges. Traders are scrambling for any supplies they can get, and even major buyers are having trouble sourcing ruthenium, according to two traders who asked not to be named as the information is not public. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Dwindling production is likely to provide further support to prices. The annual supply of the mineral, which is mostly derived as a byproduct of platinum, was just 30 tonnes last year and is expected to fall due to a lack of investment after many lean years for prices, said Kaler. The market is likely to tip into a deficit next year, where demand outstrips supply, she added. But the amounts used are minuscule. In hard disk drives, ruthenium allows for greater density of data and appears as a film less than a nanometre thick. Growth in cloud computing is set to raise hard disk sales by 16 per cent this year, according to figures from International Data cited by Bloomberg Intelligence. This, in turn, will fuel ruthenium consumption. BLOOMBERG
Business Times
18-07-2025
- Business
- Business Times
Ultra-rare metal rides AI boom as commodities star performer
[SINGAPORE] Thanks to the boom in artificial intelligence (AI), an ultra-rare element you have probably never heard of is one of this year's best-performing raw materials. Ruthenium, a silvery grey mineral, has eclipsed the headline-grabbing rallies in other commodities such as gold and silver by nearly doubling in price over the past year to US$800 an ounce, according to metals refiner Johnson Matthey. That matches its peak in 2021 and is not far off the all-time high of US$870 hit 18 years ago. The platinum group metal is prized for its exceptional hardness, and versatility across electronics, energy storage, and chemicals manufacturing. But it's the AI revolution, particularly in hard disks, that's driven recent gains, according to SFA (Oxford), a critical minerals consultancy. 'As AI rolls out, as data storage requirements increase, you need a technology which is still cheap, cost-effective and can store large quantities of data,' said analyst Sandeep Kaler. Technology that leans on other elements is still very expensive, which means demand for ruthenium will keep rising unless cheaper alternatives can be found, she said. The metal is very hard to come by, and it's not traded on any exchanges. Traders are scrambling for any supplies they can get, and even major buyers are having trouble sourcing ruthenium, according to two traders who asked not to be named as the information is not public. Dwindling production is likely to provide further support to prices. The annual supply of the mineral, which is mostly derived as a byproduct of platinum, was just 30 tonnes last year, and is expected to fall due to a lack of investment after many lean years for prices, said Kaler. The market is likely to tip into a deficit next year, where demand outstrips supply, she said. But the amounts used are minuscule. In hard disk drives, ruthenium allows for greater density of data and appears as a film less than a nanometre thick. Growth in cloud computing is set to raise hard disk sales by 16 per cent this year, according to figures from International Data cited by Bloomberg Intelligence, which will in turn fuel ruthenium consumption. BLOOMBERG
